Indonesia enacted a new franchise regulation, Government Regulation No. 35 of 2024 on Franchising (“GR 35/2024”), on September 2, 2024. Franchising in Indonesia was previously governed by Government Regulation No. 42 of 2007 on Franchising (“GR 42/2007”), along with an implementing regulation, Ministry of Trade Regulation No. 71 of 2019 regarding Implementation of Franchising (“MOT Regulation 71/2019”). This new regulation repeals GR 42/2007. However, MOT Regulation No. 71/2019 remains in effect until a new MOT regulation can be enacted. The new franchise regulation contains several amendments and provides more detailed requirements to complement MOT Regulation No. 71/2019. Comparison of GR 35/2024 to GR 42/2007 Minimum years of business operation. The new regulation reduces the minimum duration that a franchise registration applicant must have been operating from five years to three years. Intellectual property (IP) status. Any relevant IP must now be registered before a franchise registration application can be submitted. This is a change from the previous regulations, under which it was possible to obtain a franchise registration (STPW) while an IP application was still pending, and if the IP application could not be registered, the STPW would be canceled. Registration requirements for foreign franchisors. Under the new regulation, foreign franchisors must provide a legalized or apostilled business permit document from the country of origin in addition to the previously required franchise offering prospectus and statement letter from the relevant Indonesian authority. Administrative sanctions. The new regulation has adjusted the three escalating stages of administrative sanctions to (1) two warning letters, (2) a 14-day suspension from business activities, and (3) STPW revocation. This varies from the three stages under the previous regulation (three warning letters, fine, and STPW revocation). The new regulation also expands the list of noncompliant actions that are subject to these administrative sanctions. In addition to

Indonesia is a multicultural country with diverse ethnicities, cultures, and religions, leading to a wealth of cultural creations, knowledge, and traditions. Where such creations, knowledge, and traditions are owned by a certain community and have become part of the identity of that community, they may be protected by Indonesian law as communal intellectual property. One type of communal intellectual property is traditional knowledge. A well-known example is a form of martial arts known as pencak silat. This martial art was traditionally performed when welcoming guests, usually accompanied by gondang borogong music, and is registered as traditional knowledge from Riau, Indonesia. New Regulation on Communal Intellectual Property Traditional knowledge used to be regulated by a number of laws, including three separate ones on copyright, patents, and cultural advancement. However, in December 2022, the Indonesian government issued Government Regulation No. 56 of 2022 on Communal Intellectual Property (“GR 56/2022”), establishing a single set of rules for the definition and protection of traditional knowledge. One of the aims of the regulation is to encourage the registration of communal intellectual property, which was part of the government’s priority program for 2023. Under GR 56/2022, traditional knowledge is defined as ideas and concepts that contain local values resulting from real experiences of interacting with the environment and that are developed continuously and passed on to the next generation. The regulation recognizes the following categories of traditional knowledge: Traditional methods or processes; Technical proficiency; Skills; Learning; Agricultural knowledge; Technical knowledge; Ecological knowledge; Knowledge related to genetic resources; Knowledge of medicine, traditional medicine, and healing procedures; Economic systems; Social organization systems; Knowledge related to the behavior of nature and the universe; and Other forms of knowledge. Traditional knowledge is a moral right belonging to the community, requiring any user of the traditional knowledge to acknowledge its

Intellectual property experts from Tilleke & Gibbins were engaged by ARISE+ IPR, a regional support program funded by the European Union and implemented by the European Intellectual Property Office, to craft a series of IP enforcement guides for Southeast Asian countries, aimed at raising local awareness of the importance of IP protection. The five-year, EUR 5.5 million ARISE+ IPR program supports regional integration through IP cooperation and aims to upgrade national IP systems for creation, protection, utilization, administration, and enforcement to be in line with international best practices and standards and the strategic objectives of the ASEAN Intellectual Property Rights Action Plan 2016-2025. The guides were developed by Tilleke & Gibbins’ lawyers in cooperation with the IP offices of each participating country, and cover issues related to trademarks, industrial designs, and geographical indications. Each guide was produced in a compact leaflet form in English as well as the local language, and is considered an official publication of the respective national IP office. The guides can be accessed from the ARISE+ IPR site (under “Leaflets, brochures and booklets”), or by clicking on the links below: Cambodia: English | Khmer Indonesia: English | Bahasa Indonesia Thailand: English | Thai Vietnam: English | Vietnamese