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Indonesia readies 1,000 ha of land to build eco-city project near Nusantara

Jakarta Post - June 13, 2024

Yohana Belinda, Jakarta – The government will build an eco-city in North Penajam Paser Regency, East Kalimantan, near the new capital of Nusantara, the Land Bank Authority has said, hoping investors will take an interest in the project.

It is hoped the project, named Penajam Eco City, will serve as a commercial hub and new source of economic growth in the region, particularly due to its proximity to the new capital.

"For this eco-city development, the Land Bank has readied 1,000 hectares of land," Land Bank Authority head Parman Nataatmadja said on Wednesday as quoted from Antara.

The eco-city is also situated near Naratetama Airport, which serves as VVIP transportation infrastructure for Nusantara.

Currently, the land for the eco-city is priced at between Rp 200,000 (US$12.27) and Rp 300,000 per square meter, which the agency expects will rise after the construction of the airport is finished this year.

Investors looking to enter the eco-city project will be granted right to cultivate (HGU) and right-to-build rights (HGB).

According to the 2023 National Capital City Law, holders of both permits could receive up to 95- and 80-year land rights, respectively, obtained in stages.

This was granted as part of the government incentive to encourage investment in Nusantara and its surrounding developmental area.

Investors are also promised years of corporate income tax exemptions, as well as waivers on value-added tax and luxury good tax.

Parman added that Japanese investors had taken an interest in the project, but without elaborating further.

Currently, the Land Bank Authority manages over 4,100 ha, previously owned by PT Triteknik Kalimantan Abadi (TKA) in Penajam Paser Utara regency.

That total includes the 1,000 ha for the Penajam Eco City, 621 ha for Naratetama Airport and protected forest of 507 ha.

The government envisions the Nusantara capital city project will meet the qualifications for what it describes as a "green city" by incorporating the use of renewable energy, efficient power use and mandating use of battery electric vehicles and public transit.

Other efforts include preserving the forest and biodiversity surrounding the project. President Joko "Jokowi" Widodo has inaugurated the Mentawir nursery facility in North Penajam Paser, which the government says will provide millions of seedlings to rehabilitate forest in areas surrounding the new capital.

Seperately, Parman said in May that the agency was ready to roll out the "red carpet" to make it easier for investors willing to enter the project and providing certainty for the legal framework in the area.

Source: https://asianews.network/indonesia-readies-1000-ha-of-land-to-build-eco-city-project-near-nusantara