Obligation to Use Indonesian Language in the Agreement

The Indonesian language must be used in memoranda of understanding or agreements involving state institutions, government agencies of the Republic of Indonesia, Indonesian private institutions, or individuals who are Indonesian citizens.

Question:

Are Indonesian citizens obliged to use the Indonesian language in the Agreement they made? What if the other Party is a foreign national? (Albert, Tangerang)

Answer: Fine, thank you for the question. Regarding the use of Indonesian, it is actually regulated in Presidential Regulation Number 63 of 2019 (“ Presidential Decree 63/2019 “) And Law No. 26 of 2009 (“ Law 63/2019 “). Article 26 Paragraphs 1 and 2 of Perpres 63/2019 state the following:

“1. The Indonesian language must be used in memoranda of understanding or agreements involving state institutions, government agencies of the Republic of Indonesia, Indonesian private institutions, or individuals who are Indonesian citizens. 2. 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. “

Article 31 Paragraph 1 and 2 of Law 26/2009 also regulates the following:

“1. The 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 Indonesian citizens. 2. 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. “

It can be seen that the two regulations actually agree in providing certainty that for the Memorandum of Understanding and Agreement involving parties from Indonesia it is obligatory to use Indonesian. In the event that there is a conflict between Indonesian and English in the agreement, referring to Article 26 Paragraph 4 of Perpres 63/2019 which applies must be interpreted in Indonesian. Next, what will happen if an agreement involves parties from Indonesia but violates the provisions above? In essence, it is based on applicable law in Indonesia, related to agreements, including in the realm of civil law. Related to the legal terms of the agreement itself is regulated in Article 1320 of the Civil Code (“ KUHPer “), Where from the Article it can be seen that the valid terms of the agreement include:

  1. Agreed;
  2. Competent;
  3. Because – causes that are lawful;
  4. Certain thing.

If the above legal conditions have not been fulfilled, the agreement will be legally flawed so that the agreement can be canceled or even null and void. However, this article will not explain the legal terms of the agreement in detail. In essence, if what is violated is the “agreed” or “competent” condition then the agreement can be canceled, while if what is violated is the condition of “lawful causes” or “certain things” then the agreement is null and void by law.
Non-conformity or violation of the applicable law on an agreement results in the failure to fulfill the conditions of “lawful causes”. So that on this matter, the agreement can be considered as null and void or deemed to have never existed. That is the explanation that we can convey. If you have further questions, please contact my Legal Customer Service so that you can be connected with our experts!

Artikel Lainnya
RUPS merupakan kegiatan yang diatur oleh undang-undang di mana para pemegang saham bertemu secara berkala untuk membahas dan memutuskan berbagai masalah penting perusahaan. Ini termasuk persetujuan anggaran perusahaan, pemilihan direksi, penentuan kebijakan dividen, serta masalah lain yang memerlukan persetujuan pemegang saham. Dengan demikian, RUPS memainkan peran kunci dalam menjaga akuntabilitas dan transparansi perusahaan, serta memastikan bahwa kepentingan para pemegang saham dihormati.
Bisnis

RUPS: Panggung Demokrasi Korporat dalam Pengambilan Keputusan Perusahaan

Dalam jagat bisnis global yang semakin kompleks dan dinamis, keberhasilan sebuah perusahaan tidak hanya ditentukan oleh strategi bisnis yang cerdas, tetapi juga oleh kualitas tata kelola perusahaan yang efektif dan demokratis. Di tengah peran pentingnya, Rapat Umum Pemegang Saham (RUPS) hadir sebagai panggung utama di mana para pemegang saham dapat berinteraksi langsung dengan manajemen perusahaan dan menyumbangkan suara mereka dalam pengambilan keputusan yang krusial. Namun, apa sebenarnya RUPS itu, bagaimana prosesnya, dan mengapa hal ini begitu vital dalam konteks bisnis modern? Mari kita selami bersama dalam artikel ini untuk memahami esensi dari demokrasi korporat yang kokoh, yang diperankan oleh RUPS.

