Nominee Risk Review & Restructuring
A nominee arrangement puts an Indonesian name on the certificate and a private agreement in your drawer. Under UU 5/1960 Pasal 21 and 26(2) and UU 25/2007 Pasal 33 that agreement is null and void, and money paid under it cannot be reclaimed through it. Perda Bali 4/2026 Pasal 14 prohibits the arrangement and reaches the intermediaries who put it together, with administrative sanctions under Pasal 20. This service tells you where you actually stand, in writing, and what lawful structures exist instead.
What you get
- A read of every document in the arrangement - the nominee deed and each side agreement, including the ones you were told not to worry about
- Verification at BPN (land) or AHU (shares) of who legally holds the asset today, rather than who is supposed to
- A written risk opinion: the civil position under UU 5/1960 Pasal 21 and 26(2) and UU 25/2007 Pasal 33, the Supreme Court's treatment in MA 3403 K/Pdt/2016, and the Perda Bali 4/2026 prohibition with its administrative sanctions
- A restructuring route where one exists - Hak Pakai, a registered lease, or PT PMA with HGB - with what it requires from the current holder and what it costs you in time
How it runs, step by step
| Milestone | Typical time | What happens / your part |
|---|---|---|
| Document review | 3–7 days | We review your nominee deed and all side agreements |
| Title/share verification | 1–2 weeks | We confirm at BPN (land) / AHU (shares) who legally holds it |
| Written risk opinion | 1–2 weeks | Honest assessment: civil nullity + the Bali Perda 4/2026 prohibition (sanctions reach facilitators) |
| Lawful restructuring | Weeks–months | We move you into Hak Pakai / registered lease / PT PMA + HGB |
Typical total: Opinion 1–2 weeks; restructuring weeks–months
Legal basis
| Aspect | Basis |
|---|---|
| A nominee arrangement is void; money paid cannot be reclaimed | UU 5/1960 Pasal 21 & 26(2); UU 25/2007 Pasal 33 |
| Bali prohibits nominee arrangements — administrative sanctions | Perda Bali 4/2026: prohibition Pasal 14 (reaching intermediaries and facilitators); administrative sanctions Pasal 20 |
| Supreme Court authority on nominee holdings | MA 3403 K/Pdt/2016 |
Each basis above has been verified against the primary source and filed in the firm's dossier for this service. Points still under verification are not published here.
Common questions
A notary drew it up, so it must be valid?
A deed being properly executed and the arrangement inside it being enforceable are two different things. UU 5/1960 Pasal 26(2) and UU 25/2007 Pasal 33 address arrangements that put land or shares in another person's name for a foreigner's benefit, and MA 3403 K/Pdt/2016 is the Supreme Court applying that reasoning to a nominee structure. A notary formalises what the parties asked for; a notary does not warrant that a court will uphold it.
What does Perda Bali 4/2026 actually do to me?
Pasal 14 prohibits nominee arrangements, and the prohibition reaches the intermediaries and facilitators who arrange them, not only the parties. The sanctions under Pasal 20 are administrative. That sits on top of the civil position, which for most people is the more expensive one: the arrangement is null and void and the money paid under it is not recoverable through it.
If I unwind it, do I lose the property?
Sometimes the honest answer is that the asset was never legally yours to lose, and the real question becomes what can be recovered or renegotiated with the person whose name is on the certificate. Sometimes a lawful structure can be built over the same asset. Which of those applies turns on facts - whose name, what documents, what the current holder will agree to - and the opinion states which it is, not which you would prefer.
Honest limits
This is a risk assessment and, where possible, a route out. It is not a way to make a nominee arrangement work: the firm does not design, paper or hold nominee structures, and will not be a party to one. Whether a restructuring is possible depends heavily on the cooperation of the registered holder, which is outside the firm's control, as are BPN, notary and OSS timing (durations are indicative, 2026 practice). An honest opinion may conclude there is no route worth its cost, and it will say so in those words.
Talk to the advocate
Tell us what you are dealing with on WhatsApp. That first message is intake and a conflict check — not legal advice. Advice happens in a booked consultation: Rp2.5 million for 90 minutes, credited against your fee if you retain the firm within 30 days.
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