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Indonesia blindsided by Nusantara’s 190-year land right law nullified in court

The ruling has compounded the challenges in completing the planned new capital, including lukewarm interest from investors

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A view of the presidential palace in Nusantara, the planned new capital of Indonesia in East Kalimantan. Photo: AFP
Resty Woro Yuniar
Indonesia’s plan to build a new capital in East Kalimantan is facing renewed scrutiny after the Constitutional Court struck down a regulation granting investors land rights of up to 190 years – a decision welcomed by indigenous groups but seen by developers as a potential deterrent to investment.
The ruling highlights the mounting challenges confronting Nusantara, a 466 trillion rupiah (US$28 billion) development conceived by former president Joko Widodo as a smart, green city to replace the congested, flood-prone Jakarta as Indonesia’s seat of government. Despite its lofty vision, investor interest has remained lukewarm since the project’s launch.

The court’s decision nullified a decree issued in 2024 during Widodo’s administration that granted investors unusually long tenures: up to 190 years for land cultivation rights and 160 years for building and usage rights.

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It ruled that these privileges were unconstitutional, ordering that Nusantara adhere to national regulations limiting cultivation rights to a maximum of 95 years – comprising a 35-year grant, a 25-year extension and a 35-year renewal – and building and usage rights to 80 years.

“This special regulation … regarding the period of land rights is only applicable in Nusantara,” Judge Guntur Hamzah said on November 13. “[It is] an effort to attract investors … the court can understand the government’s efforts; however, special regulations must not conflict with the principles stipulated in the constitution.”

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The petition was filed by Stepanus Febyan Babaro, a representative of the Dayak indigenous community in East Kalimantan, and Ronggo Warsito, a resident granted only 10 years’ use of land – far shorter than the 80-year rights promised to other investors in Nusantara.

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