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Jokowi under fire for granting nearly 200-year land permits in Nusantara
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This aerial view shows the the future presidential palace in the new capital city of Nusantara, in Penajam Paser Utara, East Kalimantan, on July 11, 2024. The new city is scheduled to begin operating as the country's new political center on Aug. 17, 2024. (AFP/Stringer)
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presidential regulation allowing investors to hold nearly 200-year land permits in the country’s future capital has drawn widespread criticism, with many describing President Joko “Jokowi” Widodo’s regulation as short-sighted and designed simply for the sake of seeing through his megaproject.
Jokowi’s administration has been racing to complete the key construction projects in Nusantara, East Kalimantan, in the hope of relocating the capital there before the outgoing president steps down from office in only four months.
The project carries an overall cost of around Rp 541 trillion (US$35 billion) yet the state will only finance 20 percent of the total expense, putting the financial burden squarely on the private sector’s shoulders.
In the hope of boosting investment in the project, Jokowi signed a regulation last week that allows investors to apply for land right permits, in the form of the right to cultivate (HGU), of up to 190 years.
Prospective investors will need to apply for a first term of 95 years, which could be doubled later following an evaluation by the Nusantara Capital City (IKN) Authority. The evaluation will be conducted after five years, and the authority will assess whether the land is being utilized properly.
A similar mechanism is also in place for the right-to-build (HGB) and right-to-use (hak pakai) permits, which include two 80-year terms.
Read also: Missed construction targets put capital relocation plan in limbo
