THE MANDATORY USE OF NATIONAL LANGUAGE IN INDONESIA AND BELGIUM: AN OBSTACLE TO INTERNATIONAL

CONTRACTING?*

Priskila Pratita Penasthika**

* This article is a revised version of a paper presented at the 2018 Asia Pacific Colloquium on Private International Law on 11 December 2018 in Doshisha University, Kyoto-Japan. The author would like to thank Prof. Xandra Kramer, Prof. Wouter Werner, dr. Jos Hoevenaars, dr. Alina Onţanu, Yu Un Oppusunggu Ph.D., and Georgia Antonopoulou for their comments and thoughts on earlier drafts of this article. Errors and omissions are the author’s own responsibility.

**A Ph.D researcher in Private International Law at Erasmus Graduate School of Law. Prior to her Ph.D study, she worked as a university lecturer in Private International Law at Faculty of Law Universitas Indonesia. Further comments and discussion are welcome and can be sent to penasthika@law.eur.nl. _________________________________________________________________________________________

ArticleInfoReceived:13June2019|ReceivedinRevisedForm:26July2019|Accepted:15August2019Correspondingauthor'semail:penasthika@law.eur.nl

AbstractLawNumber24of2009onNationalFlag,Language,Emblem,andAnthemofIndonesiarequiresthatanycontractinvolvinganIndonesianpartymustbedraftedinIndonesian.Inapplyingthislaw,theSupremeCourtoftheRepublicofIndonesia,inNineAMv.PTBangunKaryaPratamaLestarijudgment,annulledaloan agreement because it was considered to violate the language requirement. Although claiming tostrengthen theuseof Indonesian language inacontract, this judgmentunderscoresapotential riskofvoidance a foreign party face in entering into an agreement drafted in a foreign language whencontractingwithanIndonesiancounter-party.Ontheothersideofthehemisphere,theCourtofJusticeoftheEuropeanUnioninAntonLasv.PSAAntwerpNVandNewValmarBVBAv.GlobalPharmaciesPartnerHealthSrldrewthepublicattentiontotheobligationtouseDutchinemploymentcontractandcompanydocumentsas imposed in theDutch-speakingregionofBelgium.Despite IndonesiaandBelgiumbeinggeographically far from each other, the above-mentioned judgments underline the phenomenon thatnational language still plays an important role in in\luencing cross-border legal relations. This articleseekstoexplorethelegalimpactsoftheobligationtousenationallanguageincontractshasonfreedomofpartiestocontracting.Itfurtherarguesthatthisobligationimpedesinternationalcontracting.

Keywords:language,internationalcontracting,cross-bordertransactions,Indonesia,Belgium.

AbstrakUndang-undang Nomor 24 Tahun 2009 tentang Bendera, Bahasa, dan Lambang Negara, serta LaguKebangsaan mensyaratkan bahwa setiap kontrak yang melibatkan pihak Indonesia wajib ditulis dalambahasa Indonesia. Dalammenerapkan undang-undang ini, Mahkamah Agung Republik Indonesia dalamputusannya untuk kasusNine AMmelawan PT BangunKarta Pratama Lestari,membatalkan perjanjiankredityangdisepakatiparapihakkarenaperjanjiantersebutdianggapmelanggarpersyaratanberbahasaIndonesia.MeskipunalasannyaadalahuntukmemperkuatpenggunaanbahasaIndonesiadalamkontrak,putusan ini menunjukkan potensi risiko pembatalan kontrak yang disepakati dalam bahasa asing olehpihakasingdanpihakIndonesia.Dibelahanbumilain,dalamkasusAntonLasmelawanPSAAntwerpNVdan New Valmar BVBAmelawan Global Pharmacies Partner Health Srl, Pengadilan Uni Eropamenarikperhatian publik karena memutus persoalan kewajiban penggunaan bahasa Belanda dalam kontraktenagakerjadandokumenperusahaanyangditerapkandiwilayahberbahasaBelandadiBelgia.MeskipunIndonesia dan Belgia terpisah oleh jarak geograOis yang jauh, kedua putusan tersebut menunjukkanfenomenabahwabahasanasionalmasihmemainkanperanyangpentingdalammempengaruhihubunganhukumlintas-batasnegara.Artikelinimengeksplorasidampakhukumdarikewajibanuntukmenggunakanbahasanasionaldalamkontraksehubungandengankebebasanparapihakdalamberkontrak.Lebihlanjutartikeliniberpendapatbahwakewajibaninimenghambatkontrak-kontrakinternasional.

Katakunci:bahasa,kontrakinternasional,transaksilintas-batas,Indonesia,Belgia.

IndonesiaLawReview(2019)3:83-107ISSN:2088-8430|e-ISSN:2356-2129

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I. INTRODUCTION

Language and laware intertwined as language is themedium todrawup laws,whetherinlegislation,courtdecisions,orcontracts.Ourunderstandingoflawisrootedin the notion that rules and norms can be expressed in language, be it spoken or1

written.Nevertheless,thisrelationshipisrathercomplicatedastheuseoflanguageinthe legal \ield is very particular. Since each national law has its own rules of2

classi\ication, underlying conceptual notion, sources of law, and terminologicalapparatus; legal termsvary among countries and also according to the \ield of law. 3 4

Therefore, a legal text must be drawn up carefully to avoid ending up with anambiguousprovisionoflaw. 5

Languagealsoplaysasigni\icantroleasamediumtorepresenttheidentityofanation because the vital character of language is its power to generate imaginedcommunities, especially in establishing particular solidarities. Language is the6

instrument by which it is possible to bond groups with an unlimited number ofindividuals. Thus, control over language or its use provides the possibilities ofmoulding and governing large groups of humans. For this reason, many countries7

regulatetheuseoflanguageintheirnationallegislation.Thereareapproximately125of theworld’sconstitutionsgovernpolicyon languageuse,andapproximately100ofthemdesignateoneormoreof\iciallanguagewithaspecialprivilegeofuse. 8

In Indonesia andBelgium, languagehasbeenvigorouslyusedas a tool tobuildandmaintainthesolidarityofthesociety,asitgoeshandinhandwiththestruggleforindependence and self-determination. Indonesian was initially used as a medium todeclaretheidentityofIndonesianpeopleduringcolonialismwhichDutchwasusedasthe of\icial language. Since then, Indonesian has developed into a means of9

communication that can express not only Indonesian nationalism but also its

Peter M. Tiersma and Lawrence M. Solan (eds), The Oxford Handbook of Language and Law, 1

(Oxford: Oxford University Press, 2012), p. 3. Peter M. Tiersma, “A History of the Languages of Law”, in Peter M. Tiersma and Lawrence M. Solan 2

(eds), The Oxford Handbook of Language and Law, (Oxford: Oxford University Press, 2012), p.13. Susan Šarčević, “Challenges to the Legal Translator” in Peter M. Tiersma and Lawrence M. Solan 3

(eds), The Oxford Handbook of Language and Law, (Oxford: Oxford University Press, 2012), p. 194. For example: ‘connecting factors’ and ‘ordré public’ are popular in private international law field; 4

‘bond’ and ‘merger’ are terms popular in the field of company law; ‘hot pursuit’ and ‘innocent passage’ are common terms in the field of law of the sea.

Lon L. Fuller, The Morality of Law, rev.ed., (New Haven: Yale University Press, 1969), pp. 63-65.5

Benedict Anderson, Imagined Communities: Reflections on the Origins and Spread of Nationalism, 6

rev.ed, (London: Verso, 2016), p. 133. Tomasz D.I. Kamusella, “Language as an Instrument of Nationalism in Central Europe”, Nations and 7

Nationalism 7, no. 2 (2001), p. 236. Bernard Spolsky, Language Policy, (New York: Cambridge University Press, 2004), pp. 11-12.8

Anderson, op.cit., pp. 132-133.9

Volume9Number2,May-August2019

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aspirations and traditions. As to Belgium, Dutch was used by the Flemish10 11

community to represent their identity against the aristocracy and bourgeoisie ofFrench-speakers community in Belgium. Therefore, it is interesting to see how12

IndonesiaandBelgiumspecifytheirpolicywithrespecttolanguageuse.The 1945 Constitution of the Republic of Indonesia (1945 Indonesian

Constitution) stipulates that the national language of Indonesia shall be Indonesian(Bahasa Indonesia). The 1945 Constitution speci\ies that further provisions13

concerning language shall be regulated by law (undang-undang). According to this14

provision, the Government of the Republic of Indonesia enacted Law Number 24 of2009onNationalFlag,Language,Emblem,andAntheminJuly2009(Law24/2009). 15

ThePreambleofLaw24/2009setsoutthatlanguageisoneofthemeanstounifyandmanifest thecountry’s identityandsovereignty in internationalrelations. Article3116

(1) of Law 24/2009 requires that Indonesian shall be used in memoranda ofunderstanding or agreements that involve state institutions, agencies of thegovernmentoftheRepublicofIndonesia,Indonesianprivateinstitutionsorindividualof Indonesian nationality. Nevertheless, this law does not specify any legal17

consequencesifthisobligationisnotcompliedwith.As to Belgium, according to De Belgische Grondwet 1993 (1993 Belgian

Constitution), it comprises four linguistic regions: the Dutch-speaking region, the18

French-speaking region, the bilingual region of Brussels-Capital and the German-speaking region. The Royal Decree of 18 July 1966 on the Use of Languages in19

Administrative Matters (1966 Belgian Language Law) requires all acts and20

documentsthatareprescribedbythelawsandregulationsandforthoseintendedfor

Benedict R. O’G. Anderson, Language and Power Exploring Political Cultures in Indonesia, (Ithaca: 10

Cornell University Press, 1990), p. 124. There is considerable confusion between the terms “Dutch”, “Flemish” and “Vlaams”. It is only a 11

matter of dialects, but they all actually indicate the same language. The only legally correct name for the language which is used in the northern half of Belgium (and the Netherlands) is “Dutch” (“Nederlands”, “néerlandais”). Belgium and the Netherlands signed a Treaty concerning the Dutch Language Union (Nederlandse Taalunie) on 9 September 1980, which created an intergovernmental institution to set policy for the Dutch language use (http://taalunie.org/nederlandse-taalunie). Read: Stefaan van der Jeught, “Territoriality and Freedom of Language: The Case of Belgium”, Current Issues in Language Planning 18, no. 2 (2017), footnote 3 https://doi.org/10.1080/14664208.2016.1243883 (accessed 6 September 2018).

