Minister Of ATR/BPN AHY Claims IKN HGU Permit Up To 190 Years Gives Investor Certainty

Minister of ATR/BPN Harimurti Yudhoyono (AHY) gave a statement at the Central Java Provincial BPN Regional Office in Semarang, Monday 15 July 2024. ANTARA)

JAKARTA - Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency 9ATR/BPN) Agus Harimurti Yudhoyono said the rules regarding the right to use (HGU) for land in the capital city of Nusantara (IKN) up to 190 years provided legal certainty for investors.

The regulation is enshrined in Presidential Regulation (Perpres) Number 75 of 2024.

"If certainty has been given that you (investors) don't have to worry too much, the term is even longer, then hopefully investors from anywhere will have more certainty," said AHY at the Central Java Provincial BPN Regional Office in Semarang, Central Java, Monday.

According to AHY, it is important to provide certainty to investors so that they are confident in investing in IKN.

The step to grant business rights (HGU) for land in IKN up to 190 years, he said, was a strategic step to accelerate the development of IKN.

"Once again, for something new, there really needs to be a special strategy. Don't let it happen, in the end, the investment will not come for other reasons," said AHY.

According to AHY, this duration allows investors to build their investment sustainability in IKN.

In contrast to the Java island area, especially Jakarta, where the investment system and the market are clear, he said, IKN needs various adjustment steps because of its new investment place.

"To bring the speed of investing and also the seriousness of investing in a new place, in IKN, there needs to be adjustments. That's what ends up being a special policy for IKN, related to the duration of investment," said the eldest son of the 6th President of the Republic of Indonesia Susilo Bambang Yudhoyono.

Indonesian President Joko Widodo signed Presidential Regulation (Perpres) Number 75 of 2024 concerning the Acceleration of Development of the Capital City of the Archipelago (IKN), which generally regulates the provision of incentives for potential investors who participate in building services and facilities at IKN.

In Article 9 paragraph 2, the right of use is given up to 190 years which is given through two cycles or for 95 years in one first cycle and 95 years in the second cycle.

"Business rights for a maximum period of 95 (ninety five) years through the first 1 (one) cycle and can be given back for 1 (one) second cycle with a maximum period of 95 (ninety five) years based on the criteria and stages of evaluation," read Article 9 paragraph 2 in the Presidential Decree, quoted from the Legal Documentation and Information Network page (JDIH) of the Ministry of State Secretariat in Jakarta, Friday (12/7).

Meanwhile, the government also guarantees building use rights with a maximum period of 80 years in the first cycle and can be given back in the second cycle with a maximum period of 80 years, bringing the total to 160 years for HGB.

Building rights are also granted with a maximum period of 80 years in the first cycle and the next 80 years in the second cycle.

The three rights to the land are of course given based on the criteria and stages of evaluation.