Here’s Why the Indonesian Translation of A Legal Agreement Is A Must

The use of the Indonesian language in a legal agreement has been stipulated in several Indonesian laws and regulations. Therefore, in addition to complying with the applicable laws, having an Indonesian language translation of an agreement is imperative to improve the local receptivity of the document.

Here are the regulations requiring compliance with the Indonesian language requirement:

  • Law No.2 of 2017 on Construction Services as amended by Law No.11 of 2020 on Job Creation (“Construction Services Law”)

According to the Construction Services Law, a construction work contract must be made in the Indonesian language. However, if the construction work contract is entered into with a foreign party, the contract will be made in the Indonesian language and English, in which case, the governing language must be the Indonesian language.

  • Law No.13 of 2003 on Manpower as amended by Law No.11 of 2020 on Job Creation (“Manpower Law”)

The Manpower Law also stipulates that in case of different interpretations between the Indonesian version and the foreign language version of an employment agreement, the terms in the Indonesian language will prevail.

  • Law No. 24 of 2009 on the National Flag, Language, Emblem and Anthem (“Language Law”)

Article 31 of the Language Law regulates the use of the Indonesian language in an agreement, in which the first paragraph stipulates that:

The Indonesian Language must be used in a memorandum of understanding or agreement involving any state institution, government institution of the Republic of Indonesia, Indonesian private institution, or individual citizen of Indonesia.

Thus, it is clear that the Indonesian language is compulsory in preparing a legal agreement involving an Indonesian party.

  • Presidential Regulation No. 63 of 2019 on the Use of Indonesian Language (“PR on the Use of Indonesian Language”)

 As an implementing regulation to the Language Law, the PR on the Use of Indonesian Language supports the mandatory use of the Indonesian language in agreements involving an Indonesian party. Paragraph 3 of Article 26 of the PR further stipulates that, however, in the case of any conflict between the translation and the original text, the governing language shall be the one agreed to in the agreement.

 

Comprehensive Legal Understanding

Indonesian to English translation of agreements or vice versa is also essential to thoroughly understand the document. A good translation will enable both the foreign and Indonesian parties to understand the agreement’s terms better. Therefore, it is crucial to choose a competent legal document translator.

Legal document translators must possess abundant legal knowledge to be able to translate a legal document accurately. Otherwise, the translation result may not be consistent with the original agreement or the intended legal meanings.

Investindo has a group of professional translators who could help you translate agreements swiftly and meticulously. With 10 years of experience in legal translation, PT Trimars Perkasa Abadi is the first choice for some of the major law firms in Indonesia. Contact us now to experience the best legal agreement Indonesian translation services.

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