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

January 17, 2023

Indonesia’s New Criminal Code and Intellectual Property

Subscribe to Updates

Indonesia’s new Criminal Code was passed by Parliament on December 6, 2022, and ratified by the president and promulgated on January 2, 2023, as Law No. 1 of 2023. The new Criminal Code will take effect after three years (i.e., January 2, 2026) and is a complete overhaul of the previous version, much of which was based on Dutch law drafted during the colonial period. The Criminal Code currently in effect (sometimes referred to by the initials KUHP after its Indonesian name), dates from 1918 and was codified and unified in 1946 following Indonesia’s independence the year before.

Much of the news surrounding the new Criminal Code has focused on certain controversial passages in the new code, including articles that criminalize insulting the president, cohabitation, blasphemy, and sex outside of marriage, and limit the right to protest. Under the new Criminal Code, anyone found to have violated these provisions could be imprisoned for a period ranging from a few months to a few years.

Apart from the more controversial provisions, several articles in the new Criminal Code relate to intellectual property (IP). IP owners should be aware of these provisions in order to avoid committing punishable acts and to understand the criminal enforcement options for their IP rights. The most relevant parts of the law are discussed below.

Trademark and Branding Infringement

Under the new Criminal Code, the misuse of marks on goods or packaging is punishable by up to four years in prison or a maximum fine of IDR 500 million (approx. USD 32,735), possibly including indemnity. This misuse covers various acts of wrongfully affixing marks on goods or packaging—such as when a counterfeiter makes use of fake or unauthorized branding to falsely imply that goods are genuine. Prosecution of these criminal acts can only commence based on a complaint from the owner of the trademark at issue.

These new offenses under the Criminal Code are in addition to existing prohibitions on unauthorized use of another party’s trademark, which are found in Law No. 20 of 2016 on Trademarks and Geographic Indications. Under this law, use of a mark that is identical or substantially similar to the registered mark of another party for similar goods or services is punishable by a fine of up to IDR 2 billion (approx. USD 130,940), imprisonment for up to four or five years (depending on the degree of similarity between the marks), or both.

While these existing provisions enable enforcement against trademark infringement through criminal proceedings, many trademark owners avoid filing criminal complaints against infringers and instead prefer to pursue alternative dispute resolution methods because it is less costly. However, if parties cannot reach an agreement during settlement negotiations, the case may progress to criminal proceedings in court.

Falsely Asserting Ownership of IP

Under the new Criminal Code, knowingly giving false testimony under oath (or otherwise of legal consequence) is punishable by imprisonment for up to seven years. Being convicted of this criminal offense may also result in revocation of various civil and political rights—including the right to vote.

This prohibition may apply to both IP prosecution and in IP-related court proceedings. For example, signing a declaration of ownership (for IP registration purposes) if the IP is similar to or copies the IP of another party may be deemed giving false testimony. Similarly, signing a declaration of use (for trademark renewal purposes) when the owner has not actually made use of the trademark may also expose the owner to accusations of giving false testimony.

Disclosure of Trade Secrets

Disclosure of an employer’s specialized information is a punishable criminal offense under the new Criminal Code, and a complaint from a company’s management is the starting point for prosecution of such an act. Those who are found to have disclosed secret specialized matters regarding a company where they work or have worked may face imprisonment for up to two years or a fine of up to IDR 50 million (approx. USD 3,274).

These provisions are intended to prevent unfair competition in the business world. Thus, the disclosure of specialized matters mentioned in the code can be interpreted as referring to dissemination of things that could lead to unfair business practices. This includes information that is not supposed to be publicly disclosed, such as company secrets and trade secrets.

Law No. 30 of 2000 on Trade Secrets states that something can be categorized as a trade secret (and thus can be used as the basis for a criminal report) if the information:

  • is not known by the public;
  • is in the field of technology or business;
  • has economic value; and
  • is kept confidential by the owner of the trade secret.

These provisions in the new Criminal Code are inseparable from provisions of Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition. These stipulations prohibit business actors from conspiring with others to obtain competitors’ company secrets that can enable unfair business competition. However, these provisions specifically discuss competing “business actors” who try to obtain competitors’ confidential information rather than the individuals who disclose it, while the relevant provisions of the new Criminal Code expand criminal liability to individuals who provide or distribute such information to competing business actors.

Integration with Indonesian Law

Both the current Criminal Code and the new version stipulate that specific statutory provisions (e.g., those found in the Laws on Trademarks, Trade Secrets, Unfair Business Competition, etc.) prevail over the Criminal Code if there is any discrepancy. This means that if a criminal act is regulated by multiple laws, the applicable provisions in the specific laws take precedence over the Criminal Code’s provisions that apply to that same act. However, the provisions discussed above add some important clarity and expand some criminal offenses, so IP owners should take them into consideration when deciding on IP prosecution or enforcement strategy. This can help with anticipating risks of criminal punishment, as well as understanding the tools available for IP enforcement or litigation.

