Pursuant to the Head of the National Land Office Decree No. 21 of 1994 Regarding The Procedure of Obtaining the Land Title by the Company for Investment, The Right of Cultivation (Hak Guna Usaha/HGU) can be granted for the period of 35 years, provided the land office may provide the guarantee to extend the period of HGU Land for the expired period or renew the period of HGU for the expired of extension period.
The guarantee for extending or renewing the HGU can be provided to the holder of HGU, if the Company has applied the application for extending or renewing the period of HGU at least 2 (two) years before the HGU period or the extension period is expired.
The procedure to extend or renew the period of HGU, as follows:
1. The holder of the HGU shall apply the application for extending or renewing the HGU to the Local Land Office at least 2 (two) years before the HGU period or the extension period is expired. The following requirements shall be attached together with the extension or renewal application:
- The Company’s constitutional documents;
- The approval of Capital Investment Coordinating Board;
- The copy of Certificate of HGU that to be extended or renewed;
- Reference Letter regarding the plantation classification issued by Director General of Plantation stating the feasibility of the use and management of plantation land;
- The payment receipt of Land and Building Tax evidencing full payment.
2. If the land area and/or boundary is different from the information in the land certificate, HGU land shall be re-measured and examined by the Land Examination Committee B (Panitia Pemeriksaan Tanah B) which shall be finished not later than 10 (ten) days since the application is accepted completely.
3. Based on the land examination results by the Land Examination Committee B and/or the konstatering report, the head of local land office will issue the decree stating whether the extension/renewal of HGU Period granted or rejected for the extent HGU Land not later than 5 Ha. This decree shall be issued not later 7 days since the konstatering report or the Land Examination Minute completely made by the konstatering officer or Land Examination Committee B.
4. Relating to the extent land more than 5 Ha, the Head of Local Land Offices does not have authorities to determine whether the extension or renewal the period of HGU is approved to be granted or rejected. Head of the Local Land Offices will send the extension or renewal application and its recommendation to Head of National Land Office. The Head of the National Land Office shall issue the decree whether the extension or renewal of the HGU period is approved to be granted or rejected.
5. The HGU land which is approved to be extended or renewed shall be registered to the Local Land Offices by the holder of HGU Land, including to deliver the following documents:
- Original Decree regarding the extension or renewal of HGU;
- Original administration payment receipt;
- Original land certificate.
6. For the extension of HGU, the data in the original Book Land is changed. Relating to the renewal of HGU, there will be issued the new book land and the original book land will be taken by the Land Office.