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Indonesia¡¯s patent system has become an increasingly important part of Southeast Asia¡¯s intellectual property (IP) landscape. With a large and growing economy, strategic position in global trade, and government agenda focused on innovation and technology transfer, the country is taking significant steps to harmonise its patent regime with international standards.

For businesses and practitioners, understanding the Indonesian patent framework is essential to protecting innovation while navigating unique policy considerations that shape the system.

Legal framework

The current foundation of Indonesian patent law is Law No. 65 of 2024, enacted on 28 October 2024, which is the third amendment to Law No. 13 of 2016 on patents.

The amendment aims to simplify procedures, harmonise rules to international standards, provide clearer guidelines and encourage patent filings, especially by foreign entities in the country.

Indonesia is a member of the Paris Convention for the Protection of Industrial Property and the Patent Co-operation Treaty (PCT), enabling applicants to claim priority and enter the national phase of international applications.

The system is administered by the Directorate General of Intellectual Property (DGIP) under the Ministry of Law. Two forms of protection are available, namely:

• • Patents, which last for 20 years from the filing date; and
  • Simple patents, Indonesia¡¯s equivalent to utility models, with a 10-year term.

Definition of invention

Under the new Patent Law, an invention is defined as: ¡°An idea of an inventor embodied into a specific problem-solving activity in the field of technology in the form of product and/or process, refinement, and/or development of a product and/or process, as well as systems, methods and uses.¡±

This new definition highlights key changes and implications.

Broader scope: The inclusion of ¡°systems, methods and uses¡± significantly broadens the scope of what can be patented. This change acknowledges the importance of protecting technological advancements that may not fit neatly into the previous categories of ¡°product or process¡±.

Clarity and flexibility: By adding ¡°and/or¡± between product, process, refinement and development, the law ensures greater flexibility in interpretation, making it more inclusive for different types of innovations.

Alignment with global standards: The new definition aligns more closely with international patent laws, making Indonesia a more attractive jurisdiction for inventors and businesses seeking to protect their IP globally.

Patentability criteria

A patent shall be granted for an invention that is novel, inventive, and can be applied industrially. Novelty is assessed on a global basis, meaning that any prior public disclosure can destroy patentability.

Certain subject matter is excluded, including: aesthetic creations; schemes; methods to conduct mental activities, games and business; computer programs (except for the inventions that are implemented using computers); presentations of information; and theories and methods in the field of science and mathematics.

Inventions that contravene public order, morality, health or the environment are not patentable.

Implementation requirement

Once a patent has been granted, the patent holder shall make a statement regarding implementation of the patent in Indonesia and notify the minister annually. While the law states that such statement should be submitted before the end of each year, in practice it should be submitted before the annual annuity payment deadline.

The following constitutes use or performance of patent:

• • Implementation of a product patent, which includes manufacturing, importing or licensing the patented product;
  • Implementation of a process patent, which includes manufacturing, licensing or importing the product resulting from the patented process; and
  • Implementation of a method, system and use patent, which includes manufacturing, importing or licensing the product resulting from the patented method, system and use.

Filing and examination

The process of registering a patent involves several steps including filing a patent application, publication, examination and grant. The general process is as follows.

Filing: A patent application must be filed with the Indonesian Intellectual Property Office (DGIP). For international applications under the PCT, the deadline will be 31 months from the earliest priority date. For Paris Convention priority, the deadline will be 12 months. Late filing is possible, with additional official fees for both options.

Publication: The publication period lasts for six months, after which the application will proceed to examination (as long as the applicant has filed for the substantive examination request).

Examination: After filing, the Patent Office will examine the patent application to determine if it meets the requirements for approval. This process may involve a review of the prior art and an examination of the novelty, inventiveness and industrial applicability of the invention. Note that applicants can now request an early examination in the hope that the result will be completed once the publication stage ends.

Re-examination (optional): This new procedure has been included in the system at the substantive stage. Applicants can respond against rejections, as well as corrections and applications considered withdrawn, within nine months from the notices. However, for withdrawn applications, the deadlines are capped at two months from the date of notice.

Amendment: If the Patent Office finds that the patent application does not meet requirements for approval, the applicant may be given an opportunity to respond to objections raised and amend the application to address any deficiencies. This can be in the form of an office action.

Grant: If the Patent Office determines that the patent application meets the requirements for approval, a patent will be granted and the applicant will be issued a notice of allowance or grant, followed by the issuance of a patent certificate. However, the certificate is frequently not issued for months, or even years.

Maintenance: Once a patent has been granted, the applicant must take steps to maintain the patent, including paying maintenance fees and renewing the patent as required. The first payment must be paid within six months of the notice of allowance or grant.

Compulsory licences

A compulsory licence is granted based on the principle of benefit and is non-exclusive, with its scope and duration limited to its intended purpose. It can be requested if a registered patent has not been used or worked in Indonesia within 36 months (three years) of registration. It is primarily issued to meet domestic market needs and support the national economy.

The licence cannot be transferred, except when tied to company assets or affiliated entities in the same sector. In cases where a second patent significantly improves a first patent, both patent holders must grant reasonable cross-licences, and the compulsory licence of the first patent cannot be transferred separately from the second patent.

Additionally, if a final decision by the Business Competition Supervisory Commission confirms monopolistic practices, restrictions on granting a compulsory licence do not apply.

These provisions align with article 31 of the international Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), ensuring that licences are granted based on individual merit, limited scope and non-transferability under strict conditions.

Note that previous steps need to be shown to obtain a compulsory licence. Applicants must show evidence of intended patent use based on their capability, with attempts made to contact the patent holder to obtain a licence for a maximum of 12 months, with no favourable response received.

The ministry should also agree that the patent can be performed in Indonesia on an economically feasible scale and provide benefits to society. (See Regulation of the Minister of Law and Human Rights No. 30 of 2019 on Procedures for the Granting of Compulsory Patent Licensing, which was later amended and replaced by the 2021 Regulation of the Minister of Law and Human Rights No. 14 on Procedures for the Granting of Compulsory Patent Licensing.)

A compulsory licence terminates when the specified period expires, or a final and binding court decision cancels it. Additionally, the patent holder may request cancellation if the grounds for the licence no longer exist, the licensee has failed to implement the licence, or the licence has not prevented patent misuse that harms the public interest, within two years.

A cancellation request due to non-implementation can be filed after two years, ensuring that licences are not granted indefinitely without active use. The licensee is also required to pay royalties and adhere to the defined scope as specified in the minister¡¯s decision.

These rules ensure that compulsory licences remain an effective tool to balance public interests, innovation and fair competition while complying with international IP standards. For more information concerning patent protection in Indonesia, please contact the author at patent@affa.co.id.