Heaptalk, Jakarta — Indonesia’s President Joko ‘Jokowi’ Widodo signed the policy of Right to Cultivate (HGU) of up to 190 years for investor who invest their capital in Nusantara Capital (IKN). This regulation is stipulated in President Regulation No. 75 Year 2024 regarding the Acceleration of the Nusantara Capital Establishment.
“Many investors intend to invest in IKN, but they postpone their plan because of the uncertain land status. This is why President Jokowi signed the HGU policy. We hope they do not hesitate anymore to invest in IKN,” conveyed the Minister of Trade Zulkifli ‘Zulhas’ Hasan in an official release on Sunday (07/14).
Although the HGU is extended to 190 years, Zulhas affirmed that the land ownership status has not been moved to the entrepreneurs.
“But, the land ownership is still possessed by Indonesia,” Zulhas added, “HGU can be extended over and over, such as in Singapore, it can be extended of up to 90 years, in Indonesia is every 20 years, but the land ownership is still on us, this is why the policy is called right to use, thus they only can use, but not have it.”
As cited in article 9 HGU regulation, the IKN authority (OIKN) provide guarantee regarding the period of land use in first cycle. Further, OIKN can extension the period on the second cycle to the entrepreneur or investors which according to the agreement. Specifically, the HGU period in the first cycle is 95 years and the second cycle is 95 years. Therefore, the total of HGU period which can be obtained is 190 years.
