Jokowi Allows Investors to Operate for Up to 95 Years in New Capital City

President Joko Widodo (Jokowi)

Indonesian President Joko Widodo, popularly known as Jokowi, has granted permission for investors to conduct business in the new capital city, Nusantara, for up to 95 years.

This policy is stated in Government Regulation Number 12 of 2023 concerning Business Licenses, Business Facilitation, and Investment Facilities for Business Actors in the Nusantara Capital City, which took effect on March 6, 2023.

According to the regulation, Jokowi has granted permission for investors to conduct business for decades through the granting of a Business Use Right (HGU).

“The HGU period above the Nusantara Capital City Authority’s HPL is given for a maximum of 95 years through one cycle,” wrote Article 18 of PP 12/2023.

The lengthy business cycle for investors is divided into several stages. First, the granting of rights for up to 35 years. Second, the right to extend the period for up to 25 years. Third, the right to renew the period for up to 35 years.

“The HGU granted for the first cycle with a maximum period of 95 years as referred to in paragraph (1) is stipulated in the decision on granting the right and recorded in the HGU certificate,” reads Article 18 paragraph 2 of the regulation.

Furthermore, the extension and renewal of the HGU can be granted after five years of effective use following the purpose of the granted right.

Moreover, within ten years before the end of the first HGU cycle, Business Actors can apply for the re-granting of the HGU for the second cycle with a maximum period of 95 years, in accordance with the previous land use agreement.

Meanwhile, progress on the development of basic infrastructure in Nusantara’s new capital city is expected to be completed this year.

This is in line with President Joko Widodo’s target to hold the Independence Day ceremony on August 17, 2024, in Nusantara.

Deputy for Infrastructure and Facilities of the Nusantara Capital City Authority, Silvia Halim, said that the progress of the construction of the Sepaku Dam has reached 84 percent.

“As a newcomer, I visited there for the first time and saw that it was already done. Honestly, seeing the activities that have already happened is very impressive,” she said in the FMB9 Dialogue with the theme ‘The Spirit of Nusantara Capital City Looking to the Future’ on Monday (3/6/2023).

According to her, in the past few weeks, the Sepaku Dam construction has also reached the final stage and is planned to be completed in April 2023. After that, the preparation of clean water infrastructure will be carried out.

“Not only the dam, but the pipeline network from the Sepaku river has also reached 87 percent,” said Silvia.

This indicates that the basic infrastructure has been built well, including housing for 16,990 civil servants and defense and security personnel.

Currently, 47 towers are being prepared for those who are in priority 1 to be moved.