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Is Trump’s trade war coming to Indonesia over IP? (Part 2)

Published on 08 Jul 2019 | 1 minute read

The last post explained the US government's complaints about Indonesia's IP system and the US government's review of GSPs, that is the tariff preferences the US grants to Indonesia.

Indonesia was asked to provide its written response to the US government's complaints about ineffective IP protection. In its submitted briefs Indonesia set out:

  • About the complaint that the Patent law had strict working requirements, Indonesia stated that deferment of the requirement to manufacture a product to the patent would be made available through a simple online application. 
  •  About lack of enforcement Indonesia clarified that from 2016-2018, there were 93 IP cases of Intellectual Property handled by DGIP Investigators.  They mentioned an improved complaint system and site blocking process for IP complaints against streaming and app systems delivering pirated content. A Customs IP border protection system is now in force and companies which are based in Indonesia can use it.
  • As to the complaint about lack of coordination, Indonesia mentioned that the Coordinating Ministry for Politics, Law and Security would revitalize the National IP Task Force. The Creative Department BEKRAF would be brought brought in to assist enforcement and an MOU between ministries would follow. 
  • There is planned implementation of the Indonesia-US Work Plan on IPR to focus on public IP education, strengthening of the legal enforcement framework, IPR enforcement and better cooperation. The National IP Task Force will be utilized.
  • Other matters mentioned included the revisions to the Designs law.

Whether this will satisfy the US is not clear. There isn't anything particularity new set out. The Customs system excludes most companies (unless they have a local subsidiary). The volumes of enforcement cases handled by the DGIP PPNS is very low compared to neighboring countries (and police cases don't add many numbers). The National IP Task force has been around for many years without any discernible impact so far. it is not clear how designs law amendments will help either. 

The final decision on the US investigation and Indonesia’s status as a GSP beneficiary is pending. Around 124 different products exported to the US are at risk, if Indonesia cannot demonstrate improved IP protection.

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Principal, Global Head of Enforcement
+62 811 870 2616
Principal, Global Head of Enforcement
+62 811 870 2616