Why Indonesian Translation Is Important in Agreements in Indonesia
In today’s increasingly globalized world of law and business, the translation of legal documents particularly agreements plays a crucial role. In Indonesia, translating such documents into the Indonesian language is not only practical but also has a strong legal basis for parties entering into contracts with Indonesian counterparts. Misinterpretation of contract terms due to inaccurate translation can lead to disputes, financial losses, or even the annulment of the contract.
Obligation Under Indonesian Law
Law No. 24 of 2009 on the National Flag, Language, State Emblem, and National Anthem explicitly stipulates that any agreement involving an Indonesian party must be written in the Indonesian language. Article 31 paragraph (1) states:
“The Indonesian language must be used in memorandums of understanding or agreements involving state institutions, government agencies of the Republic of Indonesia, private entities in Indonesia, or Indonesian citizens.”
Accordingly, if an agreement with a foreign party is executed solely in a foreign language without an accompanying Indonesian version, it may be considered inadmissible as evidence in court or may create legal uncertainty for the contracting parties.
Ensuring Legal Certainty and Protection
Legal language is highly technical and often contains terms with specific meanings. An inaccurate translation can alter the intended meaning of a clause or provision within the contract. For example, the difference between translating “shall” and “may” in an English-language contract can significantly affect the rights and obligations of the parties.
By formally adopting the Indonesian language in contractual documents, all parties particularly Indonesian entities are better positioned to comprehend the substance and legal implications of the agreements to which they are bound.
Avoiding Disputes Arising from Differences in Interpretation
In practice, a number of legal disputes have arisen from discrepancies in meaning between the original foreign-language version of an agreement and its translated counterpart. To mitigate such risks, agreements or contracts should ideally be drafted in a bilingual format, accompanied by a governing language clause that clearly stipulates which version shall prevail in the event of any inconsistency.
However, in the absence of an accurate and precise translation, the Indonesian version may not be deemed to reflect the true intent of the parties who originally executed the agreement in English
Read other articles : Indonesian Legal Contracts: Applicable Language in Contract
Facilitating Legal and Administrative Processes
Translation into Indonesian also plays an important role in administrative and legal enforcement processes. Government institutions, including regulatory bodies, courts, and notarial offices, require documentation in Indonesian for purposes such as registration, evidentiary submission, and other procedural formalities. An official translation certified by a sworn translator is a key requirement for such documents to be legally recognized.
As a reference, Indonesian jurisprudence requires that written evidence or documents in foreign languages be translated into the Indonesian language. In Supreme Court Decision No. 2719K/Pdt/1983, it was held that a lawsuit (objection – verzet) against a verstek judgment was declared ‘inadmissible’ (niet ontvankelijk verklaard) on the grounds that the plaintiff, during the first-instance proceedings, had submitted documentary evidence in the form of an agreement written in English, which, under the provisions of the Indonesian Civil Procedural Law (HIR), must be translated into Indonesian.
Upholding Sovereignty and Legal Integrity Through Language
Beyond its legal implications, the use of the Indonesian language in contractual agreements reflects a commitment to national sovereignty and cultural identity. Language serves as a symbol of independence and equitable treatment in legal relations between foreign and Indonesian parties. Accordingly, the incorporation of Indonesian in contracts not only safeguards legal interests but also affirms national dignity in every contractual engagement.
Translation into Indonesian is not merely a procedural formality; it constitutes a legal and professional imperative. It ensures that all parties have a clear understanding of their respective rights and obligations, mitigates the risk of misinterpretation, and reinforces legal certainty. Therefore, every institution, corporation, or individual entering into agreements within Indonesia must ensure that their contractual documents are translated accurately by a qualified professional or sworn translator.