Why Indonesian court capped land rights at 95 years in new capital
Indonesia’s Constitutional Court has struck down a rule that would have let the government grant land-use rights in the new capital, Nusantara, for up to 190 years.
In a decision issued on November 13, the court said such ultra-long terms breach constitutional principles that require land rights to be temporary and subject to regular review.
The ruling sets a new ceiling of 95 years for land-use rights in Nusantara and makes clear that even this maximum must be revisited periodically. The judges said the earlier arrangement failed the Constitution’s test of fairness and public interest, which obliges the state to manage land for the benefit of all citizens, not lock it up for generations.
The case was brought by a member of the Dayak community and a resident of Sepaku, East Kalimantan, where the new capital is being built. They argued that 190-year rights would sideline local people, weaken safeguards against land grabs and reduce the state’s ability to correct mistakes or respond to changing needs over time.
The project, budgeted at roughly US$30 billion, has relied on long tenure as a key selling point for private capital.
Politically, the ruling adds pressure to a flagship plan championed by former president Joko Widodo and inherited by his successor, Prabowo Subianto. While Prabowo has pledged to press ahead, his administration is also shifting resources toward social programmes and Danantara, a new sovereign wealth vehicle expected to manage up to US$1 trillion in state assets.
This story is written and edited by the Global South World team, you can contact us here.
