Indonesia's new national capital has land operating rights of up to 190 years

Indonesia's Minister of Trade (Mendag) hopes that the two-cycle, 190-year license for the right to operate the new national capital (IKN), which has been signed by President Joko, will make potential investors more willing to invest, as many investors are interested in investing in the IKN but there is a lack of clarity in terms of land licenses. status with certainty and clarity.Previously the situation was not clear so people did not know how to build without any land permit, a few days ago these regulations have just been finalized and signed by the President.According to the General Chairman of PAN, the signing of the HGU is aimed at accelerating the development of investment in IKN, and it is hoped that those who are interested in building and investing in IKN will be able to implement their investments more quickly. A number of investors have already started investing in IKN, such as in the banking, culinary and hospitality sectors, including banks, hotels, restaurants and schools. At the time of building these projects, the status of the land is not clear and many of them have already been built, especially if they are given quite long HGUs afterwards.

He also ensures that the ownership status of the land granted to HGUs remains unchanged and the land is still owned by the state.HGUs can be extended for 90 consecutive years like in Singapore, and in Indonesia they can be extended for 20 years at a time but the land still belongs to the state, which is called the right of use. The ownership belongs to the Indonesian state. President Joko allowed investors to acquire HGUs in IKN for up to 190 years in two cycles, marked by the signing of Presidential Regulation (Perpres) No. 75 of 2024 on the Acceleration of the Development of the New National Capital (IKN).The Nusantara Capital Authority (NCA) can provide a guarantee for the duration of the right to the land in the first cycle, and the OIKN can provide another extension for the second cycle for the commercial participants or investors to provide another extension, which is stipulated in the agreement. Specifically for HGUs, the maximum grant term for the first cycle is 95 years and the second cycle is also 95 years, so that HGUs can be granted for up to 190 years.