Diani Putri Pracasya

The using of Indonesian language in an agreement enforced in Indonesia is an obligation. This matter refers to Article 31 of Law No. 24 of 2009 and Article 26 paragraph (1) of Presidential Regulation 63 of 2019. Both articles essentially regulate 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."

If the parties to the agreement, either Indonesian citizen (WNI) or expatriate (WNA), have made an agreement in a foreign language, then the next appropriate step is to make an Addendum Agreement of the foreign language agreement by translating into an Indonesian language agreement. In this case, the presence of a foreign language in an agreement is only a translation of an Indonesian phrase, so that if there is a difference in interpretation then the priority in the agreement is the phrase in Indonesian language. The use of a foreign language in an agreement is not a prohibition, but the foreign language phrase only becomes a translation of the Indonesian language phrase in the agreement.

The priority of Indonesian language in the agreement is if there is a dispute and must be resolved in Indonesian court, if the agreement is in Indonesian language, it is considered that the agreement meets the provisions of the laws and regulations regulated in Indonesia and the court has the right to handle the dispute. If the agreement does not use or does not mention referring to Indonesian language, the relevant court has the right to reject and not examine the agreement which will be detrimental to the parties involved in the dispute.

However, it should be understood that the legal consequences of an agreement that does not use Indonesian language actually cannot be conclude that it is null and void. The reason is an agreement can be said to be null and void if it meets the provisions in Article 1320, Article 1335, and Article 1337 of the Civil Code. However, an agreement that does not use Indonesian language can be requested to be cancelled to the relevant court if it meets the elements of default in the agreement.