In this artilce, we look at how the introduction of Presidential
Regulation No. 63 of 2019 on the Use of Bahasa Indonesia
("PR 63") dated 30 September 2019, which
is the long-awaited implementing regulation of Law No. 24 of 2009
on the National Flag, Language, Emblem and Anthem
("Law 24"), may affect current practice
when entering into a foreign language agreement with an Indonesian
party.
PR 63 attempts to clarify appropriate market practice by stating
that the parties can agree on the prevailing language in case of a
difference in interpretation. However, certain issues are still
unclear, including the extent to which the prevailing language
clause in an agreement can be relied on, and whether a foreign
investment (PMA) company is considered an Indonesian or foreign
party.
