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Govt grants Nusantara investors nearly century-long land permits
The President has signed a new regulation that now grants direct leaseholds of up to 95 years in the government's bid to attract private investors to foot around 80 percent of the megaproject's estimated US$35 billion bill.
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Coordinating Political, Legal and Security Affairs Minister Hadi Tjahjanto introduces Garuda Palace during a press event on Aug. 7, 2024, just 10 days before the new presidential palace in Nusantara, East Kalimantan, hosted the 79th Independence Day celebrations. (Antara/Rivan Awal Lingga )
T
he government is offering businesses direct approval of near-century-long land and business rights for investments in the country’s future capital under a new regulation that does away with the need for periodical renewal of such permits.
Prospective investors in Nusantara, the city under development in East Kalimantan, can now apply up front for a 95-year leasehold under a right to cultivate (HGU), which can be subsequently extended for the same tenure following assessment by the Nusantara Capital City (IKN) Authority.
The updated rule aims to streamline licensing and make the megaproject more appealing to private sector investors, many of whom have remained on the fence so far.
“This [change] is a special [measure] to attract investors to [Nusantara],” Public Works and Housing Minister Basuki Hadimuljono said on Tuesday, as quoted by Bisnis.com.
“If you go through the land regime, the process will require [a long time]. If you use this regulation, it will accelerate [the process],” added the minister, who is also acting head of the IKN Authority.
He also emphasized the provision regarding the direct land rights process applied only to the region of Nusantara.
Read also: Firms want direct 95-year land rights in Nusantara as uncertainty persists
