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​ 

August 15, 2025
Indonesia’s Directorate General of Intellectual Property (DGIP) has introduced a temporary feature in its online filing system to accommodate the submission of annual patent working statements. The requirement to submit these annual working statements was introduced under the amended Patent Law enacted on October 28, 2024, but the implementing regulation has still not been issued. Annual Working Statements Article 20A of the amended Patent Law requires all patentees to submit an annual statement regarding the implementation of their patents in Indonesia. This obligation applies to all active patents, regardless of when they were granted. The annual working statement declares the status of implementation of the patented invention within Indonesia. Acceptable forms of implementation include: Manufacturing the patented product (whether commercialized or not) Utilizing the patented process (whether commercialized or not) Importation Licensing If the patent has not yet been implemented in Indonesia, the DGIP provides an option to indicate: “The mentioned registered patent has not been implemented in Indonesia.” The statement must be made using the official template provided by the DGIP through the online filing system. Submission The working statement must be submitted annually no later than December 31 of each calendar year. No supporting documents are needed for the submission apart from the signed form itself. A color scanned copy will suffice; the original document is not required. There is currently no official fee for submitting the working statement. While the submission process may eventually align with annuity fee payments, the current process remains separate due to the pending implementing regulation. The submission process may be subject to change upon issuance of the implementing regulation, which is under discussion and expected in the coming months. In the interim, the DGIP accepts submissions of overdue working statements, allowing patentees to fulfill their obligations retroactively. This flexibility is expected
Read More
July 31, 2025
The Madrid System for international trademark registration provides the opportunity for a simplified and cost-effective way to register trademarks in multiple countries through a single application. Indonesia joined the Madrid System in 2018, and in 2024 alone, it received over 8,600 applications through this system. Despite the system’s effectiveness, it is important for trademark owners to be aware of the potential risks of refusal that can arise during the process of registration. Trademark applicants must pay close attention to these critical points when designating Indonesia. Appointing a Local Representative to Respond An applicant or representative of an international registration (IR) application that has been provisionally refused must appoint a local Indonesian representative in order to submit a response to the provisional refusal. This appointment is solely for the purpose of responding to the refusal in Indonesia; it is not necessary if the IR has not received any rejection. Furthermore, the local representative should not be registered with WIPO, as doing so would affect representation across all designated countries. Timing When it comes to calculating the deadline for responding to a provisional refusal, there is a discrepancy between the methods used by the DGIP and WIPO. Under the Indonesian Trademark Law, trademark owners can file a response within 30 working days, excluding weekends and national holidays. However, the WIPO cover letter accompanying the DGIP’s provisional refusal notice specifies both the start date and the deadline for responding to the notification, which is calculated as 30 calendar days, including weekends and national holidays. Therefore, a response to the provisional refusal of IR should be submitted in accordance with the WIPO cover letter to prevent any formality issue. Grounds for Refusal After an IR application is published in Indonesia’s Trademark Gazette, it undergoes substantive examination by the Directorate General of Intellectual Property (DGIP) examiners. The
Read More
July 30, 2025
Artificial intelligence (AI) model training and data scraping are essential processes in the development of modern AI systems. AI model training involves using large datasets to teach machine learning algorithms to recognize patterns, make predictions, or generate new content. Data scraping refers to the automated extraction of information from websites or digital sources, often to assemble the vast datasets required for effective AI training. As these practices become more widespread, questions about the legality of using third-party content—especially copyrighted works—have become increasingly important. In Thailand, the legal landscape for AI developers is shaped primarily by the Copyright Act, which presents unique challenges due to the absence of a fair-use exception. This article examines the copyright-related risks and legal uncertainties facing AI developers under Thailand’s current copyright law and practices, offering strategic guidance for navigating this complex environment. Copyright Risks in AI Scraping and Training Thailand’s Copyright Act does not provide a broad fair use or fair dealing exception, unlike some other jurisdictions, such as the United States. This absence has significant consequences for AI developers: No general defense for AI training: Any use of copyrighted material for AI model training is presumed to be infringing unless a specific, narrow statutory exception applies or explicit permission is obtained from the rights holder. There is no general legal basis for using copyrighted works in AI training without authorization. Increased rights clearance burden: Developers must identify and secure licenses for every copyrighted work included in their training datasets. Given the scale and diversity of data required for effective AI models, this process can be both impractical and costly. Legal ambiguity and litigation risk: The lack of clear statutory guidance or case law leaves developers in a legal gray area. There is no established precedent clarifying whether certain uses of copyrighted material for
Read More
July 25, 2025
Over the first half of 2025, the government of Vietnam has implemented a comprehensive suite of legislative reforms that significantly impact the country’s intellectual property (IP) framework. These amendments, most of which took effect on 1 July 2025, span the criminal, civil, administrative, and judicial sectors, and are part of a broader initiative to modernize Vietnam’s legal infrastructure, strengthen enforcement mechanisms, and harmonize domestic regulations with international standards. A summary of the key legislative changes and their potential implications for IP protection and enforcement across Vietnam is provided below. Criminal Code: Stricter penalties Under the 2025 amendments to Vietnam’s Criminal Code, penalties for offenses involving the manufacturing and trading of counterfeit goods have been significantly escalated. Individuals convicted of such violations now face fines ranging from VND 200 million to VND 2 billion (approximately USD 7,700 to USD 77,000; up from VND 100 million to VND 1 billion). For corporate entities, the penalties are even more severe, with fines ranging from VND 2 billion to VND 40 billion (roughly USD 77,000 to USD 1.54 million; up from VND 1 billion to VND 20 billion). These heightened penalties reflect the government’s intensified efforts to deter counterfeit-related crimes and protect consumer rights. Law on Handling Administrative Violations: Extended statute of limitations and application of electronic procedure The statute of limitations for addressing administrative violations in the IP sector is still two years. However, in cases where such violations are referred by procedural authorities, this period is extended by one year. The time taken by these authorities to process the case is now included within the overall limitation period. In addition, the Law on Handling Administrative Violations facilitates the use of electronic procedures, provided that the necessary infrastructure, technical systems, and information conditions are in place. Specifically, enforcement authorities are now permitted
Read More