Stagnation in Trademark and Copyright Recordation at Customs, A Challenge Faced by Indonesia

JAKARTA: Every year, the United States Trade Representative (USTR) releases a highly anticipated report known as the Priority Watch List (PWL). This list highlights countries that are considered to have serious intellectual property (IP) infringements and present a high risk. Unfortunately, Indonesia has been on this list for a prolonged period, signaling that IP protection in the country still requires significant improvements and extra attention. Indonesia’s status on the PWL is far from desirable, especially in the global economic landscape, which increasingly demands transparency, integrity, and respect for intellectual property rights.

However, it is important to highlight that the Indonesian government has taken proactive measures. Various policies and firm actions have been introduced to improve the situation, including the enactment of Government Regulation No. 20 of 2017 concerning the Control of Imports or Exports of Goods Suspected of Infringing Intellectual Property Rights (PP 20/2017). This was followed by the Minister of Finance Regulation No. 40/PMK.04/2018, which governs Recording, Prevention, Guarantees, Temporary Suspension, Monitoring, and Evaluation in the Context of Controlling the Import or Export of Goods Suspected of Being or Originating from Intellectual Property Infringement (PMK 40/2018).

Under these regulations, registered trademark owners or copyright holders recorded at the Directorate General of Intellectual Property (DJKI) can register their trademarks and copyrights at the Customs. This allows for direct enforcement actions against imported and/or exported products suspected of infringing intellectual property rights

This policy provides a valuable opportunity for both domestic and foreign trademark and copyright owners to protect their products from the risks of counterfeiting, unauthorized trademark use, or copyright infringement. Unfortunately, despite Customs authorities’ awareness efforts, the number of trademark and copyright owners utilizing this recordation system remains relatively low. One of the main challenges is that many foreign trademark owners lack a legal entity or representative company in Indonesia, making the registration process more complex

As legal representatives assisting numerous clients in the trademark and copyright recordation process at the Customs, we have gained in-depth insights into the benefits and effectiveness of this system. Customs recordation is not merely an administrative formality—it is a concrete protective measure with tangible benefits for our clients. By registering trademarks and copyrights with Customs, we can execute legal actions more swiftly, accurately, and effectively against importers attempting to import counterfeit goods into the Indonesian market. Over the past three years, we have successfully intercepted millions of counterfeit products at various customs checkpoints, preventing them from entering the Indonesian market and protecting both our clients and consumers.

Our experience show the importance of Customs recordation, as it allows the right holders to prevent large-scale counterfeit product distribution far more efficiently.

With Customs recordation, a single preventive action can block hundreds of thousands to millions of counterfeit products from various importers at once. This makes anti-counterfeiting efforts much faster and more comprehensive.

Beyond mere business protection, this recordation system also plays a crucial role in safeguarding Indonesian consumers’ safety and security. Most counterfeit products flooding the Indonesian market originate from abroad. Without proper supervision, these goods can enter the market and pose serious risks to consumers, both in terms of quality and safety.

In many cases — such as counterfeit cosmetics and motor oil — these fake products do not undergo strict safety testing and often contain hazardous ingredients. As legal representatives, we strongly encourage brand and copyright owners to consider Customs recordation as a first step in both protecting their businesses and ensuring consumer safety in Indonesia.

By registering trademarks and copyrights with Customs, Indonesia has an improved chance of being delisted from the Priority Watch List (PWL) and becoming a country respected for its intellectual property protection. This step will positively impact economic growth, enhance the investment climate, and create a safer, more transparent business environment for all stakeholders. Through collective commitment, we can establish a healthy and trustworthy ecosystem for both businesses and consumer protection in Indonesia. (EPA/JPK-su)