Introduction

The globalisation of trade and innovation has significantly influenced the evolution of intellectual property (IP) systems worldwide.  The most significant international framework governing IP law is the “Agreement on Trade-Related Aspects of Intellectual Property Rights” (TRIPS Agreement), administered by the World Trade Organisation (WTO).  

Since joining the WTO in January 1995, Indonesia has reformed its IP law to align with global standards, particularly with the TRIPS Agreement.

This legal insight provides an overview of the TRIPS Agreement, outlines its key features and examines its implementation within Indonesia’s legal framework.

What is the TRIPS Agreement?

The TRIPS Agreement is broadly accepted as the most comprehensive multilateral treaty related to IP, representing a milestone in the international development of IP principles.  It sets minimum standards for the protection and enforcement of IP matters that every WTO member is required to adopt in their IP law. 

In essence, the TRIPS Agreement serves as a global framework that is intended to harmonise the protection of IP across borders, while leaving room for each member state, including Indonesia, to design policies that reflect its unique economic and social needs.

Key areas covered under TRIPS, include:

• copyright and related rights;
• trademarks;
• geographical indications;
• industrial designs;
• patents;
• layout designs (topographies) of integrated circuits;
• protection of undisclosed information;
• control of anti-competitive practices in contractual licenses; and
• enforcement of IP rights.

Indonesia’s commitment to the TRIPS Agreement

Following ratification of the TRIPS Agreement in 1995, Indonesia has endeavoured to comprehensively reform its IP system.  This reform led to the enactment of a number of foundational IP laws, including:

• Trademark Law No.20 of 2016 (as amended) – ensures the distinctiveness of marks, provides enhanced protection for well-known marks and establishes effective remedies against infringement.
• Patent Law No.13 of 2016 (as amended) – aligns national patent laws with international patentability standards, strengths the rules governing pharmaceutical patents and introduces a new requirement for a “declaration of use”.
• Copyright Law No.28 of 2014 (as amended) – harmonises with TRIPS Agreement provisions by extending the protection period to the author’s life plus 70 years and enhances enforcement mechanisms.
• Trade Secrets Law No.30 of 2000, Industrial Design Law No.31 of 2000, and Layout Design of Integrated Circuits Law No.32 of 2000 – address specific categories of IP rights mandated under the TRIPS Agreement framework.

The above laws reflect Indonesia’s commitment to developing an internationally compatible IP system, supporting fair competition in the global marketplace.

Why the TRIPS Agreement matters in Indonesia

1. Global harmonisation
   One of the main purposes of the TRIPS Agreement is to ensure IP protection between WTO member countries, including Indonesia, due to adherence to the same IP standards, with resulting predictability in international trade.  An end-goal of such purpose is to build investor confidence, thereby making foreign direct investment (FDI) into Indonesia more attractive.
2. Legal certainty and enforcement
   Indonesia is required to provide effective legal remedies against infringement, including civil litigation, criminal sanctions and border enforcement measures, to enhance legal certainty for IP rights holders.
3. Public health and flexibility
   The TRIPS Agreement also recognises that developing countries also need a certain degree of flexibility in adopting the TRIPS Agreement requirements.  For example, Indonesia retains the right to issue compulsory licenses for pharmaceuticals to safeguard public health.
4. Economic competitiveness
   Compliance with the TRIPS Agreement contributes to a stronger and more reliable international IP regime, which positively impacts Indonesia’s competitiveness as an FDI destination.

Practical challenges

Despite significant progress in aligning Indonesia’s IP regime with the TRIPS Agreement, Indonesia continues to face challenges in enforcement and public awareness.  Many businesses and creators remain unfamiliar with the scope of IP systems and law. 

In practice, enforcement mechanisms in Indonesia often encounter obstacles, including court delays, limited institutional capacity and lack of coordination among relevant authorities.  Strengthening institutional resources and promoting public understanding are essential to ensure that Indonesia’s IP system functions effectively in line with the TRIPS Agreement standards.

Key insights

By aligning Indonesian IP law with the TRIPS Agreement, Indonesia has strengthened legal certainty, thereby making investment and innovation more attractive due to enhanced IP protection.  However, the true impact of the TRIPS Agreement depends not only on legal compliance, but also on effective enforcement, institutional readiness and public understanding.  

Sustained progress will require Indonesia to balance its international obligations with domestic needs, ensuring that IP protection benefits all stakeholders, including businesses, creators and foreign investors.

If you would like legal assistance with any of your IP matters in Indonesia, please contact our IP team.