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Indonesia Contract Legal Questions answered by Lawyers

Browse our 2 legal questions about Contract in Indonesia and read the lawyer answers, or ask your own questions for free.

Is an English-only contract legally binding for a joint venture in Indonesia, or must we translate it into Bahasa Indonesia?
Corporate & Commercial Contract
I am establishing a partnership with a local Indonesian business owner and we drafted our agreement solely in English. I heard there is a local law requiring contracts with Indonesian citizens to be written in the local language. If we do not translate it, does it make our entire agreement... Read more →
Lawyer answer by Law Office Risky Dendy Partner | Advocate ● Receiver ● Administrator For Bankruptcy

Untuk joint venture yang melibatkan perusahaan Indonesia, kami menyarankan kontrak dibuat bilingual, Bahasa Indonesia dan Bahasa Inggris. Secara normatif, Pasal 31 UU 24/2009 mewajibkan penggunaan Bahasa Indonesia dalam perjanjian yang melibatkan lembaga swasta Indonesia, sedangkan Pasal 26 Perpres 63/2019 mengatur...

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1 answer •
Can I cancel a paid training contract in Indonesia if the provider changed dates and refuses a refund?
Contract
I paid in full for a professional training course, but the provider moved the schedule twice and it now conflicts with my work. Their terms say “no refunds,” but I agreed based on the original dates. What rights do I have to cancel and recover my payment?
Lawyer answer by Ramanda International Consulting Firm Cab. Surabaya

Hi. Under Indonesian law, you may have valid grounds to cancel the training and request a refund, even if the provider’s terms state “no refunds.” This is because your agreement was based on the original schedule, and the provider’s unilateral...

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1 answer •

When a Lamongan agreement needs legal attention

Businesses and residents in Lamongan may enter agreements for fish and agricultural supplies, transport, storage, construction, property rentals, or sales to wholesalers. A lawyer can help check payment terms, delivery and quality standards, responsibility for losses, and how either side may end the agreement.

For a dispute, the right route depends on the agreement, the parties, and any dispute-resolution clause. Ordinary civil claims may go to the Lamongan District Court if it has jurisdiction; an arbitration clause or an Islamic economic dispute may affect the forum.

Why you may need a lawyer

  • A buyer has not paid for goods: A lawyer can assess invoices, delivery records, messages, and written terms before advising on a demand or claim.
  • A supply or transport arrangement has broken down: For fish, agricultural produce, or other goods, the agreement should address quantity, quality, delivery dates, and who bears the loss if goods are damaged or delayed.
  • A shop, warehouse, pond, or other property is being rented: Legal review can clarify rent, permitted use, repairs, deposits, renewal, and the process for ending the lease.
  • A construction or renovation project is disputed: A lawyer can review the scope, milestones, variations, payment certificates, delay provisions, and any agreed dispute procedure.
  • A business partner or borrower is not following the agreement: Advice can help assess evidence, guarantees, repayment terms, and whether negotiation, mediation, arbitration, or court action is available.
  • You are asked to sign a document you do not understand: Independent review can identify unclear obligations, personal guarantees, one-sided penalties, or terms that conflict with what was discussed.

Rules governing agreements and disputes in Lamongan

  • Indonesian Civil Code (Kitab Undang-Undang Hukum Perdata or KUHPerdata): Article 1320 sets out requirements for a valid agreement, including consent, capacity, a specific subject, and a lawful cause. Article 1338 addresses the binding force of agreements and performance in good faith.
  • Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution: Promulgated on 12 August 1999, it provides a framework for arbitration and other agreed dispute-resolution methods. Whether arbitration is available depends in part on the agreement and the dispute.
  • Law No. 24 of 2009 on the National Flag, Language, Emblem and Anthem: Promulgated on 9 July 2009, it requires Bahasa Indonesia in agreements involving Indonesian parties specified by the law. Agreements with a foreign party may require additional language arrangements, so the parties should obtain advice on the wording and circumstances.

Frequently asked questions

Do I need a lawyer before signing an agreement?

There is no general requirement to hire a lawyer for every agreement. Legal review is especially useful for substantial payments, long commitments, guarantees, property, construction, or unclear termination and dispute terms.

What makes an agreement valid in Indonesia?

The Civil Code sets out requirements concerning consent, legal capacity, a specific subject, and a lawful cause. Some types of transaction also have additional formal requirements, so the general rules may not be enough for a particular deal.

