Indonesia Updates the Framework for Ease of Doing Business and Investment Facilities in IKN

The Nusantara Capital Authority (Otorita Ibu Kota Nusantara or OIKN) has issued Head of the Nusantara Capital Authority Regulation No. 9 of 2026 (Perka OIKN 9/2026), which sets out a new framework for ease of doing business and investment facilities for Business Actors operating in the Nusantara Capital (Ibu Kota Nusantara or IKN) and designated Mitra Areas. The regulation also introduces specific provisions concerning Pioneer Business Actors (Pelaku Usaha Pelopor), including incentives relating to contributions for the allocation of land under OIKN’s control.

Perka OIKN 9/2026 took effect on 14 September 2026 and replaces Head of OIKN Regulation No. 7 of 2024. The regulation is intended to improve the effectiveness, efficiency, transparency, and accountability of business and investment facilitation in IKN, particularly to support the acceleration of investment realization and IKN development.

1. Scope of Perka OIKN 9/2026

Perka OIKN 9/2026 provides the principal framework for granting ease of doing business and Investment Facilities to Business Actors operating in IKN. The regulation is based, among others, on Law No. 3 of 2022 on the National Capital as amended by Law No. 21 of 2023, Government Regulation No. 12 of 2023 on Granting Business Licensing, Ease of Doing Business, and Investment Facilities for Business Actors in IKN as amended by Government Regulation No. 29 of 2024, and other regulations governing the development, land management, spatial planning, and administration of IKN.

Under Perka OIKN 9/2026, the principal recipients are Business Actors carrying out business activities in IKN. For this purpose, a Business Actor must generally be established in the form of a business entity in accordance with applicable laws and regulations. Certain Investment Facilities are also available to Business Actors operating in designated Mitra Areas, although the scope of facilities applicable to Mitra Areas is principally linked to facilities provided by the Central Government.

The regulation therefore distinguishes between facilities administered within OIKN’s authority and facilities that remain under the authority of the Central Government, particularly in relation to tax and customs incentives.

2. Ease of Doing Business for Business Actors in IKN

Perka OIKN 9/2026 provides several forms of ease of doing business for Business Actors in IKN. These include the granting of land rights over land under OIKN’s control, exemption from the payment of compensation for the use of foreign workers in IKN for a specified period, and facilitation of housing and residential development.

These facilities are intended to support investment realization by addressing several practical aspects of establishing and operating a business in IKN, including access to land, employment of foreign workers, and development obligations in the housing sector.

The availability of these facilities remains subject to the requirements and procedures established under the applicable laws and regulations, including the broader IKN investment framework.

3. Land Rights over Assets Under OIKN Control

One of the important facilities under Perka OIKN 9/2026 concerns the granting of land rights (Hak Atas Tanah or HAT) over land under OIKN’s Management Rights (Hak Pengelolaan or *HPL) that has been designated as assets under OIKN control (Aset Dalam Penguasaan Otorita IKN or ADP).

OIKN is responsible for the planning, administration, and supervision of HAT granted over ADP. The allocation of land is determined by the Head of OIKN, and the granting of HAT is preceded by a land allocation decision issued by OIKN.

The allocation is subsequently documented through an ADP land allocation agreement between OIKN and the relevant Business Actor. This agreement serves as the contractual basis for the granting of HGB, HGU, or Hak Pakai over OIKN’s HPL. The relevant HAT certificate is issued after the Business Actor has paid the required contribution for the land allocation.

The broader IKN land framework also allows HGU, HGB, and Hak Pakai over IKN land to be granted under a two-stage period, subject to the applicable requirements. Under the framework established by Government Regulation No. 12 of 2023 as amended by Government Regulation No. 29 of 2024, HGU may be granted for periods reaching up to 95 years, while HGB and Hak Pakai may be granted for periods reaching up to 80 years. These periods should be understood within the applicable land allocation and regulatory framework rather than as an automatic entitlement for every Business Actor.

4. Facilities Relating to Foreign Workers

Perka OIKN 9/2026 also provides specific facilities for Business Actors employing foreign workers (Tenaga Kerja Asing or TKA) in IKN.

