Criticism Of Hundreds Of Years Of HGU-HGB At IKN, Former Minister Jokowi: That's Too Much!

Former Minister of National Development Planning/Bappenas Andrinof Chaniago (Photo: Theresia Agatha/VOI)

JAKARTA - The government has issued Presidential Regulation (Perpres) Number 75 of 2024 concerning the Acceleration of Development of the Capital City of the Archipelago or IKN. This regulation was signed by President Joko Widodo (Jokowi) on Thursday, July 11, 2024.

Through Article 9 of Presidential Regulation 75, Jokowi officially gave permission for business rights (HGU) for investors at IKN with a maximum period of up to 190 years.

"Business rights for a maximum period of 95 years through the first cycle and can be given back for one second cycle with a maximum period of 95 years based on the criteria and stages of evaluation," reads Article 9 paragraph 2 (a).

In addition to HGU, building rights or HGB are also given for a maximum period of 80 years through the first cycle. Then, it can be given back through one second cycle with a maximum period of 80 years based on the criteria and stages of evaluation.

Related to this, the former Minister of National Development Planning/Head of Bappenas for the 2014-2015 period who is also the initiator of IKN Andrinof Chaniago criticized the granting of Cultivation Rights (HGU) and Building Use Rights (HGB) which reached hundreds of years for investors in the archipelago.

He considered that the policy had exceeded the predetermined limit.

"Nyasi, nggang investor yang mau menetap tanah Rp50 triliun itu tidak logis. (Pemberian HGU 190 tahun dan HGB 160 tahun juga tidak logik?)). Tidak perlu, itu kebalasan," ujar Andrinof kepada wartawan di Gedung Kementerian PUPR, Jakarta, Rabu, 14 Agustus.

According to him, IKN is actually built as a city that is expected to be a stimulator and catalyst for the regional economy.

Thus, the development of IKN is expected to trigger economic movement in various regions, such as the Maloy Special Economic Zone (SEZ) in East Kutai and Kariangau SEZ in Balikpapan, East Kalimantan.

Therefore, Andrinof considered that the encouragement for entrepreneurs to invest in IKN should be carried out after the construction of the Government Central Core Area (KIPP) was completed by the government, not when the KIPP was carried out. Because, he said, it would be difficult to do.

"That's later. I'll see if the business opportunity automatically appears, new investors will be interested. What I remind you now is impossible, right, investors are coming in now. It's tough," he said.

As for the period of investment arrival, he continued, it could come several years after the construction of the KIPP is completed. It all depends on the future government's efforts in completing the KIPP.

Then, Andrinof said, then further economic activity emerged at IKN. "Yes, from there what I mean will emerge follow-up economic activities. Those who are followed (following), are not created exclusively. So hospitals are relevant, schools are relevant, supermarkets are relevant, recreational parks and entertainment venues and ASN are relevant," he added.