Indonesian Trade Minister Zulkifli Hasan expressed optimism that the regulation concerning land use rights (HGU) for up to 190 years in the new capital, Ibu Kota Nusantara (IKN), as stipulated in Presidential Regulation (Perpres) No. 75 of 2024, will attract more investments. Signed by President Joko Widodo on 11 July 2024, this regulation provides legal certainty to investors considering investments in IKN. "There was previously no clarity regarding the land status. How could people build without land? This regulation, signed by the President, will hopefully attract those investors interested in building and investing in IKN, speeding up development," said Zulkifli Hasan, commonly known as Zulhas, in Jakarta on Sunday. Addressing the length of the HGU, which can reach up to 190 years, he emphasized that it is a right to use or manage the land, not ownership. "The HGU can be extended continuously, like in Singapore, which can go up to 90 years. Here, it’s usually 20 years, renewable, but the land remains state property," he explained.
President Joko Widodo signed Perpres No. 75 of 2024 concerning the Acceleration of Development of Ibu Kota Nusantara on 11 July 2024. This regulation, comprising 14 articles, includes provisions on the duration of HGU granted for land management in IKN. Article 9, paragraph 2 of Perpres No. 75/2024 states: "The right to use for a maximum of 95 years through one cycle, and it can be renewed for a second cycle of up to 95 years based on criteria and evaluation stages." Thus, if an HGU applicant in IKN meets the criteria, they could potentially receive HGU from the government for up to 190 years. This regulatory framework is expected to provide the necessary legal assurance to investors, fostering a conducive environment for accelerated development in Indonesia's new capital city
