Indonesia Remains on Priority Watch List in 2023

Jakarta: The Office of the United States Trade Representative (“USTR”) released its 2023 Special 301 Report on the adequacy and effectiveness of U.S. trading partners’ protection and enforcement of intellectual property (IP) rights. These annual reports detail USTR’s findings on more than 100 US trading partners. The report, released on 26 April 2023, placed seven countries on the Priority Watch List (“PWL”) and twenty-two countries on the Watch List (“WL”). Unfortunately, Indonesia is still on the PWL together with Argentina, Chile, China, India, Russia, and Venezuela. The countries listed in the PWL will be subject to very intense bilateral engagement in the coming years as they are considered lacking in enforcement and protection of intellectual property rights. Indonesia, in the PWL, means that for 17 years Indonesia has been at that level. Indonesia is the only ASEAN country listed in the PWL this year. Thailand and Vietnam, also ASEAN member nations, are found in the WL category. This reflects that Indonesian compliance and enforcement are considered weak from the perspective of the US.

The fact that Indonesia continues to be listed in the PWL poses a significant problem for the Indonesian government. In particular, international trade with Indonesia is impacted negatively as the list does not accurately reflect the drastic improvements to the intellectual property rights environment in the country. In the past few years, the Indonesian government, in coordination with the Directorate General of Intellectual Property of the Ministry of Law and Human Rights, has taken serious action to improve the protection and enforcement of intellectual property rights in Indonesia. Although the system can still be improved, we find the levels of protection and enforcement to be pragmatic and effective for both domestic and international brands.

While the elimination of counterfeit products is everyone’s objective, it can only be realized with the initiation by the IP rights owners. In Indonesia, as in many other countries, infringement on IP is an actionable crime by complaint. To facilitate the most efficient and effective enforcement, it is important to work in close cooperation with the local legal counsels, local brand representatives, and the enforcement officials. We have worked with many international and local brands recently in a variety of industries with much success. The mechanics for protection, enforcement, and litigation are clearly in place to protect one’s IP rights in this important growing commercial market. Indonesia is one of the best kept secrets in the business world as brands are looking for new growth markets. Don’t let a list keep you out of this lucrative market! (su/JPK-MLA)