Indonesian Political, Business & Finance News

Legal Expert Explains HGB and Inbreng Mechanisms in PTPN Asset Trial

| Source: VIVA Translated from Indonesian | Legal
Legal Expert Explains HGB and Inbreng Mechanisms in PTPN Asset Trial
Image: VIVA

Jakarta, VIVA – The process of granting Hak Guna Bangunan (HGB) rights and the inbreng scheme (capital contribution to a limited liability company in a form other than money) have clear legal foundations.

The obligation to surrender 20% of PT Perkebunan Nusantara (PTPN) land as assets to the state in the conversion of Hak Guna Usaha (HGU) to Hak Guna Bangunan (HGB) still lacks technical guidelines for its implementation.

This statement was made by land law expert and Professor at the Faculty of Law, Universitas Gadjah Mada, Nurhasan Ismail.

He also explained that the provisions in Article 165 of the Minister of Agrarian Affairs and Spatial Planning Regulation (Permen ATR) No. 18 of 2021 are not accompanied by technical guidelines. Therefore, its implementation cannot rely on a single regulation alone.

“The 20% obligation cannot be understood solely from Article 165, as it is not accompanied by details on how and in what manner the surrender should occur. This must be viewed in the context of Presidential Regulation No. 86 of 2018, which was replaced by No. 62 of 2023, regarding agrarian reform,” he said in an official statement on Tuesday, 14 April 2026.

Nurhasan also explained that the conversion of HGU to HGB can be carried out after changes to the regional spatial plan (RTRW) and approval from the relevant ministry.

He distinguished between “granting” and “changing” land rights. Granting of rights occurs if the land has become state land, whereas changing rights happens if rights are still attached.

In the case involving PTPN, Nurhasan emphasised that what is occurring is a granting of rights, not a change, because the HGU has been released beforehand.

He stated this while serving as an expert witness in the trial for alleged corruption in the sale of PTPN assets at the Medan District Court, North Sumatra, on Monday, 13 April 2026.

In addition to Nurhasan, the trial also featured other expert witnesses, namely Yagus Suyadi from Universitas Jayabaya and Professor of Business Law at UGM, Nindyo Pramono. According to Yagus, this case is more appropriately referred to Article 88 of Permen ATR No. 18 of 2021, which regulates the granting of rights.

“The process of applying for HGB on ex-HGU land that has been released and become state land is a legitimate step in accordance with legal provisions,” he said. Meanwhile, Nindyo explained the inbreng mechanism in this case, which is the injection of capital by a legal entity to its subsidiary.

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