Is a Nominee Arrangement Permissible in Cooperative Asset Ownership?

By Radhyca Nanda Pratama

09 Mar 2024 07:00 WIB 09 March 2024 07:00 WIB 8 minutes reading time: 8 minutes 73 read

This article discusses Nominee Arrangements in Cooperative Asset Ownership, highlighting the discrepancy between regulations concerning the recording of cooperative-owned assets and the prevailing practices...

Is a Nominee Arrangement Permissible in Cooperative Asset Ownership?

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Table of Contents

Cooperative Business Entity
Nominee Arrangement in Cooperatives

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Section 2/3: Nominee Arrangement in Cooperatives

Nominee Arrangement in Cooperatives

In practice, in the ownership of assets in the form of land by cooperatives, there are still cooperatives that commit irregularities through Nominee Arrangement (borrowing a name). I actually found this Nominee Arrangement in 2 (two) cooperatives located in the Province of East Java.

In other words, I do not intend to corner stakeholder cooperatives, but rather tries to show the Nominee Arrangement, there is a gap between the normative and the practice in the field. Therefore, to maintain the confidentiality and interests of the Cooperative in question, in this paper I will simply mention the position of the Cooperative in question.

One of the Cooperatives located in Mojokerto Regency acknowledges the ownership of the Cooperative's assets in the form of land through the making of a Contra Letter Statement Deed (Nominee Arrangement). The deed contains a unilateral statement that the basis of rights listed in a Certificate of Ownership (Nominee Arrangement) is recorded in the name of one of the Administrators as an asset belonging to the Cooperative in question.

Furthermore, one of the Cooperatives located in Malang City acknowledges the ownership of cooperative assets in the form of land and buildings by making a Name Lending Agreement Deed (Nominee Arrangement). The Nominee Arrangement Deed contains an agreement between the Cooperative and one of the administrators whose name is borrowed to be included in the Certificate of Ownership as the Certificate is one of the proofs of ownership of the Cooperative in question, even though the Certificate is in the name of one of the Administrators.

Both Cooperatives in the practice of Nominee Arrangement as the basis for ownership of Cooperative assets involve the role of a Notary to make the deeds referred to previously. The Notary in question, in carrying out his authority, should provide legal counseling related to the making of the deed with the aim Nominee Arrangement on land is a prohibited causa.

The Indonesian legal system does not allow the practice of Nominee Arrangement for immovable property in the form of land through Article 26 paragraph (2) of Law No. 5/1960 concerning Basic Regulations on Agrarian Principles (Agrarian Law). The Supreme Court in its stance also does not recognize the practice of Nominee Arrangement on ownership of land. This is based on SEMA No. 10/2020 concerning the Enactment of the Formulation of the Plenary Meeting of the Chambers of the Supreme Court in 2020 as Guidelines for the Implementation of Duties for the Court.