PUPR Prepares Land Acquisition Strategy to Ignite Investment in Nusantara Capital City

the construction process of the segment 2 Sepaku ring road in the location of the National Capital City (IKN) Nusantara, North Penajam Paser Regency, East Kalimantan, Tuesday (4/10/2022). (ANTARA PHOTOS - Rivan Awal Lingga)

The Ministry of Public Works and Public Housing (PUPR) is currently formulating an innovative land acquisition scheme along with land plots for investors in the remarkable Nusantara Capital City. The comprehensive preparations are expected to reach completion by the end of 2023.

this news is revealed by Danis Hidayat Sumadilaga, the Chairman of the Infrastructure Development Task Force for the Nusantara Capital City.

In their meticulous planning, the focus lies on preparing the land plots within the Core Government Center Area (KIPP) Zones 1C and 1B. The KIPP planning area is divided into three distinct zones: Zone 1A, emphasizing core governmental functions; Zone 1B, encompassing government, education, and housing sectors; and Zone 1C, centering around government, healthcare, and residential purposes.

Danis expressed the significance of the ongoing preparations and the establishment of a task force to expedite the fund allocation for potential investors. He stated, “The process is currently in preparation, and the PUPR is preparing the land plots for Zones 1C and 1B. Insha’Allah, it will be completed by the end of this year,” as reported by journalists on Tuesday (16/5/2023).

Elaborating on the land preparations for investors, Danis highlighted that the Nusantara Authority Agency would be responsible for facilitating the acquisition. Notably, two categories of land status exist within the Nusantara Capital City: land within forest areas and land under management rights (HPL).

The land acquisition process within the Nusantara Capital City employs two mechanisms. Firstly, the release of forest areas is carried out by the Ministry of Environment and Forestry (KLHK), while land acquisition is facilitated through the cooperation of the Ministry of PUPR and the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN).

In this regard, KLHK plays a pivotal role in releasing approximately 36,150.03 hectares of forest areas to the Nusantara Authority Agency, as stated in the Forest Area Release Decree No. 1354/MENLHK/SETJEN/PLA.2/12/2023. Simultaneously, the land acquisition process for KIPP Zone 1A, carried out by the land clearance team (comprising the Ministry of PUPR, ATR/BPN, the Provincial Government of East Kalimantan, and the Nusantara Authority Agency), has progressed with 330 plots, of which 18 have been compensated and 312 are currently undergoing the necessary procedures. Furthermore, 128 plots of land will be released for KIPP Zones 1B and 1C.

Danis added, “These lands are being prepared by the Nusantara Authority Agency based on forests and other usable lands. Some are designated for investment, while others are allocated for infrastructure development.”

To expedite the influx of investments into the Nusantara Capital City, the authorities ensure the prompt completion of land preparation in the designated zones. Danis sets the target for the earliest completion to be September 2023, stating, “At the latest, December 2023, but we aim to accelerate the process, aiming for October or September to expedite investment.”

In previous reports, President Joko Widodo (Jokowi) appointed the Coordinating Minister for Maritime Affairs and Investment (Menko Marves), Luhut Binsar Pandjaitan, as the Chairman of the Task Force for Accelerating Investment Realization in the Nusantara Capital City, East Kalimantan.