Badan Pertanahan Nasional

Jumat, 08 Juli 2011

Package of agreements for Nominee's System

As written some weeks ago, there is no rule either law arranged about nominee's system for ownership of the land in Bali. Better says, nominee system is a system of abusing the law to make everything is possible although that system has many risk and weakness between the parties. To prevent either decreasing the risks of this agreement the parties who make agreement must keep their trust during the agreement is executed. 

In Nominee system, normally used some agreements where all of them have a same purpose either intention to make the property is "owned" by the expatriate as a freehold although in fact that property never to be owned by the expatriate because in the land certificate is written the name of the nominee. 

The package of the agreements those used to be "certificate" of the land are: 
  • The Loan Agreement or the Debt Agreement, the other version could be The Acknowledgement of The Indebtedness that secured with guarantee. 
  • The Power of Attorney to Sell (with substitution), in Indonesian Agrarian Law it is not allowed. 
  • Power of Attorney to Use and To Build
  • The Statement and Power of Attorney
  • The Land Lease Agreement. 
Indeed all of those agreements above are useless caused those agreements are nothing for security of the ownership of the land in Indonesia by the Expatriate because all of them abuse the law (UUPA) and breaking the law (KUHPerdata or Civil Code of Indonesian). 

This package of agreement is used just to make the expatriate feel "happy" because they feel they are secured although they are never secured. This joke is used many people to make all transaction run rapidly as all people want to have what they want instantly like noodle. 

So, what is the solution for this game? 
  1. If the expatriate want to invest in Indonesia, please follow the rule or the Indonesian Law, indeed the process is simple if all papers are already completed. 
  2. All the process need time, better a little bit long in advance than sorry for eternally. 
  3. Don't mix your business with your love, in Bali there are group of girls who always searching the expatriate to be their victim for money, they don't care with the process as their final purpose is the property and the money of the expatriate. 
  4. Make a foreign company to get property securely in HGB Right, by this way no nominees needed to be the land or property holder caused all will be belong to the company. 

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