You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

August 28, 2018

Indonesia Issues New Implementing Regulation for Customs Recordal

Subscribe to Updates
Informed Counsel

The Indonesian Ministry of Finance has issued a new regulation that makes it possible to record trademarks and copyright with the Directorate General of Customs and Excise so that customs authorities can inform intellectual property rights owners of potential counterfeit goods. Minister of Finance Regulation No. 40/PMK.04/2018 regarding Recordation, Restraint, Guarantee, Temporary Suspension, Monitoring and Evaluation in Order to Control Import or Export of Goods Allegedly or Originated from Infringement of Intellectual Property (“MOF 40/2018”) was issued on April 16, 2018, and came into effect on June 16, 2018.

MOF 40/2018 serves as the implementing regulation for Government Regulation No. 20 of 2017 regarding Import Control or Export of Goods Allegedly/Originated from Infringement of Intellectual Property. The scope of this new implementing regulation is outlined below.

Recordation of Trademark and Copyright

According to MOF 40/2018, an owner or holder of a trademark or copyright may submit an application for customs recordation of its IP rights if it is a business entity in Indonesia. A distributor cannot apply for recordation, potentially creating an enforcement hurdle in the future if Indonesian customs authorities encounter infringing goods with trademark or copyright registered to a foreign company that does not have a local Indonesian entity in its name.

An application may be submitted online via https://customer.beacukai.go.id, and the competent customs official will examine each application before approving the recordal of IP rights into the customs recordation system. Each recordation is valid for a maximum of one year from the date of approval and is applicable for all ports within Indonesian territory. Each recordation may also be extended provided that an extension application is filed at least 30 days before the recordation period ends.

Each IP rights holder is required to appoint an expert who has sufficient knowledge of the goods related to the trademark or copyright that will be recorded in the customs recordation system. The expert should be capable of identifying counterfeit goods and familiar with the distribution channels of genuine goods.

Customs officials will conduct an interview with the appointed expert, who will be expected to show his or her knowledge of the product and distribution channel, and assist authorities in verifying alleged counterfeit goods. The expert does not have to be the rights holder or someone from the rights holder’s company, as long as the expert has been appointed and is capable. It is thus important for the rights holder to provide regular product training to update its expert’s knowledge.

After recordation is completed, the IP rights owner or holder must notify customs officials if there are any changes to its recorded trademark or copyright. Should the need arise, the rights owner or holder may submit an application to revoke the recordation of its IP rights before the recordation’s actual expiration date.

Restraint and Prevention

Article 10 of MOF 40/2018 allows customs officials to conduct an inspection of suspicious imported or exported goods. The information contained in each IP rights recordation will enable customs officials to obtain sufficient evidence during inspections or conduct effective intelligence analysis of potentially infringing goods.

If potential IP infringement is found, customs officials will notify the IP rights owner or holder, who will have two days to decide whether to submit a request for a temporary suspension order to the relevant court.

Temporary Suspension

If a temporary suspension order is sought, the IP rights owner or holder must provide security guarantees to customs officials in the amount of IDR 100 million (approximately USD 7,100), either in the form of a bank guarantee or a guarantee issued by an insurance company. The IP rights owner or holder must then submit a temporary suspension request to the court and provide a receipt to the competent customs official within four days after confirmation that the request has been submitted.

After receiving the court order for temporary suspension, the customs official must notify the following parties within one day: (1) the importer or exporter of the suspected counterfeit goods; (2) the IP rights owner or holder; and (3) the Directorate General of Intellectual Property.

Customs officials will implement temporary suspension for 10 working days after receiving the court order. The IP rights owner or holder may also submit a petition to the court to extend the temporary suspension for a maximum period of an additional 10 working days.

During the temporary suspension, the IP rights owner or holder can request to inspect the alleged infringing goods by submitting a request for physical inspection to customs officials within two working days from the date Court has issued the suspension order.

