Protecting intellectual property (IP) remains a significant challenge in Indonesia. The country continued to be listed on the Priority Watch List in the 2024 USTR Special 301 Report, reflecting persistent concerns among U.S. rights holders regarding the adequacy and effectiveness of Indonesia’s IP protection and enforcement regime, as well as restrictions on equitable market access. Despite certain incremental improvements, widespread piracy and counterfeiting remain pervasive—especially in online marketplaces and through piracy-enabling devices and applications. The lack of consistent enforcement, particularly against dangerous counterfeit goods such as medicines, cosmetics, and auto parts, remains a serious issue. A stronger and better-resourced interagency IP enforcement system, supported by deterrent-level penalties, is necessary to address these concerns.
Indonesia’s 2016 Patent Law continues to raise serious issues for stakeholders. These include restrictive patentability criteria that disqualify incremental innovations; problematic provisions surrounding the issuance of compulsory licenses; and burdensome disclosure requirements for inventions related to traditional knowledge or genetic resources. U.S. stakeholders have also flagged deficiencies in the country’s protection of undisclosed test and other data submitted for regulatory approval of pharmaceuticals and agricultural chemicals, which leaves such data vulnerable to unfair commercial use.
In October 2024, however, Indonesia enacted Law No. 65 of 2024, amending the 2016 Patent Law to better align with international standards and meet the needs of a rapidly evolving technological landscape. The amendment introduces several key improvements, including simplified patent administration to streamline filing processes and reduce bureaucratic barriers, making the system more accessible to both local and foreign applicants. It also features enhanced licensing provisions, offering clearer guidelines for patent licensing and allowing compulsory licenses in the interest of national security or during national emergencies. Additionally, stricter reporting requirements for patent holders have been implemented to strengthen compliance and transparency. These reforms are intended to foster greater innovation and attract increased foreign investment in Indonesia’s dynamic digital economy.
Despite this progress, regulatory uncertainty surrounding geographical indications (GIs) also persists. U.S. industries remain concerned that new GI registrations may undermine pre-existing trademark rights or restrict the use of common food names, potentially limiting exports of American products. Similarly, concerns continue regarding domestic market access barriers, including discriminatory measures related to the distribution and exhibition of foreign motion pictures and restrictive policies on domestic manufacturing and technology transfer in the pharmaceutical sector.
There have, however, been notable signs of progress in Indonesia’s intellectual property enforcement and digital regulatory landscape in recent years. In 2021, the Ministry of Law and Human Rights (MLHR) amended Regulation 20/2019 through Regulation 14/2021, revising procedures for the issuance of compulsory licenses and addressing several longstanding concerns from industry stakeholders. Meanwhile, the Ministry of Communications and Information Technology, now officially renamed the Ministry of Communication and Digital Affairs (Komdigi) as of January 10, 2025, has intensified efforts to combat online piracy.
In support of industry-led initiatives such as the development of the Infringing Website List (IWL), Komdigi has taken further steps to enhance content enforcement mechanisms. Under Ministerial Decree No. 522 of 2024, Komdigi introduced the Content Moderation Compliance System (Sistem Kepatuhan Moderasi Konten – SAMAN), which became effective on October 28, 2024. This system streamlines the process of removing harmful or illegal user-generated content on digital platforms and enforces administrative penalties for non-compliance. These measures reflect Indonesia’s increasing commitment to improving IP protection and regulating digital content in line with global standards.
SAMAN applies to private sector platforms that host user-generated content, such as social media and video platforms. The SAMAN system will be implemented in two phases. The Pilot Phase, running from 28 October 2024 to 28 October 2025, will focus on enforcing penalties for specific prohibited content categories, including pornography, gambling, terrorism, illegal financing activities, as well as food, drugs, and cosmetics violations. This period will serve to test and refine the system’s processes. Following this, the Full Application phase will begin on 28 October 2025, with SAMAN fully operational to moderate and enforce takedown requirements across all prohibited content types as defined by Indonesian regulations, including content contrary to state ideology, inciting SARA conflicts (involving groups, tribes, religions, races, or classes), promoting violence, and the abuse of addictive substances.
Border enforcement has also seen improvements. The Ministry of Finance clarified its ex officio authority to seize counterfeit and pirated goods entering or leaving Indonesia, and it established a customs recordation system to facilitate rights enforcement at ports. Nonetheless, the system still poses challenges for foreign rights holders, particularly regarding access and implementation.
In the creative sector, while Indonesia officially opened 100 percent foreign ownership in film production, sound recording, and exhibition under the 2016 investment liberalization reforms, subsequent implementing regulations have limited these gains. For example, Ministry of Education and Culture Regulation 34/2019 imposes screen quotas and prohibits foreign-language films from being dubbed, which could further restrict the commercial viability of U.S. film exports to Indonesia.
Going forward, Indonesia’s ability to attract high-value trade and investment in innovation-intensive sectors will depend heavily on its willingness to modernize its IP system, build institutional enforcement capacity, and ensure a transparent, predictable regulatory environment that aligns with global standards.
To access the Indonesia Investment Climate Statement, which includes information on the protection and enforcement of intellectual property rights, visit the U.S. Department of State Investment Climate Statement website.