How To Re-obtain The Land Assets That We Bought In The Name of Someone Else In Indonesia?

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By:

Team of Hukumindo

Previously, the Hukumindo.com platform has discussed about "What Is the Difference Between Fraud and Embezzlement Under Indonesian Law?", "What Types of Land Ownership May Company Obtain In Indonesia?", read also: "How To Married Indonesian Women Legally?", and on this occasion will be discussed about 'How To Re-obtain The Land Assets That We Bought In The Name of Someone Else In Indonesia?'

Sir, my father lived long enough and married one of the natives in Bali. Then he returned to Europe and died here. My mother is the second marriage to him. Before he died, my father told me that he had fairly large of land assets in Bali, only that the land he bought was in the name of someone else. Is it possible for me to obtain the land as his heir?

From the e-mail we received above, there are some aspect that are not quite clear. Was your father's first marriage to a Balinese woman above legally-valid? Do they have children from this marriage? Was the land purchased by your father in the name of his wife or descendants from the first marriage? Due to the limited information we received, the answer we will provide will focus on the law for foreign citizens in relation with rights of ownership on land in Indonesia, and is there a legal possibility for you to acquire the said land as one of their descendants? 

Governing Law On Rights Of Land Ownership In Indonesia

We assume that your beloved father is a foreign national in a European country. We assume that you are a foreign national also. Based on the information above, there is a fact that your father bought a plot of land in the Bali area using his money. In relation to the sub-questions referred above, the following provisions apply:

• Article 20 paragraph (1) of the Law of the Republic of Indonesia Number: 5 of 1960 concerning Basic Regulations on Agrarian Principles regulates as follows: "Ownership rights are hereditary, strongest and most complete rights that people can have on land, in view of the provisions in Article 6".
• Article 21 paragraph (1) of the Law of the Republic of Indonesia Number: 5 of 1960 concerning Basic Regulations on Agrarian Principles regulates as follows: "Only Indonesian citizens can have rights of land ownership".

As quoted from Article 20 paragraph (1) and Article 21 paragraph (1) of the Law of the Republic of Indonesia Number: 5 of 1960 concerning Basic Regulations on Agrarian Principles above, It has been explained about the ownership rights of land, and it is regulated that only Indonesian citizens can own it. If your father is a foreign citizen and in relation to that point is the provisions regarding Law of the Republic of Indonesia Number: 5 of 1960 concerning Basic Regulations on Agrarian Principles as we mention above, then as a conclution, your father as a foreign citizen does not have the right to own a plot of land in Indonesia. 

Thus, according to Indonesian law, your father has never owned the said land. This is also consistent with the fact that your father bought the land under someone else name, or some kind of legal nominee ("Pinjam Nama"). According to Indonesian law, this case of borrowing names ("pinjam nama") is prohibited, even if the money is belong to your father.    

How To Re-obtain The Land Assets That We Bought In The Name of Someone Else In Indonesia?

To answer your second question regarding how to re-obtain the land assets that we bought in the name of someone else in Indonesia, we can simply answer the question that it's prohibited by law. As stipulated by the Law of the Republic of Indonesia Number: 5 of 1960 concerning Basic Regulations on Agrarian Principles above, the practice of 'borrowing names' in buying and selling land in Indonesia is prohibited.

In relation to the case you are facing for, we request that it will be better if it's accompanied by other relevant documents. With additional documents that may be available, of course we will offer other legal solutions that you might be able to take. And if you have any issue with this topic, contact us, feel free in 24 hours, we will be glad to help you.

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

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Reference:

1. Law of the Republic of Indonesia Number: 5 of 1960 concerning Basic Regulations on Agrarian Principles