Piet van den Craen, “What, if Anything, Is a Belgian”, Yale French Studies 102, Belgian Memories 12

(2002), 26. Louis Pierard, “Belgium’s Language Question: French v. Flemish”, Foreign Affairs 8, no. 4 (1930), p. 644.

The 1945 Constitution of the Republic of Indonesia, as lastly amended in 2002 (1945 Indonesian 13

Constitution). Prior to the four amendments, the language provision was regulated in Article 36 of the (original) 1945 Constitution. As a result of the fourth amendment in 2002, this article has been renumbered as Article 36C.

Ibid.14

Law Number 24 of 2009 on National Flag and Language, State Symbols and the National Anthem 15

(SGRI 2009-109, SSGRI 5035), (Law 24/2009), Article 31 (1). The following abbreviations have been used in the footnotes: Staatsblad/State Gazette of the Dutch East Indies (S); State Gazette of the Republic of Indonesia (SGRI) and Supplementary State Gazette of the Republic of Indonesia (SSGRI).

Ibid., General Elucidation.16

Ibid., Article 31 (1).17

The Belgian Constitution as lastly amended on 8 May 1993 (1993 Belgian Constitution) to 18

recognize the division of the country into three administrative regions: Flanders, Wallonia, and Brussels. Ibid., Article 4 (1).19

K.B. Wetten van 18 juli 1966 op het gebruik van de talen in bestuurszaken, B.S., 2 August 1966, 20

(1966 Belgian Language Law).Volume9Number2,May-August2019

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theirpersonnel, theprivate industrial,commercialor \inancecompaniesshallusethelanguage of the area where their place of business is located. For the employmentrelations, the Flemish Decree of 19 July 1973 on the Use of Languages in SocialRelationsbetweenEmployersandEmployees,aswellasforCompanyDocumentsandPapers(1973FlemishDecree) providestherequirementtouseDutchforrelations21

betweenemployersandemployeesintheDutch-languageregionofBelgium.The1973Flemish Decree prescribes that any noncompliance with this language requirementresult in the nullity of the contracts, documents or acts, without prejudice to theemployeeortotherightsofthethirdparty.Thenullityshallbedeterminedexof\iciobythejudge. 22

Againstthisbackground,thisarticleaimstoexplorethelegal impactscausedbytheobligationtousenationallanguage,asenforcedinIndonesiaandBelgium,incross-bordercontractualtransactions.SectionIIwillprovideanexplanationaboutthepowerof language on law. A brief historical background of the language regulations inIndonesiaandBelgiumisdiscussedinthe\irstpartofSectionIItodrawtheoutlinesoftheprocessthatledtothecurrentsituation.ThesecondpartofSectionIIpresentstheproblemscausedbytheobligationtousenationallanguageincontractinIndonesiaandBelgiumbydiscussingIndonesiancourtjudgmentsinNineAMLtdv.PTBangunKaryaPratama Lestari (NineAM), RandolphNicholas Bolton Carpenter v. Neil Allan Tate23

and Bati Anjani case (Randolph Carpenter), Osmar Siahaan v. PT Inti Brunel24

Teknindo (Osmar Siahaan), and the Court of Justice of the European Union25

judgments in Elefanten Schuh GmBH v. Pierre Jacqmain (Elefanten Schuh), Anton26 27

Las v. PSA Antwerp NV (Anton Las), and New Valmar BVBA v. Global Pharmacies28

PartnerHealthSrl (NewValmar). Theproblemsareusedas thebasis toargue that29

this obligation encumbers international contracting in Section III, before drawing aconclusioninSectionIV.

Language and laware intertwined as language is themedium todrawup laws,whetherinlegislation,courtdecisions,orcontracts.Ourunderstandingoflawisrootedin the notion that rules and norms can be expressed in language, be it spoken or30

Decreet van 19 juli 1973 tot regeling van het gebruik van de talen voor de sociale betrekkingen tussen 21

de werkgevers en de werknemers, alsmede van de voor de wet en de verordeningen voorgeschreven akten en bescheiden van de ondernemingen, B.S., 6 September 1973, (1973 Flemish Decree).

Ibid., Article 10.22

Judgment of the Indonesian Supreme Court Number 1572 K/Pdt/2015, 23 October 2015, (Supreme 23

Court Judgment 1572/2015). Judgment of Country Court of Praya Number 35/PDT.G/2010/PN.PRA, 26 January 2011 (Country 24

Court Judgment 35/2010). Judgment of the Supreme Court of the Republic of Indonesia Number 254 K/Pdt.Sus-PHI/2013, 29 25

May 2013 (Supreme Court Judgment 254/2013).

The Court of Justice of the European Union (CJEU) comprises 2 courts, Court of Justice and General 26

Court. The term “European Court of Justice (ECJ)” is used in this article to show that all the CJEU cases as referred to in this article were ruled by the Court of Justice, not by the General Court. Read: Court of Justice of the European Union, https:/ /europa.eu/european-union/about-eu/insti tutions-bodies/court-justice_en#composition, (accessed on 7 August 2018).

ECJ, Judgment of 27 June 1981, Elefanten Schuch v. Pierre Jacqmain, C-150/80, ECLI:EU:C:27

1981:148. ECJ, Judgment of 16 April 2013, Anton Las v. PSA Antwerp NV, C-202/11, ECLI:EU:C:2013:239.28

ECJ, Judgment of 21 June 2016, New Valmar BVBA v. Global Pharmacies Partner Health Srl, 29

C-15/15, ECLI:EU:C:2016:464. Peter M. Tiersma and Lawrence M. Solan (eds), The Oxford Handbook of Language and Law, 30

(Oxford: Oxford University Press, 2012), p. 3. Volume9Number2,May-August2019

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written.Nevertheless,thisrelationshipisrathercomplicatedastheuseoflanguageinthe legal \ield is very particular. Since each national law has its own rules of31

classi\ication, underlying conceptual notion, sources of law, and terminologicalapparatus;legaltermsvaryamongcountries andalsoaccordingtothe\ieldoflaw. 32 33

Therefore, a legal text must be drawn up carefully to avoid ending up with anambiguousprovisionoflaw. 34

Languagealsoplaysasigni\icantroleasamediumtorepresenttheidentityofanation because the vital character of language is its power to generate imaginedcommunities, especially in establishing particular solidarities. Language is the35

instrument by which it is possible to bond groups with an unlimited number ofindividuals. Thus, control over language or its use provides the possibilities ofmoulding and governing large groups of humans. For this reason, many countries36

regulatetheuseoflanguageintheirnationallegislation.Thereareapproximately125of theworld’sconstitutionsgovernpolicyon languageuse,andapproximately100ofthemdesignateoneormoreof\iciallanguagewithaspecialprivilegeofuse. 37

In Indonesia andBelgium, languagehasbeenvigorouslyusedas a tool tobuildandmaintainthesolidarityofthesociety,asitgoeshandinhandwiththestruggleforindependence and self-determination. Indonesian was initially used as a medium todeclaretheidentityofIndonesianpeopleduringcolonialismwhichDutchwasusedasthe of\icial language. Since then, Indonesian has developed into a means of38

communication that can express not only Indonesian nationalism but also itsaspirations and traditions. As to Belgium, Dutch was used by the Flemish39 40

community to represent their identity against the aristocracy and bourgeoisie ofFrench-speakers community in Belgium. Therefore, it is interesting to see how41

IndonesiaandBelgiumspecifytheirpolicywithrespecttolanguageuse.

Peter M. Tiersma, “A History of the Languages of Law”, in Peter M. Tiersma and Lawrence M. Solan 31

(eds), The Oxford Handbook of Language and Law, (Oxford: Oxford University Press, 2012), p.13. Susan Šarčević, “Challenges to the Legal Translator” in Peter M. Tiersma and Lawrence M. Solan 32

(eds), The Oxford Handbook of Language and Law, (Oxford: Oxford University Press, 2012), p. 194. For example: ‘connecting factors’ and ‘ordré public’ are popular in private international law field; 33

‘bond’ and ‘merger’ are terms popular in the field of company law; ‘hot pursuit’ and ‘innocent passage’ are common terms in the field of law of the sea.

Lon L. Fuller, The Morality of Law, rev.ed., (New Haven: Yale University Press, 1969), pp. 63-65.34

Benedict Anderson, Imagined Communities: Reflections on the Origins and Spread of Nationalism, 35

rev.ed, (London: Verso, 2016), p. 133. Tomasz D.I. Kamusella, “Language as an Instrument of Nationalism in Central Europe”, Nations and 36

Nationalism 7, no. 2 (2001), p. 236. Bernard Spolsky, Language Policy, (New York: Cambridge University Press, 2004), pp. 11-12.37

Anderson, op.cit., pp. 132-133.38

Benedict R. O’G. Anderson, Language and Power Exploring Political Cultures in Indonesia, (Ithaca: 39

Cornell University Press, 1990), p. 124. There is considerable confusion between the terms “Dutch”, “Flemish” and “Vlaams”. It is only a 40

matter of dialects, but they all actually indicate the same language. The only legally correct name for the language which is used in the northern half of Belgium (and the Netherlands) is “Dutch” (“Nederlands”, “néerlandais”). Belgium and the Netherlands signed a Treaty concerning the Dutch Language Union (Nederlandse Taalunie) on 9 September 1980, which created an intergovernmental institution to set policy for the Dutch language use (http://taalunie.org/nederlandse-taalunie). Read: Stefaan van der Jeught, “Territoriality and Freedom of Language: The Case of Belgium”, Current Issues in Language Planning 18, no. 2 (2017), footnote 3 https://doi.org/10.1080/14664208.2016.1243883 (accessed 6 September 2018).

