Implication of Supreme Court Circular Letter Number 3 Year 2023 Towards Foreign Language Contract
DOI:
https://doi.org/10.31941/pj.v23i3.5533Keywords:
Null and VoidAbstract
The obligation to use the Indonesian language in agreements involving Indonesian private
institutions and Indonesian citizens, as stipulated in Article 31 of Law No. 24 of 2009
on the Flag, Language, and State Emblem, and the National Anthem, in conjunction with
Presidential Regulation No. 63 of 2019 on the Use of the Indonesian Language, has sparked
various implementation issues. Several court cases have declared contracts made in a foreign
language without an Indonesian translation null and void, while others have been upheld.
In response to these issues, the Supreme Court of the Republic of Indonesia issued Supreme
Court Circular No. 3 of 2003, which essentially
states that contracts drafted in a foreign
language without an accompanying
Indonesian translation cannot be grounds for
annulment unless it can be proven that the
absence of an Indonesian translation was due
to bad faith by one of the parties. This research
examines the regulation and status of a
Supreme Court Circular within the Indonesian
legal system and the legal implications arising
from the issuance of SEMA No. 3/2023 on
contracts involving foreign parties that are
made without an Indonesian translation. This
study employs doctrinal research methods,
using document studies with secondary data,
and utilizes descriptive-analytical research
specifications, analyzed through qualitative methods. The findings show that SEMA No.
3/2023 is not a piece of legislation within the
hierarchy of laws but is an internal policy
regulation (beleidsregel) that applies only
within the internal scope of the judiciary,
serving as a guideline for judges and justices in
court rulings. The presence of SEMA No.
3/2023 creates legal uncertainty as it conflicts
with Article 31 of Law No. 24/2009 and Article
26 of Presidential Regulation No. 63/2019,
rendering contracts involving Indonesian
private institutions and Indonesian citizens
made without an Indonesian translation null
and void
Downloads
References
Ahlan Sjarif, Fitriani and Efraim Jordi Kastanya, “Circular Letters as Instruments of
State Administration during the COVID-19 Pandemic,” Journal of Law &
Development 51, No. 3 (2021). Pp. 787-802.
Atmosudirjo, Prajudi, State Administrative Law, Jakarta: Ghalia Indonesia, 1995.
Aula, Indi Milatul and Akhmad Rudi Cahyono, “Unilateral Cancellation of
Agreement Due to Default (Study of Court Decisions and Comparison in Civil
Law Countries), Lex Patrimonium. Vol 2. No. 2 (2023). Pp. 1-19
Budiono, Herlien, General Teachings of Contract Law and Its Application in the
Notary Sector, Bandung: PT Citra Aditya Bakti, 2019.
Cahyono, Akhmad Budi and Surini Ahlan Sjarif, Understanding Civil Law, Jakarta:
CV Gitama Jaya, 2008.
Dwilaksmi, Ni Made Ayu Pasek, “Legal Consequences of Violation of the Obligation
to Use Indonesian in Agreements with Foreign Parties,” Acta Comitas, Vol. 05
(2020). Pp. 89-99.
Elnizar, Normand Edwin, “STHI Jentera: SEMA is Not a Legislation, Not
Accountable,” Hukumonline.com, September 20, 2023, available at
March 11, 2024
Hosen, Nadirsyah, Jeremy J. Kingsley, and Tim Lindsey, “Lost in Translation:
Indonesian Language Requirements and The Validity of Contracts.” University
of Queensland Law Journal. Vol. 40 (3). (2021). Pp. 532-553.
Innaka, Antari, Sa’ida Rusdiana, and Sularto. “Application of the Principle of Good
Faith at the Pre-Contractual Stage in Housing Sale and Purchase Agreements.”
Law Chamber 24. No. 3. (2012). Pp. 377-569.
Irawati, Elly and Herlien Budiono, Legal Explanation on the Cancellation of
Agreements, Jakarta: PT Gramedia, 2010.
Ministry of Investment/Investment Coordinating Board, “Downstreaming Provides
Positive Contribution to Investment Realization Achievement in Quarter III
2023,” BKPM.go.id, available at https://www.bkpm.go.id/id/info/siaranpers/hilirisasi-berikan-kontribusi-positif-pada-capaian-realisasi-investasitriwulan-iii-2023, accessed on February 23, 2024.