Business Actors employing TKA are required to appoint Indonesian workers as counterparts for the relevant foreign workers and provide education or training to those counterparts in accordance with the qualifications of the TKA positions. Business Actors must also ensure that TKA are repatriated to their home countries once their employment agreements have ended.

In addition to these obligations, TKA users in IKN, including Business Actors carrying out strategic government projects in IKN, are exempt from paying the compensation fund for the use of foreign workers for the period specified under the regulation, currently extending through 2035.

The exemption is specific to the IKN framework and should therefore not be understood as a general exemption from foreign-worker compensation requirements applicable throughout Indonesia.

5. Housing and Balanced Housing Obligations

Perka OIKN 9/2026 also provides a mechanism for Business Actors engaged in housing and residential-area development to fulfill balanced housing obligations through implementation in IKN.

Under this mechanism, the fulfillment of balanced housing obligations may be carried out in another area through implementation within IKN, subject to the applicable detailed spatial planning provisions and the laws and regulations governing balanced housing in IKN.

This provision may provide additional flexibility for housing developers whose investment activities are connected with the development of residential areas in IKN.

6. Investment Facilities and Allocation of Authority

Perka OIKN 9/2026 implements the division of authority established under Government Regulation No. 12 of 2023 as amended by Government Regulation No. 29 of 2024.

Investment Facilities available under the IKN framework include both fiscal and non-fiscal facilities. The Central Government retains authority over tax and customs facilities, while OIKN is responsible for facilities relating to special IKN regional taxes and regional levies, as well as facilitation, land provision, and infrastructure within its authority.

Central Government facilities are granted through the mechanisms administered by the Minister of Finance, including the relevant electronic or OSS-based processes. OIKN facilities, meanwhile, are regulated and administered under Perka OIKN 9/2026 and other applicable OIKN regulations.

The Head of OIKN may also determine specific competencies or activities for internships, apprenticeships, and learning programs that qualify for the relevant gross-income reduction facility. In addition, the Head of OIKN may determine research and development themes eligible for the corresponding gross-income reduction facility after coordination with the relevant national research institution and the Minister of Finance.

7. Special IKN Regional Tax and Levy Facilities

Perka OIKN 9/2026 provides specific facilities relating to regional taxes and levies applicable in IKN.

One of these facilities concerns Bea Perolehan Hak atas Tanah dan Bangunan (BPHTB). For certain acquisitions or transfers of HGU, HGB, and Hak Pakai over ADP and/or buildings, the applicable BPHTB is set at 0% of the relevant acquisition value for the period stipulated under the IKN framework, including through 2035.

This facility is available to Business Actors carrying out business activities in IKN that acquire the relevant land rights and forms part of the special fiscal framework established for IKN.

Perka OIKN 9/2026 also provides that the regional levy for Building Approval (Persetujuan Bangunan Gedung or PBG) and the Certificate of Function Worthiness (Sertifikat Laik Fungsi or SLF) is set at Rp0.00 for the specified period, including through 2035. Business Actors that have obtained the required spatial conformity and environmental approval may obtain PBG and SLF from OIKN without payment of the relevant levy, subject to the applicable licensing procedures.

8. Facilitation, Land Provision, and Infrastructure

Beyond fiscal facilities, Perka OIKN 9/2026 provides a framework for OIKN to facilitate investment through land, infrastructure, and other forms of support.

The Head of OIKN determines the priority list for facilitation, land provision, and infrastructure support for investment. Depending on the applicable priorities and OIKN’s authority, these forms of facilitation may include the provision of land or locations, infrastructure, investment comfort and security, and access to an available skilled workforce.

The availability of these facilities is therefore linked to OIKN’s priorities and authority rather than constituting an unconditional entitlement for all Business Actors operating in IKN.

9. Investment Facilities in Mitra Areas

Perka OIKN 9/2026 also addresses Business Actors operating in Mitra Areas, namely designated areas in Kalimantan that form part of the economic superhub supporting IKN.

The designation of Mitra Areas is further governed by Head of OIKN Regulation No. 2 of 2026. Business Actors operating in designated Mitra Areas may receive certain Investment Facilities provided by the Central Government under the tax and customs framework applicable to IKN.

