Jakarta, hitclubapk3 Indonesia
—
Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (ATR/BPN), Nusron Wahid opens his voice regarding the Constitutional Court (
MK
) void the terms of the grant
land use rights
for investors in the National Capital (
IKN
) up to 190 years.
Nusron emphasized that his party together with the IKN Authority (OIKN) and other relevant 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 IKN development,” said Nusron in an official statement, Friday (14/11).
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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 Wahid 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.
“The Constitutional Court’s decision does not hamper 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,” he added.
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.
Last July, the 7th President of the Republic of Indonesia Joko Widodo (Jokowi) officially granted business use rights (HGU) permits for investors in IKN with a maximum term of up to 190 years through Presidential Regulation (Perpres) Number 75 of 2024 concerning the Acceleration of Development of the Archipelago Capital City, which Jokowi signed 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 the investor wants to increase further, the right can be extended for a second cycle for the same period.So the total is 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.
Apart from that, the regulation also regulates the granting of building use rights (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.
Meanwhile, 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.
Meanwhile, Article 9 paragraph 4 regulates that the IKN Authority will carry out an evaluation within five years after the first cycle of rights is granted with several requirements.First, the land is still being cultivated and utilized properly according to the circumstances, nature and purpose of granting rights.
Second, the rights holder still meets the requirements as a rights holder.Third, the conditions for granting rights are fulfilled by the rights holder.Fourth, land use is still in accordance with the spatial plan.Fifth, the land is not indicated as abandoned.
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)
