The Mandatory Use of National Language in Indonesia and Belgium: An Obstacle to International Contracting?

Law Number 24 of 2009 on the National Flag, Language, Emblem, and Anthem of Indonesia requires that any contract involving an Indonesian party must be drafted in Indonesian. In applying this law, the Supreme Court of the Republic of Indonesia, in the Nine AM v. PT Bangun Karya Pratama Lestari judgment, annulled a loan agreement because it was considered in violation of the language requirement. Although this judgment claims to strengthen the use of the Indonesian language in contracts, it underscores the potential risk of voidance foreign parties face when they enter into agreements drafted in... Mehr ...