Supreme Court decision on Language Law: the Indonesian language is ‘a must’ in commercial agreements
Client Update - Appeal Court Decision on Language Law Overview Recently, the Jakarta High Court affirmed a decision of the West Jakarta District Court on the interpretation of Indonesia’s Language Law, [1] which governs agreements with Indonesian parties. The High Court upheld the District Court’s decision without offering any further reasoning. Accordingly, it does not provide any new guidance on the proper interpretation of the Language Law. The High Court decision may be appealed to the Supreme Court. In the meantime, those entering into agreements with Indonesian parties should carefully consider the implications of the Language Law. We recommend such agreements: are drafted in bilingual versions (both a Bahasa Indonesia version, as well as an English or relevant foreign language version); and state which bilingual version prevails in the event of any inconsistency. Background Article 31 of the Language Law provides that all agreements and memorand...