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All Journal Journal of Law, Poliitic and Humanities
Nyoman Budiarta
Universitas Pendidikan Ganesha
Humanities Law, Crime, Criminology & Criminal Justice Social Sciences

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Legal Status of Nominee Agreements by Foreign Nationals from the Perspective of International Civil Law and the Omnibus Law on Job Creation Nyoman Budiarta; Ni Putu Rai Yuliartini; Dewa Gede Sudika Mangku
Journal of Law, Politic and Humanities Vol. 6 No. 6 (2026): (JLPH) Journal of Law, Politic and Humanities
Publisher : Dinasti Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.38035/jlph.v6i6.3731

Abstract

This study aims to analyze the legal status of nominee agreements (name-borrowing agreements) entered into by Foreign Nationals in land ownership in Indonesia, reviewed from the perspective of International Civil Law (IPL) and Law Number 6 of 2023 concerning Job Creation. Nominee agreements are often used as legal smuggling instruments to circumvent restrictions on land ownership for foreigners in Indonesia. The research method used is normative juridical with a statutory approach and a conceptual approach. The results of the study indicate that based on the IPL perspective, specifically the principle of lex loci rei sitae (the law of the place where the object is located), land ownership must be subject to Indonesian law. Therefore, nominee agreements aimed at transferring land ownership permanently to foreign nationals are void ab initio because they violate public order (public policy) and Article 26 paragraph (2) of the UUPA. On the other hand, the Job Creation Law does provide relaxation for foreign nationals to own Ownership Rights over Apartment Units, but still limits ownership of Ownership Rights over land. The Job Creation Law emphasizes the legal boundaries of foreign investment, so nominee agreements remain categorized as a form of legal smuggling that does not receive legal protection, either for the nominee or the foreign national.
Co-Authors Ni Putu Rai Yuliartini