Jakarta. The government will grant land titles that span eight decades for industrial and residential properties in Nusantara, Indonesia’s planned new capital city which lies in East Kalimantan.

“Nusantara will provide [investors] ease of doing business by granting land rights based on its use. We will grant 80-year land titles for residential, commercial, industrial, educational, and religious purposes,” Agrarian and Spatial Planning Minister Hadi Tjahjanto said at the 2023 Indonesia-China Smart Expo in Jakarta on Friday.

The ministry’s data shows the land titles for industrial uses in Nusantara are much longer than the 30-year term that neighboring Singapore offers. However, Singapore’s commercial and residential tenures are valid for a whopping 99 years. Fellow ASEAN member state Singapore is also offering leases of up to 20 years for farmlands.

“Nusantara will give 95-year land titles for farming purposes,” Hadi told the conference.

“This policy aims to expedite the development of Nusantara, which we consider a high-priority project that holds a strategic value for the national economy,” Hadi said.

Indonesia is banking on its capital relocation plan from Jakarta to Nusantara in a bid to put a stop to its Java-centric development. Hadi said that Java accounted for more than half of Indonesia’s gross domestic product (GDP). Java is home to about 57 percent of Indonesia’s population, according to Hadi.

Nusantara authority body’s chief Bambang Susantono told a recent conference that the city had attracted more than 220 letters of intent from potential investors both home and abroad. However, it will take time before these investments can take shape.

"There is a process when it comes to investment. Businesses wish everything to be well-calculated in terms of its profitability, risks, and practicability. Investors are going back and forth for site visits to check the topography,” Bambang said earlier this week.

Read More: Nusantara Popular Among Investors, but Things Take Time: Authority