Database

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INDONESIA

Since 2012, as amended in 2019

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Mandatory disclosure of business trade secrets such as algorithms or source code
Government Regulation No. 82 of 2012 as replaced by the Government Regulation No. 71/2019
Government Regulation No. 82 of 2012 as replaced by the Government Regulation No. 71/2019 requires that providers of bespoke software provide or escrow the source codes associated with their service.
Coverage Software

INDONESIA

Reported in 2018, last reported in 2020

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Enforcement of copyright online
Copyright inadequately enforced
Copyright is not adequately enforced online in Indonesia. It is reported that the rate of unlicensed software installation in the country was 83% in 2017 (above the 57% rate of the Asian Pacific countries), for an estimated commercial value of USD 1,095 million. In addition, it is reported that online piracy is a concern, particularly through piracy devices and applications, illegal recording and unlicensed use of software.
Coverage Horizontal

INDONESIA

Since December 1996, entry into force in March 2002

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Signature of the WIPO Copyright Treaty
WIPO Copyright Treaty
Indonesia has ratified the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal

INDONESIA

Since October 2014

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar 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 June 1997, entry into force in September 1997

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Participation in the Patent Cooperation Treaty
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 March 2014, last amended in November 2020
Since August 2007, last amended in December 2022

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Commercial presence requirement for digital services providers
Law of the Republic of Indonesia No. 7/2014 About Trade

The Law of the Republic of Indonesia No. 40 of 2007 Concerning Limited Liability Company
Pursuant to Art. 24 of the Trade Act and Art. 5 of the Limited Liability Company Act, all exporters and importers are subject to a licence issued by the government, which is subject to a commercial presence requirement.
Coverage Horizontal

INDONESIA

Since February 2017

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Requirement to engage in joint ventures to invest or operate
Ministry of Communication and Information Technology Regulation No. 6/2017
The Ministry of Communication and Information Technology Regulation No. 6/2017 introduces the requirement that any consortium providing Internet Protocol Television (IPTV) must consist of at least two Indonesian entities (Art. 4). Furthermore, Art. 6 explicitly points to the fact that any foreign investor must comply with Article 4. Every consortium providing IPTV must seek approval from the Ministry of Communications and Informatics. The letter seeking approval shall also provide information on all company shares belonging to foreign investors (Art. 25(7)h).
Coverage Internet Protocol Television (IPTV)

INDONESIA

Since February 2012

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Nationality/residency requirement for directors or managers
Ministry of Manpower and Transmigration Regulation No. 40/2012
The Ministry of Manpower and Transmigration Regulation No. 40/2012 specified 19 positions that are reserved for Indonesian nationality only ranging from Chief Executive Officer to various directors, managers, and supervisors positions within a company.
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

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar 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)
According to the Presidential Regulation No. 10/2021, the telecommunications sector was liberalized allowing full foreign ownership in 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 telecommunication and delivery service sector SOEs (as regulated in Government Regulation No. 15/2013, amended by Government Regulation No. 41/2021).
Coverage Telecommunications sector

INDONESIA

Since March 2016

Pillar Public procurement of ICT goods and online services  |  Sub-pillar 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  |  Sub-pillar Signatory of the WTO Agreement on Government Procurement (GPA)
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 March 2018, as amended in February 2021

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Other limitations on foreign participation in public procurement
Regulation of the President of the Republic of Indonesia No. 16 of 2018 on Government Procurement, as amended by Regulation of the President of the Republic of Indonesia No. 12 of 2021
Art. 67 of Presidential Regulation No. 16 provides that a price preference applies to goods procurement with maximum 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 value of more than Rp one billion (approx. USD 67,000).
Coverage Horizontal

INDONESIA

Since October 2009, as amended in October 2019

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Other limitations on foreign participation in public procurement
Ministry of Communication and Information Technology Regulation No. 41/PER/M.KOMINFO/10/2009 as replaced by the Ministry of Communications and Informatics Regulation No. 12 of 2019
Ministry of Communications and Informatics Regulation No. 12 of 2019, which replaces the Ministry of Communication and Information Technology Regulation No. 41/PER/M.KOMINFO/10/2009 requires Indonesian telecommunication operators to expend a minimum of 50% of their total capital expenditures for network development on locally sourced components or services. The regulation also stipulated that any telecommunication device/material which contains minimum 50% local component will be considered of having 100% local component (Art. 6). The regulation also requires companies to annually report the percentage of local content procured and have that information “authenticated” by the government or a survey institute appointed by the government. These requirements were already in place since 2009.
Coverage Network telecommunication operators

INDONESIA

Since January 2014

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Other limitations on foreign participation in public procurement
Ministry of Industry Regulation No. 02/M-IND/PER/1/2014
The Ministry of Industry Regulation No. 02/M-IND/PER/1/2014, which regulates the procurement of public goods and services, includes price preferences for bidders with more than 25% of TKDN or striving to achieve at least 30%. The price preferences can be up to 15% for the procurement of goods and maximally 7.5% for services.
Coverage Horizontal

INDONESIA

Since May 2009

Pillar Public procurement of ICT goods and online services  |  Sub-pillar 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 material or component in the production or working process.
Coverage 558 sub-sectors