May 12, 2022
The presence of counterfeit goods in the Indonesian market is a stubbornly persistent challenge that has plagued the country for many years. The United States Trade Representative’s Special 301 Report, which is issued each year to assess intellectual property (IP) protection regimes around the world, has listed Indonesia on its “Priority Watch List” 23 times and on the “Watch List” 10 times. The 2021 report included the recommendation that Indonesia develop a specialized IP unit under the Indonesian National Police to focus on investigating domestic criminal syndicates behind counterfeiting and piracy. The police’s Special Crime Unit already handles IP matters and has been operating since long before 2021, but that year Indonesia also established its new IP Enforcement Task Force, which aims to improve intragovernmental coordination on enforcement. However, IP enforcement remains challenging in Indonesia. The police and the Directorate General of Intellectual Property (DGIP) handled 346 total IP enforcement cases from 2020 through early 2022. While it is positive to see some enforcement activity, this is a rather low number, considering that the Indonesian market and its population are very large—and that counterfeiting is a widespread and persistent problem. Shopping for a Solution One way Indonesia’s Trademark Office is trying to address the country’s repeated problems with counterfeiting and piracy is by introducing a certification system for shopping centers and malls based on their support for intellectual property rights and standards. The certificates are intended to guarantee that the establishment hosts sellers of genuine products. Both physical markets—such as Pasar Tanah Abang and Mangga Dua, two known markets for counterfeit goods—and online shopping venues are eligible to obtain a certificate. Specifically, this includes department stores, shopping streets, supermarkets, social media, online marketplaces, and crowdsourcing websites that digitally collects information, ideas, opinions, or work from a group of people.