The Dayak people challenge and demand justice over their ancestral and rightful land in relation to the new capital (IKN)

Dayak demand justice over ancestral land affected by the new capital.

JAKARTA - BORNEOTRAVEL: Indonesia’s top court has moved to rein in the land-lease terms underpinning the country’s new capital project, a ruling that has raised fresh doubts about the long-term viability of the multibillion-dollar undertaking. 

The decision has unsettled investors and revived questions about whether the government can secure stable, sustainable support for Nusantara, the planned capital on Borneo.

Against this backdrop, the Dayak people are challenging the project and demanding justice over their ancestral and rightful land. Their grievance reflects a deeper struggle over heritage, identity, and ownership in the very territory slated for Indonesia’s most ambitious nation-building initiative in decades.

A Constitutional Check on Century-Long Land Leases

The Nov. 13 decision in Case No. 185/PUU-XXII/2024 declared that the 190-year agricultural land rights in Nusantara violated Article 33(3) of the 1945 Constitution. The case was brought by two Dayak residents, Yance Arizona and Hendra, who argued that the near-perpetual leases would lock ancestral territory into private control with little regard for local communities.

The nine-justice panel replaced the sweeping provisions in the IKN Law with sharply reduced limits. Agricultural concessions are now capped at 35 years, with two extensions bringing the total to 95 years. Building rights fall to 80 years from 160. Rights of use are limited to 45 years. The court stated that the original timelines risked creating “private dominion” over state land, a step that contradicted the Constitution’s mandate that land and natural resources be controlled by the state for the people’s prosperity.

Government Attempts Damage Control as Investors Reassess

Top officials quickly attempted to reassure markets. Agrarian Affairs Minister Nusron Wahid said the new limits would strengthen the state’s position and would not deter investors. Nonetheless, private developers and foreign funds that had banked on multigenerational certainty are re-evaluating their exposure. Indonesia has secured less than a quarter of the $35 billion in private financing needed for the new capital, and analysts warn that the ruling could intensify concerns about legal stability.

Without clear follow-up regulations, dozens of hotel, residential and industrial projects face potential delays. The legal ambiguity could ripple across a project that President Joko Widodo once promoted as the centerpiece of Indonesia’s next century.

Indigenous Communities Claim a Rare Legal Victory

For Borneo’s Dayak and Paser communities, the ruling represents an unexpected win. Indigenous groups have long warned that Nusantara is rising atop customary lands with minimal consultation and inconsistent compensation. The court’s decision, they argue, prevents the permanent alienation of land that has sustained them for generations.

Community leaders say the ruling affirms their longstanding concerns that the project risks erasing cultural landscapes in favor of rapid urban expansion. Many hope the new limits will force the government to slow development and engage more seriously with affected communities.

Environmental Stakes Rise as Deforestation Continues

Environmental groups see a potential turning point. Satellite imagery has documented extensive clearing of primary rainforest around the construction zone since 2022. Advocates argue that reduced land churn could slow the pace of deforestation, offering at least a temporary buffer against further ecological loss.

Yet optimism remains cautious. If parliament does not act quickly to clarify the new regulatory regime, both development and oversight could remain in limbo. That uncertainty may stall the tourism and investment boom that officials envisioned when they pitched Nusantara as a model green capital.

For now, Indonesia’s new capital stands between two realities. It remains a presidential vision of a futuristic city built from the ground up and a constitutional reminder that even the nation’s boldest projects must honor the principle that the land ultimately belongs to the people.

by: Rangkaya Bada