JakartaPost-July 16, 2024
A presidential regulation allowing investors to hold nearly 200-year land permits in the country’s future capital has drawn widespread criticism, with many describing President Joko “Jokowi” Widodo’s regulation as short-sighted and designed simply for the sake of seeing through his megaproject. Jokowi’s administration has been racing to complete the key construction projects in Nusantara, East Kalimantan, in the hope of relocating the capital there before the outgoing president steps down from office in only four months. The project carries an overall cost of around Rp 541 trillion (US$35 billion) yet the state will only finance 20 percent of the total expense, putting the financial burden squarely on the private sector’s shoulders. In the hope of boosting investment in the project, Jokowi signed a regulation last week that allows investors to apply for land right permits, in the form of the right to cultivate (HGU), of up to 190 years. Prospective investors will need to apply for a first term of 95 years, which could be doubled later following an evaluation by the Nusantara Capital City (IKN) Authority. The evaluation will be conducted after five years, and the authority will assess whether the land is being utilized properly. A similar mechanism is also in place for the right-to-build (HGB) and right-to-use (hak pakai) permits, which include two 80-year terms. The presidential regulation is a follow-up to the 2023 National Capital City (IKN) Law, which also makes way for investors to obtain back-to-back 95-year HGU and 80-year HGB permits, albeit these permits are to be issued in intervals. The country’s private sector admitted previously that such permits would make investing in Nusantara more attractive. The presidential regulation has sparked controversy among critics. Benny Wijaya of the Agrarian Reform Consortium (KPA) said that giving land permits of up to 190 years was unheard of in the country’s history, and that it would adversely impact locals living around Nusantara in the long term, given past instances of land squabbles and forced evictions. Read more at: https://www.thejakartapost.com/indonesia/2024/07/16/critics-slam-nearly-200-year-land-permits-in-nusantara.html.
