Application for Extension and Renewal of Right to Build: Required Documents and Inspection Process

Discover the essential documents and inspection process for the application of extension or renewal of right to build.

1. The application for extension and/or renewal of HGB is submitted to the Land Office along with the required documents.

2. The required documents include (i) applicant’s data, (ii) land documents, (iii) approval and recommendation, if the land is attached with mortgage rights and/or was issued over HPL, (iv) proof of the implementation of CSR, if the applicant is a legal entity with business related to natural resources, (v) proof of land taxation, and (vi) a statement letter of physical possession, if HGB was issued over state land.

3. The Land Office will re-measure and/or re-arrange the boundaries of the land, if there are changes to the physical conditions or boundaries of the land;

4. If the application is granted, the extension and/or renewal period will start from the previous right’s expiry date.

5. The extension and/or renewal of HGB can be carried out even if the land is in dispute, status quo or court confiscation.

In our previous article, IGNOS explained the provisions that need to be understood in submitting an application for the extension and renewal of the Right to Build (Hak Guna Bangunan “HGB”). Meanwhile, this article provides information on the technical and required document for the application, as well as the process of issuing decree, as regulated under the Minister of Agrarian and Spatial Plan/Head of National Land Agency Regulation No. 18 of 2021 on Procedures for Determination of Management Rights and Land Rights (“MATR Regulation 18/2021”).

The application for extension and/or renewal of HGB is submitted to the Land Office along with the required documents, as follows:

1. Data of the applicant: identity of the applicant or his proxy. If the applicant is a legal entity, then the applicant need to provide the deed of establishment and its legalization, business identification number, or company registration certificate;

2. Land documents: certificate of HGB, information letter on land registration or land service information, and land plot map if re-measurement is carried out;

3. Approval and recommendation: (i) approval from the mortgage right holder, if the land is attached with mortgage rights, and/or (ii) recommendation letter for extension and/or renewal of HGB from the holder of Management Rights (Hak Pengelolaan “HPL”), if the HGB was issued over the HPL land;

4. Condominium: certificate of feasible function, if the condominium is built over the land;

5. Corporate social responsibility (“CSR”): proof of the implementation of the CSR, if the applicant is a legal entity and its business activities are related to natural resources;

6. Tax: proof of land taxation; and

7. Physical posession: statement letter of land physical possession, if the HGB was issued over the state land.

After the application is submitted to the Land Office, the Land Office will carry out a land inspection. If there are changes to the physical conditions or boundaries of the land, the Land Office will re-measure and/or re-arrange the boundaries of the land.

The extension and/or renewal of HGB is still conducted even if the land requested is disputed, in the status quo or court confiscation. However, such extension and/or renewal must be notified to the chief of the local court and the involved disputing parties. In addition, the case records, status quo, or court confiscation must be stated in the decree for the extension and/or renewal of the HGB, and recorded in the land book and its certificate. The case record will be deleted after the court decision has permanent legal force.

The extension and/or renewal shall be effective since the registration of right by the Land Office, and the period shall be counted from the expiry date of the previous right.