Getting Creative

AmCham Indonesia and US Chamber host launch of 2018 IP Index

By Karmila Bain
Tuesday, March 13, 2018

The US Chamber of Commerce launched its sixth annual International IP Index – an analysis of intellectual property protection – in Jakarta on March 6.  The 2018 Index includes five new economies – Costa Rica, Ireland, Jordan, Morocco, and the Netherlands, bringing the total number of countries benchmarked to 50.

The report, titled Create, was unveiled in Jakarta at an event co-sponsored by AmCham Indonesia and the US Chamber’s Global Innovation Policy Center (GIPC). The launch event and reception was part of the AmCham-US Chamber Innovation Mission, a series of meetings with stakeholders from both business and government, focusing on the Patent Law and IPR protection. It also marked the beginning of the 2018 US-Indonesia Investment Initiative (USIII), an annual joint program to bring together US companies with the Indonesian government to enhance the investment climate.

Brian Arnold, President of AmCham Indonesia, opened the event with remarks on boosting the framework for IP protection and innovation as a way to create jobs and growth.

Calling intellectual property “products of the mind,” Arnold said they “form the backbone of a nation’s ability to innovate for the future. A healthy IP environment nurtures the talents and intellectual horsepower of a country to drive its economy forward. Fundamentally, IP spurs investment and creates jobs.”

In his remarks, US Ambassador to Indonesia Joseph R Donovan, said the future of Indonesia’s economy lies in innovation.

“Five years ago, barely 20 percent of Indonesians had mobile access to the Internet. Today 50 percent are online amounting to over 120 million people,” he said. “They are projected to grow to over 215 million people by 2020.”

Ambassador Donovan said that IP protection is necessary to attract investment. The benefit of intellectual property (IP) protection, he said, helps boost foreign direct investment (FDI), attract funding and add high-value jobs for the future. .

“US-Indonesia innovators’ collaboration has the potential to change every aspect of Indonesia’s economy, making farms and factories more competitive, making cities smarter and safer and connecting Indonesia’s 17,000 islands to simpler and cheaper communications and travels,” he said.

He encouraged the US and Indonesia to continue to champion intellectual property rights (IPR), to generate breakthrough solutions to global challenges and increase public awareness, along with the Creative Economy Agency (BEKRAF), to make improvements in preventing and/or stopping the distribution of copied products.

The BEKRAF Deputy Chairman for Intellectual Property Rights Facilitation and Regulation Ari Juliano Gema spoke of IP as the core of the creative economy.

“Last year’s survey, done jointly with The Central Bureau of Statistics [BPS], on the contribution of the creative economy to GDP reached Rp 922 trillion,” he said. “In 2019, it is projected to reach Rp 1,000 trillion.”

He said BEKRAF had assisted 3,000 small businesses to have IP registration, including assistance in covering IP administration fees. BEKRAF hopes this year and next year to collaborate with other Indonesian government agencies, the US Embassy and US government institutions and AmCham Indonesia to conduct several activities related to IP development in Indonesia. This would help Indonesia catch up with international norms and address issues still lacking in IP development.

The launch concluded with a presentation from Patrick Kilbride, vice president of international intellectual property for the Global Innovation Policy Center (GIPC) at the US Chamber.  He highlighted global competitiveness, the future of the economy and how IP provides a platform for cultural expression and innovation. He said Indonesia has improved its standing recently, largely because of greater public awareness of the importance of IP. 

The IP Index is based on eight categories: patents, copyrights, trademarks, trade secrets, commercialization of IP assets, enforcement, systemic efficiency, and international treaties. Indonesia ranks 43 out of 50 countries, and has long-standing programs to enhance coordination among government agencies responsible for IP enforcement. Kilbride also spoke of how the IP Index has a metric to measure the intangibles for improvement.

Around 100 people attended the event including AmCham members, the Indonesian Chamber of Commerce and Industry (KADIN), the Indonesian Employers Association (APINDO), the Indonesia Investment Coordinating Board (BKPM) and other government officials.

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