Juridical analysis of legal protection for the implementation of option agreements for foreign citizens (foreign nationals) in apartment ownership (research study: Apartments in Batam City

https://doi.org/10.35912/ajh.v5i1.3435
Published: Sep 9, 2025

Abstract:

Purpose: This study examines the legal protection of option agreements used by foreign nationals (FNs) to acquire apartment ownership in Batam City. It evaluates the regulatory framework, practical implementation, challenges, and the extent to which such agreements provide legal certainty for both developers and FNs.

Methodology: A normative juridical approach was combined with a socio-legal method. Secondary data were obtained from legislation, legal literature, and jurisprudence, while primary data were gathered through interviews with notaries, government officials, developers, and foreign buyers in Batam.

Results: The findings reveal that option agreements, though widely applied, lack explicit regulation in Indonesian law. Their legal force relies on the contractual freedom principle under the Civil Code, making them valid but weak in providing ownership rights. In practice, they are often used as alternatives to bypass restrictions on foreign ownership, but this creates potential legal uncertainty, especially in cases of default, regulatory changes, or disputes.

Conclusion: Option agreements serve only as contractual instruments and fail to provide comprehensive legal protection or full ownership rights for FNs under Indonesian agrarian law. Clearer statutory provisions are required to enhance certainty and prevent abuse.

Limitations: The research is limited to Batam City and does not fully capture variations across other regions. Data on disputes and enforcement are also limited.

Contribution: This study identifies regulatory gaps in option agreements and emphasizes the need for government intervention through clearer policies, offering recommendations for policymakers, land agencies, and notaries to enhance investor protection, legal certainty, and national sovereignty.

Keywords:
1. Apartment
2. Option Agreement
3. Legal Protection
Authors:
1 . Meily Ferawati
Batam University, Batam, Kepulauan Riau, Indonesia
2 . Irpan Husein Lubis
Batam University, Batam, Kepulauan Riau, Indonesia
3 . Erniyanti Erniyanti
Batam University, Batam, Kepulauan Riau, Indonesia
4 . Markus Gunawan
Batam University, Batam, Kepulauan Riau, Indonesia
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How to Cite
Ferawati, M., Lubis, I. H., Erniyanti, E., & Gunawan, M. (2025). Juridical analysis of legal protection for the implementation of option agreements for foreign citizens (foreign nationals) in apartment ownership (research study: Apartments in Batam City. Annals of Justice and Humanity, 5(1), 27–38. https://doi.org/10.35912/ajh.v5i1.3435
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Vol. 5 No. 1 (2025): December
Articles
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    Lorenza, C., & Wargenegara, D. L. (2022). A Study On Real Estate Investment Decisions in an Indonesian Free Trade Zone: A Behavioral Finance Approach. Jurnal Akuntansi dan Bisnis: Jurnal Program Studi Akuntansi, 8(2), 164-180. doi:https://doi.org/10.31289/jab.v8i2.8156

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    Mahfud, M. A., & Djohan, N. H. (2024). The Expansion of Investor Access to Cultivation Rights: A Socio-Legal Analysis on Agrarian Injustice in Indonesia. Al-Risalah: Forum Kajian Hukum dan Sosial Kemasyarakatan, 24(2), 55-67. doi:https://doi.org/10.30631/alrisalah.v24i2.1500

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    Nisa, A. F. (2023). Ownership Of Land Rights With The Status Of Property Rights By Foreign Nationals As Beneficiaries Using Indonesian Citizens. Global Legal Review, 3(1), 49-57. doi:https://doi.org/10.19166/glr.v3i1.5107

    Prakoso, G. D., Nabila, S. K., & Samosir, T. (2025). Analysis of the Validity of Notarial Deeds in Land Ownership Transactions by Foreign Nationals through Nominees based on Law No. 5 of 1960 concerning Basic Agrarian Principles. Jurnal Akta, 12(2), 594-600. doi:http://dx.doi.org/10.30659/akta.v12i2.45303

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    Raynee, R. R., Layla Ni’matussa’idah, Z., & Salsabilasyah, F. N. (2024). Analisis Terhadap Konsep Perjanjian dan Unsur-Unsur Perjanjian dalam Hukum Perikatan. Media Hukum Indonesia (MHI), 2(4), 341-346. doi:https://doi.org/10.5281/zenodo.14194221

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    Suwardi. (2017). Hak Kepemilikan Tempat Tinggal bagi WNA di Bidang Properti. Perspektif Hukum, 17(1), 138-153. doi:https://doi.org/10.30649/ph.v17i1.63

