190-Year Land Use Rights in Nusantara to Attract Investors, Says Minister Agus
Semarang. Agrarian and Spatial Planning Minister/Head of the National Land Agency, Agus Harimurti Yudhoyono, announced that the new regulation granting land use rights (HGU) for up to 190 years in Indonesia’s new capital, Nusantara (IKN), provides legal certainty for investors. This regulation is specified in Presidential Regulation (Perpres) No. 75 of 2024.
"Investors don’t need to worry too much as the term can be extended. Hopefully, this will give investors more certainty," said Agus at the Central Java Provincial Land Agency Office on Monday.
Agus explained that granting HGU for up to 190 years is a strategic measure to expedite IKN’s development.
"For something new, a special strategy is necessary. We don’t want investment to falter for other reasons," he added.
This extended duration allows investors to establish sustainable investments in IKN.
He pointed out that this differs from the island of Java, especially Jakarta, where the investment system and market are well-established. IKN, as a new investment location, requires various adjustments.
"To ensure speedy and serious investment in IKN, adjustments are necessary. This has led to the special policy regarding investment duration," Agus explained.
President Joko "Jokowi" Widodo signed Presidential Regulation (Perpres) No. 75 of 2024 on the Acceleration of IKN Development, which incentivizes prospective investors in building services and facilities in IKN.
Article 9, Paragraph 2 states that HGU is granted for up to 190 years, provided through two cycles of 95 years each.
Additionally, the government offers building use rights for up to 80 years in the first cycle, renewable for another 80 years in the second cycle, totaling 160 years for building use rights.
All three land rights are provided based on specific criteria and evaluation stages.
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