Section 31 of Act 24 does not expressly require that the Indonesian version of an English agreement be executed simultaneously (or before) by the parties. In Acts 24 and PR 63, there is no provision preventing two or more Indonesian parties from entering into agreements in English (or in another language) and Indonesian. On 30 September 2019, President Joko Widodo adopted Presidential Decree 63 of 2019 on the use of the Indonesian language. With the passage of PR 63, it is clear that a bilingual format is needed for future transactions. The regulation argues that the non-Indonesian version is equivalent or translated to ensure a common understanding between the contracting parties. Article 26, paragraph 4: Dalam hal terjadi perbedaan penafsiran terhadap padanan atau terjemahan sebagaimana dimaksud pada ayat (3), bahasa yang digunakan ialah bahasa yang disepakati dalam nota kesepahaman atau perjanjian. Translation: “In the case of a different interpretation of the equivalent translation or the translation referred to in paragraph 3, the language used is the language agreed in the agreement or agreement.” Mita Djajadredja is a partner of Hadiputranto, Hadinoto`s Corporate Securities Practice Group in Jakarta. She has extensive experience in mergers and acquisitions and private equity, as well as in corporate alliances, including joint ventures, shareholder agreements and strategic business alliances. Ms. Djajadiredja has advised a wide range of domestic and international clients in various sectors, including finance, insurance, real estate, manufacturing, trade and mining. With regard to the obligation to use Bahasa Indonesia for agreements with an Indonesian party, Article 26 of Act 63 first reaffirms the provisions of Article 31 of Act 24, and then introduces two new paragraphs which are: before the exposure of PR 63, the common practice: (1) negotiating and executing the agreement in the national language of the foreign party (“foreign language”) and/or the English language; (2) prepare and execute the Indonesian version shortly thereafter, but effectively from the date of the foreign and/or English version, and (3) to effectively use the foreign language and/or The English language as the corresponding version. 1.

If the parties are Indonesians, we believe that the agreements should be carried out in Indonesian, bilingual or foreign language, provided the dominant language is the Indonesian language. Since limited liability companies operate in Indonesia (“PMAs”) in the form of Indonesian limited liability (PT) companies, they could be classified as Indonesian private companies and, as such, the Indonesian language could be considered and subject to this requirement. Before PR 63, where Indonesian and foreign-language versions could not be signed simultaneously, it was common practice to conclude the agreement first in the foreign language. The Indonesian version would then be prepared and signed within an agreed time frame. Through this practical approach, the parties accepted the risk of questioning the validity of the foreign language (particularly where the agreement is governed by Indonesian law) during the period between the signing of the foreign language and the Indonesian version.