Piet van den Craen, “What, if Anything, Is a Belgian”, Yale French Studies 102, Belgian Memories 41

(2002), 26. Louis Pierard, “Belgium’s Language Question: French v. Flemish”, Foreign Affairs 8, no. 4 (1930), p. 644.

Volume9Number2,May-August2019

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The 1945 Constitution of the Republic of Indonesia (1945 IndonesianConstitution) stipulates that the national language of Indonesia shall be Indonesian(Bahasa Indonesia). The 1945 Constitution speci\ies that further provisions42

concerning language shall be regulated by law (undang-undang). According to this43

provision, the Government of the Republic of Indonesia enacted Law Number 24 of2009onNationalFlag,Language,Emblem,andAntheminJuly2009(Law24/2009). 44

ThePreambleofLaw24/2009setsoutthatlanguageisoneofthemeanstounifyandmanifest thecountry’s identityandsovereignty in internationalrelations. Article3145

(1) of Law 24/2009 requires that Indonesian shall be used in memoranda ofunderstanding or agreements that involve state institutions, agencies of thegovernmentoftheRepublicofIndonesia,Indonesianprivateinstitutionsorindividualof Indonesian nationality. Nevertheless, this law does not specify any legal46

consequencesifthisobligationisnotcompliedwith.As to Belgium, according to De Belgische Grondwet 1993 (1993 Belgian

Constitution), it comprises four linguistic regions: the Dutch-speaking region, the47

French-speaking region, the bilingual region of Brussels-Capital and the German-speaking region. The Royal Decree of 18 July 1966 on the Use of Languages in48

Administrative Matters (1966 Belgian Language Law) requires all acts and49

documentsthatareprescribedbythelawsandregulationsandforthoseintendedfortheirpersonnel, theprivate industrial,commercialor \inancecompaniesshallusethelanguage of the area where their place of business is located. For the employmentrelations, the Flemish Decree of 19 July 1973 on the Use of Languages in SocialRelationsbetweenEmployersandEmployees,aswellasforCompanyDocumentsandPapers(1973FlemishDecree) providestherequirementtouseDutchforrelations50

betweenemployersandemployeesintheDutch-languageregionofBelgium.The1973Flemish Decree prescribes that any noncompliance with this language requirementresult in the nullity of the contracts, documents or acts, without prejudice to theemployeeortotherightsofthethirdparty.Thenullityshallbedeterminedexof\iciobythejudge. 51

The 1945 Constitution of the Republic of Indonesia, as lastly amended in 2002 (1945 Indonesian 42

Constitution). Prior to the four amendments, the language provision was regulated in Article 36 of the (original) 1945 Constitution. As a result of the fourth amendment in 2002, this article has been renumbered as Article 36C.

Ibid.43

Law Number 24 of 2009 on National Flag and Language, State Symbols and the National Anthem 44

(SGRI 2009-109, SSGRI 5035), (Law 24/2009), Article 31 (1). The following abbreviations have been used in the footnotes: Staatsblad/State Gazette of the Dutch East Indies (S); State Gazette of the Republic of Indonesia (SGRI) and Supplementary State Gazette of the Republic of Indonesia (SSGRI).

Ibid., General Elucidation.45

Ibid., Article 31 (1).46

The Belgian Constitution as lastly amended on 8 May 1993 (1993 Belgian Constitution) to 47

recognize the division of the country into three administrative regions: Flanders, Wallonia, and Brussels. Ibid., Article 4 (1).48

K.B. Wetten van 18 juli 1966 op het gebruik van de talen in bestuurszaken, B.S., 2 August 1966, 49

(1966 Belgian Language Law). Decreet van 19 juli 1973 tot regeling van het gebruik van de talen voor de sociale betrekkingen tussen 50

de werkgevers en de werknemers, alsmede van de voor de wet en de verordeningen voorgeschreven akten en bescheiden van de ondernemingen, B.S., 6 September 1973, (1973 Flemish Decree).

Ibid., Article 10.51

Volume9Number2,May-August2019

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Againstthisbackground,thisarticleaimstoexplorethelegal impactscausedbytheobligationtousenationallanguage,asenforcedinIndonesiaandBelgium,incross-bordercontractualtransactions.SectionIIwillprovideanexplanationaboutthepowerof language on law. A brief historical background of the language regulations inIndonesiaandBelgiumisdiscussedinthe\irstpartofSectionIItodrawtheoutlinesoftheprocessthatledtothecurrentsituation.ThesecondpartofSectionIIpresentstheproblemscausedbytheobligationtousenationallanguageincontractinIndonesiaandBelgiumbydiscussingIndonesiancourtjudgmentsinNineAMLtdv.PTBangunKaryaPratama Lestari (NineAM), RandolphNicholas Bolton Carpenter v. Neil Allan Tate52

and Bati Anjani case (Randolph Carpenter), Osmar Siahaan v. PT Inti Brunel53

Teknindo (Osmar Siahaan), and the Court of Justice of the European Union54

judgments in Elefanten Schuh GmBH v. Pierre Jacqmain (Elefanten Schuh), Anton55 56

Las v. PSA Antwerp NV (Anton Las), and New Valmar BVBA v. Global Pharmacies57

PartnerHealthSrl (NewValmar). Theproblemsareusedas thebasis toargue that58

this obligation encumbers international contracting in Section III, before drawing aconclusioninSectionIV.

II. ThePOWEROFLANGUAGEONLAW

A. ABriefHistoricalSettingLanguage is the basic instrument of communication among human beings and

indispensable for the existence of cultures, civilizations, religions, and society ingeneral. It enables the humanmind to perceive and comprehend the world. The59 60

comprehendingpoweroflanguageisre\lectedinlaw.Therefore,positivelawisboundto language because its legal notions exist only in language and through language.Nevertheless, customary law is not bound to language as it does not always expressitselfinwords,butalsoinacourseofconduct. 61

Judgment of the Indonesian Supreme Court Number 1572 K/Pdt/2015, 23 October 2015, (Supreme 52

Court Judgment 1572/2015). Judgment of Country Court of Praya Number 35/PDT.G/2010/PN.PRA, 26 January 2011 (Country 53

Court Judgment 35/2010). Judgment of the Supreme Court of the Republic of Indonesia Number 254 K/Pdt.Sus-PHI/2013, 29 54

May 2013 (Supreme Court Judgment 254/2013). The Court of Justice of the European Union (CJEU) comprises 2 courts, Court of Justice and General 55

Court. The term “European Court of Justice (ECJ)” is used in this article to show that all the CJEU cases as referred to in this article were ruled by the Court of Justice, not by the General Court. Read: Court of Justice of the European Union, https:/ /europa.eu/european-union/about-eu/insti tutions-bodies/court-justice_en#composition, (accessed on 7 August 2018).

ECJ, Judgment of 27 June 1981, Elefanten Schuch v. Pierre Jacqmain, C-150/80, ECLI:EU:C:56

1981:148. ECJ, Judgment of 16 April 2013, Anton Las v. PSA Antwerp NV, C-202/11, ECLI:EU:C:2013:239.57

ECJ, Judgment of 21 June 2016, New Valmar BVBA v. Global Pharmacies Partner Health Srl, 58

C-15/15, ECLI:EU:C:2016:464. Kamusella, “Language as an Instrument of Nationalism in Central Europe”, op.cit., p. 236.59

Bernhard Grossfeld, “Language and the Law”, Journal of Air Law and Commerce 50 (1985), pp. 60

795-797. https://scholar.smu.edu/jalc/vol50/iss4/10 (accessed on 20 September 2018). Lon L. Fuller, Anatomy of the Law, (New York: Praeger, 1968), p. 44.61

Volume9Number2,May-August2019

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Lawandlanguagearebothboundbyplaceandtime. Accordingly,languagehas62

been one of the main challenges for legal relationships in the globalized era. Thechallenge does not only concern the interaction between language and law in anattempttoputordinarymeaningintolegaltermsbutalsothecongruityoflegaltermsamong legal languages themselves. This situation invites thegrowingneed for legal63

translationwork.However, legal translationcanbeproblematicas legal terms inonelanguagecannotalwaysbetranslatedpreciselyintoanotherlanguage. Thereasonis64

that legal terms derive theirmeaning from particular a legal systemwhich developscertainlinguisticfeaturesaccordingtoitsculture. 65

Ontheotherhand, thenotionofaglobalizedworld iscross-bordertransactionsarenottobeimpededbythefactsthatthepartiesdonotspeakinthesamelanguageorevendonotsharethesamelegalconcepts. Notwithstandingtheemergingattemptto66

harmonize law toward convergence of national legal systems, law remains \irst andforemost a national phenomenon. Belgium and Indonesia are the epitomes of this67

phenomenon, especiallywith respect to the use of language in a contract. Therefore,takingthehistoricalnationalbackgroundofbothcountriesintoaccountisnecessarytocomprehendthisphenomenon.

1. Indonesia

Bythe1920s, ‘Indonesian language’hadcomeintoself-consciousexistence.Theevolutionof the Indonesian languagehashadmuch in commonwith the struggle forfreedom and equality as an independent nation. The Indonesian language is68

originated from theMalay language,which initially spoken in the regionsaround theMalaka straits but was gradually scattered over Malaya and the coastal areas ofIndonesia. Given the diversity of local languages, emerging trade and69 70

Sutan Takdir Alisjahbana, Bahasa Hukum - Beberapa Sumbangan Fikiran Menuju ke Arah 62

Pembentukan dan Pemakaian Bahasa yang Baik [Legal Language - Some Contribution of Thoughts towards the Direction of Formation and Good Use of Language], BPHN-Simposium Bahasa dan Hukum, 1974, p. 21.

