INDONESIA
Since June 1997, entry into force in September 1997
Pillar Intellectual Property Rights (IPRs) |
Indicator Participation in the Patent Cooperation Treaty (PCT)
Patent Cooperation Treaty
Indonesia is a party to the Patent Cooperation Treaty (PCT). However, the country does not consider itself bound by Art. 59 related to disputes.
Coverage Horizontal
INDONESIA
Since June 2012
Since October 2014
Since October 2014
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Defence Law 2012
Presidential Regulation 76/2014
Presidential Regulation 76/2014
Indonesia's 2012 Defence Law and Presidential Regulation 76/2014 prioritise the use of local materials and components by defence agencies, emphasising the procurement of locally produced goods and services whenever possible. Additionally, in cases where Indonesian government entities procure from foreign defence suppliers due to local supply limitations, regulations mandate "trade balancing" offsets. These offsets can include incorporating local content, production offsets, technology transfer, or a combination of these measures.
Coverage Public sector
Sources
- https://web.archive.org/web/20241126024754/https://jdih.kemendag.go.id/peraturan/stream/738/3
- https://web.archive.org/web/20241126142644/https://www.global-regulation.com/translation/indonesia/7209579/act-no.-16-of-2012.html
- https://web.archive.org/web/20230331215014/https://ustr.gov/sites/default/files/2023-03/2023%20NTE%20Report.pdf
- Show more...
INDONESIA
Since October 2014
Pillar Intellectual Property Rights (IPRs) |
Indicator Copyright law with clear exceptions
Law of the Republic of Indonesia No. 28 of 2014 on Copyright (Undang-undang (UU) No. 28 Tahun 2014)
Indonesia has a copyright regime under the Law of the Republic of Indonesia No. 28 of 2014 on Copyright. However, the exceptions do not follow the fair use or fair dealing model, therefore limiting the lawful use of copyrighted work by others. Art. 43 lists the exceptions, which include publication, distribution, communication, and/or reproduction of State emblems and national anthems in accordance with their original nature; the production and distribution of the Copyrighted content through information technology and communication media that are not commercial and/or lucrative for the Author or related parties, or the Author expresses no objection to the manufacture and dissemination in question; among others.
Coverage Horizontal
INDONESIA
Since October 2019
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Government Regulation No. 71/2019 on the Provision of Electronic System and Transaction (Peraturan Pemerintah (PP) Nomor 71 Tahun 2019 Penyelenggaraan Sistem dan Transaksi Elektronik)
Government Regulation No. 71/2019 requires operators of electronic systems for public purposes to store electronic transaction data within Indonesia, unless the necessary technology is unavailable locally. Public Electronic System Operators (ESOs) include: (a) public bodies, such as central and regional executive, legislative, and judicial bodies, as well as any other entities established under statutory mandates; and (b) entities appointed by public bodies to operate electronic systems on their behalf.
Previously, Government Regulation No. 82, which was revoked by Regulation No. 71/2019, mandated that electronic system operators for public services connect their data to a data centre and a disaster recovery centre located within Indonesian territory for purposes of law enforcement and data protection (Art. 17). Although the term “public services” was not explicitly defined under GR 82, it was broadly interpreted by the Ministry of Communications and Informatics (MOCI) to include all services offered to the public via the Internet. This interpretation effectively extended local storage obligations to numerous private sector companies.
Previously, Government Regulation No. 82, which was revoked by Regulation No. 71/2019, mandated that electronic system operators for public services connect their data to a data centre and a disaster recovery centre located within Indonesian territory for purposes of law enforcement and data protection (Art. 17). Although the term “public services” was not explicitly defined under GR 82, it was broadly interpreted by the Ministry of Communications and Informatics (MOCI) to include all services offered to the public via the Internet. This interpretation effectively extended local storage obligations to numerous private sector companies.
Coverage Electronic systems operators for public scope
Sources
- https://web.archive.org/web/20230322005029/https://peraturan.bpk.go.id/Home/Details/122030/pp-no-71-tahun-2019
- https://web.archive.org/web/20230103224650/https://www.lexology.com/library/detail.aspx?g=cd6e5251-6dd7-4b46-b6be-759c78c9bf7b
- https://web.archive.org/web/20221012134007/https://jdih.kominfo.go.id/produk_hukum/view/id/6/t/peraturan+pemerintah+republik+indonesia+nomor+82+tahun+2012
- Show more...
INDONESIA
Reported in 2020, last reported in 2025
Pillar Intellectual Property Rights (IPRs) |
Indicator Enforcement of copyright online
Reported widespread online piracy and unlicensed software use
It is reported that online piracy facilitated through illicit devices and applications is widespread. Stakeholders indicate that Indonesia has one of the highest rates of music piracy globally and that domestically operated piracy websites and services have seen a marked increase in popularity, accompanied by limited enforcement efforts against their activities. The unlicensed use of software is also reported to be a significant and ongoing concern.
