IKN Authority Regulation No. 9/2026 Regulates Certainty of Land Rights, Investment Incentives, and Ease of Doing Business in IKN

Introduction

On 9 September 2026, the Head of the Nusantara Capital Authority established Regulation of the Head of the Nusantara Capital Authority of the Republic of Indonesia Number 9 of 2026 concerning Ease of Doing Business and Investment Facilities in the Nusantara Capital (“IKN Authority Regulation 9/2026”), which subsequently came into force on 14 September 2026. IKN Authority Regulation 9/2026 regulates the provision of two forms of support for business actors investing in the Nusantara Capital (“IKN”), namely ease of doing business and investment facilities. Ease of doing business includes the granting of Land Rights (“HAT”), exemption from compensation payments for the employment of foreign workers, and acceleration of housing development, while investment facilities comprise fiscal and non-fiscal incentives under the authority of the central government and the IKN Authority.

IKN Authority Regulation 9/2026 was issued to improve the effectiveness, efficiency, transparency, and accountability of the provision of ease of doing business and investment facilities in order to accelerate investment realization and development in IKN. IKN Authority Regulation 9/2026 also replaces Regulation of the Head of the IKN Authority Number 7 of 2024, which is considered no longer consistent with current needs and legal developments. In addition, the issuance of IKN Authority Regulation 9/2026 constitutes a further implementation of several provisions of Government Regulation Number 12 of 2023 concerning the Granting of Business Licensing, Ease of Doing Business, and Investment Facilities for Business Actors in IKN, particularly Article 11 paragraph (4), Article 17 paragraph (1), Article 21 paragraph (4), Article 22 paragraph (5), Article 25, Article 42, Article 44, Article 45, and Article 67.

Key Provisions

• Scope and Forms of Support for Business Actors

As stipulated in Article 2, business actors conducting business activities in IKN are provided with two types of support, namely ease of doing business and investment facilities. The business actors concerned are business entities in accordance with the provisions of laws and regulations.

A. Ease of doing business consists of:

1. 1. the granting of Land Rights (HAT);

   2. exemption from the obligation to pay compensation for the employment of foreign workers for a specified period; and

   3. acceleration of housing and residential area development for communities in IKN.

B. Investment facilities consist of:

1. 1. facilities under the authority of the central government; and

   2. facilities under the authority of the IKN Authority.

• Provision of Ease of Doing Business

• Granting of Land Rights

Article 3 stipulates that business actors are granted HAT over a Right of Management (HPL) over land designated as Assets Under Control (ADP). The granting of HAT is carried out based on the allocation of ADP land determined by the Head of the Authority in accordance with the provisions of laws and regulations. The allocation of ADP land is set out in an ADP land allocation agreement between the IKN Authority and the business actor. The HAT certificate is subsequently issued to the business actor after the business actor has fully paid the contribution in accordance with the provisions of laws and regulations.

• Procedure for Granting Land Rights

The granting of HAT is carried out through the stages of submission of investment intentions, feasibility assessment, determination of land allocation, payment of contributions, and execution of the ADP land allocation agreement. In summary, the stages are as follows:

Further technical guidelines for the implementation of the granting of HAT to business actors shall be stipulated by the Head of the Authority (Article 18).

• Term of Granting of Land Rights

With respect to the term, Article 19 stipulates that the HAT granted by the Nusantara Capital Authority consists of:

• • Right to Build (HGB)

HGB is granted in stages, with an initial grant of no more than 30 years, an extension of no more than 20 years, and a renewal of no more than 30 years.

• • Right to Cultivate (HGU)

HGU is granted in stages, with an initial grant of no more than 35 years, an extension of no more than 25 years, and a renewal of no more than 35 years.

• • Right of Use.

Right of Use is granted in stages, with an initial grant of no more than 30 years, an extension of no more than 20 years, and a renewal of no more than 30 years.

The granting of HAT is carried out by the ministry responsible for governmental affairs in the field of agrarian affairs/land affairs based on an application from the Nusantara Capital Authority, while the stages for the implementation of the granting, extension, and renewal of HAT are determined by the Nusantara Capital Authority. In its implementation, an evaluation is conducted five years after the execution of the ADP land allocation agreement, including with respect to the realization of at least 50% of the development plan and evidence of the submission of investment realization for the preceding three years. In addition, the extension and/or renewal of HAT requires, among other things, that the land continues to be properly cultivated and utilized, the rights holder continues to satisfy the applicable requirements, the utilization of the land is in accordance with the spatial plan, and the land is not indicated to be abandoned.

• Exemption from Compensation Payments for Foreign Workers (TKA)

Article 22 stipulates that Business Actors conducting business activities within the Nusantara Capital may employ TKA for certain positions in accordance with the provisions of laws and regulations. Business Actors may obtain approval of a TKA utilization plan for a period of 10 years, which may be extended and may also be used as a recommendation for obtaining a visa and residence permit for employment purposes. Furthermore, Article 23 requires Business Actors employing TKA to appoint Indonesian citizens as accompanying workers, conduct occupational education and training for the accompanying workers in accordance with the qualifications of the TKA positions, and repatriate the TKA to their country of origin after the employment agreement ends. Business Actors, including those carrying out government-owned strategic project works in IKN, are exempt from the obligation to pay compensation for the employment of TKA until 2035. Meanwhile, exemption from compensation payments for government agencies, foreign state missions, international organizations, social institutions, religious institutions, or certain positions in educational institutions applies in accordance with the provisions of laws and regulations.