Can an oral agreement be enforced?

An oral agreement may be valid, but proving what the parties agreed can be difficult. Keep messages, invoices, delivery records, payment evidence, and witness details, and check whether the transaction requires a particular form.

Does every agreement need to be notarized?

No. Notarization is not a general requirement for every agreement, although certain transactions require specific formalities or registration. A notary can prepare an authentic deed, while a lawyer can advise on legal risks and dispute strategy.

Must an agreement be written in Bahasa Indonesia?

Law No. 24 of 2009 requires Bahasa Indonesia for agreements involving Indonesian parties covered by the law. Where a foreign party is involved, language requirements may also apply; obtain advice before signing a bilingual document or relying on a foreign-language version.

Which court handles an ordinary contract dispute in Lamongan?

The Lamongan District Court handles civil matters within its jurisdiction. The proper venue can depend on the defendant’s domicile, the type of claim, and any valid forum or arbitration clause, so confirm the filing route before starting a case.

Will the court require mediation?

Civil cases filed in court are generally subject to court-connected mediation under Supreme Court Regulation No. 1 of 2016, subject to its rules and exceptions. The regulation generally allows 30 working days from the mediator’s selection, with a possible 30-working-day extension.

What if the agreement contains an arbitration clause?

Read the clause carefully because it may require the parties to take a covered dispute to arbitration rather than court. The wording, scope, and validity of the clause matter, and a lawyer can explain the likely procedure and costs.

How much does a contract lawyer cost?

Legal fees are generally agreed with the lawyer and can depend on the work, urgency, and complexity. Ask for a written fee proposal that separates advice, negotiation, document drafting, court work, and expenses; court fees are separate.

How long does a contract dispute take to resolve?

There is no fixed timeline for negotiation, arbitration, or court proceedings. Evidence, the other party’s response, procedural steps, and any appeal can affect how long a dispute takes.

Can I get free legal assistance?

People who meet the requirements under Law No. 16 of 2011 on Legal Aid may be eligible for assistance through an accredited legal aid provider. Eligibility and the services available must be checked with the provider or the court’s legal aid desk.

Can I end an agreement if the other party breaches it?

That depends on the agreement, the nature of the breach, and applicable law. Before stopping performance or terminating, check notice requirements and available remedies because an incorrect termination may create a separate dispute.

Official resources

  • Lamongan District Court (Pengadilan Negeri Lamongan): Handles civil cases within its jurisdiction and court-connected mediation. Ask the court about its Posbakum legal assistance desk and the services currently available.
  • Lamongan Religious Court (Pengadilan Agama Lamongan): Handles matters assigned to religious courts by law, including Islamic economic disputes within its jurisdiction. It is not the general court for every business agreement.
  • Lamongan Investment and One-Stop Integrated Services Office (DPMPTSP Kabupaten Lamongan): Provides local investment and business-licensing services. It does not advise parties on private contract disputes.

Next steps

  1. Gather the documents: Collect signed agreements, drafts, messages, invoices, receipts, delivery records, notices, and a short timeline of events. This can usually be done before an initial consultation.
  2. Identify your immediate goal: Decide whether you need a review before signing, payment recovery, contract changes, termination advice, or dispute representation.
  3. Shortlist suitable lawyers: Look for an advocate authorised to practise in Indonesia with relevant experience in commercial agreements or the type of transaction involved. Ask whether the lawyer handles negotiation, court proceedings, or arbitration as needed.
  4. Arrange an initial consultation: Contact shortlisted lawyers within a few days if a deadline or payment date is approaching. Ask about conflicts of interest, likely options, and documents needed for a proper assessment.
  5. Request a written fee and scope proposal: Confirm what work is included, how fees are calculated, what expenses are extra, and how updates and decisions will be handled.
  6. Check deadlines and dispute clauses: Ask the lawyer to review notice periods, limitation issues, the chosen forum, and any arbitration or mediation clause before sending a demand or filing a claim.
  7. Agree on instructions in writing: Sign an engagement agreement that records the scope, fees, payment arrangements, and authority to act, then keep copies of all submissions and correspondence.

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Each profile includes a description of the firm's areas of practice, client reviews, team members and partners, year of establishment, spoken languages, office locations, contact information, social media presence, and any published articles or resources. Most firms on our platform speak English and are experienced in both local and international legal matters.

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Disclaimer:

The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation.

We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.