Author
Ms Steffi Yan
Organisation/Institution
Universitas Pelita Harapan, Faculty of Law
Country
INDONESIA
Panel
Private Law
Title
LEGAL CONSEQUENCES FOR FOREIGN AND NATIONAL CITIZEN AS PARTIES AND THE RESPONSIBILITIES OF THE NOTARY IN NOMINEE AGREEMENTS FOR LAND OBJECTS IN INDONESIA
Abstract
Land ownership in Indonesia, particularly ownership rights (hak milik), is strictly regulated and may only be held by Indonesian citizens (WNI). Nevertheless, foreign nationals (WNA) who reside or invest in Indonesia often attempt to obtain such rights through legal circumvention, commonly by using name-lending agreements in which a WNI is listed as the formal owner. These arrangements are frequently formalized through agreements prepared by notaries. Such practices contradict the principles of Indonesian agrarian law and create legal risks, as these agreements are considered null and void under the law. This study examines the legal implications of name-lending agreements, the responsibility of notaries involved in drafting them, and the legal consequences for both WNI and WNA. Using a normative-empirical approach with court decisions as case studies, the research finds that these invalid agreements lead to significant legal consequences, particularly for parties acting without good faith. Notaries may also face administrative and civil liability if their actions violate the Notary Office Act (UUJN), its amendments, the Notary Code of Ethics, and other relevant regulations. Therefore, notaries must exercise prudence in drafting legal deeds, while increased public awareness and effective government enforcement are essential to ensure transparency in land transactions and protect national interests.
Biography
Steffi Yan is a full time lecturer at the Faculty of Law, Universitas Pelita Harapan. Her interests include private law, land law, inheritance law and contract law.
