Use of Nominee in Ownership of Rights to Land in Indonesia by Foreign Citizens: Case of Mataram State Court Decision Number 67/Pdt.G/2008/Pn.Mtr. 30 July 2009

Abstract

Article 9 paragraph (1), Article 21 paragraph (2), and Article 26 paragraph (2) of the Law of the Republic of Indonesia Number 5 of 1960 concerning Basic Agrarian Law have confirmed that only Indonesian Citizens and Indonesian Law, which was established based on Indonesian laws and regulations may have land rights in Indonesia, while for foreign citizens based on Article 42 letter b of the BAL, it states that foreigners who are domiciled in Indonesia may only have a Right of Use. The practice of this provision is often circumvented by making a Nominee Agreement. The foreigner borrows the name of the Indonesian Citizen. The land is legally written with the name of the Indonesian Citizen, but in fact, it is controlled by a foreigner who acts as if the real owner. It is proven in the analysis of the Court's Decision Mataram State Number 67/Pdt.G/2008 /Pn. Mtr. 30 July 2009.