By KUSNANDAR & CO., Attorneys at Law – Jakarta, INDONESIA
Despite years of promises and regulatory reforms, Indonesia continues to face serious challenges in enforcing intellectual property (IP) rights. Even in 2025, foreign investors and local innovators alike report that counterfeiting, piracy, and trademark infringement remain widespread, while enforcement mechanisms lag far behind international standards.
Indonesia has taken steps on paper to align its IP laws with global frameworks, particularly through membership in the World Trade Organization and the signing of international treaties. The Directorate General of Intellectual Property (DGIP) has modernized its registration system, making it easier to file patents, trademarks, and copyrights online. However, enforcement is where the system breaks down.
Counterfeit goods—from fashion to pharmaceuticals—still flood traditional markets and online platforms with little effective action against producers or distributors. Pirated films, music, and software circulate freely, often sold in public without consequence. Trademarks are frequently hijacked by opportunistic registrants who beat legitimate companies to the registry, creating costly legal disputes.
The problem is not a lack of laws but weak implementation. Raids against counterfeiters are sporadic, penalties remain light, and prosecutions are rare. Businesses often find themselves caught in lengthy court battles, with outcomes that are unpredictable and sometimes unenforceable. The lack of coordination between central and regional authorities further complicates the process, leaving many rights holders frustrated.
This situation poses risks not only to foreign investors but also to Indonesia’s own innovation ecosystem. Startups, designers, and creators often find their ideas copied without remedy, discouraging investment in research and development. At the same time, weak IP enforcement undermines Indonesia’s ambition to position itself as a regional hub for technology, creative industries, and advanced manufacturing.
For international businesses, the lesson remains clear: IP registration in Indonesia is essential, but enforcement is costly and uncertain. Companies should adopt a proactive strategy—registering marks early, monitoring markets aggressively, and working with trusted local counsel to pursue both administrative and civil remedies where possible.
At Kusnandar & Co., we continue to support clients in navigating this difficult landscape. While Indonesia offers vast opportunities, its IP enforcement regime remains one of the country’s weakest points. Until stronger measures are taken, investors must approach the market with caution, foresight, and legal preparedness.
K&Co - September 10, 2025
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