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

October 18, 2021

Proposed Amendments to Indonesia’s Patent Law

Subscribe to Updates

In August 2021, the Directorate General of Intellectual Property (DGIP) of Indonesia’s Ministry of Law and Human Rights held a virtual session on the draft revision of Patent Law No. 13 of 2016 to apprise relevant stakeholders of the draft amendments and maintain transparency in the drafting process. The Patent Law is being amended to correspond with the Job Creation Law (Law No. 11 of 2020), which requires adjustments to regulations to bring them in line with international standards, balanced with national interests. One of the purposes of the Job Creation Law is to speed up and simplify business processes, so the proposed amendments to the Patent Law aim to support this objective.

The draft update to the Patent Law contains a number of notable changes, as laid out below.

Computer programs

Under both the current law and the draft law, computer programs are not considered inventions and thus cannot be patented. However, the draft law does allow computer-implemented inventions and computer-related inventions, while specifying that computer programs by themselves are not allowed.

Discoveries

The draft law allows patents for a new use of an existing product or for a new form of an existing compound that significantly increases efficacy and has no related chemical structural differences from the known compound. This allowance will be particularly advantageous for inventions related to second medical uses.

Application grace period

The draft law increases the time allowed for filing a patent application to 12 months after the disclosure of the invention (from the current grace period of six months). This longer allowance will especially benefit researchers and inventors who require scientific publication of their research results as well as patent protection.

Patent implementation by other parties

The draft law allows implementation of a patent not only in terms of production, but also through granting permission to other parties, such as through transfer and licensing. This change aims to bring the draft law in line with the TRIPS Agreement, which holds that patent owners have the right to assign, license, or transfer (by succession) their patents.

Statement of patent implementation in Indonesia

Previously, there was no requirement to provide a statement of patent implementation in Indonesia, but an annual statement is mandated in the draft law. Even if the patent is not implemented in Indonesia, a statement must still be provided to the DGIP at the end of each year.

Statement of origin for genetic resources and traditional knowledge

A proposed amendment in the draft law requires patent applications related to genetic resources or traditional knowledge to be accompanied by a statement of origin. This statement is meant to replace the currently required validation or verification letter from an appointed institution, because currently there is no designated institution to verify the origin of genetic resources.

Late filing of applications claiming priority rights

While previously no delay has been allowed, the new draft states that applications claiming priority rights that have missed the 12-month deadline may still be filed within four months of the deadline with an additional fee. In other words, it is possible to file patent applications claiming priority rights up to 16 months from the priority date.

Refiling

The draft law states that an application deemed withdrawn because it was not accompanied by the necessary formality documents may be filed again for an additional fee. However, the specific rules and timeframe for this are still unclear.

Substantive examination timing

One proposed amendment encourages acceleration of substantive examination by stipulating that substantive examination will take place after a request for it is filed. This is different from the current practice, under which substantive examination takes place after the end of publication period. In addition, a new provision allows applicants to request (at the time of filing or at the publication stage) a preliminary substantive examination.

Thus far, acceleration of a patent application in Indonesia has only been possible through a patent prosecution highway (PPH) request, limited to a corresponding Japanese patent application. Under the draft law, applicants can request acceleration of substantive examination after the completion of the publication period, subject to a fee. Requirements and timeframe for this are still unclear.

Repeat substantive examination

A new provision in the draft law introduces the concept of repeat substantive examination of Indonesian patent applications, whereby a patent owner who wants to review a substantive examination decision or make a change or addition to the granted claim can request a reexamination. This reexamination request can only be made for applications that have been granted, and must be filed within six months of the grant decision.

Appeals

The draft law retains the current appeal window to the Patent Appeal Commission of three months from issuance of a rejection notice, but adds that rejection of a request for repeat substantive examination can also be appealed to the Patent Appeal Commission, following this same timeframe. In addition, if the Patent Appeal Commission issues a further rejection notice, a lawsuit can be filed with the Commercial Court. The draft law states that a lawsuit against the decision of rejection from the Patent Appeal Commission can only be filed after the examination and final decision from the Patent Appeal Commission.

Compulsory licensing

A new provision in the draft law holds that a compulsory license will be ended if within two years the licensee cannot prevent the implementation of patent in a way that is detrimental to the public interest. In other words, the license will be canceled after two years if the licensee fails to secure implementation or allows ineffective implementation (such as ineffective production of drugs under a compulsory license, resulting in the supply remaining inadequate and the price too high).

Government use of patents for imported pharmaceutical products

The draft law allows the government to implement the patent for a pharmaceutical product for treatment of diseases in humans if the product cannot be produced in Indonesia.

Outlook

The objective of the draft law is to encourage the implementation of patent protection and services that are innovative, responsive to public needs, and in line with international developments. The draft law is expected to be finalized next year, as it has been included in the 2022 National Legislation Program (Prolegnas). Once it is passed, the resulting law will modernize aspects of Indonesia’s patent system in line with government priorities.

Related Professionals

Practices

Intellectual Property

Location

RELATED INSIGHTS​ 

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
June 4, 2025
The growth of Vietnam’s vibrant digital economy offers tremendous potential but is also a driver of the persistent problem of online intellectual property (IP) infringement. The spectrum of issues faced by IP rights holders runs from copyright piracy on digital services (such as streaming and torrent sites) to the sale of counterfeit goods via e-commerce sites and social platforms to the misuse of rights through misleading use of trademarks. These infringements do not only eat into profits; they damage brand reputation and mislead consumers. As a result, site blocking and keyword blocking have become increasingly important components of the enforcement toolkit available in Vietnam. Legal Framework for Blocking Actions Site and keyword blocking in Vietnam is supported by a growing legal framework, particularly following the 2022 amendment to the IP Law. Prior to this, the legal basis for blocking was scattered across various laws, and internet service providers (ISPs) were only obligated to block access to infringing content upon official requests from authorities. The introduction of Article 198b under the amended IP Law marked a significant shift, establishing a clearer mechanism for rights holders to request site blocking directly. This provision obliges them to act upon valid takedown or blocking requests. In addition to the IP Law, other key legislation includes the Law on Information Technology, the Law on Cybersecurity, the Law on Advertising, and various decrees. Together, these laws provide a more structured and enforceable basis for blocking actions in Vietnam, though practical enforcement still depends on ISP cooperation and the clarity of the infringement evidence. Competent Authorities Previously, rights holders could pursue administrative actions through specialized inspectorates under the Ministry of Science and Technology, the Ministry of Culture, Sports and Tourism, or the Vietnam E-Commerce and Digital Economy Agency (iDEA). However, due to a recent government restructuring,
Read More