Minister Of ATR/BPN: As Long As There Are Other Incentives, HGU Cuts Will Not Affect Investments In IKN

JAKARTA - The cutting of the right to use (HGU) period in the Nusantara Capital (IKN) area is considered not to affect investment interests.

Minister of Agrarian and Spatial Planning/Head of the National Land Agency (ATR/BPN) Nusron Wahid said this could be supported by providing a series of incentive packages for investors.

"I am sure it will not be affected. As long as the government will think about providing other incentives, apart from the HGU incentives," said Nusron at the Parliament Complex, Senayan, Jakarta, Monday, November 24.

Nusron said that after the cancellation of the Constitutional Court, his party did not receive any direction to revise Law Number 3 of 2022 concerning the Capital City of the Archipelago (IKN).

At the same time, he also said that the proposal to form a Government Regulation in Lieu of Law (Perppu) to maintain the investment climate of IKN was not needed.

"No need. If it has been decided at the Constitutional Court, right, automatically that," he added.

To note, the Executive Director of the Center for Indonesia Strategic Actions (CISA) Herry Mendrofa said that the decision of the Constitutional Court (MK) to cancel the IKN Land Rights (HAT) for 190 years was an important correction to the construction of the new capital city.

"This decision is important so that the construction of the new capital city continues above the principles of agrarian justice and legal certainty," he said on Sunday, November 23.

According to him, the cancellation of HAT by the Constitutional Court did not necessarily stop the IKN project, but encouraged the government to reorganize regulations. Thus, investors still have confidence in the strategic project.

"Therefore, the fate of IKN in the future is determined by the government's ability to maintain a balance, between investment attraction and constitutional legitimacy," said Herry.

Previously, the Constitutional Court canceled the two-cycle scheme for granting HAT at IKN, which allows land use of up to 190 years for HGU and 160 years for HGB and Use Rights.

The decision granted part of case requests Number 185/PUU-XXII/2024 submitted by Stepanus Febyan Babaro and Ronggo Warsito, related to constitutionality tests of Article 16A paragraph (1), (2), and (3) in Law Number 21 of 2023.

The Court emphasized that the regulation of the two cycles was not in line with the principles of state control over land, thus losing binding legal force.

Thus, the land management mechanism at IKN must again follow national rules by more stringent and measurable evaluation.