Hak Guna Bangunan
Also called HGB, right to build
Hak Guna Bangunan, usually shortened to HGB, is the right to construct and own buildings on land you do not own outright, and it can be held by Indonesian citizens, Indonesian legal entities and foreign-owned PT PMA companies.
HGB separates the building from the land underneath it. You hold the right to build on the land and to own what you build, while the land itself sits under someone else's title or under the state. For a foreign-owned project this is the workhorse title, because a PT PMA can hold it and a foreigner personally cannot hold freehold.
The term is time-limited rather than perpetual. Under the current framework an initial grant runs 30 years, with a 20 year renewal and a further 30 year extension available, which is commonly summarised as up to 80 years in total. Those renewals are a process, not an automatic entitlement, and they have conditions and fees attached.
Because a building permit is issued to the party with the right to build, HGB held by a PT PMA is usually what makes a foreign-owned villa project permittable at all.
Where people get caught
Buyers hear "80 years" and treat it as guaranteed. It is a maximum built from an initial term plus renewals you have to actually apply for and pay for. Check how much of the initial term is already used up on a title you are buying into, because that is the number that matters.
Where this comes up
This is general information, not legal advice. Indonesian property law changes, and how it applies depends on your situation, your visa status and the specific plot. Always take advice from a qualified notaris before you commit money. Last checked 2026-07-30.