Introduction of Presidential Regulation No.63 Year 2019 (“PR63”) on Broader Provisions on the Mandatory Use of Indonesian Language.

PR 63 is the implementation regulation of Law no.24 Year 2009 regarding National Flag, Language, Emblem and Anthem (“Law24”). The introduction of this Presidential Regulation clearly mandates that any agreement involving an Indonesian party should be made in Indonesian language or at least in dual language. In the event of a bilingual agreement, the parties are allowed to determine the prevailing language should there be any inconsistencies.
Moreover, PR 63 also further outlines the provisions of the mandatory use of Indonesian language across 14 contexts, namely;

  1. Laws and regulations;
  2. Official state documents;
  3. Official speech which are made by the President and/or Vice President as well as by other government officials;
  4. Communications within educational institutions;
  5. Public administration services;
  6. Memoranda of Understanding (“MoU”)or Agreements;
  • If agreements are drawn up in multiple languages, the parties can agree upon the prevailing language should there be any discrepancies.
  1. International or national fora which are held in Indonesia;
  2. Official communications within working environments (both government and private sectors);
  • Such communications covers both verbal and written communications as well as both electronic and non-electronic media.
  1. Writing and publication of scientific papers within Indonesia;
  2. Naming of various object specifically; geographical sites, constructions works and buildings, streets, apartments and residences, offices, trading complexes, trademarks as well as business and educational institutions in Indonesia;
  • If the trademarks are owned by Indonesian or Indonesian legal entities but licensed from a foreign party, then they are not required to use Indonesian language.
  • Naming of business institution in Indonesian language is only applicable if the said institution are established in the form of limited liability companies and are entirely owned by Indonesian parties.
  1. Information relating to goods and services;
  • Information has to be in Indonesian language if the business produce or import said products for trading purposes.
  1. Public signs, directions, public facilities, banners and other information media; and
  2. Information which is disseminated through the mass media
Neither Law 24 nor PR 63 impose any sanctions in the case of violations, however it is important to ensure all your documents are fully compliant in Indonesian language or bilingual form to ensure that your agreements are not ruled out as invalid or null and void in the Indonesian Court of Law in case of any dispute.