What Indonesia court ruling means for local translation rules

Author: Ashley Lee | Published: 25 Nov 2013
  • 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....