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Mandatory Use of Indonesian Language in Business Environment

With regard to business environment in Indonesia, on September 30, 2019, President Jokowi issued Presidential Regulation 63/2019 (or PR 63) in regard to the Mandatory Use of Indonesian Language. PR 63 serves as an implementing regulation of language law 24/2009 regarding the Flag, the Language, the National Emblem, and the National Anthem in Indonesia.

In addition to that, President Regulation 16/2010 on the Use of the Indonesian Language for Official Speeches of the President, Vice President, and Other Government Officials was issued in order to fully implement PR 63.

In PR 63, it is stated that the use of Indonesian language is mandatory in a large number of areas – all 14 contexts laid out in the Law 24/2009. In this article, we will only highlight the most relevant ones related to business environment in Indonesia.

Contexts involved with the Mandatory Use of Indonesian Language

PR 63 outlines the mandatory use of Indonesian language in the following contexts:

  • Official communications in work environments
  • Memorandum of understanding (MOU) and other agreements
  • Trademark and institution names
  • Goods and services information
  • Mass media information

indonesia business environment

Official Communications in Work Environments

PR 63 specifies that Indonesian language must be used in all official communications in the working environment for both government and private sectors in Indonesia. The communications mean all written and verbal communications in the forms of non-electronic and electronic media.

The regulation defines official communications with the inclusion of meetings, consultations, interviews, instructions, discussions, verifications, negotiations, and correspondences, among many others.

Memorandum of Understanding (MOU) and Other Agreements

Under Regulation 63/2019 and Law 24/2009, all MOUs and other agreements occur among private sectors, individuals and government institutions, must be executed in Indonesian or bilingual when foreigners are involved.

However, if there are language inconsistencies found between the language versions, PR 63 confirms that the foreign parties are allowed to agree on the governing language that would prevail in the agreements.

Trademark and Institution Names

In addition to the above provisions, PR 63, along with Law 24, requires the use of Indonesian language for the naming of various things consisting of the following:

  • Trademarks owned by individuals and companies
  • Geographical sites
  • Buildings, office spaces, apartments, and other constructions
  • Education institutions and business organizations
  • Provincial and regional streets, including freeways

Goods and Services Information

All goods and services distributed in Indonesia must have their information written and communicated in Indonesian language as well. This goods and services information encompasses the following:

  • Product and service names, dimensions, specifications, materials, weights, instructions, expiry dates, benefits, side effects, etc.
  • Business names and addresses

mandatory use of indonesian

Mass Media Information

All mass media published and circulated to the public must be executed in Indonesian language in accordance to PR63 and Law 24. These mass media consist of all digital and printed media.

There is an exception when particular mass media are disseminated for specific target audience or purposes, non-Indonesian languages can then be used.

How Cekindo can Help

Cekindo is a registered business consultation provider with expertise in all business legal matters. Our team is spearheaded by experienced and dedicated legal experts to ensure that all aspects of your business are in compliance with the Indonesian Law through our compliance and secretarial services in Indonesia.

Furthermore, we can also assist you in simplifying the legal complexities you will have to face as a business owner when running a business in Indonesia. Our comprehensive services cover the following areas:

  • Company setup in Indonesia
  • Business expansion to Indonesia
  • Shelf company
  • Permits, licenses and visa applications

 

Feel free to contact us to assist you now by filling in the form below.

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