Šarčević, “Challenges to the Legal Translator”, op.cit., p. 187.63

Tiersma and Solan, op.cit., p. 2564

Heikki E.S. Mattila, “Legal Vocabulary” op.cit., pp. 28-29.65

Tiersma, “A History of the Languages of Law”, op.cit., p. 7.66

Shaunnagh Dorsett and Shaun McVeigh, “Questions of Jurisdiction” in Shaun McVeigh (ed), 67

Jurisprudence of Jurisdiction, (New York: Routledge-Cavendish, 2007), p. 3. Takdir Alisjahbana, “The Indonesian Language-by-product of Nationalism”, Pacific Affairs 22 no. 4 68

(1949), p. 388 https://www.jstor.org/stable/2751562 (accessed 21 September 2018). The name 'Indonesia', which means, 'The Islands of India' was given to the archipelago by a German 69

ethnologist, and has been in use since 1884. Originally, it was a geographical name indicating all the islands between Australia and Asia, including the Philippines. In 1922, it was the students of adat (customary) law in Leiden University who suggested the term “Indonesia” to address themselves and their land, which at that time was known as the Dutch East Indies. Read: Bernard H.M. Vlekke, Nusantara: A History of Indonesia, revised ed., (The Hague: W. van Hoeve Ltd, 1959), p. 6. David Bourchier, Lineages of Organicist Political Thought in Indonesia (doctoral dissertation), Department of Politics: Monash University Melbourne, 1996, p. 31.

As to the longitudinal extent, the territory of Indonesia would cover the United States from coast to 70

coast or Europe from Ireland to the Caspian Sea. Because of this, Indonesia is divided into numerous geographical units, separated from each other by deep and vast seas, mountain ridges, swamps, and forests. There are hundreds of dialects and local languages used throughout Indonesia, which are mutually incomprehensible. The major local languages, among others are Javanese, Sundanese, Manadonese, Bugisnese. This has been the situation in Indonesia to date. According to the research carried out by the Language Development and Fostering Agency in 2017, there are 733 local languages in Indonesia. Badan Pembinaan dan Pengembangan Bahasa, “Bahasa dan Peta Bahasa di Indonesia [Language and the Map of Languages in Indonesia]”, http://118.98.223.79/petabahasa/ (accessed 1 September 2018). Hilman Hadikusuma, Bahasa Hukum Indonesia [Indonesian Legal Language], (Bandung: Alumni, 1984), p. 1.

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communication,Malaywasusedasthe linguafranca intheIndonesianarchipelagoorformerlyaddressedastheDutchEastIndies. 71

At the beginning of the 20th century, along with the increasing awareness ofnationalunityanddesireforindependence,attentionwasalsodrawnouttotheneedofasinglenationallanguageforthepeopleinthearchipelago.Thiswasmanifestedintheresolution on 28 October 1928 by the Congress of Indonesian Youth pledging theconcept of: “One Nation, Indonesia; One People, the Indonesian people; and OneLanguage, the Indonesian language (Bahasa Indonesia). The term “Indonesian72

language”wasusedinsteadof“Malaylanguage”.ItwasamomentousdecisionbecauseitrepresentedtheideaofnationalunityofIndonesia. 73

When Indonesia proclaimed its independence on 17 August 1945, the 1945IndonesianConstitutionspeci\iedthattheIndonesianlanguageistheof\iciallanguageof the country. While the local languages, suchas Javanese,Batak, andBalineseare74

stillusedamongpeopleofthesamearea,IndonesianhasbeencommonlyknownandusedasthelinguafrancathroughoutIndonesia. ItisworthmentioningthatIndonesia75

inherited civil law tradition from the Dutch East Indies, thus a substantial part ofIndonesian law is of colonial origin. For example, Burgerlijk Wetboek voor Indonesië(IndonesianCivilCode),whichoriginatedfromthecolonialeraisstillmainlyusedtogoverncivil relations. Accordingly,Dutch legal termscontainedthereinarecommon76

andstillinusetodateinIndonesia. 77

2. BelgiumBelgiumislocatedatthecrossroadsofLatinandGermaniccultures.Betweenthe

11thand12thcenturies,thecountyofFlanderswasadomainofFrance.Forthisreason,LatinwasreplacedbyFrenchastheof\iciallanguage. Meanwhile,Dutchwasusedin78

BrusselsandAntwerp,whichwerepartof theDuchyofBrabantandbelonged to theHoly Roman Empire, as the Dukes opposed to using French. In the 15th century,79

Frenchwasmostlyspokenbythenoblesandthewealthycitizens.Ontheotherhand,Dutch was the dominant language in public life and used in the administration, bynotariesandevenasthelanguageofinstructionandliterature. 80

R. Nugroho, “The Origins and Development of Bahasa Indonesia”, PMLA 72, no. 2 (1958), p. 24 71

https://www.jstor.org/stable/2699135 (accessed 21 September 2018).

Ibid, p. 26.72

Alisjahbana, “The Indonesian Language-by-product of Nationalism”, op.cit., p. 389. It was followed 73

by the Congress held by Taman Siswa in October 1941 which acknowledged the Malaya language as the Indonesian language, the language that unified the people in the Indonesian archipelago. Read: Liberty Magazine, Pikiran Redaksi, 25 November 1941.

The 1945 Indonesian Constitution. The language provision was stipulated in Article 36 of the 1945 74

Indonesian Constitution prior to its amendment. R. Nugroho, “The Origins and Development of Bahasa Indonesia”, op.cit., p. 27. 75

Burgerlijk Wetboek voor Indonesië, S 1847-23. According to Article 2 para. 1 Transitional Provisions 76

of the 1945 Indonesian Constitution, the legislation promulgated during Dutch East Indies era remains valid, provided that it has not been replaced by the new legislation under this Constitution.

Examples: onrechtmatige daad (unlawful act), geoorloofde oorzaak (illegitimate cause), dwangsom 77

(penalty) van der Jeught, “Territoriality and Freedom of Language: The Case of Belgium”, op.cit., p. 182.78

Léon van der Essen, A Short History of Belgium, (Chicago: The University of Chicago Press, 1916), 79

pp. 50-51 van der Jeught, “Territoriality and Freedom of Language: The Case of Belgium”, op.cit., p. 182.80

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As Belgium proclaimed its independence in October 1830, as con\irmed by theTreatyofLondon1839, itsConstitution stipulatedthat:“Theuseoflanguagesspoken81 82

inBelgiumisoptional;onlythelawcanruleonthismatter,andonlyforactsofthepublicauthoritiesandjudicialaffairs.” Althoughthefreedomoflanguagefavouredtheuseof83

French in public life, Dutch was not banned. Two milestones on the use of Dutchoccurredaroundthelastquarterofthe19thcentury.In1873,ameasurepermittingtheuseofDutchinthecourtsbecamelaw,andthelegislationwhichstipulatedthatalllawswouldbepublishedinbothDutchandFrenchwasenactedin1898. 84

Itshouldbeborneinmindinthisregardthattherewasalsoanimportantsocialcomponent to the language issue inBelgium:Frenchhad longbeen themainculturallanguageinthecountryandwasalreadythedominantlanguageinthecitiesandamongelitegroups in thewholecountry.Therefore,Frenchwasalsostronglyrepresented inthe upper echelon of the army, the courts, and the civil service. French was animportant barrier between social classes, and social promotion was possible onlythrough knowledge of the French language. In addition, a consequence of the First85

WorldWarwas the inclusionofGerman-speakers in theKingdomofBelgium for theTreatyofVersailleshandedtheregionofEupen-MalmédyovertoBelgium. 86

TheprinciplesofterritorialityandfreedomoflanguageenshrinedintheBelgianConstitution have been used as the bedrock of interaction among the languages inBelgium. Territoriality principle in languages is understood as a set of rules87

established by the authority to set up an of\icial language regime to be used for thepublicdomainwithin theirgiven territory.Territorialityprincipleexcludes theuseofof\icial language for private communication. This is then known as the individual88

freedomoflanguageinBelgium.

B. ObligationtoUseNationalLanguage1. IndonesianLawonLanguage

TheprovisionconcerninglanguageincontractinIndonesiaisspeci\iedinArticle31 (1) of Law24/2009: “Indonesian shall be used inmemoranda of understanding oragreementsthatinvolvestateinstitutions,agenciesofthegovernmentoftheRepublicofIndonesia, Indonesian private institutions or individual of Indonesian nationality.” Theterm ‘shall’makes this provision obligatory. Article 31 (2) of Law 24/2009 further89

speci\ies that “The memoranda of understanding or agreements and referred to in

van der Essen, op.cit., pp. 154 and 162.81

The Constitution was drafted in French only, the official Dutch version was adopted in 1967. van der 82

Jeught, “Territoriality and Freedom of Language: The Case of Belgium”, op.cit., p. 184. Constitution du Royaume de Belgique, adoptée le 7 février 1831 [The Constitution of the Kingdom of 83

Belgium, adopted on 7 February 1831, Article 23. This provision later became art. 30 the 1993 Belgian Constitution.

Pierard, “Belgium’s Language Question: French v. Flemish”, op.cit., p. 646. Also: van der Jeught, 84

“Territoriality and Freedom of Language: The Case of Belgium”, op.cit., p. 184. van der Jeught, “Territoriality and Freedom of Language: The Case of Belgium”, op.cit., pp.184-185.85

Treaty of Peace between the United States of America, the British Empire, France, Italy and Japan 86

and Poland, 28 June 1919, League of Nations Treaty series no. 36, Article 32-38. Spolsky, Language Policy, op.cit., pp. 164-165.87

Phillippe van Parijs, “On Linguistic Territoriality and Belgium’s Linguistic Future”, in Patricia 88

Popelier, Dave Sinardet, Jan Velaers & Bea Cantillon (eds), Belgium: Quo Vadis? Waarheen na de zesde staatshervorming?, (Antwerp: Intersentia, 2000), pp. 36-37.

