Government to Reclaim 605 Hectares of Land with Inactive HGB Status
The Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) has announced that the government will soon reclaim around 605 hectares of land with expired Right to Build (HGB) status in various cities. The land acquisition is intended to support the housing development programme for low-income communities (MBR).
Minister of ATR/Head of BPN, Nusron Wahid, stated that the land originates from HGB titles in urban areas whose validity periods have expired and were not extended by the rights holders. Based on the government’s initial assessment or inventory, this HGB land has an estimated value of up to Rp 21.5 trillion based on the Land Value Zone (ZNT).
The HGB plots are spread across 15 provinces and 120 points, including the Jakarta area. In Jakarta alone, Nusron continued, there are 65 hectares of HGB land to be reclaimed by the government, distributed across approximately 30 locations.
‘It is in 15 provinces, at 120 points. In urban areas. According to our belief, it can be very much used for the construction of flats, meaning vertical decile consumer housing,’ he told reporters on Tuesday (14/7/2026).
Nusron reiterated that the land does not come from active HGB titles. In accordance with Government Regulation (PP) No. 18 of 2021, HGB titles that have expired and are not extended will enter a reorganisation mechanism. After the validity period ends, the hundreds of hectares of HGB land will return to state control to be managed through the Land Bank. The Land Bank will then issue a Right to Manage (HPL) and grant new rights to parties intending to build housing projects.
‘For the purpose of vertical consolidation, or later a business-to-business (B2B) scheme between the Land Bank and private parties wishing to build the housing,’ Nusron added.
Nusron further confirmed that the utilisation of the former HGB land is part of the government’s strategy to reduce the housing backlog through the construction of flats in urban areas or satellite cities in several provinces targeting low-income communities. Several locations for satellite city development have been identified by the government, including North Sumatra, South Sumatra, Lampung, Banten, West Java, Central Java, East Java, West Kalimantan, and South Sulawesi.
‘There are new proposals, but they are still in the verification process. There are three more provinces that have proposed, namely East Kalimantan, South Kalimantan, and West Nusa Tenggara (NTB), but they are still in the proposal stage,’ he concluded.