Constitutional Court Cancels Extended Land Rights for Nusantara Capital Project

Government Reassures Investors Despite Ruling

The Indonesian Constitutional Court has made a significant decision regarding the Nusantara Capital Project (IKN) by canceling the provision that allowed 190-year land rights for investors ¹

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Source 2

https://finance.detik.com/infrastruktur/d-8213407/hak-guna-lahan-ikn-190-tahun-batal-pemerintah-jamin-tak-hambat-investasi

. This provision was part of the Law No. 3/2022 concerning the Nusantara Capital City. The court ruled that the initial arrangement allowing two cycles of land rights (HGU) totaling 95 years, with potential extensions, was unconstitutional.

New Land Rights Framework

Following the court's decision, land rights for investors in the Nusantara Capital will now be governed by national regulations rather than the previously allowed extended periods ¹

. Agrarian and Spatial Planning Minister/National Land Agency (ATR/BPN) Head, Nusron Wahid, stated that the government's position is to respect and implement the court's ruling. The new framework will require land rights to follow standard national practices with clearer evaluation mechanisms.

Government's Assurance on Investment Continuity

Despite the change, the government has provided assurance that this ruling will not negatively impact investment in the Nusantara Capital Project ¹

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Source 2

https://finance.detik.com/infrastruktur/d-8213407/hak-guna-lahan-ikn-190-tahun-batal-pemerintah-jamin-tak-hambat-investasi

. Minister Nusron Wahid emphasized that while the duration of land rights has been adjusted, the legal certainty for businesses remains intact. The government views this decision as an opportunity to create more transparent and accountable land management practices in the development of the new capital city.

Implications for Investors and Development

The ruling means that investors will now need to adapt to the standard land rights regulations applicable nationwide. This includes Hak Guna Usaha (HGU), Hak Guna Bangunan (HGB), and Hak Pakai being granted according to national laws rather than the previously allowed extended cycles. While this may require adjustments in long-term planning for some investors, the government maintains that it will not deter investment.