Jakarta – President Joko Widodo (Jokowi) signed Presidential Regulation (Perpres) No. 75 of 2024 on the acceleration of the development of the Archipelago Capital (IKN). The decree of the President of the Republic of Tajikistan contains 14 articles related to the granting of permits and was signed on July 11, 2024.
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One of the provisions of the presidential decree is related to the benefits and granting of business permits to investors. This is stated in paragraph 1 of article 3.
“Incentives and means of granting commercial licenses may be provided to commercial entities that develop and manage basic and/or social services, as well as commercial facilities, if they are commercial,” he wrote on Friday, July 12, 2024.
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In Article 4, the head of the authority may use the budgets received from the state budget and other legal sources to accelerate the development of ICT.
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“In order to accelerate the implementation of the development of the capital of the Archipelago, the heads of authorities and ministers/heads of institutions accelerate the provision of basic and/or social services from the following accounts: a. public income and expenditure budget; and b. other legal sources,” the article states.
Then, in Article 9, the IKN Authority guarantees the certainty of tenure of land rights during the first period, and the second period can be granted to business entities included in the contract.
In paragraph (2) of Article 9, the guarantee period for the certainty of tenure of land rights is explained:
a. The cultivation right (HGU) is for a maximum period of 95 years through the first period and may be re-granted for a second period for a maximum period of 95 years according to evaluation criteria and stages.
b. Rights to occupy buildings for a maximum period of 80 years in the first period and may be renewed in a second period for a maximum period of 80 years according to evaluation criteria and stages.
C. The right of use is for a maximum period of 80 years through the first period and may be renewed again in the second period for a maximum period of 80 years according to evaluation criteria and stages.
This means that business entities or investors can receive HGU for 190 years according to paragraph (2) of Article 9 letter a.
Jokowi’s founding project at IKN.
Clause (4) of Article 9 explains that the IKN authority will assess the requirements five years after granting the first period of rights. The conditions are as follows:
a. The land is still cultivated and used appropriately according to the condition, nature and purpose of the granting of the right.
b. Rights holders meet the conditions as rights holders.
C. The terms of the grant of the right will be fulfilled by the holder of the right.
d. The land is still used according to the residential plan.
d. The land is not marked as abandoned.
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In paragraph (2) of Article 9, the guarantee period for the certainty of tenure of land rights is explained:
