Apa Itu Nominee Agreement

1. Local candidates can fully assert their participation rights and allow foreign investors to take legal action against local candidates. This can happen because foreign investors (when investing in a closed industry, have created a local limited liability company/PT) and do not appear as shareholders in the company structure. This means that its rights to the company are not protected by local law, because Section 33 of the Foreign Investment Act in Indonesia prohibits all forms of any agreement in which one party declares that it holds shares in another name. This is definitely an attempt to eliminate the structure of the nominees, you can download more explanations about the nominee company here. The Nominee agreement is clearly a form of legal smuggling aimed at preventing foreigners from not being eligible under Article 9, paragraph 1, jo, as an object of land ownership in Indonesia. Article 21, paragraph 1, uupa clearly states that only Indonesian citizens can have a full relationship with Earth, water and space, and clearly states that only Indonesian citizens can have property rights. This is then confirmed by Article 26, paragraph 2, of the UUPA, which stipulates that any sale, exchange, transfer, act of will and other act of will to transfer property rights to foreigners, directly or indirectly, to a citizen in addition to his Indonesian nationality, has a foreign nationality, is, by law, null and void. Therefore, the application of a promise of actions with the aim of establishing a legal construct as this nominating agreement becomes unenforceable before the law (natural alliance only). The implementation of the seizure of shares is nothing more than a guarantee agreement, in accordance with the concept and nature adopted by Burgerlijk Wetboek (Book of Civil Law) in Article 1317.