INDONESIAN President Joko Widodo, better known as Jokowi, recently signed a presidential decree that grants investors certain rights, including land rights of up to 190 years in the Nusantara – Indonesia’s future capital.
The government will grant investors the right to cultivate (HGU) the land for 95 years upon approval.
The land will be evaluated after five years to ensure the rights holder is using it properly and it is still in good condition.
Rights holders will be granted an additional 95 years to cultivate the land once they pass the evaluation, giving them a total period of 190 years.
The recent scheme intends to attract more foreign investors after the US$32 billion mega project encountered construction delays.
Rising sea levels and severe congestion due to overpopulation in Jakarta urged the government to enforce the ambitious plan of relocating and building the new capital of Nusantara from scratch in the middle of Borneo’s jungle in East Kalimantan province.
The government has yet to announce the official inauguration date for the new capital following the construction delays.
