Senin, 15 November 2021

What Language Must Be Used In The Agreement In Indonesia?

(iStockphoto)

By:
Mahmud Kusuma, S.H., M.H.
(Certified Attorneys at Law)

Previously, the Hukumindo.com platform has talk about "Who's Legally Represents The Company In Indonesia?" you may read also "How To Check The Validity of Indonesian Advocates?", "If I Get Fired, What Are My Rights According to Indonesian Law?" and on this occasion we will discuss about What Language Must Be Used In The Agreement In Indonesia?

Nowadays globalization is unavoidable. Human interaction from various parts of the world with one another has become a necessity. Including in doing business, business transactions between countries at this time are something commonplace. As a result, interaction between culture and law becomes unavoidable. On a practical level, foreign investors who wish to invest in Indonesia need a sufficient understanding of local aspects such as culture, language and laws. With an understanding of some of these aspects, it is hoped that future business activities will be smoother.

For example, when a company starts running or when it is already running, it is common practice to enter into business agreements between companies. Loan agreements with banks, raw material supplier agreements with suppliers, employment agreements with employees, and other agreements are real examples that are often carried out. When doing so, companies need sufficient knowledge of the language spoken in Indonesia and the laws that apply in such country. As the title above, on this occasion will be discussed about the law of using Indonesian language/'bahasa Indonesia' in an agreement.

Governing Law

The law related to the topic of discussion in this article is Law no. 24 of 2009 concerning the National Flag, Language, Emblem and National Anthem. Article 31 paragraph (1) and (2) Law no. 24 of 2009 concerning the National Flag, Language, Emblem and National Anthem, stipulates that:
"Indonesian language must be used in memorandums of understanding or agreements involving state institutions, government agencies of the Republic of Indonesia, Indonesian private institutions or individual Indonesian citizens."
"The memorandum of understanding or agreement as referred to in paragraph (1) involving a foreign party is also written in the foreign party's national language and/or English"

What Language Must Be Used In The Agreement In Indonesia?

Thus, the question in this article has been answered, that the agreement made by the company to carry out its business activities must use the Indonesian language/'bahasa Indonesia'. This is as regulated in Law no. 24 of 2009 concerning the National Flag, Language, Emblem and National Anthem.

As a tips, make a contract in bilingual. Make sure that you comply with the applicable laws in Indonesia and also understand the contents of the agreement that binds your company. And also, translate agreements or company documents into the required language for file. For official documents use a sworn translator. And if you have any issue with this topic, contact us, feel free in 24 hours, we will be glad to help you.


*) For further information please contact:
Mahmud Kusuma Advocate
Law Office
Tokopedia Care Tower, 17th Floor, Unit 2&5,
Outer West Ring Road, 101, Rawa Buaya,
Cengkareng Subdistrict, West Jakarta,
Jakarta - Indonesia.
E-mail: mahmudkusuma6@gmail.com

________________
Reference:

1. Law no. 24 of 2009 concerning the National Flag, Language, Emblem and National Anthem.

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