    Tobing, A., Praptono, S. T., Hestiono, P., & Pattinasarany, E. B. (2024). Agrarian Reform In The Context Of Increasing Poor Peasants'access To Land Tenure In Indonesia. Hukum Responsif, 15(2), 279-287. doi:https://doi.org/10.33603/responsif.v15i2.9481

    Vandini, T. (2025). Implementasi Nominee Agreement dalam Perspektif Hukum di Indonesia. Jurnal Pendidikan Indonesia, 6(4), 2057-2063. doi:https://doi.org/10.59141/japendi.v6i4.7660

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    Wijayani, N. P. T. E. (2018). Penyelesaian Sengketa Perjanjian Nominee Tentang Peralihan Hak Milik Atas Tanah Kepada Warga Negara Asing (Wna) Ditinjau Dari Pasal 26 Ayat (2) UUPA. Jurnal Aktual Justice, 3(2), 122-138. doi:https://doi.org/10.47329/aktualjustice.v3i2.538

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  2. Arsensius, A. (2023). Pengaturan Hak Pakai Sebagai Objek Hak Tanggungan Atas Rumah Tinggal Warga Negara Asing. Tanjungpura Law Journal, 7(2), 184-210. doi:https://doi.org/10.26418/tlj.v7i2.58807
  3. Ashfiya Nur, A., Ahmad Muhamad Mustain, N., Latifah, I. a., Annada Ashfa, U., & Neysa Kunthi Cahya, L. (2024). Tunas Agraria : Implikasi Kewarganegaraan terhadap Hak Kepemilikan Tanah dalam Hukum Agraria Indonesia. Terang : Jurnal Kajian Ilmu Sosial, Politik dan Hukum, 1(4), 118-127. doi:https://doi.org/10.62383/terang.v1i4.618
  4. Aulia, M. R. R., & Holish, A. M. (2023). Legal Aspect of Land Tenure Strategies by Foreign Nationals (Case of District of Jepara, Indonesia). Journal of Law and Legal Reform, 4(1), 33-44.
  5. Butar-Butar, K. E., & Turisno, B. E. (2022). Juridic Review Of Granting Rights To Flat Units To Foreign Citizens Based On The Provisions Of Legislation In Indonesia. Awang Long Law Review, 4(2), 409-418. doi:https://doi.org/10.56301/awl.v4i2.454
  6. Chopra, B., Dhingra, A. K., Dhar, K. L., & Nepali, K. (2021). Emerging Role of Terpenoids for the Treatment of Cancer: A Review. Mini Reviews in Medicinal Chemistry, 21(16), 2300-2336. doi:https://doi.org/10.2174/1389557521666210112143024
  7. Dharma, K. R. W., Budiartha, I. N. P., & Ujianti, N. M. P. (2022). Larangan penguasaan tanah oleh WNA melalui perjanjian nominee. Jurnal Konstruksi Hukum, 3(2), 246-251. doi:https://doi.org/10.22225/jkh.3.2.4806.246-251
  8. Feriska, M. N. (2023). Kebebasan Berkontrak Dan Perlindungan Konsumen Dalam Perjanjian Sewa Menyewa Pada Sebuah Keseimbangan Hukum. JOURNAL SAINS STUDENT RESEARCH, 1(1), 893-902. doi:https://doi.org/10.61722/jssr.v1i1.415
  9. Gaol, S. L. (2018). Tinjauan Hukum Pemilikan Apartemen (Satuan Rumah Susun) Oleh Orang Asing/Warga Negara Asing Di Indonesia. Jurnal Ilmiah Hukum Dirgantara, 9(1). doi:https://doi.org/10.35968/jh.v9i1.298
  10. Halilah, S., & Arif, M. F. (2021). Asas Kepastian Hukum Menurut Para Ahli. Siyasah: Jurnal Hukum Tata Negara, 4(2), 56-65.
  11. Haspada, D. (2018). Perjanjian nominee antara warga negara asing dengan warga negara indonesia dalam praktik jual beli tanah hak milik yang dihubungkan dengan pasal 1313 kitab undang-undang hukum perdata. Wacana Paramarta: Jurnal Ilmu Hukum, 17(2), 115-124. doi:https://doi.org/10.32816/paramarta.v17i2.77
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  15. Isradjuningtias, A. C. (2017). Faktor Penyebab Penyimpangan Tata Ruang (Studi Pembangunan Condominium) di Kota Bandung. Veritas et Justitia, 3(2), 437-467. doi:https://doi.org/10.25123/vej.v3i2.2687
  16. Komatsu, K., Murata, S., Stylianides, A. J., & Stylianides, G. J. (2024). Introducing students to the role of assumptions in mathematical activity. Cognition and Instruction, 42(2), 327-357. doi:https://doi.org/10.1080/07370008.2023.2293695
