Scaffolding and cranes stand on July 11, 2024 at the site of the new presidential palace under construction in Nusantara, slated to be inaugurated as the country's administrative centre during the 79th Independence Day celebrations on Aug 17, 2024. - AFP
JAKARTA: In a bid to lure investment to the Nusantara Capital City (IKN) megaproject in East Kalimantan, President Joko 'Jokowi' Widodo signed on Thursday (July 11) a presidential regulation that grants investors certain rights, including land rights of up to 190 years in the future capital.
The regulation stipulates that the Agrarian and Spatial Planning Ministry can grant investors the right to cultivate (HGU) for 95 years upon approval from the IKN Authority.
The IKN Authority is obligated to evaluate the land after five years to ensure it is in good condition and that the rights holder is utilising it properly.
Contingent on passing the evaluation, authorities can then issue a second HGU for another 95 years for a total period of 190 years.
The new regulation also contains a provision on granting investors the right to build (HGB) for 80 years, which can be extended for another 80 years upon passing the fifth-year evaluation.
The presidential regulation comes as the Jokowi administration is struggling to attract foreign investors to Nusantara.
This has raised concerns about the project’s continuity, especially since 80 per cent of its budget hinges on private sector financing, with the state shouldering just 20 per cent.
Related authorities are racing to complete government buildings and crucial public services in Nusantara so it can host the 79th Independence Day celebrations on Aug 17, 2024, when it is to be inaugurated as the national capital.
Recent delays, however, have forced the outgoing president to postpone a plan to start working from Nusantara in July. - The Jakarta Post/ANN
