Head Of Authority Ensures There Are No Incentives To Replace Land Rights Cuts At IKN

Head of OIKN Basuki Hadimuljono. (Photo: ANTARA)

It is confirmed that the government has not provided replacement incentives for investors after cutting the validity period of land rights (HAT) in the Capital City of the Archipelago (IKN) area.

Head of the IKN Authority Basuki Hadimuljono said that currently the incentives provided still refer to fiscal incentives from the Minister of Finance (Menkeu).

"We only follow the fiscal incentives from the Minister of Finance, the others do not have regulations," said Basuki when met at the Parliament Complex, Senayan, Jakarta, Tuesday, November 25.

Existing incentives that Basuki intends to be contained in Government Regulation (PP) Number 29 of 2024 concerning Amendments to Government Regulation Number 12 of 2023 concerning Providing Business Licensing, Ease of Doing Business and Investment Facilities for Business Actors in the Capital of the Archipelago, one of which is about tax relief for business actors at IKN.

Basuki also dismissed the issue of many investors withdrawing due to the cuts in the HAT validity period in the new nation's capital.

He said the decision of the Constitutional Court (MK) regarding the cycle of Building Use Rights (HGB), Cultivation Rights (HGU) and Use Rights in IKN did not revoke the rights there, but revised the mechanism.

"So if Law (UU) Number 21 of 2023, for example, HGB one 80 year cycle is given directly. Well, it is revised to 30, 20, 30. It remains one cycle 80 years, but first given 30 years, an extension of 20 years and an update of 30 years," he said.

In fact, according to Basuki, with the issuance of Presidential Regulation (Perpres) Number 79 of 2025 concerning the Updating of Government Work Plans in 2025, investors are increasingly confident in investing in IKN.

"Now there is a Presidential Decree, the President is now in front, I am behind him. My mission is to carry out the President's vision, nothing else," he said.

However, Basuki said, there were no other additional incentives provided as a substitute for the two HAT cycles previously promised to investors.

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.