  17. Lorenza, C., & Wargenegara, D. L. (2022). A Study On Real Estate Investment Decisions in an Indonesian Free Trade Zone: A Behavioral Finance Approach. Jurnal Akuntansi dan Bisnis: Jurnal Program Studi Akuntansi, 8(2), 164-180. doi:https://doi.org/10.31289/jab.v8i2.8156
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  19. Mahfud, M. A., & Djohan, N. H. (2024). The Expansion of Investor Access to Cultivation Rights: A Socio-Legal Analysis on Agrarian Injustice in Indonesia. Al-Risalah: Forum Kajian Hukum dan Sosial Kemasyarakatan, 24(2), 55-67. doi:https://doi.org/10.30631/alrisalah.v24i2.1500
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  21. Negara, T. A. S. (2023). Normative legal research in Indonesia: Its originis and approaches. Audito Comparative Law Journal (ACLJ), 4(1), 1-9. doi:https://doi.org/10.22219/aclj.v4i1.24855
  22. Nisa, A. F. (2023). Ownership Of Land Rights With The Status Of Property Rights By Foreign Nationals As Beneficiaries Using Indonesian Citizens. Global Legal Review, 3(1), 49-57. doi:https://doi.org/10.19166/glr.v3i1.5107
  23. Prakoso, G. D., Nabila, S. K., & Samosir, T. (2025). Analysis of the Validity of Notarial Deeds in Land Ownership Transactions by Foreign Nationals through Nominees based on Law No. 5 of 1960 concerning Basic Agrarian Principles. Jurnal Akta, 12(2), 594-600. doi:http://dx.doi.org/10.30659/akta.v12i2.45303
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  25. Raynee, R. R., Layla Ni’matussa’idah, Z., & Salsabilasyah, F. N. (2024). Analisis Terhadap Konsep Perjanjian dan Unsur-Unsur Perjanjian dalam Hukum Perikatan. Media Hukum Indonesia (MHI), 2(4), 341-346. doi:https://doi.org/10.5281/zenodo.14194221
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  27. Saefullah, S. (2024). Transformasi Konsep Kepemilikan Harta Dalam Hukum Bisnis dan Konteks Sejarahnya. Jurnal USM Law Review, 7(1), 514-527. doi:https://doi.org/10.26623/julr.v7i1.8557
  28. Sihotang, S. (2016). Implementasi Hukum Perumahan Sebagai Usaha Percepatan Pengadaan Rumah Bagi Masyarakat Yang Berpenghasilan Rendah (MBR). De'rechtsstaat, 2(1), 81-102. doi:https://doi.org/10.30997/jhd.v2i1.659
  29. Sinaga, N. A. (2018). Peranan asas-asas hukum perjanjian dalam mewujudkan tujuan perjanjian. Binamulia Hukum, 7(2), 107-120. doi:https://doi.org/10.37893/jbh.v7i2.318
  30. Sofwan, M. (2024). Legal Review of Implementation of Cooperation Agreements between Agents and Distributors in Business Law Principles. Journal Equity of Law and Governance, 5(2), 58-64. doi:https://doi.org/10.55637/elg.5.2.10376.58-64
  31. Suwardi. (2017). Hak Kepemilikan Tempat Tinggal bagi WNA di Bidang Properti. Perspektif Hukum, 17(1), 138-153. doi:https://doi.org/10.30649/ph.v17i1.63
  32. Tobing, A., Praptono, S. T., Hestiono, P., & Pattinasarany, E. B. (2024). Agrarian Reform In The Context Of Increasing Poor Peasants'access To Land Tenure In Indonesia. Hukum Responsif, 15(2), 279-287. doi:https://doi.org/10.33603/responsif.v15i2.9481
  33. Vandini, T. (2025). Implementasi Nominee Agreement dalam Perspektif Hukum di Indonesia. Jurnal Pendidikan Indonesia, 6(4), 2057-2063. doi:https://doi.org/10.59141/japendi.v6i4.7660
  34. Widiyono, T., & Khan, M. Z. K. (2023). Legal Certainty in Land Rights Acquisition in Indonesia’s National Land Law. Law Reform, 19(1), 128-147. doi:https://doi.org/10.14710/lr.v19i1.48393
  35. Wijayani, N. P. T. E. (2018). Penyelesaian Sengketa Perjanjian Nominee Tentang Peralihan Hak Milik Atas Tanah Kepada Warga Negara Asing (Wna) Ditinjau Dari Pasal 26 Ayat (2) UUPA. Jurnal Aktual Justice, 3(2), 122-138. doi:https://doi.org/10.47329/aktualjustice.v3i2.538