Indonesia, the fourth most populous country in the world, is on its way to developing a knowledge and innovation-based economy, which advanced economies have long benifited from.

The government’s efforts include improving public services related to intellectual property (IP) rights, which has been a priority of President Joko “Jokowi” Widodo’s administration. IP protection is part of the President’s Nawacita (nine goals) under which an institution that handles copyright and patent is obliged to give adequate support to innovators.

The IP-related services, handled by the Directorate General of Intellectual Property (DJKI) of the Law and Human Rights Ministry, have improved substantially over the last several years as indicated by the significant increase in the number of applicants for IP.

Data at DJKI shows that the total number of registered IP was recorded at 11,034 in 2017, compared to 5,927 in 2016 and 5,129 in 2015. As of July 2018, the total number of registered IP was reported at 14,103 with trademark ranked first, followed by industrial design.

Freddy Harris, ACCS, Director General of Intellectual Property, attributed the increase to the online application system or e-filling that the directorate has applied since 2015.

The e-filling system is applicable to the application of patent, trademark and industrial design. This also includes extension to trademark and copyright registration. “The online application system has encouraged more people to register their products, the result of their intellectual property,” he said.

Providing eases for IP applicants such as by offering online application system is part of the international standard on IP that Indonesia has fulfilled. Indonesia has adopted Patent Cooperation Treaty or PCT — an international application system for patent —, and Madrid Protocol — an international application for trademark.

“We expect more people, particularly millennials or ‘Now’ generation, to invent and innovate and therefore, we make an IT-based innovation first. We focus on managing data. If the data is good, then it would be much easier to commercialize it and the legal requirements will follow,” Freddy said.

Indonesia has more than 65 million young people between 10 and 24 years of age, representing about 28 percent of the population. These young people will constitute the main driver of economic growth and social change in Indonesia in the coming decades.

Freddy expressed the hope that with all the eases of applying and registering, there would no longer be a story about complaints regarding the complicated and lengthened bureaucracy when it comes to registering products related to the creativity and innovation of intellectual property.

Trademark, patent, industrial design, geographical indication and copyright are on the list of areas that DJKI manages and handles administratively.

Cost saving

Online application system comes complete with cryptography and barcode which enable applicants and owners of IP to see their certificate and have it printed by themselves, leading the directorate to save cost.

“We can save Rp 1.5 – 2 billion a year because we no longer have to spend fund on paper folders, certificate paper, a printer, and so forth,” he said.

By adopting online system, DJKI earns Rp 450 billion from the non-tax payment (PBNP) from the applicants. “Hopefully, the revenue will increase to Rp1 trillion in the future,” he said.

DJKI has the sole authority of protecting IP owners and its efforts to create an ecosystem conducive to IP application aims to stimulate more people to apply for IP on their products or works.

“Our vision is to be the best IP office in the world,” said Freddy, who has a strong IT background.

Freddy revealed that 90 percent of a registered 9,600 patent owners are foreigners. “The number of local patent owners is only 10 percent. This is due to the poor awareness about the importance of conducting patentability-based research.”

Therefore, starting early 2018, DJKI team runs a program that regularly visit universities where the students are encouraged to apply for patent on their research-based academic paper as a form of intellectual property. The patented academic paper has commercial value but without being patented, the academic work will finish there (kept on the campus’ library), he said.

The government has increased its budget for research to Rp 2.4 trillion in 2018 from Rp 2.1 trillion in 2017. “I challenge state universities to commercialize the paper. A research should have patentability that is useful (for human beings). If out of the 1,000 papers applied for patent, one is eligible for the patent, then it is good enough,” he said

Many locals do not apply for patent on their work for fear of being copied, which ends up others applying for the patent. “They have to change the mindset, including that of scientists,” he remarked.

However, he is upbeat about the business incubator that the Indonesian Institute of Science (LIPI) has, saying that “LIPI continues to register for a patent with us.”

According to Freddy, patent is the engine of the intellectual property, followed by the trademark. “The more people make inventions, the more innovations found in the country,” he said.

“The more numbers of patent owners found in a country, the greater success the country has achieved,” he said. “There is no single advanced country that put patent behind. All advance countries such as the US, Germany, UK, Japan, Singapore and South Korea put patent in front,” he said.

Interestingly, Saudi Arabia, Iran and the United Arab Emirate have also begun to realize the importance of inventions because they are aware that they can no longer rely on oil, which someday will finish, he said.

Apart from online application system which enables applicants to apply anywhere and anytime, DJKI has also launched a program, called Indikasi Geografis (IG) or Geographical Indication, which is expected to stimulate farmers to register their patent.

The Geographical Indication covering natural resources, handicrafts, industrial products, aims at empowering local economy.

The price of patented products is commonly higher, compared to the unpatented ones.

Freddy cited Gayo coffee from Central Aceh as an example. The patented Gayo coffee is priced at Rp 120,000 per kilogram, compared to Rp 60,000 per kg set when the coffee was unpatented.

Indonesia has more than 300 variants of coffee but only 22 kinds of coffee have been patented, which means that most of them have yet to be protected and therefore “we are proactive in guiding farmers to register their patent”, Freddy said.

Freddy expressed the hope with the year of 2018 declared as the year of Geographical Indication, more farmers are expected to apply for IG certificate.

Amicable settlement

DJKI’s vision of providing best services to IP owners and applicants also includes the directorate’s commitment to help owners or applicants IP right, who are involved in a dispute with irresponsible individuals who deliberately copy or pirate the products for commercial purposes, which infringe the regulation.

Yusrod Saleh, Director of Investigation ad Dispute Settlement, said that in helping the IP owner settle the dispute, the directorate prioritizes amicable settlement. “We play the role as a mediator that facilitate the meeting between the plaintiff and the reported so that they can find an amicable solution,” he said.

“If they fail to settle amicably, then the status of the case will be raised to investigation for further legal process until the truth about the right IP owner is found,” he said.

However, he said, the copyright piracy case is the exception. “Those found guilty of pirating a copyright will immediately face 10 years in jail and/or pay Rp 4 billion in fine.

“In principle, we help those who legally own the right to get their right and take a legal action against the violators,” he said.