Jurnal ISO: Jurnal Ilmu Sosial, Politik dan Humaniora
Vol. 6 No. 1 (2026): June

Application of the Principle of Freedom of Contract in Nominee Agreements Regarding the Prohibition of Land Ownership by Foreign Citizens

Ni Ketut Sucia Dewi Lestari (Universitas Pendidikan Nasional Denpasar)
Anak Agung Ayu Intan Puspadewi (Universitas Pendidikan Nasional Denpasar)



Article Info

Publish Date
23 Nov 2025

Abstract

A nominee agreement is a practice commonly used by foreign nationals to acquire land in Indonesia by using the name of an Indonesian citizen as the formal right holder. This study aims to analyze the legal construction of nominee agreements as a form of legal evasion (rechtsontduiking) and their juridical implications for land ownership status. The research employs a normative legal method with statutory and conceptual approaches. The findings indicate that nominee agreements constitute a form of legal circumvention that undermines the prohibition on foreign land ownership under the Basic Agrarian Law (UUPA) through seemingly lawful arrangements that, in essence, violate Articles 21 and 26 of the UUPA. Such agreements fail to meet the objective requirement of a lawful cause as stipulated in the Indonesian Civil Code (KUH Perdata), rendering them null and void from the outset. The juridical implication is that the foreign national loses all rights to the land and cannot claim restitution of invested funds, while both the foreign national and the Indonesian nominee are deemed to have committed an unlawful act under Article 1365 of the Civil Code. Courts are therefore obliged to declare nominee agreements null and void by law, in accordance with Supreme Court Circular Letter (SEMA) No. 10 of 2020.

Copyrights © 2026






Journal Info

Abbrev

iso

Publisher

Subject

Humanities Social Sciences Other

Description

Jurnal ISO: Ilmu Sosial, Politik dan Humaniora publishes scientific papers on the research and scientific studies in the scope of humanities and social studies, such as anthropology, studies, business, communication studies, corporate governance, criminology, the study of cross-cultural, ...