Indonesia's Trade Minister (Mendag) hopes that the new capital city (IKN) land use rights (HGU) permits, which are divided into two cycles, extend up to 190 years, and have been signed by President Joko Widodo, will make potential investors more willing to invest. Many investors are interested in investing in IKN, but there were no clear regulations regarding land permits. Granting HGU is seen as providing investors with certainty and clarity regarding land conditions when investing. Previously, the situation was unclear, so people did not know how to proceed with construction without any land permits. These regulations have just been finalized and signed by the President. The Chairman of PAN believes that the signing of HGU is aimed at accelerating investment development in IKN, hoping that those interested in building and investing in IKN can realize their investments more quickly. Currently, many investors have started investing in IKN, such as investments in banking, culinary, and hospitality sectors, including banks, hotels, restaurants, and schools. During the construction of these projects, land conditions were unclear; many were already built, especially if they were later granted quite long-term HGU.
He also ensured that the ownership status of the land granted HGU has not changed; the land still belongs to the state. HGU can be extended continuously for 90 years, similar to Singapore. Indonesia can extend it for 20 years each time, but the land still belongs to the state; this is called use rights. Ownership belongs to the Indonesian state. President Joko Widodo allows investors to obtain HGU in IKN for a period of up to 190 years, divided into two cycles, marked by the signing of Presidential Regulation (Perpres) Number 75 of 2024 concerning the Acceleration of Development of the New Capital City (IKN). The Nusantara Capital Authority can provide guarantees for the term of land rights in the first cycle, and OIKN can provide another extension for business actors or investors in the second cycle, as stipulated in the agreement. Specifically for HGU, the first cycle grants a term of up to 95 years, and the second cycle also grants a term of 95 years, so the HGU that can be granted can be up to 190 years.
Indonesia's Trade Minister (Mendag) hopes that the new capital city (IKN) land use rights (HGU) permits, which are divided into two cycles, extend up to 190 years, and have been signed by President Joko Widodo, will make potential investors more willing to invest. Many investors are interested in investing in IKN, but there were no clear regulations regarding land permits. Granting HGU is seen as providing investors with certainty and clarity regarding land conditions when investing. Previously, the situation was unclear, so people did not know how to proceed with construction without any land permits. These regulations have just been finalized and signed by the President. The Chairman of PAN believes that the signing of HGU is aimed at accelerating investment development in IKN, hoping that those interested in building and investing in IKN can realize their investments more quickly. Currently, many investors have started investing in IKN, such as investments in banking, culinary, and hospitality sectors, including banks, hotels, restaurants, and schools. During the construction of these projects, land conditions were unclear; many were already built, especially if they were later granted quite long-term HGU.
He also ensured that the ownership status of the land granted HGU has not changed; the land still belongs to the state. HGU can be extended continuously for 90 years, similar to Singapore. Indonesia can extend it for 20 years each time, but the land still belongs to the state; this is called use rights. Ownership belongs to the Indonesian state. President Joko Widodo allows investors to obtain HGU in IKN for a period of up to 190 years, divided into two cycles, marked by the signing of Presidential Regulation (Perpres) Number 75 of 2024 concerning the Acceleration of Development of the New Capital City (IKN). The Nusantara Capital Authority can provide guarantees for the term of land rights in the first cycle, and OIKN can provide another extension for business actors or investors in the second cycle, as stipulated in the agreement. Specifically for HGU, the first cycle grants a term of up to 95 years, and the second cycle also grants a term of 95 years, so the HGU that can be granted can be up to 190 years.
