We often get asked the technical processes of how to do things with the National Land Agency in Indonesia, so we have listed the steps below to convert Right of Building (Hak Guna Bangunan or HGB) back to Hak Milik (Freehold)
Visit the BPN office in the area of the property you purchased, submit the required documents at the service counter. Here you also have to fill out an application form which contains the land in questions. The process of HGB to SHM is the same as an extension for HGB, the documents attached include:
- The original HGB certificate whose status will be changed,
- Photocopy of the building permit (IMB) . However, if you change the HGB to SHM without an IMB , you must ask for a letter of introduction to the lurah ( PM1) from the kelurahan stating that the house is used for residence,
- Personal identity ,
- Photocopy of the latest SPPT PBB (Land and Building Tax),
- Application letter to the local Head of Land ,
- Statement letter that does not have more than 5 plots with an area of less than 5000 square meters,
- Pays transaction fees .
How much is the cost of HGB to SHM ?
The amount depends on the NJOP of the lot to be processed. The formula used to calculate is 2% x (NJOP of land – IDR 60 million). Another way is that you can use the services of a PPAT (notary).
In addition to the amount of money that must be spent, many are wondering how long it will take to convert HGB to SHM . For the question of how long it takes for HGB to SHM , several steps are passed through the previous explanation, namely by submitting an ROYA or release of mortgage rights which takes about 5 working days or one week. After that, then can it continue with the upgrading process. The process of issuing the SHM certificate is estimated to be completed a week after processing.