UNAIR NEWS – President Joko Widodo has authorized a 190-year Business Use Rights (HGU) permit for investors in the new Ibu Kota Nusantara (IKN). This policy is outlined in Presidential Regulation (Perpres) Number 75 of 2024 regarding the Development Acceleration of Ibu Kota Nusantara (IKN). The President signed this regulation on July 11.
This policy has garnered attention from various parties. In response, Universitas Airlangga (UNAIR) Law Lecturer Oemar Moechthar MKn provided a legal perspective on land use rights.
Historical context of HGU Policy
To UNAIR NEWS, Oemar Moechthar explained that similar policies have been implemented before, specifically in 2007, through Law Number 25 of 2007 on Investment. However, the Constitutional Court (MK) later annulled that policy.
“Previously, HGU could be granted for up to 95 years without renewal or extension. The MK annulled that policy, stating that the utilization of natural resources must be measured by its impact on the people’s prosperity and respect for their hereditary rights,” Moechthar explained on Tuesday, July 23, 2024.
Moechthar emphasized that the primary purpose of granting HGU is for agricultural enterprises in a broad sense, including agriculture, fisheries, livestock, and plantations. However, he continued, granting HGU for such an extended period could reduce government control over land use.
Reevaluation needed
Moechthar further expressed concerns about the potential misuse by investors if HGU is granted for 190 years. He explained that conflicts between investors and local communities often arise when land management does not adhere to agreements.
“If the land granted is not used as intended, government control over its use becomes challenging. This could harm local communities, particularly indigenous people,” Moechthar stated.
He suggested that the government should reconsider the policy of granting such long-term HGU. He argued that HGU should be granted gradually and evaluated periodically, as stipulated in Law Number 5 of 1960 on Basic Agrarian Principles.
“The 190-year HGU policy for investors in IKN requires strict supervision and evaluation to ensure that land use provides maximum benefits to the community and avoids potential conflicts. The government should balance attracting investment and protecting the interests of the people through wise and sustainable policies,” Moechthar concluded.
Author: Adinda Aulia Pratiwi
Editor: Yulia Rohmawati
