Legal & ownership
HGB (Hak Guna Bangunan)
A title held by legal entities (e.g. PT PMA) giving the right to build on state land for a fixed period, often relevant in structured investments.
HGB (Hak Guna Bangunan) is a “right to build” on land that remains state-owned, usually granted for a defined term and commonly issued to Indonesian companies—including foreign-owned structures such as a PT PMA where permitted.
It is distinct from freehold (Hak Milik) available to Indonesian individuals on certain land classes. In hospitality and larger projects, HGB can appear in layered structures together with operational agreements.
If you encounter HGB in a data room, map who holds the title, the remaining term, and any encumbrances—not just the headline yield.
See also: Knowledge base