Customs officials must terminate the temporary suspension should any of the following events occur:

  • the period for temporary suspension or extension of temporary suspension has passed;
  • an order has been issued by the Commercial Court to stop the temporary suspension; or
  • civil or criminal legal action has been initiated.

Additional Considerations

Article 24 of MOF 40/2018 places the responsibility for all operational costs arising from the restraint and temporary suspension of the alleged infringing goods on the IP rights owner or holder. The operational costs for storage, handling of goods, and labor are estimated to be IDR 100 million (about USD 7,100), approximately the same amount as the IP rights owner or holder’s security guarantees.

Brand owners should be aware of the short timeframe for action once a temporary suspension has been initiated and must act quickly in conducting inspection and taking further legal action. Proactive brand owners may also consider providing training to Indonesian customs officials on the identification of counterfeit goods from genuine products, thereby increasing the capabilities of authorities in enforcing IP rights in this jurisdiction in the future.

Although MOF 40/2018 has yet to be applied in practice, the enactment of this implementing regulation does reflect the continual efforts and commitment of the government to strengthen the overall IP protection regime in Indonesia.

Download Full Article
Related Professionals

Practices

Intellectual Property

Location

RELATED INSIGHTS​ 

June 27, 2025
Three American giants are actively protecting their intellectual property rights against generative AI, as two legal battles commence on both sides of the Atlantic. In the UK, Seattle-based media company Getty Images accuses UK-based Stability AI of multiple IP infringements. In the US, The Walt Disney Company and Universal Studios are teaming up against Midjourney, an AI startup, with their main ground being copyright infringement. Both cases are centered around questions legal minds have been posing since the introduction of generative AI: Is the output of generative AI an infringement? And who is ultimately responsible for the output, the platform or the user? Getty Images v. Stability AI Getty initially filed a claim in the High Court in 2023, which resulted in Stability applying for reverse summary judgment on the grounds that Getty had no real prospect of success, arguing that their operations took place outside the UK. However, the High Court judge hearing the case decided that the claims brought by Getty did have a real prospect of succeeding in court. Despite this, Stability saw a small victory when the court ruled that the representative action brought by Getty would not succeed due to the difficulties in identifying who qualified for the class. The proposed class was comprised of 50,000 rightsholders who alleged their rights were also infringed. Stability was successful in arguing that identifying these individuals would be challenging due to the unclear definition of the class. This current trial is centered around four main grounds: Copyright infringement. Getty accuses Stability of using content that Getty owns or has an exclusive license for when training their model, Stable Diffusion, resulting in the generated output containing substantial parts of that content. Getty is also alleging secondary copyright infringement, arguing that Stability is importing an article into the UK
Read More
June 26, 2025
As modern business strategies increasingly embrace sustainability, the influence of ESG principles is reshaping product design, packaging, and brand protection. From label-free bottles to the legal importance of 3D marks in Thailand, these developments highlight the growing connection between environmental responsibility and intellectual property. The Rise of ESG ESG principles have become critical in shaping business strategies worldwide. Companies are increasingly required to disclose ESG data, which influences investor decisions, loans, and consumer behavior. Studies show that consumers are willing to pay more for sustainable packaging, and businesses with strong ESG commitments often achieve higher growth rates. Product Minimization Trend One sector experiencing significant transformation is the consumer product industry, where brands worldwide are adapting their packaging to align with ESG principles. A notable approach is packaging minimization, exemplified by Pepsi’s introduction of its first label-free PET bottle in China in 2022. Similarly, in Thailand, several bottled water brands have embraced label-free designs, including Sprinkle drinking water’s “Redesign to Reduce” initiative and other similar efforts. These shifts not only enhance brand perception but are also warmly welcomed by consumers and business associates alike. For instance, Cathay Pacific has introduced label-free bottled water on select flights and cabins as part of their ongoing commitment to boosting onboard recycling efforts. From Design to Distinctiveness with 3D Marks Packaging has evolved into a critical component of brand identity, blending functionality with distinctiveness to strengthen consumer recognition and loyalty. This shift carries significant implications for intellectual property. Protecting these designs is no longer optional but essential, given their substantial commercial value. Securing legal protection—whether through design rights or three-dimensional (3D) trademarks—has become a strategic necessity. In an era shaped by sustainability and innovation, safeguarding distinctive packaging is not just a precaution but a fundamental step in maintaining competitive advantage and ensuring enduring brand
