Jakarta, hitclubapk3 Indonesia
—
Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (ATR/BPN), Nusron Wahid is confident in the Constitutional Court’s decision (
MK
) void the terms of the grant
land use rights
in the National Capital (
IKN
) up to 190 years will not hinder investment.
The Constitutional Court’s decision emphasized that the granting of land use rights such as Business Use Rights (HGU), Building Use Rights (HGB), and Use Rights in IKN cannot use a two-cycle 95 year scheme, and must again follow national boundaries with a clear and measurable evaluation mechanism.
Nusron said that the Constitutional Court’s decision corrected the issue of land tenure in IKN, not dealing with business certainty for investors.
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“The Constitutional Court’s decision does not hinder investment. What is corrected is the duration of rights, not certainty of business. All processes that are already underway can be continued with adjustments. This is in line with President Prabowo’s vision to maintain a healthy investment climate,” said Nusron in an official statement, Friday (14/11).
He assessed that the Constitutional Court’s decision was in line with the mandate of Article 33 of the 1945 Constitution regarding the principle of state control over natural resources.The Constitutional Court’s decision actually strengthens the state’s position while providing legal certainty for IKN investment and development.
According to him, the decision is consistent with President Prabowo Subianto’s policy direction which emphasizes the development of an IKN that is fair, transparent, modern and still based on the constitution.Nusron is confident that the Constitutional Court’s decision will not hamper investment.
Nusron also believes that the Constitutional Court’s decision is a momentum to strengthen the social function of land, especially the protection of local and indigenous communities.He views the balance between development and social justice as the main principle that the government continues to maintain.
He ensured that the land evaluation, monitoring and governance system at IKN would continue to be strengthened to ensure transparency and accountability.
“President Prabowo pays great attention to the protection of local communities in the development of IKN. With this decision, the state is stronger in ensuring legal certainty as well as social justice,” he added.
The Ministry of ART/BPN, the IKN Authority (OIKN) and other related ministries will immediately coordinate to harmonize regulations and align technical rules.The aim is to ensure that all implementation in the field runs in accordance with the provisions of the Constitutional Court.
“We respect and are ready to fully implement the Constitutional Court’s decision. This is an important basis for strengthening legal certainty, transparency and better land governance in the development of IKN,” he concluded.
Last July, the 7th President of the Republic of Indonesia Joko Widodo (Jokowi) officially granted HGU permits for investors in IKN with a maximum term of up to 190 years.
The permission is stated in Presidential Regulation (Perpres) Number 75 of 2024 concerning the Acceleration of Development of the Archipelago Capital, which was signed by Jokowi on July 11 2024.
Article 9 of the regulation states that HGU grants are given in two cycles.First, the maximum period is 95 years.After the first cycle is complete and investors wish to increase their interest, the HGU can be extended for a second cycle for the same period, bringing the total to 190 years.
“The business use right is for a maximum period of 95 years through the first cycle and can be re-granted for a second cycle with a maximum period of 95 years based on the criteria and evaluation stages,” reads Article 9 paragraph 2a of the regulation.
These regulations also regulate the granting of HGB for a maximum period of 80 years for the first cycle, and can be granted again for the second cycle for a maximum period of 80 years, bringing the total to 160 years.
As for building use rights, it is stated that the longest period is 80 years through the first cycle and can be re-granted through a second cycle with a maximum period of 80 years based on the criteria and evaluation stages.
“The granting of land rights through the first cycle is carried out by the ministry that carries out government affairs in the agrarial land sector based on a request from the Archipelago Capital Authority,” reads paragraph 3 of the same article.
The granting of HGU for up to 190 years is also stated in Article 16A of Law Number 21 of 2023 concerning Amendments to Law Number 3 of 2022 concerning National Capital.
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(pta)
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