M. Faiz Zaki, Jakarta – Hariyadi B.S. Sukamdani, the chair of the Indonesian Hotels and Restaurants Association (PHRI) said the Constitutional Court's decision to cap the 190-year land rights in the Nusantara Capital City (IKN) has not affected PHRI members. No PHRI members have invested in the new capital, he said.
"Everyone is still following the developments. A demand would emerge if it's really bustling, and if so, some parties would be willing to invest," he said when contacted on Saturday, November 15, 2025.
The hotels currently being developed in IKN are not part of PHRI members' investments, he said. Some were interested, but they have yet to confirm the expansion of their business to IKN.
Hariyadi has yet to see any tick in attraction or decline in interest after the court ruling. Despite the previous 190 years of land rights promised at IKN, no members of the hotel association have invested in the new capital just yet.
On the other hand, hotel and restaurant businesses also have no apparent problem with the land use rights outside IKN being granted according to the applicable provisions. As laid out in Agrarian Law Number 5 of 1960, it is limited to 35 years, and extendable once for 25 years.
"It has been running smoothly thus far," he said.
Under the IKN Law, land rights can be granted for at most 95 years, with the chance to extend them once for another 95 years. Thus, the total land tenure could reach 190 years.
But on Thursday, the Constitutional Court partially granted the requests from two indigenous Dayak residents of Sepaku District, East Kalimantan – the area where IKN is being constructed. The length of land use rights could harm local communities that possess ancestral land rights.
The Court deemed that the provision contradicts the 1945 Constitution as it provides an excessively long land tenure and has the potential to reduce the state's control over the land in the IKN area.
"Specific regulations, especially under the constitution, should not contradict the principle of state control and weaken the state sovereignty," said constitutional justice Guntur Hamzah.
– Nandito Putra contributed to the writing of this article.