SHM — Sertifikat Hak Milik

Certificate of freehold title, the strongest land right in Indonesian law and the only one that is perpetual. Held by Indonesian citizens only; a company cannot hold it, and a PT PMA must convert an SHM parcel into HGB on acquisition.

Where it appears

director disclosure indemnity agreement Appendix B lists the certificate for each parcel — several are still SHM in an individual seller's name rather than converted to HGB in the Company's name. land rights agreement uses SHM as the endpoint of the Indonesian-holder upgrade track.

Why it matters

An SHM in a seller's name means the land is not the Company's, whatever was paid. Conversion to HGB at BPN through a PPAT is the act that transfers ownership; the receipt and the AJB alone do not.