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Jakarta Post

Indonesian language requirement for contracts

  • Alexander Hutauruk

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PREMIUM
Jakarta   /   Thu, October 24, 2019   /  10:34 am
Indonesian language requirement for contracts The presidential regulation confirms the logical conception in the Language Law, namely, that the foreign language version is intended as the equivalent or the translation of the Indonesian version so that parties share the same understanding. (JP/Rafaela Chandra)

In less than a month before his second inauguration, President Joko “Jokowi” Widodo issued a regulation on the use of Bahasa Indonesia in an attempt to clarify provisions of the 2009 Language Law. According to the Law, the use of Indonesian is mandatory in agreements or contracts involving Indonesian parties. If non-Indonesian parties are involved in such agreements, the agreements can “also” be written in English or in the national language of the non-Indonesian parties. There are three points in the presidential regulation that will largely influence how business contracts (with non-Indonesian parties) are made. First, the timing for the use or execution of Indonesian-version contracts or agreements. Second, the prevailing language in the case of inconsistencies and finally, the absence of legal consequences that should have been addressed in the regula...

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