Extended land rights for investors
One of the most notable aspects of the new decree is the provision of extended land rights for investors. The regulation grants Hak Guna Usaha (HGU) for up to 190 years, broken down into an initial 95-year period with a possible 95-year renewal based on specific criteria and evaluations. Additionally, it provides Hak Guna Bangunan (HGB) and Hak Pakai (HP) for a maximum of 160 years each, with an initial 80-year period and a possible 80-year renewal. These extended land rights are designed to offer long-term security and stability for investors, making Indonesian real estate a more attractive investment.
Streamlined evaluation process
The decree includes a five-year evaluation process to ensure that the development goals are met and that the land is used appropriately. After the initial granting period, the ministry responsible for rural affairs, as requested by the IKN Authority, will conduct evaluations to assess continued land use, adherence to regulations, and fulfillment of development objectives. This process aims to maintain accountability and ensure that the extended land rights are used effectively to promote the growth of the Nusantara Capital City.
Incentives and simplified business licensing
The new regulation also introduces incentives and simplified business licensing procedures for companies involved in developing essential infrastructure, social services, and commercial facilities within the IKN. These incentives are designed to reduce bureaucratic hurdles and encourage more foreign and domestic investment in the area. By streamlining the business licensing process, the Indonesian government hopes to attract a wider range of investors, thereby accelerating the development of the Nusantara Capital City.
The administration of these incentives and the streamlined licensing process will involve collaboration between the IKN Authority, relevant ministries, and regional governments. This cooperative approach is intended to ensure that the incentives are effectively implemented and that the development of the Nusantara Capital City proceeds smoothly. For foreign property buyers and owners, this means a more transparent and efficient investment process, reducing the complexities often associated with investing in foreign real estate markets.
Foreign investors can now invest in Nusantara
For foreign investors, the extended land rights and simplified procedures represent a significant opportunity to invest in Indonesian real estate with greater security and potential for long-term gains. The incentives and collaborative approach to administering them also suggest a more investor-friendly environment, which is crucial for attracting and retaining foreign investment.
Current property owners in Indonesia can also benefit from the accelerated development and increased demand for high-quality infrastructure and services in the Nusantara Capital City. As the area develops, property values are likely to rise, providing existing owners with potential appreciation for their property investments.
In conclusion, Presidential Regulation No. 75 of 2024 marks a significant step towards transforming the Nusantara Capital City into a thriving hub of activity and investment. For foreign property buyers and owners, this new regulation offers extended land rights, streamlined processes, and attractive incentives, making Indonesian real estate an appealing option for long-term investment.
