Voided Indonesian English-only loan contract could be overturned
A West Jakarta court controversially declared null and void an English language loan agreement between an Indonesian borrower and a foreign lender, but the ruling could be overturned on appeal, local lawyers believe.
An Indonesia court surprised many when it nullified a loan contract between Indonesian borrower PT Bangun Karya Pratama Lestari (BKPL) and American lender Nine AM Ltd based on the grounds the contract was written up in English only.
BKPL had challenged the contract’s validity on the basis of law No. 24 2009, which required the use of Bahasa in all Indonesian contracts. The West Jakarta court ruled in July that the loan agreement was void because it was produced only in English, casting doubts on the validity of all English-only contracts in the country. Nine AM filed an appeal on Monday, October 14 to the Jakarta High Court.
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