In respect of this obligation, it is important to note concerning franchise agreement that a non-89

Indonesian language franchise agreement shall be translated into Indonesian. See: Government Regulation Number 42 of 2007 on Franchise (SGRI 2007-90, SSGRI 54742).

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paragraph1whichinvolveaforeignpartyshallalsobedrawnupinthelanguageofthatforeignpartyand/orinEnglish.”

Law 24/2009 does not set out any sanctions nor legal consequences fornoncompliancewiththisobligation. Toaddtotheconfusion,italsoremainssilentas90

to the validity of the existing ongoing contracts not drafted in Indonesian. The lawprescribesthatthisprovisionwillbefurtherregulatedbyanimplementingregulationintheformofpresidentialregulation. However,suchpresidentialregulationhasnot91

beenissueduptonow.

2. ProblemsconcerningIndonesianLawonLanguageThe very \irst problem resulting from this provision concerns its scope of

application. What does the term “agreement” in Article 31 (1) of Law 24/2009encompass?TheelucidationofArticle31(1)attemptedtoclarifybystatingthat“Thephrase‘agreements’includesinternationalagreementsintheOieldofpubliclawthataregovernedbyinternationallawandconcludedbythegovernmentandstate,internationalorganizationoranyotherinternationallegalsubject.Thoseinternationalagreementsareto be written in Indonesian, foreign language, and/or English.” However, this92

elucidation is not clear concerning the agreement concluded for private andcommercial matters; whether such agreement subjects to this provision. For thisreason,severallawyersrequestedaclari\icationfromtheMinistryofLawandHumanRights (MOLHR) in 2009. The MOLHR issued a letter (MOLHR Letter) which93 94

indicated that subject to the issuance of implementing regulations as provided inArticle40ofLaw24/2009,:

a. theexistingforeign-languageprivatecommercialagreementsdonotviolatetheobligationasstipulated inLaw24/2009asthis lawappliesnon-retroactively.Thus,suchagreementsremainvalidandarenotvoidableorobligedtoconformtothisobligation.

b. Thepartiestoprivatecommercialagreementshavethefreedomtodeterminethelanguagefortheiragreements.Inaddition,iftheimplementingregulationlater stipulates that the bilingual version should be used in agreements, thepartiesarealsofreetochoosewhichlanguagewouldprevail.

FollowingtheenactmentofLaw24/2009andtheissuanceoftheMOLHRLetterin 2009, the practice in Indonesia developed towards the use of bilingual contracts,draftedbothinIndonesianandinEnglishoranotherlanguageasagreed.AstheMOLHRLetterde\inedthatthepartieshavethefreedomtodeterminetheprevailinglanguage,

For the role and concept of legal sanctions, Read: Anthony Kronman, “Hart Austin, and the Concept 90

of Legal Sanctions”, Faculty Scholarship Series 1077 (1975), pp. 584-607. Ibid, Article 40. See: Law Number 12 of 2011 on Establishment of Laws and Regulations (SGRI 91

2011-82, SSGRI 5234), (Law 12/2011). Article 1 (6): “Presidential Regulation is the legislation which is set out by the President to implement the mandate from the higher legislation or in order to conduct governmental power.”

Law 24/2009, op.cit., Elucidation of Article 31 (1).92

Menhukham: Perjanjian Berbahasa Inggris Tetap Sah”, Hukumonline, http://www.hukumonline.com/93

berita/baca/lt4b6a1df8b9cbf/menkumham-perjanjian-berbahasa-inggris-tetap-sah (accessed February 15, 2018).

Letter of MOLHR Number M.HH.UM.01.01-35 on the Clarification Request concerning the 94

Implication and Implementation of Law Number 24 of 2009, 28 December 2009.Volume9Number2,May-August2019

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the English version is always chosen to prevail in bilingual contracts. However, it95

should be borne in mind that MOLHR Letter did not have binding force as law orlegislationintheIndonesianlegislationsystem.Thelawinstrumentsthatareincludedin the hierarchy of legislation in Indonesia are Constitution of the Republic ofIndonesian 1945, Decree of People’s Consultative Assembly, Law/GovernmentRegulation In lieuof Law,GovernmentRegulation, PresidentialRegulation, ProvincialRegulation;andRegency/MunicipalityRegulation. Theclari\icationassetforthinthat96

letteronlytemporarilyrelievedtheanxietyofthepartiestonon-Indonesian languagedraftedcontracts.

This relief was indeed put to an end by the Supreme Court of the Republic ofIndonesia in the2015NineAMcase. Thecasedisputeda loanagreementagreed in97

April 2010 by a Texas company as the lender and an Indonesian company as theborrower.Initsjudgment,theSupremeCourtupheldthedecisionofthelowercourts 98

thatannulledtheloanagreementagreedasitwasnotdrawnupinIndonesian,henceitviolated the obligation speci\ied in Article 31 (1) of Law 24/2009. The panel of thejudgespointedoutthattheclari\icationprovidedinMOLHRLettershouldnotbetakeninto account as it is left out of the hierarchy of law and legislation in IndonesiaaccordingtoLaw12/2011. It furtherstatedthattheMOLHRLettercannotdiminish99

theobligatorynatureofArticle31(1)ofLaw24/2009. 100

The subsequent problem concerns whether verbal contract concluded by anIndonesianentitywithaforeignentitysubjectstothisprovision.Itisageneralrulethatacontractneednotbereducedintowriting.Wherethelawmakesnospecialprovisionto the contrary –wherewritten evidenceof the contract orpromise is not expresslyrequired– such contract is valid, though it is verbalonly. Indonesian lawdoesnot101

requirethatanagreementshallbemadeonlyinwrittenform.Article1313IndonesianCivil Code provides that an agreement is an act pursuant to which one or moreindividual bind themselves to one another. It is understood that a verbal contract102

constitutes an agreement, provided that the parties agree to bind themselves.Unfortunately,Article31(1)ofLaw24/2009issilentinregardtoaverbalcontract.

Itisalsovitaltodrawattentiontotheterm“Indonesiannational”inArticle31(1)of Law 24/2009. This term should be read according to Law Number 12 of 2006

Hadiputranto, Hadinoto & Partners, Client Alert on Latest Update on Court Decision regarding 95

Application of Language Law in Private Commercial Agreements, https://www.bakermckenzie.com/-/media/files/insight/publications/2014/09/latest-update-on-court-decision-regarding-applic__/files/read publication/fileattachment/al_jakarta_applicationoflanguagelaw_sep14.pdf. (accessed 15 February 2018).

Law 12/2011, op.cit., Article 7.96

Supreme Court Judgment 1572/2015.97

Judgment of Country Court of West Jakarta Number 451/Pdt.G/2012/PN.Jkt.Bar, 21 March 2013 98

(Country Court Judgment 451/2012) and Judgment of the High Court of Jakarta Number 48/PDT/2014/PT.DKI, 7 May 2014 (High Court Judgment 48/2014). The judiciary system in Indonesia has a three-tier court system and two-stage process. The Country Court (pengadilan negeri) as the court of first instance, the High Court (pengadilan tinggi) as the court of appeal, and the Supreme Court as the court of review (cassation/kasasi). The Country Court and the High Court are called judex facti, whereas the Supreme Court is called judex iuri. See: Law Number 48 of 2009 on Judiciary Power (SGRI 2009-157, SSGRI 5076), (Law 48/2009), Article 20. See also: Law Number 2 of 1986 on General Court (SGRI 1987-20, SSGRI 3327), as lastly amended by Law Number 49 on 2009 (SGRI 2009-157, SSGRI 5076), Article 3.

Law 12/2011, op.cit.99

Country Court Decision 451/2012, op.cit., pp. 60-61.100

Joseph Chitty, et al., A Treatise on the Law of Contracts and Upon the Defences to Actions Thereon, 101

(Springfield: George and Charles Merriam, 1860), p. 66. S 1847-23, op.cit., Article 1331.102

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concerning Indonesian nationality. However, this leaves the question: what if a103

personwhoholds Indonesiannationalitydoesnot speak Indonesianandhedoesnotunderstand Indonesian? To complywith this provision, should his or her contract104

also be drawn up in Indonesian, albeit incomprehensible for him/her? A furtherquestioninregardterm“Indonesiannational”iswhatifheorsheisanIndonesian,buthasbeenresidingabroadandisabouttoenterintoacontractandsuchcontractistobeperformed in his or her residing country? Should such contract be drafted inIndonesian? These questions lead us to the notion of freedom of contract. Anagreementisdeemedbindingifthereismutualconsentofthepartiesthataparticularact shall be done or omitted.However, one cannot be said to assent that shewill bebound unless she is endowed with such degree of reason and judgments that willenablehimtocomprehendthesubjectofnegotiation. Howcansheunderstandthe105

subject of his contract, if she does not speak the language in which the contract iswritten?

The lackof clarityon the scopeof thisprovision results in the inconsistencyofjudgments in addressing the issue of obligation to use Indonesian in a contract.RandolphCarpenter case concerns a sale andpurchase contract over land located inIndonesiathatwasagreedbetweenaforeigncompanyandanIndonesiancompanyin2010.BothcompaniesarerepresentedbytheirdirectorswhoareforeignersanddonotspeakIndonesian,hencethecontractwasdraftedinEnglish.ThejudgesdeclaredthattheclaimantexaggeratedtherequesttonullifythecontractbasedontheabsenceoftheIndonesian language. The judges referred to a clause of the contract in which thepartiesagreedtouseEnglishasthelanguageofthecontractsothattheuseofEnglishintheircontractwasnotconsideredasaviolationofthelanguagerequirement. 106

The inconsistency is also exposed in Osmar Siahaan case. This case disputed aspeci\ied-period employment contract. Based on Article 31 (1) of Law 24/2009, theplaintiff requested the court to annul the contract as it was not written inIndonesian. ItisimportanttounderlinethatArticle57ofLawNumber13of2003on107

Manpower (Law 13/2003) obliges the speci\ied-period employment contract to bemade in the Indonesian language. In the case of a bilingual contract, the Indonesianversionshallprevail.Inthecasethataspeci\ied-periodemploymentcontractisdrawnup in foreign language, such contract should be considered as an unspeci\ied-periodemployment contract. Nevertheless, in this case, the judges did not address the108

claimant’s argument concerning the obligation to use Indonesian in the speci\ied-periodemploymentcontractbasedonLaw24/2009andLaw13/2003.

