This paper will discuss the urgency of regulating nominee practices in Indonesian regulations. Nominee is a name borrowing practice whose existence occurs in various transactions in Indonesia, both in Limited Liability Companies, Foreign Investment, and Capital Market. This practice is carried out by several parties by borrowing second parties, where that second parties will act on his behalf. In Indonesia, the provisions regarding nominees, are regulated in several regulations, namely Law No. 40 of 2007 concerning Limited Liability Companies, Law No. 25 of 2007 concerning Investment, and Law No. 8 of 1995 concerning Capital Markets. With the occurrence of the nominee practices, then the purpose of this paper is to find out how the legal validity in Indonesia regulates nominee practices, and whether the practice is allowed or not allowed to be used by interested parties. The method used in this research is normative juridical, which is research that refers to the approach of applicable laws and regulations. The conclusion of this research is that based on the literature review conducted, a nominee is prohibited practice in Indonesia because it’s contrary to Article 1329 of the  Indonesia Civil Code concerning the validity requirement of the agreement, namely admissible cause. Besides contrary to the Civil Code, nominee practices are also prohibited in several laws and regulations on Limited Liability Companies, Investment, and also Capital Markets although the regulations are only explicit. In the United States, the nominee practices are allowed, with a law regulating it.

Keywords

Nominee, Validity, Agreement, Regulations, Parties.