Khairandy, Ridwan. Good Faith in Contracts in Various Legal Systems. (Yogyakarta:
FH UII Press. 2017.
Civil Code [Burgerlijke Wetboek], translated by R. Soebekti and R. Tjitrosudibio.
Mayra, Hoyrinissa and Dian Puji N. Simatupang, “Deed Declared Void by Law by the
Court: What is the Notary’s Responsibility?,” Jurnal Kertha Semaya. Vol 10.
No. 1. (2021). Pp. 163-177.
P. Panggabean, Henry, The Function of the Supreme Court in Daily Practice. Jakarta:
Sinar Harapan. 2001.
Qur’ani, Hamalatul, “Presidential Decree on the Use of Indonesian Language is
Considered an Inhibition on Investment,” Hukumonline.com, available at
https://www.hukumonline.com/berita/a/perpres-penggunaan-bahasaindonesia-dinilai-hambat-investasi-lt5dd5b821f2d5e/#!, accessed on February
23, 2024.
Amlapura District Court. Decision No. 254/Pdt.G/2019/PN Amp. Alexander William
Ford vs. Man Lee Ford Cheung. (2019).
Central Jakarta District Court. Decision No. 50/Pdt.G/2020/PN Jkt Pst. PT Empat
Pilar Sukses Pratama and PT Quattro Media Contindo, vs. Timwe Asia Pacific
Sdn.Bdh. (2020).
Central Jakarta District Court. Decision No. 407/Pdt.G/2017/PN.Jkt.Pst. Dendy
Kurniawan vs. PT Kone Indo Elevator (2018).
Central Jakarta District Court. Decision No. 50/Pdt.Verzet/2020/PN Jkt Pst. PT
Empat Pilar Sukses Pratama and PT Quattro Media Contindo, vs. Timwe Asia
Pacific Sdn.Bdh. (2020).
Central Jakarta District Court. Decision No. 590/Pdt.G/2018/PN. Jkt Pst. Kokos Jiang,
et al. vs. Reliance Coal Resources Private Limited, et al. (2018).
DKI Jakarta High Court. Appeal Decision No. 21/Pdt/2019/PT.DKI. Dendy
Kurniawan vs. PT Kone Indo Elevator. (2019).
DKI Jakarta High Court. Appeal Decision No. 776/PDT/2022/PT DKI. PT Empat
Pilar Sukses Pratama and PT Quattro Media Contindo, vs. Timwe Asia Pacific
Sdn.Bdh. (2022).
Projodikoro, Wirjono, Principles of Contract Law, 1st ed., Bandung: Sumur, 1981.
Ristiyana, Gandes, Paramita Prananingtyas, and Irawati, “Legal Review of Foreign
Language Contract Agreements After the Enactment of Law Number 24 of
2009.” Notarius. Vol 14. No. 1 (2021). Pp. 598-615.
Soekanto, Soerjono and Sri Mamudji, Normative Legal Research: A Brief Review,
Jakarta: Raja Grafindo Persada, 2003.
Subekti, Contract Law, 6th ed., Jakarta: PT Intermasa, 2005.
Subekti, Contract Law, 6th ed., Jakarta: PT Intermasa, 2005. 23, Jakarta: PT Intermasa,
2005.
Supreme Court Circular Letter Number 3 of 2023 concerning the Implementation of
the Formulation of the Results of the Plenary Meeting of the Supreme Court
Chamber in 2023 as a Guideline for the Implementation of Duties for the
Courts.
Letter of the Minister of Law and Human Rights of the Republic of Indonesia Number
M.HH.UM.01.01-35 of 2009 concerning the Request for Clarification on the
Implications and Implementation of Law Number 24 of 2009.
Suratman and Philips Dillah, Legal Research Methods, Bandung, Alfabeta, 2014.
Padjadjaran University and the MPR Secretariat General Study Bureau, Academic
Manuscript of the Draft Law on M
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Alzena Bernadine
This work is licensed under a Creative Commons Attribution 4.0 International License.
