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The Use of Nominee Arrangement by Foreigner in Land Procurement and Land Ownership Principle in Indonesia

Nationality Principle in Land Law states that only Indonesian citizens can own land in the Republic of Indonesia territory. In practice, many foreigners can own the Hak Milik (Freehold Title) land through the nominee agreement as well as the nominee arrangement, especially in Bali. The implementation of the agreement has provoked many disputes in court. The purpose of this study is to find out the reason of the use of nominee arrangement in the ownership of Hak Milik (Freehold Title) land by foreigners in Indonesia, and to find out the legal effect of the use of nominee arrangement related to the provisions of Article 26 paragraph (2) of Undang-Undang Pokok Agraria/UUPA (Basic Agrarian Law). The approach method used in this research is the doctrinal approach. In doctrinal research, a law is conceptualized and developed based on the doctrine adopted by the conceptual and the developer. In this study, the law is conceived as the rule of law. The data used are secondary data obtained from library research. This research is a case study of Court Decision Number 82/Pdt.G/2013/PN.DPS, which will be analyzed normatively qualitative. Nominee Arrangement is widely used, particularly in Bali, to deviate land law policy which prohibits foreigners owning Hak Milik (Freehold Title) land in Indonesia as the nationality principle in National Land Law.