Economist Says Right to Cultivate Incentive in IKN Harms Local Residents
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11 August 2023 12:48 WIB
TEMPO.CO, Jakarta - Economist and Public Policy Expert from UPN Veteran Jakarta Achmad Nur Hidayat said that the right to cultivate (HGU) incentive offered to investors in New Capital City (IKN) of Nusantara will potentially harm local residents.
Previously, the government released Government Regulation No. 12 of 2023 on Business Licensing, Ease of Doing Business, and Investment Facilities for Business Players in the State Capital. The regulation provided HGU for investors for up to 95 years, available to be renewed once, bringing the HGU to 190 years in total.
"The increasing duration of HGU may harm the local residents and the environment, with investors shifting their focus from short-term profit to long-term profit," said Achmad in a written statement on Thursday, August 10, 2023.
According to Achmad, the HGU incentive will potentially create an imbalance between investors' profit, environmental sustainability, and economic equity in Indonesia. Even with rigid eligibility criteria, the provision still generates anxiety concerning the lack of supervision on land management.
Achmad believed that the HGU extension should not have been released in a rush. The government should focus its attention to maintain the economic, social, and environmental interest in IKN.
Furthermore, the government should have involved environmental experts, indigenous people, and non-governmental organizations comprehensively to examine the regulation. "To release the HGU extension now seems rash," said Achmad,
The government also ought to boos land management transparency in IKN to avoid violations.
Lastly, the government has to guarantee the balance between short-term profit with long-term sustainability. The regulation in IKN should prioritize public welfare. "Not only the welfare of a small group of people. The government needs to be wise in every decision," he concluded.
RIRI RAHAYU
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