Jakarta Globe are reporting on a statement made by Agrarian and Spatial Planning Minister, Hadi Tjahjanto that the government will grant land titles for 80-years for industrial and residential properties in Nusantara, Indonesia’s planned new capital city in East Kalimantan.
Speaking at the 2023 Indonesia-China Smart Expo in Jakarta, the minister said that “Nusantara will provide [investors] ease of doing business by granting land rights based on its use. We will grant 80-year land titles for residential, commercial, industrial, educational, and religious purposes.”
The ministry’s data shows the land titles for industrial uses in Nusantara are much longer than the 30-year term that neighbouring Singapore offers. However, Singapore’s commercial and residential tenures are valid for a whopping 99 years. Fellow ASEAN member state Singapore is also offering leases of up to 20 years for farmlands, report Jakarta Globe.
“Nusantara will give 95-year land titles for farming purposes,” Hadi told the conference.
“This policy aims to expedite the development of Nusantara, which we consider a high-priority project that holds a strategic value for the national economy,” Hadi said.
Jakarta Globe report that Indonesia is banking on its capital relocation plan from Jakarta to Nusantara in a bid to put a stop to its Java-centric development. Hadi said that Java accounted for more than half of Indonesia’s gross domestic product (GDP). Java is home to about 57-percent of Indonesia’s population, according to Hadi.
Nusantara authority body’s chief Bambang Susantono told a recent conference that the city had attracted more than 220-letters of intent from potential investors both home and abroad. However, it will take time before these investments can take shape, say Jakarta Globe.
“There is a process when it comes to investment. Businesses wish everything to be well-calculated in terms of its profitability, risks, and practicability. Investors are going back and forth for site visits to check the topography,” Bambang said earlier this week.
Source: Jakarta Globe