• Investment Facilities

Article 25 stipulates that investment facilities include fiscal and non-fiscal incentives under the authority of the central government and the Nusantara Capital Authority. The authority of the central government includes tax and customs facilities in IKN, while the authority of the IKN Authority includes special regional tax and special regional levy facilities, as well as facilitation of the provision of land and infrastructure to support investment activities in the Nusantara Capital.

• Technical Authority of the IKN Authority in the Provision of Tax Facilities

Articles 26–27 grant the Head of the Authority the authority to determine specific competencies for work practices, apprenticeships, and learning activities, as well as the focus and themes of research and development that may qualify for a gross income reduction facility.

Articles 28–37 regulate the mechanism for the gross income reduction facility for domestic taxpayers that provide donations or finance the construction of public facilities, social facilities, and/or other non-profit facilities. The principal provisions include:

• • Donations may be provided by taxpayers independently or jointly.

  • Taxpayers may consult with a Senior High Leadership Official to determine the form of the donation and its compliance with the applicable provisions.

  • Applications are submitted to the Head of the Authority through the OSS System or offline if the system is not yet available.

  • The Authority verifies the form, criteria, and specifications of the donation, following which the Head of the Authority issues technical approval or a notice of rejection.

  • The gross income reduction facility may be utilized after the donation or construction has been realized in accordance with the technical approval.

  • Realization must commence no later than 6 months from the date of the handover agreement, with a possible additional period of no more than 6 months following a warning letter. The technical approval may be revoked if realization does not take place within such period.

  • Following realization, the Authority verifies the conformity and reasonableness of the value of the donation. If compliant, a receipt document or handover minutes is issued.

  • The Authority is required to record and report annually the receipt of donations to the tax and fiscal authorities through the OSS System.

  • Records of the receipt of donations and goods resulting from realization are also maintained in accordance with the provisions governing the management of State-Owned Goods (BMN).

• • Special Regional Tax and Special Regional Levy Facilities in IKN

Articles 38–41 regulate special IKN regional tax and levy facilities in the form of reductions, relief, or exemptions, with the following principal provisions:

• • A 0% BPHTB is granted for the acquisition or transfer of HAT in the form of HGU, HGB, or Right of Use over ADP and/or buildings for Business Actors conducting business activities in IKN.

  • The BPHTB facility applies to both the granting and transfer of HAT in accordance with land regulations applicable in IKN and applies until 2035.

  • A Rp0 levy is granted for Building Approval (PBG) and Certificate of Proper Functioning (SLF) for Business Actors that have obtained conformity of spatial utilization activities and environmental approval.

  • The PBG and SLF facilities are granted by the IKN Authority in accordance with the applicable licensing provisions and apply until 2035.

• Pioneer Business Actors

Articles 45–47 regulate Pioneer Business Actors, namely business actors designated by the Head of the Authority that receive incentives relating to contribution tariffs for the allocation of assets under the control of the IKN Authority. The principal provisions include:

• Payment of contributions in installments in accordance with the applicable formula, amount, and procedure.

• Development obligations based on the year of designation:

• designated in 2026: at least 50% of development achieved by 31 December 2028;

• designated in 2027: at least 25%;

• designated in 2028: at least 5%;
  each based on the detailed business development plan.

• Pioneer Business Actor status may be designated for a maximum period of 5 years from the entry into force of Law No. 21 of 2023.

• The Authority evaluates the development obligations and payment of contributions. The evaluation results may be taken into consideration in revoking Pioneer Business Actor status and the granting of HAT over ADP.

Transitional Provisions

Article 48 regulates the continuation of processes that are ongoing when this Regulation comes into force. Business actors whose feasibility assessment is ongoing or whose feasibility assessment has been completed shall be processed based on Regulation No. 9 of 2026. Meanwhile, business actors that are undergoing or have completed the Stake Out process shall continue to be processed under Regulation of the Head of the IKN Authority Number 7 of 2024 concerning Procedures for the Granting of Ease of Doing Business and Investment Facilities in the Nusantara Capital.

Closing

With the entry into force of Regulation of the Head of the Nusantara Capital Authority Number 9 of 2026, business actors investing in IKN need to pay attention to a number of practical implications, particularly with respect to document readiness and investment eligibility from the initial submission stage, fulfillment of development and financing commitments, and compliance with the stages of ADP land allocation through the acquisition of HAT and Business Licensing. On the other hand, this Regulation provides benefits that may support cost efficiency and accelerate investment, including through exemption from compensation payments for the employment of TKA until 2035, 0% BPHTB, PBG and SLF levies of Rp0, and an incentive scheme for Pioneer Business Actors. However, utilization of such facilities remains subject to fulfillment of the stipulated requirements and commitments, including realization of development, use and utilization of land in accordance with its designated purpose, and evaluation by the IKN Authority. Accordingly, business actors need to ensure from the outset the conformity of their investment plans, financing structures, development plans, land requirements, and strategies for utilizing the available facilities in order to maximize the support provided while minimizing administrative and legal risks in the implementation of investments in IKN.