In a move long advocated by AmCham Indonesia, the Minister of Law and Human Rights has signed a ministerial regulation allowing patent holders to postpone compliance with the local manufacturing requirement set out in Article 20 of the Patent Law.
This new ministerial regulation is the result of a long advocacy process led by AmCham Indonesia, along with other foreign chambers, which over the past several years has called for the adoption of international best practices for Indonesia’s patent regime.
“It is very difficult to change a law in Indonesia but sometimes there are clauses that are simply unworkable and could harm the economy; Article 20 is one such case,” said AmCham Managing Director Lin Neumann. “Forcing patent holders to manufacture all patents locally could have reduced innovation and held back growth. Fortunately, we were able to work with the team at the ministry of law to find a solution.”
AmCham has obtained the final regulation, titled "Minister of Law and Human Rights Regulation No. 15 of 2018 on Patent Implementation by Patent Holders," which can be found hereand the unofficial English version is here. The regulation was signed by the minister on July 11.
With the enactment of this regulation, patent holders can apply for a five-year delay, which can be extended by filing an application to the minister’s office.
Following a meeting on July 13 with the Director of Patents, Dede Mia Yusanti, we understand that the patent office is now working on preparing the online system to apply for the postponement. But no timeline was decided on when the application process will be officially opened.
Article 20 of the Patent Law mandates that the patent holder shall manufacture the product or use the process in Indonesia. This raised concerns over possible complications for existing foreign businesses in Indonesia. AmCham and our member companies have worked closely with the Director General of Patents to seek a solution to the issue.
AmCham will continue to monitor further developments on other implementing regulations of the Patent Law.