Shop-House Owners, Get Ready to Become Landowners! Check Out These ATR Regulations

The Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) will enhance the effectiveness of ownership rights for individuals holding land, ensuring that the public is not limited to Building Use Rights (HGB). Head of Public Relations and Protocol Bureau at the Ministry of ATR/BPN, Shamy Ardian, stated that this enhancement is open to the public as long as they meet the requirements stipulated in applicable regulations. “Shop-houses with HGB status can be upgraded to Ownership Rights as long as they comply with the applicable provisions. The key is for the public to ensure the land’s status, spatial allocation suitability, and administrative completeness before submitting an application,” Shamy said in his statement, quoted on Thursday (16/4/2026). HGB itself is the right to erect and own a building on land that is not one’s own for a certain period, although that period can be extended. This means HGB is not permanent. In contrast, Ownership Rights represent full ownership of the land, hereditary in nature, and not time-bound. Therefore, upgrading the status to Ownership Rights can provide stronger legal certainty for the holder. However, not all HGB can be directly upgraded. Shop-houses whose underlying rights can be upgraded must meet certain conditions. Here are the requirements that must be fulfilled if a shop-house wishes to upgrade its ownership rights: 1. The HGB status is still valid; 2. It stands on state land; 3. The land’s allocation is appropriate and not located in areas restricted for granting Ownership Rights; 4. The applicant is an Indonesian citizen (WNI); 5. The shop-house building must comply with provisions, including if used as a residence in accordance with applicable regulations. Conversely, the upgrade cannot be done if the land stands on Management Rights (HPL) that do not allow rights enhancement, the applicant is not an Indonesian citizen, or the land falls into a category with special restrictions. In addition to the above requirements, several administrative conditions must also be met based on Minister of ATR/BPN Regulation Number 18 of 2021. Here are the administrative requirements that must be prepared: 1. Personal identity (ID card); 2. Valid HGB certificate; 3. Building permit documents or building approval; 4. Proof of payment of Acquisition Duty on Land and Buildings (BPHTB) if required. In certain conditions, such as transfers due to inheritance, additional documents like heir certificates are also needed. The entire process and financing follow the applicable official provisions. By understanding the requirements and mechanisms, shop-house owners can take the right steps to upgrade their land rights status. “To ensure eligibility and document completeness, the public is advised to check and consult directly with the local Land Office so that the process runs orderly, transparently, and in accordance with procedures,” he explained.