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INDONESIA

Reported in 2020, last reported in 2023

Pillar Intellectual Property Rights (IPRs)  |  Indicator Enforcement of copyright online
Lack of adequate enforcement of copyright online
Copyright is not adequately enforced online in Indonesia. It is reported that online piracy through piracy devices and applications is a concern, and unauthorised camcording and unlicensed use of software remain problematic.
Coverage Horizontal

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 ratified the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal

INDONESIA

Since December 1996, entry into force in February 2005

Pillar Intellectual Property Rights (IPRs)  |  Indicator Adoption of the WIPO Performances and Phonograms Treaty
WIPO Performances and Phonograms Treaty
Indonesia has ratified the World Intellectual Property Organization (WIPO) Performances and Phonograms 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%.
Coverage Horizontal

INDONESIA

Since October 2019

Pillar Intellectual Property Rights (IPRs)  |  Indicator Mandatory disclosure of business trade secrets such as algorithms or source code
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 mandates that providers of bespoke software must either provide or escrow the source code associated with their services. This requirement has been in effect since the introduction of Government Regulation No. 82/2012, which was later replaced by Regulation No. 71/2019.
Coverage Software
"SELECT DISTINCT(post_id) FROM prj_12_postmeta WHERE meta_key = 'score' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'ID')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.1') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.2') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.3')\n\t\t\t\t\t\t\t\t)"
[{"post_id":"83884"},{"post_id":"83885"},{"post_id":"83886"}]
"SELECT meta_value FROM prj_12_postmeta WHERE meta_key = 'impact' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'ID')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.1') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.2')\n\t\t\t\t\t\t\t\t)"
"SELECT meta_value FROM prj_12_postmeta WHERE meta_key = 'score' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'ID')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.3')\n\t\t\t\t\t\t\t\t)"
ITA: [{"meta_value":"0.50"}]

INDONESIA

ITA signatory? I II

Pillar Tariffs and trade defence measures applied on ICT goods  |  Indicator Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
0.97%
Coverage rate of zero-tariffs on ICT goods (%)
41.36%
Coverage: ICT goods

INDONESIA

N/A

Pillar Tariffs and trade defence measures applied on ICT goods  |  Indicator Participation in the WTO Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Lack of participation in Information Technology Agreement Expansion Agreement (ITA II)
Indonesia is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996, but is not a signatory of its 2015 expansion (ITA II).
Coverage ICT goods

INDONESIA

Since January 2014

Pillar Public procurement of ICT goods and online services  |  Indicator Exclusion from public procurement
Ministry of Industry Regulation No. 02/M-IND/PER/1/2014 (Peraturan Menteri Perindustrian 02/M-IND/PER/1/2014)
Art. 10 of Regulation No. 02/M-IND/PER/1/2014 provides that domestic service suppliers need to be prioritised. To qualify as a domestic service provider, a majority of the shares must be owned by an Indonesian citizen, and two-thirds of the board members must be local. If no domestic service suppliers are participating in the procurement, national service suppliers (with at least 10% of shares belonging to Indonesians) will be taken into consideration. Only when these are also unavailable will foreign service providers be allowed to participate in the procurement process as well (Art. 16.1).
Coverage Horizontal

INDONESIA

Since March 2018, last amended in February 2021

Pillar Public procurement of ICT goods and online services  |  Indicator Exclusion from public procurement
Regulation of the President of the Republic of Indonesia No. 16 of 2018 on Government Procurement
Under Art. 63 of Presidential Regulation No. 16/2018, an International Tender may be conducted if no capable or eligible domestic Economic Operator is available, and:
- The estimated value of goods and other services exceeds Rp 50 billion (approx. USD 4.5 million), or
- The estimated value of consulting services exceeds Rp 25 billion (approx. USD 2.25 million).
Additionally, foreign business entities selected through an International Tender must collaborate with national business entities via a consortium, subcontract, or other forms of cooperation.
Coverage Horizontal

INDONESIA

Since March 2018, last amended in February 2021

Pillar Public procurement of ICT goods and online services  |  Indicator Exclusion from public procurement
Regulation of the President of the Republic of Indonesia No. 16 of 2018 on Government Procurement
Art. 66 of Presidential Regulation No. 16/2018 provides that the ministries, institutions and regional apparatuses are obligated to use domestic products. Procurement of imported goods may be conducted in the event that the goods cannot be produced domestically or that domestic production volume is unable to meet the demand.
Coverage Horizontal

INDONESIA

Since October 2019

Pillar Public procurement of ICT goods and online services  |  Indicator Surrender of patents, source code or trade secrets to win public tenders/Restrictions on technology standards for public tenders
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)
Art. 9 of the Government Regulation No. 71/2019 requires that providers of bespoke software must provide or escrow the source codes associated with their service. The requirement applies to Electronic System Providers for public scope. This requirement was already contained in Art. 8 of Government Regulation No. 82/2012, which was repealed by Government Regulation No. 71/2019.
Coverage Electronic systems operators for public scope

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 spend at least 40% of their budget on local products produced by SMEs. According to the regulation, the objective is to increase the use of local products to support the "Proud of Using Products Made in Indonesia" campaign. The regulation entered into force on 30 March 2022.
Coverage Horizontal

INDONESIA

Since June 2012
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
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

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.
Coverage Electronic systems operators for public scope

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

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