The Procedure for HGU Transition

Oct 13, 2025 by thesweetdesigns.com 91 views

Understanding the Transition of Business Use Rights and Transfer of Land Use Functions: A Case Study of PT. Anugerah Tambak Prakasindo and PT. Wang River Plantation

Introduction

The right to use (HGU) is a crucial aspect of land ownership in Indonesia, allowing legal entities or individuals to cultivate state-owned land for a specific period. This right is granted to run agricultural, fisheries, and livestock businesses, as stated in Article 29 of the Land Law (LoGA). HGU is a valuable object of land rights that can be transferred to other parties, making it a significant aspect of land transactions in Indonesia. In this article, we will discuss the transition of business use rights and the transfer of land use functions, using the case of PT. Anugerah Tambak Prakasindo and PT. Wang River Plantation.

The Right to Use (HGU) in Indonesia

The right to use (HGU) is a type of land right that allows individuals or legal entities to cultivate state-owned land for a specific period. This right is granted by the government to run agricultural, fisheries, and livestock businesses. HGU is an object of land rights that has financial value and can be transferred to other parties. The HGU holder has the right to use the land for a specific period, which can be extended or renewed, subject to certain conditions and requirements.

The Transition of HGU: A Case Study

In an interesting case, PT. Anugerah Tambak Prakasindo made a transition to PT. Wang River Plantation, which was accompanied by the conversion of land use. This transition is an example of how land rights can be traded and changed function. The transition of HGU involves a complex process, including the submission of a request by the party holding the HGU, accompanied by permission from the National Land Agency (BPN) and approval from the Regional Government and the Plantation Office.

The Procedure for HGU Transition

The transitional procedure for HGU begins with a submission of a request by the party holding the HGU. This request must be accompanied by permission from the National Land Agency (BPN) and approval from the Regional Government and the Plantation Office. The request must also be accompanied by a special permit from the Land Office. After the HGU transition was approved, PT. Anugerah Tambak Prakasindo is obliged to hand over the promised land to PT. Wang River Plantation.

The Role of Notary and Officials of Land Deed Making (PPAT)

The role of the notary and PPAT in this process is limited to the making of a buying and selling deed as proof of the transition of land rights in a professional and neutral manner. They are not responsible for registering the transition in the Land Office. However, notaries and PPAT have an important role in providing legal education and advice to the public. People who do not understand the transitional procedure of HGU should make an agreement in front of a notary to ensure legal certainty.

Analysis and Recommendations

The transition of HGU and the conversion of the function of land use is a complex process that requires serious attention from all parties involved. It is essential to understand the procedures, requirements, and legal consequences of the process. The active role of related agencies, notaries, and PPAT in providing education and ensuring legal certainty is very important to maintain the smooth and justice in the HGU transition process.

Selectivity of Related Agencies

Related agencies in the process of transferring the function of land use must be more selective in giving permission so that it is not misused. This requires a thorough evaluation of the request and a careful consideration of the potential consequences of the transition.

Important Role of Notary and PPAT

Notary and PPAT have an important role in providing legal education and advice to the public. People who do not understand the transitional procedure of HGU should make an agreement in front of a notary to ensure legal certainty.

Conclusion

Recommendations for Future Research

Future research should focus on the following areas:

The impact of HGU transition on the local community and the environment
The role of notary and PPAT in ensuring legal certainty in HGU transition
The effectiveness of related agencies in providing education and ensuring legal certainty in HGU transition
The potential consequences of HGU transition on the economy and society

Limitations of the Study

This study has several limitations, including:

The case study approach, which may not be representative of all HGU transitions in Indonesia
The lack of data on the impact of HGU transition on the local community and the environment
The limited role of notary and PPAT in ensuring legal certainty in HGU transition

Future Directions

Future research should aim to address the limitations of this study and provide a more comprehensive understanding of the HGU transition process in Indonesia. This can be achieved through a combination of qualitative and quantitative research methods, including case studies, surveys, and interviews.

References

LoGA (Land Law) No. 5 of 1960
BPN (National Land Agency) Regulation No. 5 of 2018
PPAT (Officials of Land Deed Making) Regulation No. 1 of 2019

Appendix

List of abbreviations used in the study
Glossary of terms used in the study
List of references cited in the study
Frequently Asked Questions (FAQs) about the Transition of Business Use Rights and Transfer of Land Use Functions

Q: What is the right to use (HGU) in Indonesia?

A: The right to use (HGU) is a type of land right that allows individuals or legal entities to cultivate state-owned land for a specific period. This right is granted by the government to run agricultural, fisheries, and livestock businesses.

Q: What is the purpose of the HGU transition process?

A: The HGU transition process is used to transfer the right to use (HGU) from one party to another, allowing the new party to cultivate the land for a specific period.

Q: Who is responsible for the HGU transition process?

A: The HGU transition process involves several parties, including the party holding the HGU, the National Land Agency (BPN), the Regional Government, the Plantation Office, and the notary and PPAT.

Q: What are the requirements for the HGU transition process?

A: The HGU transition process requires a submission of a request by the party holding the HGU, accompanied by permission from the National Land Agency (BPN) and approval from the Regional Government and the Plantation Office.

Q: What is the role of the notary and PPAT in the HGU transition process?

A: The notary and PPAT have a limited role in the HGU transition process, which is to make a buying and selling deed as proof of the transition of land rights in a professional and neutral manner.

Q: What are the potential consequences of the HGU transition process?

A: The HGU transition process can have several potential consequences, including the transfer of land rights, the change of land use, and the impact on the local community and the environment.

Q: How can I ensure legal certainty in the HGU transition process?

A: To ensure legal certainty in the HGU transition process, it is recommended to make an agreement in front of a notary, which can provide a clear and binding contract between the parties involved.

Q: What are the benefits of the HGU transition process?

A: The HGU transition process can provide several benefits, including the transfer of land rights, the change of land use, and the potential for economic growth and development.

Q: What are the challenges of the HGU transition process?

A: The HGU transition process can be challenging, particularly in terms of ensuring legal certainty, managing the transfer of land rights, and addressing the potential consequences of the process.

Q: How can I get more information about the HGU transition process?

A: You can get more information about the HGU transition process by contacting the National Land Agency (BPN), the Regional Government, the Plantation Office, or a notary and PPAT.

Q: What are the regulations governing the HGU transition process?

A: The regulations governing the HGU transition process include the LoGA (Land Law) No. 5 of 1960, the BPN (National Land Agency) Regulation No. 5 of 2018, and the PPAT (Officials of Land Deed Making) Regulation No. 1 of 2019.

Q: How can I participate in the HGU transition process?

A: You can participate in the HGU transition process by submitting a request to the National Land Agency (BPN) or the Regional Government, accompanied by the required documents and permits.

Q: What are the potential risks of the HGU transition process?

A: The HGU transition process can involve several potential risks, including the transfer of land rights, the change of land use, and the impact on the local community and the environment.

Q: How can I mitigate the risks of the HGU transition process?

A: To mitigate the risks of the HGU transition process, it is recommended to ensure legal certainty, manage the transfer of land rights, and address the potential consequences of the process.

Q: What are the benefits of working with a notary and PPAT in the HGU transition process?

A: Working with a notary and PPAT can provide several benefits, including ensuring legal certainty, managing the transfer of land rights, and addressing the potential consequences of the process.

Q: How can I find a reputable notary and PPAT to work with in the HGU transition process?

A: You can find a reputable notary and PPAT by contacting the National Land Agency (BPN), the Regional Government, or a professional organization of notaries and PPAT.