Failure Of The Legal System To Detect Land Nominee Practices By Foreign Nationals: The Integration Of Agrarian And Contract Law As A Framework For Ius Constituendum

Abstract

Nominee arrangements involving land ownership by foreign nationals constitute a form of legal circumvention of Indonesia's agrarian law. This study examines the failure of the legal system to detect such practices from the perspectives of agrarian and contract law and proposes a framework for ius constituendum. Using a normative legal research method with statutory, conceptual and case approaches, the study finds that nominee practices persist because the legal system remains focused on legal ownership and lacks mechanisms to identify beneficial ownership. To address this issue, the study proposes the integration of agrarian and contract law, holistic assessment based on the anti-fraus legis principle and strengthened gatekeeping functions of Notaries, PPATs and the National Land Agency.