3. BelgianLawonLanguagePeople often call Belgium a complex nation with two different cultures,

confusinginstitutionsandgovernments.ThenorthofthecountryiscalledFlandersor

Law Number 12 of 2006 on Indonesian Nationality (SGRI 2006-63, SSGRI 4634).103

This scenario is possible since Indonesia applies the nationality principle based on ius sanguinis. So, 104

an Indonesian might be born abroad and is not familiar with Indonesian. Ibid., Article 4. Chitty, et al., op.cit., p. 148. Read: S 1847-23, op.cit., Article 1320 and Subekti, Pokok-pokok Hukum 105

Perdata [Principles of Civil Law], 28th ed, (Jakarta: Intermasa, 1996), pp. 134-135 for the requirement of consent in concluding a contract under Indonesian law.

Country Court Judgment 35/2010, op.cit., p. 68.106

Supreme Court Judgment 254/2013, op.cit., p. 18.107

Law Number 13 of 2003 on Manpower (SGRI 2003-39, SSGRI 4279), Article 57: “An employment 108

agreement for a specified period shall be made in writing and must be written in the Indonesian language with Latin alphabets.”

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Flemish and the southern part is known asWallonia. According to the 1993BelgianConstitution, Belgium comprises three communities: the Flemish community, theFrench community, and the German-speaking community. In addition, Belgium109

comprises threeRegions: the FlemishRegion in the northwhere theDutch-speakingcommunity resides, theWalloonRegion in the southwhere the French-speaking andthe German-speaking communities reside, and the Brussels-Capital Region in thecountry’sgeographicalheart. 110

Picture1–RegionandCommunityMapofBelgium 111

Belgium also consists of four linguistic regions: the Dutch-speaking region, theFrench-speaking region, the bilingual region of Brussels-Capital and the German-speaking region. The provision concerning linguistic region manifests the112

territoriality principle in language within Belgium. The Constitutional Court hasguaranteed the primacy of a single language in the three essentially monolingualregionsandabilingualregimeintheregionofBrussels-Capital. 113

The 1993 Belgian Constitution, Article 2.109

Ibid., Article 3. The official languages in Brussels-Capital Regions are Dutch and French.110

Source:https://www.eea.europa.eu/soer/countries/be/country-profile-distinguishing-factors-belgium/111

country-profile-distinguishing-factors-belgium-2/figure-1-the-regions-and/view (accessed 7 June 2019). The 1993 Belgian Constitution, Article 4 (1).112

Judgment of the Constitutional Court no 17 of 26 March 1986, M.B./B.S. of 14.4.1986, 5116. Read: 113

van der Jeught, “Territoriality and Freedom of Language: The Case of Belgium”, op.cit., p. 186.Volume9Number2,May-August2019

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Picture2–LinguisticRegionMapofBelgium 114

Article30of the1993BelgianConstitution speci\ies that “Theuseof languagesspokeninBelgiumisoptional;onlythelawcanruleonthismatter,andonlyforactsofthepublicauthoritiesand judicialaffairs.”Thisprovisionestablishesa limitation thattheuseof languagemustberegulatedby law.Furthermore,such languageregulationonly concerns acts of the public authorities and court proceedings. In conjunction115

withthisprovision,Article129(1)oftheconstitutiongivestheFrenchCommunityandFlemishCommunityparliamentstheauthoritytoregulate,bydecreeandwithintheirseparatespheresofjurisdiction,theuseoflanguagesfor(i)administrativematters,(ii)education in the establishments created, subsidized or recognized by the publicauthorities,and(iii)socialrelationsbetweenemployersandtheirpersonnel,aswellascompanyactsanddocumentsrequiredbythelawandbyregulations. 116

According to the above-mentioned provisions, Article 52 (1) 1966 BelgianLanguageLawstipulates“Foractsanddocumentsthatareprescribedbythelawsandregulations and for those intended for their personnel, the private industrial,commercial or \inance companies use the language of the area where their place ofbusinessorseparateplacesofbusinessarelocated.” Itmeansthatifthecompanyhas117

its place of business located in the Dutch-speaking region, Dutch shall always beused. However, pursuant to paragraph 2 of Article 52, the companymay attach a118

translationintooneormorelanguagesofsuchdocuments.

“Belgium Language Map”, http://asperia.org/belgium-language-map-2/ (accessed 17 August 2018).114

van der Jeught, “Territoriality and Freedom of Language: The Case of Belgium”, op.cit.115

The 1993 Belgian Constitution, Article 129 (1).116

1966 Belgian Language Law, op.cit., Article 52 (1), “Voor de akten en bescheiden, die 117

voorgeschreven zijn bij de wetten en reglementen en voor die welke bestemd zijn voor hun personeel, gebruiken de private nijverheids-, handels- of financiebedrijven de taal van het gebied waar hun exploitatiezetel of onderscheiden exploitatiezetels gevestigd zijn.” (For acts and documents that are prescribed by the laws and regulations and for those intended for their personnel, the private industrial, commercial or finance companies use the language of the area where their operating headquarter, or separate operating headquarters are located.) Translated by the Author.

In Brussels Capital region, where both Dutch and French are the official languages, the companies 118

submit documents in Dutch, when they are intended for Dutch-speaking staff and in French when they are intended for French-speaking staff.

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The 1973 Flemish Decree requires the use of Dutch for relations betweenemployersandemployees,aswellasforcompanyactsanddocumentsrequiredbylawin theDutch-language region. This decree applies only in theDutch-speaking region,which consists of Antwerp, Limburg, East Flanders, West Flanders, and FlemishBrabantprovinces.TheobligationtouseDutchinanemploymentcontractasspeci\iedbythe1973FlemishDecreeisapplicabletoanaturalandlegalpersonhavingaplaceofbusinessintheDutch-speakingregionofBelgium. 119

Theterm‘placeofbusiness’(exploitatiezetel)aslaidoutinthedecreereferredtoany establishment or business premises or some permanence where the worker isemployed, for example the place where he received instructions or any form ofnoti\ications,wherehis contract is concluded; irrespectiveofhishabitual residentorlivingplaceatthetime. Theterm‘employmentrelations’isunderstoodastheverbal120

and written contracts between employee to perform services for and under thedirection of employers in return for which he receives remuneration for a certainperiod of time. As prescribed inArticle 10 of the decree, noncompliancewith this121

languagerequirementresultsinthenullityofthecontracts,documentsoracts,withoutprejudice to the employee or to the rights of the third party. The nullity shall bedeterminedexof\iciobythejudge. 122

4. ProblemsconcerningBelgianLawonLanguageA jurisdictional issue in the contract was one of the problems due to the

requirement touseDutch in anemployment contract.Thiswas the case inElefantenSchuhwhichbroughtbeforetheEuropeanCourtof Justice(ECJ) in1981.ThedisputeconcernedanemploymentcontractdrawnupinGerman,concludedin1970byPierreJacqmain,aresidentofAntwerpprovince,andElefantenSchuhGmBH whichhadits123

registeredof\iceatKleveintheFederalRepublicofGermany.Jacqmainwasemployedas a sales agent in Antwerp, Brabant and Limburg and worked for the Belgian124

subsidiary of Elefanten Schuh, Elefant NV whose registered of\ice was at Genk-ZwartberginBelgium,fromwhomhereceivedinstructions.ThepartiesconsentedthatthecourtatKleve,Germanyhasexclusivejurisdictionintheeventofadispute.

JacqmainbroughtanactionbeforeArbeidsrechtbankAntwerpen(AntwerpLabourTribunal) seekingdamagesfromhisemployerashewasdismissedwithoutnoticein125

1975. Elefanten Schuh GmBH invoked the choice of court clause in the employmentcontract to challenge the jurisdiction of the Antwerp Labour Tribunal. The judgesrejected the plea as to jurisdiction by arguing that Jacqmain pursued his occupationwithinitsterritorialjurisdiction,thusithadthecompetenceovertheclaimsubmittedby Jacqmain. In its appeal judgment, Arbeidshof Antwerpen (Antwerp Labour126

The 1973 Flemish Decree, Article 1.119

Partena, “The Use of Languages in Employment Relations”, Memento of the Employer 5, May 2014, 120

3. Armin Cuyvers, “Free Movement of Persons in the EU” in Emmanuel Ugirashebuja et al (eds), The 121

East African Community Law, (Leiden: Brill Nijhoff, 2017), p. 356. The 1973 Flemish Decree, Article 10.122

Formerly known as G. Hoffman GmBH,123

These three provinces are located in the Dutch-speaking region.124

The court of first instance for employment dispute in Belgium.125

ECJ, C-150/80, op.cit., para 4.126

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Court) upheldtheAntwerpLabourTribunaljudgmentstatingthatpursuantto1966127

BelgianLanguageLawand1973FlemishDecree, theemploymentcontractagreedbytheparties shouldhavebeendrawnup inDutch.Referring toArticle10of the1973FlemishDecree,theemploymentcontractwasdeclarednullandvoid.Consequently,theclauseconferringexclusivejurisdictioncontainedthereinwasinvalid. 128

In an appeal brought before it, Hof van Cassatie (SupremeCourt of Belgium)129

requested a preliminary ruling from ECJ concerning the jurisdictionalmatter in thiscase.ECJ ruled that theMemberStatesarenot free to laydown formal requirementsother than those contained in the 1968 Brussels Convention on Jurisdiction and theEnforcement of Judgments in Civil and Commercial Matters. ECJ also ruled that a130

ContractingStatemaynotallowcallingintoquestionthevalidityofanagreementsolelyonthegroundthatthelanguageusedisnotthatprescribedbyitslegislation. 131

In this case, the parties’ consent to confer exclusive jurisdiction to the court atKlevewasinvalidatedbecauseitshouldhavebeendrawnupinDutch,notinGerman.Insteadofreferringtothejurisdictionclauseinthecontractagreedbytheparties,thejudgesofArbeidsrechtbankAntwerpenandArbeidshofAntwerpenArbeidshofAntwerpeninvoked Article 627 of Belgian Judicial Codewhich prescribes the court of the placewheretheoccupationispursuedistohavejurisdiction.Thiscaseshowedthedif\icultyresultedbytherequirementtodrawupacross-bordercontractinaparticularnationallanguage.Thepartiescouldnotexecutewhattheyhadagreedinregardtojurisdictionbecauseitwasnulli\iedbythelanguagerequirement.However,theECJrulingplayedasigni\icantroleinthiscaseasitlaiddownalimitthatinthecontextofEuropeanUnion(EU), language requirement for a contract as regulated in national law could not beusedtoinvalidateanagreementconferringjurisdictioncontainedinacontract.

