Legal Analysis of the Granting of Right to Build (HGB) for the Funeral Business (A Study of PT Nirvana Memorial Nusantara)

Abstract

The Right to Build (Hak Guna Bangunan or HGB) is a form of land tenure granted for a specific period for construction purposes. However, applying HGB in the cemetery business raises legal issues, considering that burial sites are inherently permanent and hold significant social and cultural values. This study analyzes the legal aspects of granting HGB for cemetery businesses, focusing on a case study of PT. Nirvana Memorial Nusantara.

The findings reveal a fundamental mismatch between the temporary nature of HGB and the permanent character of cemeteries, leading to legal uncertainty regarding the sustainability of cemetery businesses. Additionally, existing regulations, such as Peraturan Pemerintah No. 9 of 1987, do not explicitly govern the use of HGB for burial sites, creating a legal loophole that allows corporations to manage cemetery land through mechanisms that may not align with legal provisions. This practice also has significant social implications, particularly concerning potential tenure conflict with civillian and uncertainty regarding the legal status of consumers who have purchased burial plots.

Furthermore, this study finds that land policies in Indonesia increasingly facilitate corporate interests—particularly following the enactment of the Job Creation Law, which limits public participation in decision-making regarding land permits. Therefore, regulatory reforms that are clearer and prioritize the public interest are needed to ensure that the management of burial grounds aligns with the community's social, legal, and cultural values.