Indonesia to offer 80/160-year building (HGB) permits in IKN Nusantara to incentivise investment

Friday, 14 October 2022, 06:00 HKT/SGT

Source: Indonesia Ministry of Agrarian Affairs & Spatial Planning/National Land Agency (ATR/BPN)

JAKARTA, Oct 14, 2022 - (ACN Newswire) - Indonesia's Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) is offering building use permits (HGBs) of up to 80 years, extendable to 160 years, as an incentive for investors to join in the construction of the Indonesian new capital (IKN) Nusantara, to be built in Samarinda, East Kalimantan.

Balang Island Short Span Bridge connecting the IKN in Penajam, North Paser Regency, East Kalimantan (ANTARA/HO-ATR BPN/rst)

Minister of Agrarian & Spatial Planning (ATR) and head of National Land Agency (BPN), Hadi Tjahjanto. (ANTARA/HO-ATR BPN/rst)

"The HGB permits will benefit all parties, both the welfare of those who live in the city, and the business actors themselves," ATR Minister and BPN head Hadi Tjahjanto said to Antara here on Monday. The 80-year HGB will be divided into three stages: the first phase will span 30 years, the second phase 30 years, and the third phase 20 years.

During the first stage, the investor must submit an assessment report, after which the "The permit will continue up to 80 years," said Hadi, and can be extended if it is productive for the community. "If it is still used properly and beneficially for the community, we can still extend it for another 80 years, up to 160 years," the minister informed.

He further said that his ministry has completed four regional spatial planning plans (RDTR) for IKN Nusantara, which will be submitted to the IKN Authority for immediate approval. Furthermore, RDTRs are being prepared for the five regions of IKN Nusantara and are targeted to be completed by the end of 2022.

The ministry will provide facilities related to land, spatial planning, and business licensing in the IKN Nusantara area, which will then be submitted to the IKN Authority. "We will facilitate it, and we will hand it over to the head of the IKN Authority, including RDTR, spatial planning, and land issues. We will help the process," Hadi said.

The IKN Nusantara Authority is preparing a government regulation draft (RPP) on incentives for business, to make it easier to invest in the new capital city, while another measure will be preparing an IKN Authority-owned enterprise (BUMO). The IKN Authority will carry out market sounding of domestic and international investors later in October.

A number of Asian countries have shown interest in the development of the new Indonesian capital (IKN) Nusantara. Japan, China, Malaysia, Australia, Hong Kong, and South Korea have all evinced an interest in investment, East Kalimantan Governor Isran Noor has disclosed.

Earlier this year, President Joko Widodo said, "The new capital city is not merely a move of government offices. The goal is to build a new smart city that is competitive at the global level. Building a new locomotive for the transformation of Indonesia into an Indonesia based on innovation, technology, green economy. This is where we will start."

See the original article: https://en.antaranews.com/news/254193/
Written by: Rini Utami, Aditya Ramadhan, Resinta S, Editor: Suharto (c) ANTARA 2022

Topic: Construction of Facility
Source: Indonesia Ministry of Agrarian Affairs & Spatial Planning/National Land Agency (ATR/BPN)
Sectors: Real Estate & REIT, Construct, Engineering, Government
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