Govt to Lure Investors with 190-Year Land Rights for IKN

By Editorial Team 27/09/2023
IKN
Summary

The government will extend the land management rights for up to 190 years for the investors of the Nusantara Capital City (IKN) project.

IKN Authority Head Bambang Susantono said that the revision of Law No. 3/2022 on IKN will provide more certainty and security for the investors and the public.

Bambang said that he was waiting for the schedule to discuss the draft revision of the IKN Law at the House of Representatives plenary meeting. “The National Development Planning Agency [Bappenas] will lead this process,” he said at the Katadata Sustainability Action for The Future Economy Forum 2023 on Sept 26.

Bambang explained that the revision of the IKN Law will include a clause for extending the contracts for Cultivation Rights (HGU), Building Use Rights (HGB), and Management Rights (HP). The regulation will set the maximum contract length for HGB and HP at 80 years, which can be renewed for another 80 years.

This means that investors or entrepreneurs can have HGU for up to 190 years and HAT and HP for up to 160 years. “The extension of HGU to 190 years is in accordance with Law No. 6/2023 on Job Creation. It is exactly the same,” Bambang said.

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