Morethan30yearslater,theobligationtouseDutchinanemploymentcontractwas disputed again inAnton Las case. Anton Las, aDutch nationalwas employed asChief Financial Of\icer by a company established in Antwerp, PSA Antwerp. Theemployment contract was concluded on 10 July 2004 and drafted in English. PSA132

Antwerpwaspartofamultinationalgroupoperatingportterminalswhoseregisteredof\ice was located in Singapore. Las carried out his work principally in Belgium. InSeptember2009,LaswasdischargedbyPSAAntwerp.Unsatis\iedwiththeamountofallowance he received and sought for a higher allowance according to the Belgianemployment law, Las brought an action before the Antwerp Labour Tribunal inDecember2009 claiming that the employment contractwasnull and void because itviolated the 1973 Flemish Decree. The Antwerp Labour Tribunal requested a133

preliminary ruling from the ECJ to determine whether the 1973 Flemish DecreeviolatesthefreedomofmovementforworkersasenshrinedinArticle45theTreatyon

The court of appeal for employment dispute in Belgium.127

Ibid., para 5.128

The appeal in cassation submitted by Elefanten Schuh GmBH concerned the validity of an 129

agreement conferring exclusive jurisdiction. Elefanten NV also lodged an appeal in cassation, but it was rejected for being out of time.

Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters 130

(Brussels) of 27 September 1968, 1262 UNTS 153; 8 ILM 229 (1969). This case mainly concerned about the prorogation of jurisdiction under the Brussels Convention.

ECJ, C-150/80, op.cit., para. 25-27.131

ECJ, C-202/11, op.cit., para 9.132

Ibid., para 10-11. Read also: Opinion of Advocate General (AG) Jääskinen delivered on 12 July 133

2012 C–202/11, Anton Las v. PSA Antwerp NV, para 16.Volume9Number2,May-August2019

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the Functioning of the European Union (TFEU). According to the ECJ, the 1973134

Flemish Decree which obliges the use of solely Dutch in employment relationshipconstitutesarestrictionon freedomofmovement forworkersas it is liable tohaveadissuasiveeffectonnon-Dutch-speakingemployeesandemployersfromothermemberstatesoftheEU. 135

Inthiscase,PSAAntwerpchallengedtheobligationtousenational languageforan employment contract in Belgium against the freemovement ofworkers principlewithintheEU.Freemovementofworkers isa fundamentalprinciple intheEUwhichentitles the EU citizens to, inter alia: look for a job in another EU country, work inanotherEU countrywithout needing aworkpermit, and enjoy equal treatmentwithnationals in access to employment, working conditions and all other social and taxadvantages. If the 1973 Flemish Decree had been complied with, it would have136

bene\ited Las since he understands Dutch. However, by requiring the parties to anemploymentcontract todraft theircontract inDutch,Belgiumcreatesanobstacle fortheEU citizenswhoarenot familiarwithDutch to exercise their right towork in itsjurisdiction.ItisplausiblethataworkerunfamiliarwithDutchwouldhesitatetosignacontractdraftedinDutchashedoesnothavesuf\icientknowledgeonthecontentofthecontract.Moreover,theemployersestablishedintheDutch-languageregionofBelgium,either those from the other EU countries or internationally active companies, thisobligationforcesthemonlytorecruitemployeeswhounderstandDutch.Whereastheinternationallyactivecompanies,likePSAAntwerpthatbelongstomultinationalgroupcompaniesregisteredinSingapore,usuallyuseEnglishastheirworkinglanguage.Theyneedtoadjusttheemploymentcontract,whichencumbersthemwithadditionalcostastotranslatethecontractortohireDutch-speakinglawyerstoassistthem. 137

FollowingthejudgmentofAntonLas,the1973FlemishDecreewasamendedbyDecreeof14March2014onamendingArticles1,2,4,5,12and16ofthe1973FlemishDecree(2014AmendedFlemishDecree). Eventhoughthe2014AmendedFlemish138

Decree retains the obligation to use Dutch in employment, it allows, under certainconditions,theuseofanotherlanguageknownbyallpartiesforemploymentcontracts.Thealternativelanguageis: 139

a. anof\iciallanguageoftheEU; or140

ECJ, C-202/11, op.cit., para. 15. European Union, Consolidated version of the Treaty on the 134

Functioning of the European Union, 26 October 2012, OJ L. 326/47-326/390; 26.10.2012, at: http://www.refworld.org/docid/52303e8d4.html (accessed 3 October 2018), Article 45.

ECJ, C-202/11, op.cit., para 22. Opinion of AG Jääskinen in C–202/11, op.cit., para 30.135

European Commission, “Free Movement – EU Nationals” http://ec.europa.eu/social/main.jsp?136

catId=457&langId=en (accessed 14 August 2018). Opinion of AG Jääskinen in C–202/11, op.cit., para. 34.137

Decreet van 14 Maart 2014 tot wijziging van artikel 1, 2, 4, 5, 12 en 16 van het decreet van 19 juli 138

1973 tot regeling van het gebruik van de talen voor de sociale betrekkingen tussen de werkgevers en de werknemers, alsmede van de door de wet en de verordeningen voorgeschreven akten en bescheiden van de ondernemingen, B.S. 22 April 2014 (2014 Amended Flemish Decree).

2014 Amended Flemish Decree, Article 5 (1).139

There are 24 official languages of the EU: Bulgarian, Croatian, Czech, Danish, Dutch, English, 140

Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovene, Spanish and Swedish. “Multilingualism”, https://europa.eu/european-union/topics/multilingualism_en, (accessed on 1 September 2018).

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b. anof\iciallanguageofoneofthemembercountriesoftheEuropeanEconomicArea(EEA),whoarenotmembersoftheEU. 141

The above provision only applies if the employee is in one of the followingcases: 142

a. heisdomiciledintheterritoryofoneoftheotherMemberStatesoftheEUoroneoftheMemberStatesoftheEEA;

b. he isdomiciledontheBelgianterritoryandhasmadeuseofhisright to freemovement of workers or freedom of establishment, such as guaranteed byArticles 45 and 49 of TFEU and by Regulation (EU) No 492/2011 of theEuropeanParliamentandtheCouncilof5April2011onthefreemovementofworkerswithintheUnion;

c. hefallsunderthefreemovementofemployeesonthebasisofaninternationalorsupranationaltreaty.

In case of discrepancy between the Dutch and the second of\icial version of theindividualemploymentcontract,theDutchversionshallprevail. 143

TheobligationtousenationallanguageasimposedinBelgiumwasdisputedagaininNewValmarcase.NewValmar is a company incorporated inEvergem,Belgium. In2010,NewValmarconcludedanagreementwithGlobalPharmaciesPartnerHealthSrl(GPPH), a company incorporated in Milan, which appointed GPPH as its exclusiveconcession-holder in Italy for the distribution of children’s articles (ConcessionAgreement).ThepartiesagreedthatthegoverninglawoftheagreementisItalianlawandthedisputesettlementforumisthecourtsinGhent,Belgium. Thedisputemainly144

concerned the invoices to be paid by GPPH, which were drafted in Italian. For thisreason,GPPHclaimedthattheinvoicesshouldbedeclarednullandvoid. 145

Ghent Commercial Court requested a preliminary ruling from the ECJ todetermine whether the 1966 Belgian Language Law and 1973 Flemish Decreeconstitutemeasureshavingequivalenteffectasquantitativerestrictionsonexportsasstipulated in Article 35 TFEU. The ECJ deliberated that even if the language146

legislation only concerns the language of invoice – not the content of the underlyingcontractualrelationship, it still createsrestrictiveeffectswhichare likely todeter theinitiationorcontinuationofthecontractualrelationshipwithacompanyestablishedinthe Dutch-speaking region of Belgium. The ECJ ruled that 1966 Belgian Language147

Lawand1973FlemishDecreeconstitutearestrictionfallingwithinthescopeofArticle35TFEU. 148

European Economic Area comprises EU member states and 3 non-EU countries namely, Iceland, 141

Liechtenstein, and Norway. Their official languages respectively are Icelandic, German, and Norwegian. “Languages used by EEA member countries” https://www.eea.europa.eu/data-and-maps/daviz/sds/languages-used-by-eea-member-countries-1/download.table, (accessed on 1 September 2018).

Amended Flemish Decree, Article 5 (2).142

Amended Flemish Decree, Article 5 (4). 143

ECJ, C-15/15, op.cit., para 12-13.144

Ibid, para 18. On 14 January 2014, New Valmar supplied to GPPH a translation into Dutch of the 145

relevant invoices. Initially, the Claimant submitted that the Belgian Language Legislation is contrary to Article 45 146

TFEU which specifies the guarantee for freedom of movement of workers within the EU. However, New Valmar case does not fall within the scope of Article 45 TFEU, but of Article 35 TFEU. According to Article 267 TFEU, the ECJ has the authority to reformulate the questions referred to it in order to provide a useful answer for the referring court.

