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​ 

May 13, 2026
Laos has significantly broadened its industrial property administrative review framework, most notably by extending it to cover copyright and related rights for the first time. Decision No. 0306/IC on the Administrative Resolution of Disputes Concerning Industrial Property Registration, New Plant Variety Registration, and Copyright and Related Rights Recordation took effect on April 24, 2026, replacing the previous rules from 2023, which had covered only industrial property and new plant variety matters. Decision No. 0306/IC governs how Laos’ Department of Intellectual Property (DIP) and provincial offices handle formal challenges to industrial property registrations and applications. The proceedings covered include oppositions to pending applications, appeals of refused applications, requests for cancellation of existing registrations, and—newly—disputes concerning the recordation and interpretation of copyright and related rights. These administrative proceedings within the DIP are heard by a government-appointed Administrative Dispute Resolution Committee, which functions similarly to the opposition and review boards found in other jurisdictions. Key Changes Decision No. 0306/IC covers four categories of administrative proceedings: Oppositions: Third-party challenges to a pending industrial property application before it is granted. Refusal appeals: Challenges to the DIP’s decision to refuse their application. Cancellation or deletion requests: Applications to invalidate an existing registered right on the grounds that it should not have been granted. Copyright and related rights disputes: Challenges to or interpretations of copyright and related rights recordations, including determinations of whether a work qualifies for copyright protection under Lao law. The most significant development is the committee’s new jurisdiction over copyright matters. The committee is now empowered to resolve disputes concerning copyright and related rights recordation—this includes the authority to determine whether a work qualifies for copyright protection and to interpret the scope of an existing recordation. Parties who believe a competitor has improperly recorded copyright over a work, or who wish to contest
Read More
April 30, 2026
Vietnam’s Decree No. 134/2026/ND‑CP, which took effect on 9 April 2026, plays an important role in detailing and implementing Vietnam’s Intellectual Property (IP) Law in the context of rapid digital transformation and the growing application of artificial intelligence (AI). The new decree provides comprehensive guidance on the application of copyright and related‑rights regulations, addressing key issues such as authorship, ownership, statutory exceptions and limitations, registration procedures, and enforcement mechanisms. Through these measures, Decree 134 seeks to achieve an appropriate balance between safeguarding the legitimate interests of rightsholders and fostering innovation, research, and technological advancement, thereby strengthening the state’s framework for the effective management, protection, and exploitation of intellectual property in the digital and AI‑driven environment. Some notable aspects of Decree 134 are discussed below. Copyright for AI-Created Works Decree 134 provides important guidance on the determination of copyright and related rights in works created with the assistance of AI. Article 5a reaffirms the principle that human creativity remains central to copyright protection, clarifying that copyright or related rights arise only where a human makes a substantial and decisive intellectual contribution, exercises effective control over the creative outcome, and assumes responsibility for the content and its legality. At the same time, the provision confirms that AI is regarded solely as a technological tool rather than a rights‑holding subject, thus ensuring consistency with the fundamental concepts of authorship and ownership under the IP Law. By introducing requirements on transparency, proof of human contribution, and compliance with AI‑specific labelling and technical marking obligations, Decree 134 establishes a clear and enforceable legal framework for the responsible use of AI in creative activities. Lawful Use of Copyrighted Texts and Data Article 37a of Decree 134 sets out the specific conditions under which copyrighted texts and data may be lawfully used for scientific research, experimentation,
Read More
April 29, 2026
Across the region, local brands have become key drivers of economic growth, cultural identity, and innovation, and Myanmar is no exception. From traditional products and creative industries to modern startups and small and medium‑sized enterprises (SMEs), Myanmar’s local brands are increasingly shaping domestic markets. However, as local brands grow, they also face higher risks of imitation, misuse, and unfair competition. In this context, protecting brand identity, creativity, and innovation through proper intellectual property (IP) strategies is essential to ensure that Myanmar’s homegrown businesses can grow sustainably, compete confidently, and retain the value of what they create. The Key IP Laws for Local Brands In 2019, Myanmar enacted a comprehensive suite of four IP laws, aligning the nation’s IP enforcement framework with international standards. Trademark Law 2019: This law introduced the “first-to-file” system into the country, with trademark rights primarily obtained through registration with the Intellectual Property Department (IPD). Trademarks protect brand names, logos, and other signs that distinguish goods or services. Registration grants the exclusive rights to use the mark and to prevent others from using identical or confusingly similar marks. Each registration lasts for 10 years from the filing date and can be renewed for subsequent 10-year periods. Copyright Law 2019: Copyright, which arises automatically upon creation, protects literary, artistic, musical, and audiovisual works, including software, advertisements, artwork, and social media content. While registration with the IPD is not mandatory under this law, it can be helpful for establishing evidence and supporting any future enforcement. The terms of protection for economic rights associated with copyrights vary depending on the type of work involved. In contrast, the protection for moral rights lasts indefinitely—continuing even after the author’s death. Industrial Design Law 2019: Under this law, any industrial design that is new and independently created can be filed with the
Read More
April 21, 2026
Vietnam continues to refine its intellectual property framework to align with the 2025 amendments to the Law on Intellectual Property (IP Law). On March 31, 2026, the government issued Decree 100/2026/ND-CP (Decree 100), which substantially amends Decree 65/2023/ND-CP detailing the implementation of the IP Law (Decree 65). On the same day, the Ministry of Science and Technology released Circular 10/2026/TT-BKHCN (Circular 10), providing detailed procedural guidance and new forms. Both instruments took effect on April 1, 2026, along with the amended IP Law. While the updates touch on every IP right, trademark owners and brand strategists will find several practical and forward-looking changes that directly affect filing strategy, examination timelines, portfolio management, and enforcement readiness. 1. Fast-Track Substantive Examination for Eligible Applications One of the most business-friendly innovations is the new fast-track substantive examination pathway for applications meeting specified eligibility criteria. Successful fast-track applications enjoy a shortened substantive examination period of three months. This offers a significant competitive edge for tech-driven or regulated-sector brands. If the mark is identical or similar to a mark in another person’s trademark application with an earlier filing date in the case of a priority application that has not yet been processed, the fast-track process will return to the ordinary process. However, the law does not touch on cases where marks under fast-track examination face office action due to other reasons (i.e. lack of distinctiveness, confusingly similar to others’ copyright, trade name, industrial design, etc.) 2. AI-Generated Trademarks Receive Clear Protection Pathway Decree 100 explicitly addresses the use of artificial intelligence (AI) in IP creation, amending Article 10a of Decree 65 to confirm that trademarks created with AI systems are fully protectable, provided they meet the standard requirements of registration. Trademarks face no additional “human authorship” hurdle (unlike patents or industrial designs). Brand owners
Read More