When is the deadline for your company's HGB (construction rights, 30 years, renewable every 20 years)?

In some cases, the deadline is 30 years from the time the industrial park company created the original HGB before division, not from the time your company purchased the land, so please check the deadline written on the HGB certificate. Extensions must be started at least two years before the expiration date. Currently, the HGB extension fee based on Cabinet Order No. 128 of 2015 can be calculated using the following formula.

The real estate tax assessment value determined by the government on January 1st every year (NJOP=Nilai Jual Obyek Pajak)/m2 x land area (m2) x 0.2% + Rp100,000. Therefore, if you own 1 hectare of land with a real estate tax assessment value of 3 million rupiah/m2 at the time of extension, the fee will be approximately 60 million rupiah, so companies that own large amounts of land should be especially careful about their cash flow.

Additionally, the above fees are official fees paid to the land registration office and do not include fees paid to the notary public, so if you are a company with a renewal deadline approaching, we recommend that you consult the notary you are currently using regarding fees.