ECJ, C-15/15, op.cit. para. 42.147

Ibid., para. 57.148

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There are two differences between Anton Las and New Valmar. Firstly, in NewValmar the obligation to use Dutch in Belgium was challenged against the freemovementofgoodswithin theEU.Second, thedisputedobject inNewValmarcase isnot the Concession Agreement itself, but the invoices issued in respect to theConcessionAgreement.Theinvoiceiscategorizedas ‘actsanddocumentsrequiredbythelawandbyregulations’withinthemeaningofthe1973FlemishDecree.Themainshortcomingofrequiringthepartiestodrawuptheinvoicesinaspeci\iclanguage, inthiscaseDutch,istherecipientsofsuchinvoiceswillhavedif\icultiesinunderstandingthem quickly. Thus, there are risks of non-payment disputes, since the recipients ofthoseinvoicescouldrelyontheirinabilitytounderstandtheinvoices’contentinorderto refuse to pay them. This obligation is also potentially deterring the initiation orcontinuationofcontractualrelationshipswithacompanywhoseplaceofbusinessisintheDutch-speakingregionofBelgium.

III. CreatingConstraintinInternationalContracting?A. FreedomofContract

The \irst concern in respect to the requirement to draft a contract in speci\icnationallanguagepertainstotheissueoffreedomofcontract.Thenotionoffreedomofcontractisthepartiesareallowedtobindthemselvesbymutualagreementandfreetostipulate terms in theircontract,providedthat thecontractadheres to laws,moralityand/orpublicorder. Inexercisingtheirfreedom,thepartiesmustpossesssuf\icient149

knowledgeonthecontentoftheircontracttoenablethemassentingtothecontract. 150

If the contractwere drafted in certain national languagewhich the parties or one ofthem is not familiar with, she would hesitate to give her consent for fear of notunderstandingwhatsheiscommittingherselfto.

As toBelgium, theobligation touseDutch in contract leads to adiscriminatorymeasure as employers falling within the scope of the 1973 Flemish Decree maylogicallygivepreferencetoaDutch-speakingcandidateratherthanusetherecruitmentcriteriawhichtherecruitersmighthavepreferred ifsuch legislationdidnotexist.Onthe contrary, only the employees who speak Dutch, mainly those who are from theNetherlands and Belgium who can enter the labour market in the Dutch-speakingregionofBelgium.ThiscontradictsthefreemovementofworkersprinciplewithintheEU.

As to Indonesia, given the unclear scope of the provision and judgment of theSupreme Court in the Nine AM case, foreign parties plausibly aremore reluctant toconcludeanagreementwithanIndonesianentity.FortheIndonesiansthemselves,thisobligation impedes them to contract. As an example, to conduct her study in theNetherlands, an Indonesian student should sign an English-language contractconcerning the scholarship awarded to her. Taking into account Article 31 of Law24/2009,doesitmeanthatthecontractcanbenulli\ied,thusannulherscholarshipanddelayherstudy?

B. ChoiceofLawandChoiceofJurisdictionFollowingthenotionoffreedomofcontract,contractingpartiesarealsoallowed

to choose in advance the applicable law to construe their contractual terms within

F.H. Buckley (ed), Fall and Rise of Freedom of Contract, (Durham: Duke University Press, 1999), 149

pp. 4-7. Chitty, et al., op.cit., pp. 8-11.150

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certainparametersand limitations. Theobligationtousecertainnational language151

in international contract encumbers the contractual relations if the parties agree tochoose foreign law as the governing law for their contract. As to Indonesia, if theapplicable law to contract is English law, while the contract shall be written inIndonesian, thediscrepancybetween the Indonesian legal termsused in the contractand English as the language of the applicable law is the problem that needs to besolved.

Furthermore, whether the obligation to use national language constitutesmandatoryrulesorpublicorderininternationalcontractingcouldalsobedrawnintoour attention. Advocate General Øe addressed this issue in his opinion for New152

Valmar case as the parties agreed to apply Italian law for their contract. As a153 154

matterofprinciple, thechosen lawbythepartiesshoulddetermineallaspectsof thecontract. Thus,itleadstoaquestionwhethertheobligationtousenationallanguage155

isamandatoryruleorpublicorderthatwouldsetasidetheapplicationofthechosenlawbythepartiesoritmerelyconcernstheformalvalidityofthecontract.

Therequirementtousenationallanguageinacontractisalsoproblematicifthepartieschooseaforeignforumtosettletheircontractdispute.ThisissuewasraisedinElefanten Schuh when the exclusive jurisdiction of Kleve court was nulli\ied by theobligationtouseDutchintheemploymentcontract.However,ECJruledinthiscasethatthechoiceofjurisdictionwhichconcludedaccordingtothe1968BrusselsConventioncannot be nulli\ied by national provisionswhich require additional compliance as toformal validityof a contract. Moreover, it alsodoesnot seempractical todraft the156

contractinacertainnationallanguage,ifthechosendisputesettlementforumdoesnotspeakthelanguageofthecontract.

C. OnlineContractsTherequirementtodraftcontractsinaspeci\icnationallanguageisproblematic

for online transactions. This is relevant for Indonesia. Law Number 11 of 2008 onElectronic Information and Transactions regulates transactions that are conductedonline. The practice shows that online contract usually is not in Indonesian. For157

example,anIndonesianbuyerordersabookthroughAmazon.com,andthebookwillbeshipped from Kuala Lumpur. The sale and purchase contract to be agreed by theIndonesianonAmazon’swebsite is inEnglishandtheIndonesianlanguageversionofsuchcontractis,inallprobability,notavailable.Giventhefactthathundredsofonlinecontracts involving Indonesian entities are concluded on a daily basis, are thosecontractsstillconsiderednotvalidaccordingtoLaw24/2009?

Symeon C. Symeonides, Codifying Choice of Law Around the World - An International Comparative 151

Analysis, (New York: Oxford University Press, 2015), pp. 110-111. Fleur Johns, “Performing Party Autonomy”, Law and Contemporary Problems 17, no. 3 (2008), p. 249 https://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=1487&context=lcp (accessed 28 March 2018).

F.C. von Savigny, A Treatise on the Conflict of Laws and the Limits of Their Operation in Respect of 152

Place and Time, Guthrie translation, (London: Steven and Sons, 1869), pp. 33-36. Opinion of AG Saugmandsgaard Øe delivered on 21 April 2016, C-15/15, para. 25-29.153

ECJ, C-15/15, op.cit., para. 13154

Peter Nygh, Autonomy in International Contracts, (New York: Oxford University Press, 1999), pp. 155

265-267. ECJ, C-150/80, op.cit.156

Law Number 11 of 2008 on Information and Electronic Transaction (SGRI 2008-58, SSGRI 4843).157

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D. TranslationWorkTranslatingthecontractmightbethesolutionfortheaforementionedproblems.

However, it should also be borne in mind that translation might complicate theproblems, insteadof resolving them.Legal textsdonothaveasingleagreedmeaningbut usually, derive their meaning from a particular legal system. This undeniably158

affectsthetranslatabilityofthecontractsas\indingthepreciseequivalentlegaltermsbetween different languages is extraordinarily challenging. Thus, the quality of thetranslated documents could in\luence the understanding and interpretation of thecontracts.Moreover,translationaddsextracostforthepartiesthatconstitutesaburdenonbusinessandwouldnothavebeennecessaryif therewasnorequirementtouseaspeci\icnational language inacontract.Thisevenworse,especially if therearemanyand long documents to be translated because it presumably delays the negotiationprocessandproceedingofcross-bordertransactions.

IV. CONCLUSIONLawand languageare inextricably linked to eachother as language is themain

mediumofexpressionoflaw.Sinceitisboundtoaspeci\iclegalsystem,legallanguagediffersfromordinarylanguage,hencelegallanguagehasitsownlexiconthatshowsitscomplexity and particularity. For this reason, legal terms are greatly varied and thechoiceoflanguageincross-borderlegalrelationsisextremelyproblematic.

The main issue regarding the provision obliging the use of Indonesian in acontract involving Indonesian entity concerns the scope of the provision itself. Itdemandsfurtherclari\icationfromthegovernmentonthepreconditionstoapplythisprovision.Thus,animplementingregulationasmandatedLaw24/2009ontheuseoflanguage is highly expected. However, it is also worth noting that as the civil lawrelationshipinIndonesiaismainlyregulatedundertheIndonesianCivilCode,itisnotclearyetwhetherArticle31ofLaw24/2009actsaslexspecialistotheprovisionsofthecontractasstipulatedintheIndonesianCivilCode.

AstoBelgium,thedoctrineofsupremacyofEUlawplaysasigni\icantrolewithrespect to the provisions requiring the use of Dutch in theDutch-speaking region ofBelgium.AstheaimofcreatingauniformcommonmarketwithintheEUshouldnotbeundermined,anynormofEUlawtakesprecedenceoveranyprovisionofnationallaw.In2014Belgiumamendedthe1973FlemishDecreeforitwasconsideredimpedingtheapplicationofafreemovementofworkersprincipleasprescribedinTFEU.The2014Amended Flemish Decree lays down the use of of\icial languages of EU and EEAcountries for employment contracts agreed between an employer established in theFlemishregionandEUorEEAemployees.However,problemsarenotyetsolvedinthecaseofemploymentcontractsagreedbetweenFlemish-basedemployersandnon-EUorEEAemployeeswhodonothaveknowledgeonanyof theof\icial languagesofEUorEEAcountries.

The aforementioned explanation addresses that the requirement to draw up acontract in a speci\ic national language impedes international contracting. Given thecomplexity of cross-border transactions itself, the parties should be facilitated toexecute their freedom with regard to the language of their contract by using thelanguagetheyunderstand.

Šarčević, “Challenges to the Legal Translator”, op.cit., 193.158

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