Intellectual Property in Indonesia: A Guide for Foreign Investors

As more foreign companies enter Indonesia, protecting intellectual property (IP) has become essential.

Foreign companies entering Indonesia must navigate local IP registration, enforcement challenges, and compliance obligations to ensure their brands, inventions, and confidential information remain protected.

Legal framework and oversight of IP in Indonesia

Intellectual property in Indonesia is managed by the Directorate General of Intellectual Property (DGIP) under the Ministry of Law and Human Rights. The country follows international standards and is part of key global agreements, which makes it easier for foreign businesses to protect their IP.

Indonesia has updated its laws in recent years to improve protections and simplify processes like online filing and registration. However, the legal procedures can still be complex for newcomers, so working with a local advisor is highly recommended.

Types of IP protection available in Indonesia

Foreign businesses should assess which types of IP apply to their operations. Each has different requirements and protections.

Patent protection

Patents protect inventions, technical solutions, or processes. In Indonesia, standard patents last 20 years and simple patents last 10 years. You can apply through the national system or via international routes like the Patent Cooperation Treaty. Once granted, you must pay annual fees and actively use the patent in Indonesia to keep it valid.

Trademark protection

Trademarks protect brand names, logos, and product identifiers. Registration is mandatory and valid for 10 years, with unlimited renewals. Indonesia follows international classification standards and is part of the Madrid Protocol, allowing for global trademark filings. If a registered mark isn’t used within three years, it may be challenged.

Copyright protection

Copyright covers original content like books, software, music, and videos. It is automatically protected upon creation, but registration is useful when enforcing your rights. Protection typically lasts for the creator’s lifetime plus 70 years. Software is protected under copyright, not patent law.

Industrial design protection

Design protection applies to a product’s visual appearance, not its function. Protection lasts for 10 years and requires registration. It’s important in industries like fashion, consumer electronics, and packaging, where appearance helps distinguish products.

Trade secret protection

Trade secrets cover confidential business information such as formulas, methods, or customer lists. They don’t require registration, but must be protected through contracts and internal controls. Legal action is possible if someone misuses or steals your confidential information.

Planning your IP strategy in Indonesia

Before entering the market, businesses should review their existing IP portfolio and check if protection extends to Indonesia. Many foreign companies find that their trademarks or patents aren’t automatically recognized unless they’re registered locally.

Filing through international systems like the Madrid Protocol or PCT can help, but local legal guidance is still needed for proper documentation, translations, and follow-up. Also, consider IP protections when entering into licensing or distribution agreements.

These contracts may be subject to local reporting rules and tax on royalties.

How IP rights are enforced in Indonesia

If someone infringes on your IP, there are several enforcement options. Civil lawsuits allow you to file a case in Indonesia’s commercial court to seek compensation or stop the infringement. In serious cases, such as counterfeiting or piracy, police and prosecutors may launch criminal investigations.

Customs authorities can also block counterfeit imports at the border, provided your IP rights are properly recorded.

Arbitration may be used for contractual disputes involving IP, especially in licensing or joint venture cases, and offers a more flexible resolution process.

Enforcement outcomes often depend on preparation, evidence, and local engagement. Delays are common if the complaint lacks documentation or if the business does not actively monitor infringement.

Enforcement Type	Authority	Typical Use Case
Civil Lawsuit	Commercial Court	Injunctions, damages
Criminal Complaint	Police, Prosecutors	Large-scale counterfeiting
Customs Seizure	Directorate General of Customs	Border enforcement
Arbitration	Indonesian/International Panels	Contractual disputes, licensing

IP trends and policy developments

Indonesia’s digital economy is expanding rapidly, introducing new risks and opportunities for IP owners. The government has started tightening rules on online platforms and digital marketplaces to address growing concerns over e-commerce counterfeiting. It is also streamlining registration processes and promoting public awareness of IP rights through digital services.

On a regional level, Indonesia is part of ASEAN initiatives that aim to harmonize IP standards and procedures. These efforts could eventually allow for easier filings and enforcement across multiple Southeast Asian markets, especially for businesses with cross-border operations.

Practical tips for foreign companies

Foreign businesses entering Indonesia should register their trademarks, patents, and industrial designs as early as possible. Local legal support is essential for handling applications, meeting document requirements, and responding to examiners.

Companies should also keep a close watch on the market — offline and online — for signs of infringement.

All contracts involving partners, distributors, and employees should include IP clauses to prevent unauthorized use or disclosure. IP rights should be reviewed annually to avoid missed renewals or expirations.

Maintenance fees are required for most IP types, and overlooking them can result in the cancellation of protections.

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