These rules are regulated by Presidential Regulation (Perpres) Number 75 of 2024, Minister of Agrarian Affairs and Spatial Planning/head of the National Land Agency, Agus Harimurti Yudhoyono (AHY) said in Semarang, Central Java, on Monday.
"We hope this type of certainty can bring assurance to investors," he said.
Certainty to investors can build their confidence in investing in IKN, the minister added.
AHY said that the grant of 190 years of HGU for land in IKN is a strategic step to accelerate IKN development. Moreover, the long duration would allow investors to build the sustainability of their investment in IKN.
President Joko Widodo signed Perpres Number 75 of 2024 concerning the Acceleration of Development of the New Capital City (IKN) to regulate the provision of incentives to potential investors participating in building services and facilities at IKN.
As per Article 9 Paragraph 2 of the regulation, the right to cultivate will be granted for up to 190 years over two cycles — 95 years in the first cycle and 95 years in the second cycle.
"The HGU has a maximum period of 95 years in the first cycle and can be re-granted for another cycle with a maximum period of 95 years based on the criteria and evaluation stage," it states.
Meanwhile, the government will also provide building use rights (HGB) guarantees with a maximum term of 80 years in the first cycle, which could be continued for a second cycle with a maximum term of 80 years, making the total HGB duration 160 years.
The land rights will be granted based on criteria and evaluation stages.
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Translator: Putu Indah S, Resinta Sulistiyandari
Editor: Rahmad Nasution
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