Coverage Horizontal
INDONESIA
Since April 2020
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Ministry of Finance Regulation No. 115/PMK.06/2020
The Ministry of Finance Regulation No.115/PMK.06/2020, which replaces the Ministry of Finance Regulation No. 65/PMK.06/2016 mandates foreign entities to establish an Indonesian limited liability company before utilising the state-owned property for undertaking the public procurement of the infrastructure projects (including telecommunication infrastructure) under the public-private partnership scheme. This requirement has already been in place since 2016. Nevertheless, this represents a liberalisation for foreign companies in Indonesian public procurements since it previously required the prioritisation of domestic service suppliers.
Coverage Telecommunication infrastructure
INDONESIA
Since December 1996, entry into force in March 2002
Pillar Intellectual Property Rights (IPRs) |
Indicator Adoption of the WIPO Copyright Treaty
WIPO Copyright Treaty
Indonesia has adopted the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal
INDONESIA
Since January 2014
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Ministry of Industry Regulation No. 02/M-IND/PER/1/2014 (Peraturan Menteri Perindustrian 02/M-IND/PER/1/2014)
The Ministry of Industry Regulation No. 02/M-IND/PER/1/2014, issued on 13 January 2014, replaced Regulation No. 15/M-IND/PER/2/2011 and introduced restrictions on public procurement to promote the use of domestic products. The regulation establishes a framework for categorising public goods and services based on the Domestic Component Level (TKDN) and the Company Utilization Point Rating (BMP), which evaluates suppliers' investments in Indonesia. The BMP considers factors such as support for micro and small enterprises, compliance with work, health, and environmental safety standards, and possession of a quality management certificate (Art. 1(8) of the regulation).
According to Art. 6, goods are classified into three categories based on the cumulative scores of TKDN and BMP:
- Obligatory Goods: These must have a cumulative score of over 40%, including at least 25% of TKDN.
- Maximised Goods: These must have a cumulative score of over 40%, including at least 15% of TKDN.
- Empowered Goods: These must achieve a TKDN score of at least 10%.
According to Art. 6, goods are classified into three categories based on the cumulative scores of TKDN and BMP:
- Obligatory Goods: These must have a cumulative score of over 40%, including at least 25% of TKDN.
- Maximised Goods: These must have a cumulative score of over 40%, including at least 15% of TKDN.
- Empowered Goods: These must achieve a TKDN score of at least 10%.
Coverage Horizontal
INDONESIA
Since March 2018, last amended in February 2021
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Regulation of the President of the Republic of Indonesia No. 16 of 2018 on Government Procurement
Art. 67 of Presidential Regulation No. 16/2018 provides that a price preference applies to goods procurement with a maximum of 25%. For construction works under the international tender selection method, the price preference is given to a maximum of 7.5% to national business entities above the lowest bid price of foreign business entities. The price preference applies to procurement having a value of more than Rp one billion (approx. USD 67,000).
Coverage Horizontal
INDONESIA
Since March 2022
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
President Instruction No. 22/2022
In March 2022, the government of Indonesia issued President Instruction No. 22/2022, mandating all government agencies to provide a preference margin for local products with at least 25% local content. The price preference is a maximum between 7.5% and 25%, depending on the sector.
Coverage Horizontal
INDONESIA
Since May 2009
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Ministry of Industry Regulation No. 49/2009
The Ministry of Industry Regulation No. 49/2009 requires the use of domestic products and services in 558 sub-sectors for public procurement. The mandate to use domestic products in these sub-sectors applies if there are goods and services with minimum local content requirements ranging from 15% up to 96%. Domestic products and services are defined as goods or services produced or prepared by a company investing and producing in Indonesia, with the possibility to use imported raw materials or components in the production or working process.
Coverage 558 sub-sectors
INDONESIA
Since October 2019
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Ministry of Communication and Information Technology Regulation (MOCI) No. 12/2019
The Ministry of Communications and Informatics Regulation No. 12/2019, which replaces Regulation No. 41/PER/M.KOMINFO/10/2009 by the Ministry of Communication and Information Technology mandates that Indonesian telecommunication operators allocate at least 50% of their total capital expenditures for network development to locally sourced components or services. The regulation also stipulated that any telecommunication device/material which contains a minimum of 50% local component will be considered to have 100% local component (Art. 6). The regulation also requires companies to report the percentage of local content procured annually and have that information “authenticated” by the government or a survey institute appointed by the government. These requirements have been in place since 2009.
