Presidential Regulation No. 63 of 2019 on Use of Indonesian Language
On 30 September 2019, the Government of Indonesia issued Presidential Regulation No. 63 of 2019 on Use of Indonesian Language (Regulation 63/2019). The purpose of this regulation is to implement certain provisions under Law No. 24 of 2009 (Law 24/2009), which generally govern on the use of state flag, national language, national emblem and national anthem. Regulation 63/2019 is a mandated implementing regulation of Law 24/2009 specifically dealing with the use of Indonesian language as the official national language.
Regulation 63/2019 makes it mandatory for the Indonesian language to be used in various circumstances. One of the various settings in which the use of Indonesian language is mandatory is in memoranda of understanding and agreements involving Indonesian parties. Article 26(1) of the Regulation stipulates, among others, that Indonesian language must be used in any contract to which an Indonesian private entity or individual is a party. If foreign parties are involved, the contract may also be written in a foreign language or English, but Indonesian language must be included in it as a translation of the foreign language. In the event of inconsistency, the Regulation affords the parties the freedom to choose whichever language they wish to use as the prevailing language.
The requirement to use Indonesian language is actually not new as it was first introduced in Law 24/2009. Confusions and uncertainties exist however because of the absence of an implementing regulation which was supposed to be issued within two years of the enactment of the Law. The recently issued Regulation 63/2019 hopefully helps clear up some of those uncertainties.
Regulation 63/2019 is effective immediately.
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