TEMPO.CO, Jakarta - President Joko Widodo or Jokowi spoke up about his decision to grant 190 years of cultivation rights for Nusantara Capital City or IKN project investors. Jokowi said the government aimed to attract the highest number of investors, both foreign and domestic.

"State Budget only covers the construction of the core governmental area and we hope investors will cover the other areas (in Nusantara),” he said before departing for the United Arab Emirates on Tuesday, July 16, 2024. "We want the IKN Authority to be truly empowered to attract as many investments as possible, both foreign and domestic,” he added.

Jokowi inked a new decree on the acceleration of IKN development last week on July 11, 2024. The new regulation consists of 14 articles, with one stipulating the extended period of the right to cultivate in IKN.

Article 9 (2) of Presidential Decree Number 75 of 2024 regulates that the right to cultivate will be granted for up to 190 years over two cycles, 95 years in the first and 95 years in the second cycle.

There has been no foreign investment realization in the new capital project, despite hundreds of Mou and LoI received by the government. Minister of Investment/, Bahlil Lahadalia, revealed on June 11 that there have been only domestic investments in IKN.

The new regulation also rules about the right to build and building use rights for a maximum of 160 years over two cycles, based on evaluation and criteria.

The IKN Authority will conduct an evaluation every 5 years after the first cycle of rights is granted.

Alongside the extended land rights for IKN investors, the government also prepares provisions on compensation for residents affected by the new capital construction. The compensations are given in the form of money, replacement land, settlements, and other forms agreed to by both parties.

DANIEL A. FAJRI

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