Article 31 of the Language Law mandates the use of Indonesian
language for memorandum of understanding or agreement. In the case
of agreements involving another party which is not Indonesian, the
agreement may be in bilingual – Indonesian and another
language.
On 29 December 2023, the Indonesian Supreme Court issued
Circular Letter No. 3 of 2023 with guidance on interpretation of
Article 31 of Law No. 24 of 2009 on National Flag, Language, Emblem
and Anthem (referred to as the Language Law).
This requirement has led to several court decisions rendering
void agreements that are not at least bilingual – where one
of the parties is Indonesian.
It is against this backdrop that the Supreme Court issued the
circular letter.
