Key insights and market outlook
The Nusantara Capital City Authority (OIKN) has responded to the Constitutional Court's decision to cancel 190-year land rights for investors in the new capital city. OIKN will coordinate with relevant ministries to align technical regulations with the court's ruling while maintaining that investor interest remains high. The authority is preparing various fiscal incentives to support business development in the new capital.
The Nusantara Capital City Authority (OIKN) has officially responded to the recent Constitutional Court (MK) ruling that canceled the 190-year land rights previously granted to investors in the new capital city. OIKN spokesperson Troy Pantouw stated that the authority will respect and comply with the court's decision. To implement this ruling, OIKN will coordinate with the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) and other relevant institutions to align technical regulations on the ground.
Despite the court's ruling, OIKN emphasized that investor interest in the new capital remains high. The government has been preparing various fiscal incentives to support business development in the Nusantara Capital City. Troy highlighted that these incentives are part of a comprehensive strategy to maintain robust investment in the region. The authority is working closely with various stakeholders to ensure the successful implementation of these measures.
OIKN, in collaboration with various ministries, agencies, and private sector partners, is continuing with the development of infrastructure and supporting facilities in the new capital. A key target is to complete the legislative and judicial ecosystems by 2028, as mandated by President Prabowo Subianto and in line with Presidential Regulation No. 79 of 2025. This development plan remains a priority despite the recent legal changes regarding land rights.
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