In a contested loan agreement brought to the Indonesian Supreme Court, a legal language translation requirement helped make the case. In August 2015, the Indonesian Supreme Court upheld lower court rulings on a case between an Indonesian mining company (BKPT) and an American lender (Nine AM). A $4.4 million loan agreement between the two was executed in English without a translation into the official local language, Bahasa Indonesia. BKPT later sued Nine AM and successfully had Indonesia’s District Court of West Jakarta declare the agreement null and void due to the lack of a local language translation.
Bahasa Indonesia is Indonesia’s sole official language and spoken by most of the country’s approximately 250 million people either as their first or second language. This means the practical implications of the legal translation requirement effectively extend to a population of roughly half that of the European Union.
Indonesia’s legal system does not determine points of litigation based on precedent. US-based law firm Jones Day, however, noted in an article that the significance of the Indonesian Supreme Court’s ruling “demonstrates the potentially wide application” of the legal language requirement.
