The ongoing debate of borrowing local names (nominees) for land transactions and company setups appears to have taken a more serious turn since the Regent of Badung, Nyoman Giri Prasta, announced on Monday (18/12/23,) during the socialization of Law Number 1 of 2022, that the Badung Regency Government plans to target the practice of nomiees in its area, as tax evasion and illegal ownership are suspected to be widespread, according to reporting from Bali Post.
The Regent’s party will form a team involving various stakeholders, including the Bali Regional Police, Ministry of Law and Human Rights, BPN, the Prosecutor’s Office, Angkasa Pura, and other related stakeholders.
The government will also look into Foreign Direct Investment via PT PMAs as the practice of nominees in investment is known to use Indonesian names, but the company is actually controlled and owned by foreign investors. That makes it difficult to analyse; not paying taxes and illegal ownership are detrimental to Bali and its people, say Bali Post
According to the Regent, the practice of using nominees is mostly carried out by foreign citizens (WNA) who enter into unregistered marriages and arrangements with Indonesian citizens to own assets in Indonesia under the name of the wife or husband. Foreign investors must meet capital requirements to establish a PT PMA and they must pay taxes, he said.
“We don’t want any tax leaks,” said the Regent. “Because of that, all regional officials, including those in the villages, must participate.”
The government will involve its staff up to the village level to suppress the practice and prevent income leakage, say Bali Post.
Source: Bali Post