Baca »
Writing Business Letters (BL) is an important skill for every professional in the business world. BL serves not only as a communication tool but also reflects the professionalism and integrity of your company. In this guide, we will explore the important steps in writing effective and captivating BLs, as well as practical tips to enhance the success of your business communication.
Business Letters

Comprehensive Guide to Writing Business Letters

Writing Business Letters (BL) is an important skill for every professional in the business world. BL serves not only as a communication tool but also reflects the professionalism and integrity of your company. In this guide, we will explore the important steps in writing effective and captivating BLs, as well as practical tips to enhance the success of your business communication.

Baca »
The KITAS Investor, a specialized immigration product catering to investors venturing into Indonesian businesses, plays a pivotal role in facilitating foreign investments within the country. Serving as a Limited Stay Permit Card, it signifies the Indonesian government's commitment to fostering a conducive investment environment. While the term "KITAS" technically stands for "Kartu Izin Tinggal Terbatas," it's noteworthy that physical cards are no longer issued for this purpose. Instead, it's commonly referred to as ITAS (Izin Tinggal Terbatas), although for clarity in this discourse, we'll maintain the use of the term KITAS.
Bisnis

Understanding KITAS Investor in Indonesia

The KITAS Investor, a specialized immigration product catering to investors venturing into Indonesian businesses, plays a pivotal role in facilitating foreign investments within the country. Serving as a Limited Stay Permit Card, it signifies the Indonesian government’s commitment to fostering a conducive investment environment. While the term “KITAS” technically stands for “Kartu Izin Tinggal Terbatas,” it’s noteworthy that physical cards are no longer issued for this purpose. Instead, it’s commonly referred to as ITAS (Izin Tinggal Terbatas), although for clarity in this discourse, we’ll maintain the use of the term KITAS.

Baca »
Semua Layanan Legalku
LegalDoc

Buat Dokumen Praktis

LegalBizz

Urus Legalitasmu

IUMK

Izin Usaha Praktis

Merek

Terdaftar & Terjamin

Edar BPOM

Aman & Terjamin

PIRT

Majukan Usahamu

Izin PSE

Praktis & Mudah

Izin Apotek

Dapatkan Izinmu

Retainer Legal

Oleh Staf Profesional

Retainer ENP

Menjamin Kemulusan Usahamu

Pajak

Mudah & Aman

Kitas

Untuk Izinmu

Sworn Translator

Penerjemah Tersumpah

PT Singapura

Handal & Terjangkau

PT Perorangan

Untuk Usaha Lebih Aman

Pendirian PT

Majukan Usahamu

Sertifikat Halal

Untuk Usahamu Terjamin

LKPM

Pelaporan Praktis

LegalSIstance

Cepat & Membantu

Sertifikat Standard

Buat Izin Uusahamu

Founders Agreement

Buat Mudah Usahamu

PT PMA

Investor Asing

Agreement

Buat Kesepakatan

Shareholder Agreement

Tidak Perlu Repot

Legal Checkup

Cek Izin Usahamu Disini

NIB

Mulai Izin Usaha

Legalku Q&A
Pendirian PT

PMDN – PMA

Drafting Agreement

Drafting Agreement

Terkait Investasi

Legalitas Terkait Investasi

Izin Usaha

Legalitas Izin Usaha

HKI

Hak Kekayaan Intelektual

Legal Due Diligent

Majukan Usahamu

Lainnya

Lihat Semua Knowledge Hukum

Voucher Form

Dapatkan voucher potongan harga dengan mengisi form berikut.

*Setelah mengisi Form diatas, kami tidak akan lagi mengirim Pop-Up ini kepadamu :)
*Oh iya Tenang, kami tidak akan melakukan SPAM kok
Check Keabsahan Legalitas

Berdasarlan PP No. 43 Tahun 2011 tentang Tata Cara Pengajuan dan Pemakaian Nama Perseroan Terbatas minimal 3 kata dan dilarang menggunakan bahasa asing. Untuk PT Perorangan juga berlaku ketentuan yang sama.

Format Penulisan: HURUF BESAR.
Contoh: PT LEGALKU DIGITAL TEKNOLOGI