U.S. Chamber of Commerce Praises Indonesia Enforcing Intellectual Property Law

JAKARTA: The United States Chamber of Commerce praised coordination at the ministerial level in the context of intellectual property law enforcement in Indonesia. However, the results of the survey of Indonesia's international intellectual property index in 2024 declined compared to the previous year (2023).

In the 13th report of the U.S. Chamber of Commerce Intellectual Property International Index, published by the U.S. Chamber of Commerce recently, coordination in enforcing intellectual property laws is plausible. The US Chamber of Commerce also appreciates the continuous efforts made by the Directorate General of Intellectual Property in enforcing intellectual property laws.

Another issue highlighted by the U.S. Chamber of Commerce is the issue of the Job Creation Law in changing the general requirements for technology transfer and cooperation with the Japan Patent Prosecution Office (JPO) in regards of Patent Prosecution Highway (PPH). Indonesia is also collaborating with the Korean Intellectual Property Organization (KIPO) regarding PPH. PPH is a mechanism using the performance of the results of cooperation from two countries for patent examination. Through this PPH, granting patent applications from both countries can be accelerated.

The U.S. Chamber of Commerce also welcomes administrative assistance for online copyright infringement. These are all strengths for Indonesia in the development of the intellectual property system.

Nevertheless, the U.S. Chamber of Commerce still observe some weaknesses in Indonesia's intellectual property system such as the lack of specific intellectual property incentives for the development of pharmaceutical products, broad criteria for mandatory licensing and terms of their use by the government, and there are still significant obstacles in the enforcement of licensing and commercialization of intellectual property assets, including technology transfer.

Meanwhile, in a survey conducted by the U.S. Chamber of Commerce of 55 countries in 2024, it can be perceived that Indonesia's International Intellectual Property Index has declined compared to 2023. Indonesia's position in the International IP index is in the 50th place, while in 2023 Indonesia ranked 49th out of 55 countries. Indonesia's international IP Index score in 2024 is only 28.68, slightly above Ecuador, Pakistan, Algeria, Russia and Venezuela.

A number of countries in the ASEAN region have international IP index scores far above Indonesia. Singapore has a score of 80.11 and is ranked 13th out of 55 countries in the world, Malaysia has a score of 50.43 (ranked 28), the Philippines has a score of 40.17 (ranked 36), Vietnam has a score of 38.91 (rank 39), Brunei Darussalam has a score of 38.75 (rank 40), Thailand has a score of 36.11 (rank 44), while Indonesia is ranked 50th with a score of 28.68.

The international IP score of the Indonesian Index is compiled based on nine categories, namely patent system, copyright, trademark, industrial design, trade secret, intellectual property commercialization, law enforcement, efficiency and law enforcement. Each category has its own score. The international intellectual property index provides an overview of the condition of a country's intellectual property system, for example how its legal protection system is.

In its thirteenth edition of the International Intellectual Property Index, the U.S. Chamber of Commerce continues to provide perspectives on intellectual property standards which influence long-term and short-term business and investment decisions. This index is a unique and constantly evolving instrument.

The index not only assesses the state of the international intellectual property environment, but also provides a clear roadmap for any economy looking to compete in a 21st-century knowledge-based global economy. (JPK/GSA/NAS-su)