VINANSIA.COM - President Joko Widodo has robustly defended the decision to grant 190-year land rights, known as Hak Guna Usaha (HGU), to investors in Indonesia's future capital, Nusantara. Addressing critics, President Widodo insisted that this move aligns meticulously with current legal frameworks.

"Under the existing IKN laws, this allocation is entirely justified," he asserted confidently before departing for a state visit to the United Arab Emirates from Jakarta's Halim Perdanakusuma Air Force Base on Tuesday, July 16, 2024.

Highlighting the Purpose of HGU Allocation
President Widodo stressed that granting HGU is pivotal to empowering the Nusantara Capital Authority (IKN) to attract both local and international investments.

"Our goal is to empower IKN to effectively draw substantial investments," he emphasized.

President Widodo emphasized that the development of Nusantara cannot solely rely on the national budget (APBN) but necessitates external funding.

"While the APBN will prioritize essential government infrastructure, we look towards domestic and international investors to drive additional development," he clarified.

This decision underscores Indonesia's strategic pivot towards leveraging private investment to achieve ambitious infrastructure and economic objectives, marking a significant step in the nation's development trajectory.