1. No Domestic Trust Law Instrument
• Indonesia does not recognize trusts in the common law sense.
• Ownership is unitary: the registered owner holds both legal and beneficial title.
• No statutory trust code exists.

2. Judicial Approach
• Courts apply substance over form.
• Focus is on economic reality: who controls or benefits from the assets.
• Reliance on circumstantial evidence and adverse inferences from non-disclosure.

3. Indicators of Control
• Regular distributions or lifestyle expenses funded by the trust.
• Emails, letters of wishes, or correspondence showing influence.
• Protector or veto powers retained.
• Trust funded with marital assets or income.

4. Enforcement Challenges
• No statutory disclosure regime for trustees abroad.
• Conflict of laws with foreign trust jurisdictions.
• Heavy reliance on indirect evidence.

5. Practical Enforcement
• Indirect route: Courts re-balance local assets instead of ordering foreign trustees.
• Local holding companies: PTs or property in Indonesia can be treated as marital assets.
• Compensatory awards: Adjust division of local property to achieve fairness.
• Bad faith scrutiny: Lost-minute transfers into trusts are treated as dissipation.

6. Guiding Principles
• Fairness (keadilan)
• Bad faith (itikad buruk)
• Effective control (penguasaan nyata)

7. Practical Reality
• Courts rarely enforce foreign trust deeds directly.
• Offshore structures remain intact abroad, but economic connection disappears in Indonesia.
• Judges neutralize shielding by focusing on control, benefit, and fairness.

KEY MESSAGE:
ENFORCEMENT OF FOREIGN TRUSTS IN INDONESIA IS NOT ABOUT COMPELLING TRUSTEES ABROAD. IT IS ABOUT ENSURING FAIRNESS LOCALLY, WITH COURTS RE-BALANCING INDONESIAN ASSETS TO REFLECT ECONOMIC REALITY.