Understanding the Differences Between SHM, HGB, and HPL: Which is the Safest?

In land matters, the terms Sertifikat Hak Milik (SHM), Hak Guna Bangunan (HGB), and Hak Pengelolaan (HPL) frequently arise, particularly when someone wishes to purchase or manage land. The three are types of land rights regulated and issued by the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), but they possess distinct characteristics. So, what are the differences, and which is the safest? SHM is the highest type of land right in Indonesia’s land law system. The holder of SHM has full rights over that land. SHM has no time limit and can be inherited or transferred to another party. Even the Head of the Public Relations and Protocol Bureau of the Ministry of ATR/BPN, Shamy Ardian, guarantees that a shophouse with land status of Hak Guna Bangunan (HGB) can be upgraded to SHM as long as it meets the applicable requirements and conditions. “A shophouse with HGB status can be upgraded to Hak Milik as long as it fulfils the prevailing provisions,” Shamy stated in his remarks on Thursday (9/4/2026). In contrast to SHM, HGB grants the holder the right to erect and own a building on land that is not their own. HGB has a specific time period, usually a maximum of 30 years and can be extended. This status is widely used by property developers, housing estates, and commercial areas. Although not as strong as SHM, HGB still holds legal force as long as it is valid and can be extended in accordance with the provisions. Hak Pengelolaan (HPL) differs from SHM and HGB. HPL does not grant direct ownership rights, but rather the right to manage land controlled by the state. Typically, HPL is granted to government agencies, State-Owned Enterprises (BUMN), or regional governments. On HPL land, other parties can still obtain derivative rights such as HGB or Hak Pakai (HP). From the perspective of legal strength and ownership, it cannot be denied that SHM is the safest because it is full and unlimited in time. However, this does not mean that HGB and HPL are unsafe. Both remain legally valid as long as they are obtained through proper procedures and are still in effect. Many large business and housing areas are actually built on HGB or HPL. Nevertheless, the most important thing is to ensure that the land status is clear, the certificate is issued legally, and there are no disputes or overlaps.