Published

February 07, 2019

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Findings illustrate positive steps in Indonesia’s IP framework


WASHINGTON, D.C.– The U.S. Chamber of Commerce’s Global Innovation Policy Center (GIPC) today released its seventh annual International Intellectual Property (IP) Index, “Inspiring Tomorrow,” which analyzes the IP climate in 50 world economies. The report ranks economies based on 45 unique indicators that are critical to an innovation-led economy supported by robust patent, trademark, copyright, and trade secrets protection.

While Indonesia’s ranks 45th on the Index, the 2019 Index illustrates that Indonesia has taken some positive steps to bring its IP framework more in line with its Southeast Asian peers.
“With a growing population, demographic advantages, and a dynamic economy, Indonesia is a country on the move.  Indonesia can harness the power of IP to escape the middle-income trap,” said John Goyer, executive director, Southeast Asia at the U.S. Chamber of Commerce. “We are glad to see strong government coordination to strengthen IP enforcement. Yet, if Indonesia wants to continue to attract foreign investment, create high-value jobs, and become a true knowledge-based economy, the government must continue to invest in IP reforms.”

The U.S. Chamber International IP Index creates a blueprint for policymakers in countries like Indonesia, who wish to bolster economic growth, create jobs, and foster innovation and creativity. The Index findings show that while the 2016 Patent Act had many troubling provisions, the 2018 Patent Regulations provided relief from the general technology transfer and localization requirements. Additionally, the Indonesian IP Office has several initiatives in place to help small and medium-sized enterprises (SMEs) utilize and leverage IP assets.

“In order for Indonesia to unleash the many benefits which effective IP systems provide, the government must take steps to address the outstanding troublesome provisions of the 2016 Patent Law, including restrictive patentability criteria and parallel importation provisions,” said Ellen Szymanski, executive director, international policy at GIPC. “Through stronger IP, Indonesia can position itself to be become more economically and globally competitive and place the country on the path to becoming a true knowledge-based economy.”

Key areas of strength

  • 2018 Patent Regulations provide relief from the general technology transfer and localization requirement of the 2016 Patent Act
  • PPH in place with the JPO
  • Administrative relief available for copyright infringement online
  • Good cabinet-level coordination and coordinating framework for IP enforcement

    The full Index can be viewed at http://www.uschamber.com/IPIndex.