NATIONALITY PRINCIPLE IN THE NOMINEE AGREEMENT TO OBTAIN THE LAND RIGHT

Abstract

The name loan agreement or usually known as the nominee agreement is an attempt by foreign citizens to obtain land ownership rights in the Unitary State of the Republic of Indonesia through borrowing the name of an Indonesian citizen, then put on the ownership certificate in which all financing is borne by the citizen foreign. This name borrowing tactic is no longer a foreign matter for Indonesian people and is a form of smuggling of land law, bearing in mind the provisions of Law Number 5 of 1960 Concerning Basic Agrarian Regulations in Article 21 Paragraph (1) which states “Only Citizens Only Indonesia has property rights “. The purpose of this research is to understand whether the nominee agreement is in line with Indonesia’s positive law and how the application of the principle of nationality in the nominee agreement. The method used by this study is a normative research method which focuses more on the statutory and conceptual approach. The conclusion of this research is that the nominee agreement is not in harmony with the applicable regulations in the Unitary State of the Republic of Indonesia due to violating the terms of an agreement in the form of a hala causa and violating the principle of agreement that is the principle of freedom of contract and consequently null and void. Then, the application of the national principle in the nominee agreement is inappropriate and very contradictory because it does not fulfill the conditions set forth in Article 9 Paragraphs (1) and (2).