Nominee Agreement

A Nominee Agreement is an older structure where a foreign investor informally relies on an Indonesian citizen’s name to hold freehold rights. It became common historically but remains legally fragile.

The core risk is enforceability: when control depends on side agreements rather than robust title structure, disputes can become difficult and costly.

Modern investors usually prefer stronger legal pathways (for example, properly structured Hak Pakai or PMA-based setups where applicable) instead of nominee dependence.