Ownership of Land by Foreign Citizens in the Implementation of Foreign Investments with Nominee Deed Before a Notary

Abstract

In the control of land by Foreign Citizens who are investors in the operation of a company. In addition to being directly owned by the land holder, land ownership is also often carried out in the form of a nominee. The nominee is a person or individual who is appointed to specifically act on behalf of the person who appointed him (beneficiary) to carry out a certain legal action, one of which is as a shareholder. The nominee agreement has been prohibited in Article 33 Paragraph (1) of Law Number 25 of 2007 concerning Investment, but grows and develops in the community. This study aims to analyze Land Ownership by Foreign Citizens in the Implementation of Foreign Investments with Nominee Deeds before a Notary. This research is normative juridical research with analytical prescriptive nature. Data collection techniques were obtained by means of library research in the form of document studies. The data analysis was carried out qualitatively, namely the analysis was described in the form of sentences by drawing conclusions using deductive thinking methods. From the results of the study it was concluded that the nominee agreement was formed mainly by foreign parties to obtain benefits by investing in business fields that were closed to foreign investors in Indonesia, the reason for the prohibition of the nominee agreement was to protect the interests of the State in business fields closed to investment, so as not to be controlled by a nominee foreign party, to anticipate legal smuggling, and to anticipate money laundering through beneficial ownership. The freedom of contract in the nominee agreement is limited by a law that strictly prohibits the nominee agreement in the provisions of Article 33 Paragraph (1) of Law Number 25 of 2007 concerning Investment, automatically the nominee agreement has violated the element of good faith. The legal consequences of the nominee agreement are null and void. As a result of the nominee agreement being null and void, the legal owner who is legally recognized has full rights to the shares owned, while the beneficiary has no rights, this is a consequence of the cancellation of the nominee agreement between the two parties. The legal consequences of the nominee agreement are null and void. As a result of the nominee agreement being null and void, the legal owner who is legally recognized has full rights to the shares owned, while the beneficiary has no rights, this is a consequence of the cancellation of the nominee agreement between the two parties. The legal consequences of the nominee agreement are null and void. As a result of the nominee agreement being null and void, the legal owner who is legally recognized has full rights to the shares owned, while the beneficiary has no rights, this is a consequence of the cancellation of the nominee agreement between the two parties.