Recently, OMNIBUS LAW becomes a main issue and is even debated by the interested parties, considering if Omnibus Bill is applied and enacted, not only related to licensing and employment, but also will have a strict impact on Intellectual Property regulation, especially in the field of patent stipulated in Law No. 13 Year 2016 (hereinafter referred to as “Patent Law“).

As information Article 20 of Patent Law consists of 2 (two) verses stating:

“(1) The Patent Holder is obliged to manufacture the product or use the process in Indonesia.

(2) Manufacturing products or using the process referred to in paragraph (1) must support the transfer of technology, investment absorption and/or provision of employment. “

According to the above provision, basically the provision has a noble purpose for the Indonesian Nation, namely the Patent Holders are not merely to register their patents in Indonesia, but obliged to implement it, either by manufacturing the product or using the process of its patent in Indonesia, so that technology, investment and the job field will increase for the Indonesian nation.

But if it is seen from the viewpoint of Patent Holders who are particularly from overseas, the above issue is a problem in itself, because they think, there are several factors that prevent them to implement their patent in Indonesia, such as regulation factors, natural resources, human resources and other factors. It is also very regret to be admitted that the unpreparedness of the Patent Holders and also the Government is also one of the inhibitory factors.

With these glorious early ideals, the Indonesian Government got a protest from the Patent Holders originating from abroad, because with the validity of Article 20 of Patent Law, even make them more difficult to invest in Indonesia. Then they also stated that Article 20 of Patent Law has violated Article 27 of TRIPs Agreement (Agreement on Trade-Related Aspects of Intellectual Property Rights), where Indonesia as a member of the World Trade Organization (WTO) should adhere to the international treaty.

Since the enactment of Patent Law on 26 August 2016 by the Indonesian Government, according to statistical data on patent application of the Directorate of Patent, Directorate General of Intellectual Property is experiencing a significant decline. In view of the patent application received by the Directorate of Patent, Directorate General of Intellectual Property until now is still dominated by patent application originating from abroad.

In order to overcome the above problems, the Government is at the end deliberating OMNIBUS LAW especially related to Article 20 of Patent Law, stated in Chapter VI on Ease of doing Business, Part 3 on Patents, Article 110 states:

Provisions in Article 20 of Law Number 13 Year 2016 concerning Patents (State Gazette of the Republic of Indonesia year 2016 Number 176, Supplement to State Gazette of the Republic of Indonesia number 5922) is deleted“.

With the OMNIBUS LAW bill, not only reaps criticism and protests from Practitioners and Academics in the field of Intellectual Property, but also from the workers and laborers against the OMNIBUS LAW, because as stated above, OMNIBUS LAW is also related to licensing and employment.

As one of the oldest and largest Intellectual Property Consulting Office in Indonesia, Am Badar & Partners also has a great expectation to the Indonesian Government to immediately overcome the recent occured polemic.

The best solution of the Indonesian Government is really expected, while paying attention to the healthy business climate, especially for the Indonesian Nation and certainly can facilitate the Patent Holders who come from abroad can easily register their patents in Indonesia and also implement it which is certainly useful for the benefit of the Indonesian Nation.

We hope that the above description would be useful, but if there is any other query  to be further consulted on Patents, Trademarks, and other fields related to Intellectual Property, please do not hesitate to contact us either by e-mail, facsimile, telephone or to our office. Our professional team will be happy to explain the Intellectual Property related matters in Indonesia and abroad.

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