Markit wroteOne of the purposes of the "mortgage" is to encumber the property so that it can't be sold out from under you and hence the need to have your name on the land certificate as "lender".
The premise being that any prospective secret buyer viewing the certificate will see that it is encumbered and shy off.
*It also is a good way to keep your nominee in line - don't ever doubt that Indonesians are very respectful of bureaucratic legalese and 99% will never question the contract no matter how crazy you make it. Hell, add in that his first-born will be sold into slavery if it goes wrong and you'll see they will believe* ...
What would motivate an Indonesian, who is volunteering to be the title holder (Hak Milik) for a foreigner, then encumber himself with a huge mortgage for which he will be responsible for the monthly premiums. In any event...to have a legal mortgage on Hak Milik/Pakai property, as collateral, requires the lender to be registered with the Financial Services Dept. Otherwise it is just an IOU
In such a scenario as above the 'nominee' could sell the Hak Milik title to another Indonesian for the outstanding loan, get a commission, and leave the bule with nothing but a piece of paper saying Ketut has an outstanding IOU...good luck pushing that through the courts.
BTW I texted Markit's above comments ** to my nephew, who is the Deputy Chief of Police in Bulelang, and he thought it offensive to Indonesians, as do I.
