PPP Investment in Nusantara Reaches Rp 158.73 Trillion as Legal Clarity Boosts Investor Confidence

JAKARTA, Investortrust.id — The Nusantara Capital Authority secures Rp 158.73 trillion in public private partnership investment on Tuesday, Nov 25, 2025 in Jakarta as long term land tenure rules gain clarity after a Constitutional Court decision, a shift expected to reinforce investor confidence in the new capital.

The authority said Finance Minister Purbaya Yudhi Sadewa approved Rp 5.63 trillion of the commitments, including proposals from PT Intiland Development Tbk and PT Nindya Karya (Persero).

Head of the authority Basuki Hadimuljono told lawmakers that the development relied on a mix of state budgeting and structured PPP funding schemes. "The development of the new capital does not rely solely on the state budget, but also on PPPs amounting to Rp 158.73 trillion. Rp 5.63 trillion has already been approved by the Minister of Finance," he said.

Seventeen companies submitted PPP commitments, including 11 firms interested in housing projects worth Rp 64.31 trillion and six firms targeting road and multi utility tunnel projects totaling Rp 94.42 trillion.

Basuki said the strong response reflected a broad base of local and international interest in the new capital’s long term plan. "This is not solely a government driven project. We are opening opportunities for the private sector to participate, and the response has been strong," he said.

The Constitutional Court earlier revised Nusantara’s land tenure structure by replacing the previous double cycle scheme with a single 80 year cycle.

Head of the Nusantara Capital Authority Basuki Hadimuljono.

"So under Law Number 21 of 2023, for example, the building use right was given for one 80 year cycle directly. Now it has been revised to 30, 20, 30. It is still one 80 year cycle, but the first 30 years are granted, the next 20 are an extension, and the final 30 are a renewal," Basuki said.

He explained that a new presidential regulation on the government’s 2025 work plan strengthened policy certainty for developers and investors. "There is now a presidential regulation, and the President is in front while I am behind him. My mission is to carry out the President’s vision, nothing else," he said.

Basuki said no extra incentives were needed to compensate for the tenure revision. "There are no additional incentives as compensation," he said.

Minister of Agrarian Affairs and Spatial Planning and Head of the National Land Agency Nusron Wahid speaks after a coordination meeting with the Public Works Ministry at the ministry’s office in South Jakarta, Wednesday, Oct 29, 2025. Photo: Courtesy of ATR/BPN

Agrarian Affairs and Spatial Planning Minister Nusron Wahid said investor interest would remain stable despite the new tenure durations. "I am confident it will not be affected, as long as the government considers providing other incentives beyond business use rights," he said.

He said no legal amendments or emergency regulations were necessary after the ruling. "There is no need to revise the law or issue an emergency regulation. If the Constitutional Court has decided, that applies automatically," he said.

The Constitutional Court ruling reduced maximum land rights in the new capital to 95 years for business use rights and 80 years for building use and usage rights.

Constitutional Judge Guntur Hamzah said the revisions ensured the new capital’s land policy aligned with constitutional principles. "A special regulation, especially one below the Constitution, must not contradict the constitutional principles regarding the state’s authority over land," he said.

Officials said the surge of PPP commitments demonstrated that legal clarity strengthened rather than weakened the investment outlook for Nusantara.

Investors from Indonesia, South Korea, China, the United States, Brunei, and Turkey expressed interest in residential clusters and large infrastructure packages tied to long horizon development.

Basuki said regulatory certainty remained a core priority for the authority as investment accelerated. "My task is to make sure there is no uncertainty, because if the rules are clear, the investment will come," he said.

With long term PPP pipelines expanding and the regulatory framework clarified, officials said the new capital remained on track to hit its next construction milestones.