| Government of Indonesia has issued Law Number 24 of 2009 as of 9 July 2009 concerning National Flag, Language, Emblem and National Anthem. However, such issuance, in its Article 31 which obliges the use of Indonesian language to the contract executed between Indonesian party and foreigner surprised legal practitioners and businesspersons as well. This impact became worse, since, the District Court of Jakarta adjudged that a loan agreement was null and void simply for the reason that Indonesian language version of the agreement was not available. This undergraduate thesis focuses on three research problems on what is the urgency of Government of Indonesia to issue such mandatory rules, How does the sanctions be ruled for any failure to apply such requirements and lastly concerning the impact of the said mandatory rules to the business transactions with foreign clients in Indonesia. Considering that this writing is legal research in which commonly analyzes normative law, the Author applies juridical normative research methodology in order to obtain the data and information. As conclusion, that the urgency of government to issue this law is to unify all the symbols regulations which previously regulated in different regulation, then to promote national sovereignty, unity, and nationality, and then to make Indonesian language as international language. Further, the sanction for any incompliance to the said mandatory rules is not thoroughly regulated. Lastly the impact to the business transactions as follows: time delays and additional cost in consummating such transactions contract; the terms “equally original” of each language version of contract is kind of confusion; and the occurrence of uncertainty of sanctions for non-compliance which might reconsider the foreigner to contract with Indonesian counterparty. Thus in the end, the Author recommends that the Government needs to issue the implementing regulations as requires to operate Article 31 thoroughly and for practitioner to make a bilingual contract with foreign clients and if the contract has been made before the issuance of this law, then the Indonesian version will be prepared and executed after the English version is executed. |