Cancellation of Notarial Deeds Containing Elements of Nominee Agreements in Land Control (An Analysis of Decision Number 247/PDT/2021/PT DPS)
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Authors:Azis Usman1*, R Juli Moertiono2, Ikhsan Lubis3
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Abstract
Nominee agreements, whereby Indonesian citizens hold Freehold Title to land on behalf of foreign nationals, raise concerns regarding compliance with the nationality principle and create legal uncertainty over land ownership. This study aims to analyze the annulment of nominee agreements, the legal consequences for Freehold Title, and the judicial reasoning applied in Denpasar High Court Decision Number 247/PDT/2021/PT DPS. The study employs normative legal research with a descriptive approach, supported by empirical data obtained through interviews with academics and notarial practitioners. Primary, secondary, and tertiary legal materials were collected through library research and analyzed qualitatively. The findings indicate that nominee agreements contravene Articles 1320, 1335, and 1337 of the Indonesian Civil Code as well as Articles 21(1) and 26(2) of the Basic Agrarian Law, thereby rendering such agreements null and void. The examined decision reinforces the nationality principle in Indonesian land law and rejects legal protection for arrangements intended to circumvent statutory restrictions on foreign ownership of Freehold Title. The study concludes that the annulment of nominee agreements affirms the legal consequences arising from violations of mandatory land ownership provisions. These findings contribute to greater legal certainty in the application of the nationality principle and underscore the importance of prudence among notarial practitioners when preparing deeds related to land ownership arrangements.
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