Court Ruling Strikes Down Land Law for Indonesia's New Capital
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A recent court decision has created a major challenge for Indonesia's plan to build a new capital city. The Constitutional Court struck down a law that gave investors land rights for up to 190 years in Nusantara, the planned city in East Kalimantan.
The ruling is a significant setback for the $28 billion project. The government designed the long land rights to attract investment for the new capital.
Indigenous groups welcomed the court's decision. They argued the long-term rights threatened their traditional lands. However, property developers warn the ruling may deter crucial investment.
The decision adds to the difficulties facing Nusantara. Former President Joko Widodo conceived the project as a new smart and green capital to replace the current capital, Jakarta.