June 28, 2020

Available in the National Library of Australia collection. Author: Adolf, Huala; Format: Book; vii, p. ; 21 cm. Huala Adolf is professor of international law at Faculty of Law, Universitas Padjadjaran, Bandung, Indonesia. He graduated from Universitas Padjadjaran. Items 1 – 8 of 8 Profile Detail. First NameHuala. Last NameAdolf. Biography I am a law lecturer, encoraging peace and understanding between peoples. Country.

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The language used in an arbitration does not normally pose any problems when hualz to an arbitration speak the same language. However, difficulties may arise where the parties speak different languages, are of different nationalities or if the arbitrators are of different nationalities.

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Reasonable practical solutions can normally be found between the parties and arbitrators in these types of situations, but an additional layer of complexity arises where national laws require the national language of the state to be used in commercial transactions.

This issue has recently raised concern in Indonesia after hyala domestic court in Jakarta delivered a judgment regarding the use of language in contracts. Following the decision, some have questioned if the decision of the court also affects which language can be used in arbitrations conducted in Indonesia. The issue of language came to the fore in when the Government promulgated Law No.

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The Language Law consists of 74 articles divided into five main regulations concerning: Article 27 of the Language Law clearly states that the Indonesian language, Bahasa Indonesia, shall be used in any official state documents.

The explanatory provisions of Article 27 stipulates that official state documents include, among others, state decision letters, bonds, official certificates, the official notes, identity cards IDagreements and court decisions.

Furthermore, Article 31 of the Language Law states that Bahasa Indonesia shall be used in a memorandum of understanding or an agreement including agreements in international public law which involve a state institutions, a government institution, private Indonesian entity or Indonesian citizens paragraph 1. This seemingly gives the assurance that English may be used in drafting an agreement or contract where one of the parties is not Indonesian. BKPL was to pay the loan back in 48 instalments.


BKPL also claimed that because the loan agreement violated the Language Law, the loan agreement was null and void. NAM denied that the agreement violated the Language Law and put forward a number of arguments. Firstly, the parties had already entered into a similar agreement and the use of English had never been disputed. Secondly, the parties were subject to the pacta sunt servanda obligation when they entered and agreed to be bound by the loan agreement. The District Court held that the loan agreement was null and void and did not have any binding force upon the parties because it did not meet the formal requirements of a valid contract, i.

The District Court was of the opinion that every contract involving an Indonesian institution, company or private individual made after the enactment of the Language Law must be made in the Indonesian language.

The decision was affirmed by the High Court of Jakarta in and reaffirmed by the Supreme Court in The concern surrounding the use of language in a contract should not affect what language can be used in an arbitration. Generally, the parties to an arbitration agreement have autonomy to decide which language to use. The parties are free to agree on the language or languages to be used in the arbitral proceedings.

Failing such agreement, the arbitral tribunal shall determine the language or languages to be used in the proceedings. This agreement or determination, unless otherwise specified therein, shall apply to any written statement by a party, any hearing and any award, decision or other communication by the arbitral tribunal.

Article 28 of Indonesian Law No. Article 14 of the BANI Rules addresses four elements related to the language of arbitral proceedings, namely: Paragraph 1 article 14 of the BANI Rules provide that the case examination must be conducted in the Indonesian language. However, the parties may agree guala use another language subject to the approval of the arbitration tribunal.


The Language of Arbitration in Indonesia

The arbitral tribunal will consider several conditions when determining whether to grant approval, including: If the original documentation submitted or relied upon by the parties in the submission of the case is in a language other than the Indonesian language, then the Tribunal may determine whether or not the original documents must be accompanied by a translation into the Indonesian language.

Similarly when the original document is in the Indonesian language, the Tribunal may request for it to be translated into another language. The fee incurred for the interpreter shall be borne by the parties. It is important to note that under Article 27 of the Language Law, arbitration awards huwla considered to be court decisions which are subject to the Language Law.

Furthermore, Indonesian Arbitration Law requires arbitration awards to be registered with the Registrar afolf the District Court where the respondent is domiciled. As the officer of the Court, the Registrar will huapa register the arbitration awards written in Indonesian language. Hence, arbitration adolc in Indonesia must be written in the Indonesian language.

If the parties are foreign nationals, the award may be translated into another language as requested by the foreign party. If the language used in the arbitration is not the Indonesian language, the translation of the award into the Indonesian language is required. Your email address will not be published. The Arbitration Language The concern surrounding the use of language in a contract should not affect what language can be used in an arbitration.

The Language of Arbitration in Indonesia. Leave a Reply Cancel reply Your email address will not be published.

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