Coverage Network telecommunication operators
Sources
- https://web.archive.org/web/20231129225337/https://ustr.gov/sites/default/files/2013-14%20-1377Report-final.pdf
- https://web.archive.org/web/20231001091618/https://jdih.kominfo.go.id/produk_hukum/view/id/399/t/peraturan+menteri+komunikasi+dan+informatika+nomor+41permkominfo102009+tanggal+16+oktober+2009
- https://web.archive.org/web/20230326114326/https://jdih.kominfo.go.id/produk_hukum/view/id/713/t/peraturan+menteri+komunikasi+dan+informatika+nomor+12+tahun+2019+tanggal+25+oktober+2019
- Show more...
INDONESIA
Since March 2016
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Ministry of Industry Regulation No. 15/M-IND/PER/3/2016
Art. 6 of the Ministry of Industry Regulation 15/M-IND/PER/3/2016 stipulates that transmission towers and steel-reinforced conductors used in public procurement require a minimum local content of 40%.
Coverage Transmission towers and steel-reinforced conductors
INDONESIA
N/A
Pillar Public procurement of ICT goods and online services |
Indicator Signatory of the WTO Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC 752, 754, 84)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
Indonesia is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country has been an observer of the WTO GPA since 2012.
Coverage Horizontal
INDONESIA
Since June 2003, last amended in 2022
Since February 2021, last amended in May 2021
Since March 2013, last amended in February 2021
Since February 2021, last amended in May 2021
Since March 2013, last amended in February 2021
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Maximum foreign equity share
Law of the Republic of Indonesia No. 19 of 2003 Concerning State-owned Enterprises (Undang-Undang Republik Indonesia Nomor 19 Tahun 2003 Tentang Badan Usaha Milik Negara)
Presidential Regulation No. 10 of 2021 on Business Fields Open to Investment (Peraturan Presiden Republik Indonesia Nomor 10 Tahun 2021 Tentang Bidang Usaha Penanaman Modal)
Regulation of The Government of the Republic of Indonesia No. 15 of 2013 on Implementation of Law No. 38 of 2009 on Post (Peraturan Pemerintah Republik Indonesia Nomor 15 Tahun 2013 Tentang Pelaksanaan Undang-Undang Nomor 38 Tahun 2009 Tentang Pos)
Presidential Regulation No. 10 of 2021 on Business Fields Open to Investment (Peraturan Presiden Republik Indonesia Nomor 10 Tahun 2021 Tentang Bidang Usaha Penanaman Modal)
Regulation of The Government of the Republic of Indonesia No. 15 of 2013 on Implementation of Law No. 38 of 2009 on Post (Peraturan Pemerintah Republik Indonesia Nomor 15 Tahun 2013 Tentang Pelaksanaan Undang-Undang Nomor 38 Tahun 2009 Tentang Pos)
According to Presidential Regulation No. 10/2021, the telecommunications sector was liberalised, allowing full foreign ownership of telecommunication service providers and telecommunication towers. However, according to Art. 1.2 and 77 of the State-owned Enterprises Act 19/2003, there is a limit of 49% on the shares that can be acquired by foreign investors in government-controlled firms. This includes foreign participation in state-owned entreprisese (SOEs) in the telecommunication and delivery services sectors, as regulated in Government Regulation No. 15/2013, amended by Government Regulation No. 41/2021.
Coverage State-owned entreprises in the telecom and delivery services serctor
Sources
- https://web.archive.org/web/20230928012412/https://peraturan.bpk.go.id/Download/32159/UU%20Nomor%2019%20Tahun%202003.pdf
- https://web.archive.org/web/20221205050600/https://www.telkom.co.id/data/image_upload/page/1664089743088_E.2.5%20Indonesian%20State-Owned%20Entities%20Act%20No.19%20of%202003.pdf
- https://web.archive.org/web/20240405063913/https://peraturan.bpk.go.id/Download/154474/Perpres%20Nomor%2010%20Tahun%202021.pdf
- https://web.archive.org/web/20240822114016/https://peraturan.bpk.go.id/Download/33450/PP%20Nomor%2015%20Tahun%202013.pdf
- https://web.archive.org/web/20241126144739/https://jdih.kominfo.go.id/storage/files/1574059156-_JDIH_6_GR_No_15_of_2013_on_Implementation_of_Law_No_38_of_2009_on_Post.pdf
- https://sim.oecd.org/Simulator.ashx?lang=En&ds=STRI&d1c=tc&d2c=idn&mc=39400:yes
- https://web.archive.org/web/20230330050336/https://investmentpolicy.unctad.org/investment-policy-monitor/measures/3660/indonesia-releasing-positive-list-of-investment
- Show more...