The availability of these facilities remains subject to the applicable Ministry of Finance regulations and the requirements for the designation and development of Mitra Areas. Accordingly, facilities specifically administered by OIKN for Business Actors in IKN should not automatically be treated as extending to all Business Actors in Mitra Areas.

10. Pioneer Business Actors

A notable feature of Perka OIKN 9/2026 is the recognition of Pioneer Business Actors (Pelaku Usaha Pelopor). This concept is intended to support businesses participating in the early development of IKN and is connected with incentives relating to the formula, amount, and payment method of contributions for the allocation of ADP.

A Business Actor may be designated as a Pioneer Business Actor by the Head of OIKN for investment sourced from other lawful sources. Pioneer Business Actors may pay the applicable contribution in installments in accordance with the relevant provisions.

The Pioneer Business Actor framework is also linked to physical development commitments. Depending on the year in which the Pioneer Business Actor is designated, minimum physical development progress must be achieved by 31 December 2028. The minimum progress is 50% for a Business Actor designated in 2026, 25% for one designated in 2027, and 5% for one designated in 2028, calculated against the detailed business development plan.

The status of Pioneer Business Actor is transitional in nature and may only be granted for a maximum period of five years from the enactment of Law No. 21 of 2023.

11. Evaluation of Pioneer Business Actors

The Pioneer Business Actor framework is subject to evaluation by OIKN. Through its relevant senior officials, OIKN evaluates compliance with the requirements applicable to Pioneer Business Actors, including physical development progress and payment of the required contribution.

The results of the evaluation may form the basis for revocation of Pioneer Business Actor status. The evaluation may also be relevant to OIKN’s determination of whether the corresponding HAT over ADP will ultimately be granted.

Accordingly, the Pioneer Business Actor status should not be viewed solely as an incentive mechanism. It also creates development and payment obligations that must be fulfilled within the applicable timeframe.

12. Transitional Provisions and Replacement of the Previous Framework

Perka OIKN 9/2026 replaces Head of OIKN Regulation No. 7 of 2024 as the principal framework governing ease of doing business and Investment Facilities in IKN.

As a transitional matter, Business Actors that are undergoing or have completed the feasibility assessment process when Perka OIKN 9/2026 takes effect are processed under the new regulation. However, Business Actors that are undergoing or have completed the stake-out process continue to be subject to the previous Perka OIKN No. 7 of 2024 under the transitional provisions.

Perka OIKN 7 of 2024 is otherwise revoked and declared no longer effective following the entry into force of Perka OIKN 9/2026.

13. Practical Implications for Business Actors

Perka OIKN 9/2026 provides a more detailed framework for businesses seeking to establish or expand operations in IKN, particularly in relation to land allocation, fiscal and non-fiscal facilities, foreign workers, infrastructure, and housing development.

For prospective investors, the distinction between facilities administered by OIKN and those administered by the Central Government is particularly relevant. Businesses should also consider the applicable land allocation procedures and contribution requirements before relying on HAT facilities over ADP.

For Pioneer Business Actors, compliance with physical development targets and contribution payment requirements will be important because failure to satisfy these requirements may affect Pioneer Business Actor status and the subsequent granting of HAT over ADP.

Business Actors operating in Mitra Areas should separately assess whether the relevant area has been designated as a Mitra Area and which Central Government Investment Facilities are available under the applicable tax and customs framework.

Conclusion

Perka OIKN 9/2026 establishes an updated framework for ease of doing business and Investment Facilities in IKN, while also providing a specific regime for Pioneer Business Actors and certain facilities applicable to Mitra Areas. The framework covers land rights over ADP, foreign-worker facilities, housing development, special IKN taxes and levies, and OIKN facilitation relating to land and infrastructure.

By replacing Perka OIKN 7 of 2024, the new regulation provides the current framework for businesses seeking to benefit from IKN’s investment facilities. Businesses considering investment or development activities in IKN should therefore assess the applicable eligibility requirements, land allocation procedures, contribution obligations, and transitional provisions before proceeding with their investment plans.

This alert is part of a series examining regulatory developments affecting investment, infrastructure, real estate, and business activities in Indonesia. Please feel free to contact us should you wish to discuss these developments further.

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