Knowing What HGU Is? State-Owned Lands That Can Be Used For Business

Illustration of land certificate making (Freepic)

YOGYAKARTA - The Right to Use (HGU) is a term contained in the scope of agrarian and land. HGU has been legally regulated in accordance with Law Number 5 of 1960 concerning Agrarian Principles. However, there are still many who do not know what HGU is.

HGU is a form of land and building ownership in the property world. The type of state land that can be given by HGU is land that is included in the production forest category. Ownership of HGU status cannot be used carelessly because it is legally regulated.

A person or business entity can use the type of land in question if they have obtained a permit in the form of a Business Use Right Certificate. So what is HGU and what is the legal basis?

HGU stands for the Right to Use, which is the right within a certain period of time to seek land controlled by the state. This land tenure right is temporary, but it is still required to be registered in the land book at the Land Office.

As contained in Law no. 5 of 1960, the Right to Use Business is given for a period of 35 years. HGU is proof of the rights whose owner or holder of HGU gets a certificate of land rights. Although temporary, HGU ownership is considered a strong right so that the holder can maintain the right to land.

Not all land can be included in the HGU stipulation. The type of state land that can be given by HGU is land in the production forest category. The status of the land can be transferred by HGU holders to be used as plantation, fisheries, and livestock land. Protected and conservation forest land is not included in the HGU.

HGU is given land or land that has an area of at least 5 hectares. If the land area is 25 hectares or more, it must use a decent capital investment and company techniques that are good according to the times. HGU can be transferred and switched to another party.

The legal basis for HGU has been regulated in Government Regulation (PP) Number 40 of 1996 concerning Right to Use Business, Right to Build and Use Rights to Land. The rules regarding HGU are also contained in the Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency Number 7 of 2017 concerning Regulations on Procedures for Stipulation of Business Use Rights.

It has been regulated that those who can have Cultivation Rights are as follows:

The granting of Cultivation Rights is regulated in Article 6 of PP Number 40 of 1996. HGU is given based on the decision to grant rights by the Minister or appointed officials. Procedures and requirements for requesting the granting of HGU are further regulated in the Presidential Decree.

There are several obligations that must be obeyed or obeyed by the HGU holders. The following is the obligation to use the HGU which has been regulated in Article 27 of PP Number 18 of 2021.

That is the review of what HGU is and the legal basis. The status of HGU land cannot be transferred to a Certificate of Ownership (SHM) because land ownership is state property. HGU can be owned as land or place of business.

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