Read More
June 20, 2025
In a decisive move to strengthen its trade position and reinforce commitments under ongoing tariff negotiations with the United States, the government of Vietnam has made a concerted effort to improve intellectual property enforcement within the country. A key catalyst for this was the prime minister issuing a decision requesting all authorities to initiate sweeping enforcement actions to crack down on counterfeit goods across all provinces. Our firm has been actively involved in these operations. Working in close coordination with Vietnam’s Market Surveillance Authority, Customs, and Border Police, the firm has been instrumental in planning, intelligence gathering, and on-site enforcement. Key operations were conducted in major commercial hubs, including Hanoi and Ho Chi Minh City. In Hanoi, we collaborated with Market Surveillance Team No. 1 to inspect a major wholesaler in Hang Giay. These inspections resulted in the seizure of a significant volume of counterfeit perfumes and the identification of key suppliers within the illegal trade network. In Ho Chi Minh City, our firm supported large-scale inspection campaigns at well-known markets, including Saigon Square. Acting on intelligence, authorities executed multiple raids targeting shops and stalls notorious for selling counterfeit branded products. Specialists from our firm provided logistical support and real-time analysis to ensure swift and effective intervention. Beyond Vietnam’s urban centers, efforts extended to critical border zones in northern and central Vietnam. We worked with Customs and Border Police at major checkpoints to inspect high-risk shipments suspected of containing counterfeit goods. These operations led to the interception of several container loads of illicit products. The nationwide campaign also included targeted actions in several provinces known as hubs for storage and distribution. In Bac Giang, Da Nang, Hai Phong, Kien Giang, and Dong Nai, we assisted in coordinated raids on medium- to large-scale warehouses and distribution centers. These inspections uncovered
Read More
June 17, 2025
On January 9, 2025, the Lao official gazette published the newly amended Decision on Trade Inspection Implementation No. 0019/MOIC, dated January 6, 2025. This decision aims to establish principles and rules for trade officers to inspect, fine, and take measures against violators of trade laws and their related regulations on business competition, business operations, and intellectual property rights to protect consumers and business operators in Laos. Changes in Trade Inspection Procedures Previously, trade inspection officers, operating independently under the central Ministry of Industry and Commerce (MOIC) or the provincial-level Department of Industry and Commerce (DOIC), were responsible for administrative raid actions focusing exclusively on intellectual property issues. However, following the enactment of Decision No. 0019/MOIC, trade inspection officers will now be grouped into the Trade Officers Unit, which will also include business competition officers and consumer protection officers. This unit will conduct and participate in raids, considering not only intellectual property laws but also competition and consumer protection laws when imposing penalties on infringers. Trade Inspection Authority Levels Trade inspection implementation is overseen by authorities at three levels: Central level: Department of Business Competition and Trade Inspection, MOIC. The MOIC handles trade inspection work covering all provinces in Laos. Provincial level: DOIC offices in provinces and Vientiane handle trade inspections covering two or more districts. District level: Office of the Industry and Commerce offices in districts. Violations Individuals, legal entities, and organizations violating the newly amended trade inspection decision, the Decree on Trade Inspection, or other related regulations will be educated about the issue, warned, disciplined (for government servants), fined, subject to compensation for damage incurred, or punished by the relevant laws, depending on the gravity of the violation. Trade Violations Violations of trade laws and regulations concerning business operations will result in fines and additional measures. Examples include:
Read More