- A recent Indonesian district court decision that
ruled an Indonesian law-governed loan agreement void because
it was drafted in English has revived concerns related to a
requirement for Bahasa Indonesia translations for all
agreements with Indonesian counterparties;
- This requirement was introduced under Law 24,
which was passed in July 2009. But no implementing
regulations were issued;
- Because of the lack of guidance, market
participants have been unable to establish market standards
for Bahasa Indonesia translations;
- Counsel hoped that this recent court decision
will spur the Ministry of Law and Human Rights to issue
implementing regulations and clarify the rules for the
market.
A recent Indonesian court decision has forced market
participants to reconsider standard practice in translating
both Indonesian and foreign law contracts into Bahasa
Indonesia.
In July 2009, Indonesia enacted Law 24, which included a
provision requiring all written agreements involving Indonesian
counterparties to be translated into Bahasa Indonesia....