Member Article

Background

After ten long years of the issuance of Law No. 24 of 2009 on the National Flag, Language, Emblem, and Anthem (“Language Law”), the Government of Indonesia has finally issued an implementing regulation of the Language Law, ie Presidential Regulation No. 63 of 2019 on the Use of the Indonesian Language (“PR 63/2019”). It came into effect on 30 September 2019.

Key provisions which may be relevant to businesses

a. Communication with government officials

PR 63/2019 requires the Indonesian language to be used for public administration services in government institutions, at least used for:

1. communication between administrators and recipients of public services;
2. standard public services;
3. notices/information related to the services provided; and
4. information services systems.

If required, a foreign and/or traditional language may be used as a translation of the Indonesian language version. In the event of a difference in interpretation between the foreign language and the Indonesian language, the Indonesian language should prevail.

Given the above, all written communications, including written statements and written applications submitted to government officials must be made in the Indonesian language (and may be accompanied by a foreign language translation).

b. Governing language of an agreement involving foreign parties

As required under the Language Law, the Indonesian language must be used in any agreements involving government institutions of the Republic of Indonesia, Indonesian private entities, or Indonesian individuals. If the agreement involves foreign parties, the Indonesian language version can be accompanied by a version in the language of the foreign parties and/ or in English. However, PR 63/2019 seems to imply that the foreign or English language version will be seen as a translation of the Indonesian language version provided for the foreign parties to have the same understanding of the agreement as the Indonesian parties to it. Therefore, to be safe, the Indonesian language version and the foreign or English versions of the agreement should be signed at the same time.

Under PR 63/2019, in the event of a difference in interpretation, the governing language should be the language the parties agree to under the agreement.

The Language Law is not entirely clear on this issue as it only provides that Indonesian and other language and/or English versions are deemed original. However, now, the parties to an agreement may agree to the governing language in the event of a difference in interpretation between the foreign language version and the Indonesian language version. For example, the parties may agree that the English language version will prevail and therefore, the agreement will be interpreted according to the English language version.

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