Related Professionals

Practices

Intellectual Property

Location

RELATED INSIGHTS​ 

October 26, 2025
AI-generated songs are now making waves in Vietnam on platforms like TikTok, with tracks such as “Say mot doi vi em” quickly gaining popularity and sparking widespread attention. This phenomenon raises a host of legal and ethical questions: Who is the author of these songs? Can they be protected by copyright? Who is responsible if there is an infringement? These questions are becoming increasingly urgent as AI music becomes more mainstream in Vietnam. Copyright Protection for AI-Generated Music in Vietnam Under current Vietnamese law, copyright protection is reserved for works that bear the mark of human creativity. The 2022 amendments to Vietnam’s Intellectual Property Law reaffirm that only works created by humans are eligible for copyright. In practice, if a human meaningfully contributes to the creative process—by providing prompts, making selections, editing, or arranging—their contribution may be protected. However, if a song is generated entirely by AI without significant human input, it is unlikely to qualify for copyright protection. When an AI-generated song does not qualify for copyright protection, the question arises as to whether the person who writes the prompts, edits, or compiles the work can still be considered the owner of an asset under the Vietnamese Civil Code. According to Article 105 of the Civil Code 2015, assets include objects, money, valuable papers, and property rights. While AI-generated music that is not protected by copyright is not considered money or valuable papers, it may be regarded as an object (in the form of a digital file or recording) or as a property right if it can be possessed, used, transferred, or exploited for value. Use of AI-Generated Works Without Copyright Protection If a song is not protected by copyright, does that mean anyone can use it freely? Not necessarily. The absence of copyright does not mean the
Read More
October 24, 2025
Thailand currently lacks a specific franchise act. Consequently, the legality of any franchise agreement is determined by its compliance with various existing laws, such as the Civil and Commercial Code, the Trademark Act B.E. 2534 (1991) (as amended), and the Unfair Contract Terms Act B.E. 2530 (1997). Thailand is a freedom-to-contract jurisdiction. This allows for a high degree of flexibility and autonomy in contractual arrangements, provided that the terms do not violate any laws or public policy and do not fall under the scope of unfair contract terms. Given this, the requirement for fairness in franchise agreement terms often leads to uncertainty, but decisions from the Trade Competition Commission of Thailand (TCCT) can provide guidance on whether specific contentious terms are in fact fair.  One issue worth examining in this light is the inclusion of terms on nonrefundable franchise fees and strict purchasing conditions. Franchise Fee: Unfair to Refuse Refund? Nonrefundable franchise fees represent a significant upfront investment for franchisees, often becoming a point of contention if the franchise relationship deteriorates or the franchisor ceases operations. Their fairness and enforceability are frequently scrutinized by regulatory bodies like the TCCT, highlighting the critical balance between contractual freedom and franchisee protection. Faced with one such case, the TCCT considered whether it was unfair for the franchisor to refuse to refund the franchise fee after the franchisor ceased operations.  The franchisee had entered into a service agreement on August 2, 2021, and begun operating on October 9, 2021. However, by November 21, 2023, the franchisee was notified that the system would be shut down for maintenance, and by December 26, 2023, the franchisor announced the cessation of operations due to financial losses. The franchisee then requested a refund of the franchise fee. Unfortunately for the franchisee, the TCCT found that the franchisor’s
Read More
October 23, 2025
Myanmar’s customs authorities have introduced new procedures allowing copyright holders to protect their intellectual property from infringing goods at the border. The Ministry of Finance and Revenue issued Notification No. 107/2025 on September 11, 2025, establishing rules and requirements for customs recordation under the Copyright Law of 2019. The notification includes eight official forms for copyright-related customs matters—three for applicants and five for the Customs Department. This was followed by Customs Department Announcement No. 1/2025, dated September 29, 2025, which details the security required for suspended goods. Customs recordation provides a proactive mechanism for rights holders to prevent importation of pirated works. By registering their works with the Customs Department, rights holders gain access to enhanced border enforcement measures, empowering customs officials to identify and intercept pirated goods before they enter the market. While copyright protection in Myanmar arises automatically under the Copyright Law of 2019, a registration certificate for copyright or related rights is required to apply for customs recordation. Customs Recordation Registered copyright and related rights holders can apply directly or through authorized legal representatives for customs recordation to prevent cross-border trade in pirated works. Applications must use the prescribed form and include all supporting documentary evidence specified in the form. The Customs Department will notify applicants within 15 days of receiving their application. Each recordation remains valid for two years from the date of acceptance and may be renewed for successive two-year periods by submitting a renewal application at least 30 days before expiration. Rights holders whose works are recorded must notify the Customs Department within five days of any amendment or withdrawal of information at the Intellectual Property Department. Suspension Orders Registered copyright and related rights holders can request a suspension order to prevent release of pirated goods into free circulation, regardless of whether they
Read More
October 3, 2025
In Thailand, the rise in online intellectual property infringement has prompted authorities to strengthen enforcement efforts, including the use of website-blocking orders under Section 20(3) of the Computer Crime Act B.E. 2560 (2017) (CCA). This provision authorizes the Ministry of Digital Economy and Society (MDES), with court approval, to block or remove computer data that constitutes a criminal offence under IP law. Since its implementation, the procedure has undergone several developments, which is an encouraging sign of progress. Website-blocking procedure In practice, website-blocking orders under Section 20(3) of the CCA are primarily used for copyright and trademark infringement. While such orders are legally applicable to patent infringement, their use remains challenging due to the difficulty of proving infringement through administrative procedures. The website-blocking procedure begins when an IP owner identifies online infringing content. For copyright infringement, which is considered a compoundable offence, the IP owner is required to first file a police report with the specialized police unit known as the Economic Crime Suppression Division (ECD) prior to filing the website-blocking application with the Department of Intellectual Property (DIP). For trademark infringement cases, the application can be filed directly with the DIP without a prior police report. The DIP reviews the evidence and, if infringement is confirmed, forwards it to the MDES for further consideration. If the case is deemed valid, the MDES requests a court order to block the infringing website. Once granted, the MDES notifies the internet service providers (ISPs) to block access to the specified website. Website blocking procedure in Thailand Recent advancements in website-blocking actions Seamless collaboration through digital integration. Thailand has made significant progress in digitizing its website-blocking procedures to improve efficiency and transparency. At present, all website-blocking applications and supporting evidence must be submitted in electronic format. These systems have significantly reduced processing
Read More