Riri Rahayu, Jakarta – Indonesian President Joko Widodo or Jokowi issued Presidential Regulation (Perpres) No. 75 of 2024 concerning the Acceleration of Development of the Nusantara Capital City (IKN) on Thursday, July 11, 2024. This decree outlines several key measures to attract investors and expedite the construction process.
A significant aspect of the decree is the provision of extended land rights for investors. Article 9 offers Business Use Rights (Hak Guna Usaha, HGU) for a maximum period of 190 years. This breaks down into a 95-year initial period, with the possibility of a 95-year renewal based on specific criteria and evaluations.
The decree also grants other land rights: Building Use Rights (Hak Guna Bangunan, HGB) for a maximum of 80 years which is renewable for another 80-year cycle, and Papaki Rights for a maximum of 80 years which is renewable for another 80-year cycle.
The process for granting these land rights involves the ministry addressing agrarian affairs as requested by the IKN Authority. After the initial granting period, a five-year evaluation will be conducted to assess factors such as continued land use, adherence to regulations, and fulfillment of development goals.
The decree also allows for incentives and simplified business licensing procedures for companies involved in developing essential infrastructure, social services, and commercial facilities within the IKN. The IKN Authority, relevant ministries, and regional governments will collaborate to administer these incentives as permitted by existing regulations.