| Short Title: | Indonesian: UU Ibu Kota Negara (UU IKN) |
| Legislature: | People's Representative Council |
| Long Title: | Indonesian: Undang-undang Nomor 21 Tahun 2023 tentang Perubahan atas Undang-undang Nomor 3 Tahun 2022 tentang Ibu Kota Negara (Law No. 21/2023 on Amendment of Law No. 3/2022 on State Capital) |
| Citation: | Law No. 21/2023 |
| Territorial Extent: | Nusantara |
| Enacted By: | People's Representative Council |
| Date Passed: | 3 October 2023 |
| Date Commenced: | 31 October 2023 |
| Bill: | Indonesian: RUU Perubahan atas Undang-undang (UU) Nomor 3 Tahun 2022 tentang Ibu Kota Negara (Bill on Amendment to Law No. 3/2022 Re: State Capital) |
| Amends: | Law on State Capital |
| Status: | in force |
The 2023 State Capital Act (Indonesian: Undang-Undang Ibu Kota Negara/UU IKN 2023) is an omnibus bill to amend the previous Law on State Capital, a piece of law to relocate capital of Indonesia from Jakarta to Nusantara at East Kalimantan as new capital of Indonesia. Introduced on 21 August 2023,[1] the omnibus bill was passed into law on 3 October 2023.[2] The law intended to amend and expand the power given to the Nusantara Capital City Authority (OIKN).[3]
The bill was approved with almost all fractions in People's Representative Council (DPR). In unusual move, Democratic Party one of two opposing parties opposing Joko Widodo administration also supporting the law. Only Prosperous Justice Party rejected the law passage.[4]
There are 9 changes to the Law on State Capital introduced by the bill:
Some notable changes are:
The new bill expanded the power of the Authority to include investment licensing, easing businesses, providing special facilities to funders of Nusantara facilitators, its developers and its satellite areas.
The new bill granted special agrarian affairs to the Authority to manage land use and spatial management within Nusantara.
The new bill granted autonomy to the Authority to fill the Deputies and/or other high positions within the Authority with non-state apparatus experts. Thus, making the Authority having "mini cabinet"-like structure similar to the Presidential Cabinet.
The Authority granted power to issue bonds and securities to provide funding for Nusantara development. It also granted power to the Authority to make foreign loans with permission of the Ministry of Finance.
The law granted 190-years cultivation rights to anyone who invest in Nusantara. The 190-years cultivation rights not given at once but given by 2 cycles with each cycle has 95 years long. The law also granted 160-years building use rights to anyone who invest in Nusantara, given by 2 cycles with each cycle has 80 years long.
The Authority assets' status is much like treated in manner similar as state-owned enterprises rather than state-owned government institutions. As result, it may purchasable, exchanged, granted, or being included in equity capital for funding Nusantara development.
By the law, future Nusantara people representation is solely exercised by members of Commission II of the DPR. There will be no representatives for Nusantara region in local or regional level.[5]
Article 42 of the law noted as "omni-sweeper article", because its sweeping power in cancelling of any effects of regulations and laws that may limit or obstruct the capital relocation.[6] Many legal experts condemned the article because its perceived unconstitutionality and accused the Joko Widodo administration as pro-Investor.[7] [8]
Only Prosperous Justice Party condemned the passage of the law in parliament.[9]
Indonesian Legal Aid Foundation condemned the passage of the law, especially because the sweeper Article 42, condemning the passage as unconstitutional.