The Responsibility of Notary in Making Nominee Agreements for Foreign Citizens in Indonesia

Abstract

Law Number 5 of 1960 concerning Basic Agrarian Principles in Article 2 states that every Indonesian citizen has full rights over land, water, and airspace located in Indonesia, so only Indonesian citizens are entitled to have ownership rights over land in Indonesia. This is a principle of nationalism in agrarian law. Foreigners who are in Indonesia are only entitled to land use rights in Indonesia. This regulation sometimes poses difficulties for foreign nationals who want to invest in Indonesia, due to the requirement of land ownership in Indonesia not being fulfilled. This obstacle causes some parties to take illegal actions in land ownership in Indonesia, one of which is by making a nominee agreement. However, nominee agreements in Indonesia have not been clearly regulated in legislation. The issues raised in this research are the validity of nominee agreements according to the Civil Code and Basic Agrarian Law, as well as the role and responsibility of notaries in making nominee agreements, using the case study of the verdict of the Denpasar District Court Number 426/Pdt.G/2020/PN Dps. To answer these issues, normative juridical research method with prescriptive research method is used. The result of the analysis and research is to analyze the nominee agreement and its validity from the perspective of the Civil Code and Basic Agrarian Law. In addition, it analyzes the role and responsibility of notaries in nominee agreements with a case study in the verdict of the Denpasar District Court Number 426/Pdt.G/2020/PN Dps. The suggestion given is that notaries in making a legal product should pay attention to the applicable legal foundations in Indonesia so that the resulting deed is in accordance with the legislation in Indonesia