Regulation Watch · Business Licensing · Nusantara Capital City (IKN), East Kalimantan, Indonesia.
IKN Recasts Land, Expatriate and Permit Incentives
OIKN Regulation 9/2026 replaces the 2024 IKN investment framework with revised land-allocation, long-term land-rights, expatriate-workforce, permit-fee and pioneer-investor facilities, backed by construction milestones and revocation controls.
- Published
- Established on 9 September and promulgated on 14 September 2026 in State Bulletin 2026 No. 628.
- Effective
- 14 September 2026, the date of promulgation.
- Added to Watch
- 22 September 2026
Who is affected
Indonesian and foreign investors, PT PMA and PT PMDN companies operating or planning projects in IKN, shareholders and directors, pioneer investors, developers and property businesses, holders and applicants for HGB, HGU or Hak Pakai over OIKN land, employers of foreign workers, expatriates, contractors, lenders, advisers, and businesses seeking OSS, KKPR, environmental, PBG or SLF approvals or IKN investment facilities.
Practical impact
The regulation replaces OIKN Regulation 7/2024 and consolidates a new route for business ease and investment facilities in IKN. It governs electronic investment proposals and land allocation, long-duration HGB, HGU and Hak Pakai over OIKN-controlled land, RPTKA approvals and exemption from the foreign-worker compensation fund through 2035, 0% BPHTB and zero PBG or SLF retribution for qualifying projects through 2035, and pioneer-investor contribution relief. The facilities are conditional: land contributions, licensing, construction, investment reporting, environmental compliance, Indonesian counterpart training, and project milestones must be documented and maintained.
OIKN Regulation 9/2026 was established on 9 September and promulgated on 14 September 2026 in State Bulletin 2026 No. 628. It took effect on promulgation and replaces OIKN Regulation 7/2024 on business ease and investment facilities in Nusantara Capital City.
For land-based investment, the business submits its project, location, investment value, technology, corporate and funding information electronically. A new company that has operated for less than three years may support its financial capacity with bank statements, asset evidence, or other proof of equity. Where complete applications compete for the same land, the earlier filing has priority. After the location-approval decision, the required land contribution must be paid within 30 days and the allocation agreement executed before a notary.
Land allocation does not replace licensing. The investor must complete the risk-based approvals through OSS, including the relevant NIB and business licence, KKPR, environmental approval, PBG, SLF, and sectoral requirements before the regulated activity begins. Long-duration land-rights facilities cover HGB for an initial 30 years with 20-year extension and 30-year renewal, HGU for 35 plus 25 plus 35 years, and Hak Pakai for 30 plus 20 plus 30 years, subject to evaluation and the governing land law.
The five-year land-rights evaluation makes project delivery central to continued eligibility. The holder should be able to show land use consistent with its purpose, fulfilment of investment and social or environmental obligations, at least 50% of the planned construction, and three years of investment-activity reporting. A land right or related facility should therefore be treated as conditional project tenure, not an unconditional long-term holding.
Employers in IKN may obtain RPTKA approval for up to ten years, renewable, and qualifying employers receive exemption from the foreign-worker compensation fund through 2035. The employer must still appoint and train Indonesian counterpart workers, transfer knowledge, maintain the worker's immigration status, and repatriate the foreign worker after employment ends.
The regulation also provides 0% BPHTB for qualifying acquisition or transfer of HGU, HGB or Hak Pakai over OIKN land and buildings through 2035, and zero PBG or SLF retribution for qualifying businesses with KKPR and environmental approval through 2035. Central tax and customs facilities and OIKN infrastructure support remain approval-based; investors should not price them into a project until the exact eligibility and grant are documented.
Pioneer-investor relief carries construction milestones. A pioneer investor designated in 2026 must achieve at least 50% of planned construction by 31 December 2028; designations in 2027 and 2028 require at least 25% and 5%, respectively, by that date. Missing the applicable conditions can lead to revocation of pioneer status and related land or investment facilities. Transitional treatment depends on the application stage: feasibility-stage cases move to the new regulation, while cases already at stake-out continue under the 2024 regulation.
Required action
- Before reserving or acquiring an IKN project site, submit the investment proposal and supporting corporate, financial, project, location, value, technology, and funding information through the designated electronic investment system and confirm whether another complete application has priority over the same land.
- Pay the required land contribution within 30 days after the location-approval decision, execute the allocation agreement before a notary, and align the agreement, land certificate, development schedule, financing, and exit provisions.
- After land allocation, complete the risk-based licensing chain through OSS, including the NIB and business licence, KKPR, environmental approval, PBG, SLF, and any sectoral or operational approvals; do not start construction merely because the land has been allocated.
- For HGB, HGU or Hak Pakai, keep evidence for the five-year evaluation, including progress against the investment plan, at least 50% of planned construction, three years of investment-activity reports, land-use compliance, and fulfilment of social and environmental obligations.
- For foreign workers, obtain and maintain the RPTKA approval and immigration status, appoint and train Indonesian counterpart workers, transfer knowledge, and arrange repatriation when employment ends; separately document any compensation-fund exemption through 2035.
- Before relying on 0% BPHTB, zero PBG or SLF retribution, tax or customs facilities, infrastructure support, or pioneer-investor relief, obtain the required designation or approval and record the legal basis, qualifying period, project milestones, reporting duties, and clawback or revocation exposure.
- Existing applications should identify their procedural stage: matters still in feasibility assessment move to Regulation 9/2026, while applications already at the stake-out stage continue under Regulation 7/2024.