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Indonesia, formerly known as the Dutch East Indies (or Netherlands East Indies), is located off the coast of mainland Southeast Asia in the Indian and Pacific oceans. It is an archipelago that lies across the Equator and spans a distance equivalent to one-eighth of Earth’s circumference. Its islands can be grouped into the Greater Sunda Islands of Sumatra (Sumatera), Java (Jawa), the southern extent of Borneo (Kalimantan), and Celebes (Sulawesi); the Lesser Sunda Islands (Nusa Tenggara) of Bali and a chain of islands that runs eastward through Timor; the Moluccas (Maluku) between Celebes and the island of New Guinea; and the western extent of New Guinea (generally known as Papua). The capital, Jakarta, is located near the northwestern coast of Java. In the early 21st century Indonesia was the most populous country in Southeast Asia and the fourth most populous in the world.

Indonesia’s main exports include crude petroleum and natural gas as well as rubber, coffee, cocoa and palm oil. Indonesia’s islands are dotted with architectural remnants of Hindu-Buddhist and other empires. Borobudur, designated a UNESCO World Heritage site in 1991, is one of the most famous Buddhist monuments. Indonesia is a sovereign state and has an elected legislature. Indonesia has one of the unique cultures in the world. With multiple countries influencing during its colonial era, Indonesia has one of the most diverse cultures in the world. It has a vast collection of natural resources like tin, gold and oil.

As the third largest democracy, Indonesia is a presidential republic with an elected legislature. It has 38 provinces, of which nine have special status. The country’s capital, Jakarta, is the world’s second-most populous urban area. Indonesia is located along the famous Pacific ring of fire, which is an active belt of earthquakes and volcanoes running from Chile to Southeast Asia. Indonesia has the highest number of volcanoes in the world, with a whopping 139 dotted throughout the different islands. 79 of those volcanoes are currently active. Indonesian cultures are very different from Western cultures as there exists a difference in experience, belief-systems, hierarchies, religion, notions of time, spatial relations, and much more. Moreover within Indonesian itself there exists a multitude of different cultures.

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Indonesia has a civil law system based on the Roman-Dutch model. The Dutch colonial occupation of Indonesia for 350 years left a legacy of Dutch colonial law, which is reflected in the Indonesian Civil Code, Indonesian Commercial Code and Indonesian Criminal Code. The sources of Laws in Indonesia can be divided into two types, namely material and formal legal sources. The Indonesian House of Representatives has the power to make laws. Every bill is deliberated by the House, together with the President, for a joint approval. The bills may come from the House, the President, or the Regional Representative Council (DPD).

Intellectual Property in Indonesia

Since 1994, Indonesia has already become a member of World Trade Organization. As a member of WTO, Indonesia must adjust any legislation related to Intellectual Property Rights with the Trade Related Aspects of Intellectual Property Rights (TRIPs) standard.The types and regulation of Intellectual Property Rights in Indonesia are Copyright by Law No. 28 of 2014, Patent by Law No. 13 of 2016, Trademarks and Geographical Indications by Law No. 20 of 2016, Industrial Design by Law No. 31 of 2000, Integrated Circuit Layout Design by Law No. 32 of 2000, Trade Secrets by Law No. 30 of 2000, and Plant Variety Protection by Law No. 29 of 2000. IP systems can be broken into three components:
▪ Registration and protection system. This refers to the registration system operated by the Directorate General of Intellectual Property (DGIP), a department at the Ministry of Law & Human Rights. At DGIP one can register trade marks, designs and patents and there is also a voluntary Copyright recordal system. DGIP also has various policy functions.
▪ Commercialisation of IP. This typically means IP contracts such as licenses, assignments, and other commercial agreement involving IP.
▪ Enforcement through the civil and criminal courts and administrative routes.

Patent in Indonesia

Article 109 of the Indonesian Patent Law allows government patents for products that are of urgent public interest, related to diseases, agriculture resiliency, and natural disasters. Government patent does not reduce the rights of patent owners to exercise their exclusive rights and receive reasonable fees as compensation from the government. The Indonesian Omnibus Law requires patent owners to produce and process their technology in Indonesia to ensure technology and knowledge transfer and absorption of labor. However, the provision has been deemed controversial by the World Trade Organization. The Directorate of Patents, Integrated Circuit and Trade Secrets, within the Directorate General of Intellectual Property (DGIP) of the Ministry of Law and Human Rights (MoLHR), is the government entity that is responsible for the registration of patents. The application procedure is available at: http://dgip.go.id/prosedur-diagram-alir-permohonan-paten (in Indonesian language only).

Trademark in Indonesia

In Indonesia, trademark registration is governed by Law No. 15 of 2001 (Trademark Act), which is administered by the Directorate General of Intellectual Property Rights (DGIP). This act was modified in 2016 to pass the New Trademark and Geographical Indication Law (Law No. 20 of 2016) to include more types of trademarks. Indonesian Law requires foreign investors to engage an Intellectual Property Right Consultant in order to register a trademark in Indonesia. No official grant fee is stipulated for trademarks in Indonesia. The validity term of trademarks in Indonesia constitutes 10 years from the filing date. There are two conditions for registering a trademark in Indonesia: first is that you are already using the mark, and second is that you plan to use it shortly. In order to obtain trademark rights in Indonesia, the trademark necessarily has to be registered, as it is a “first-to-file” jurisdiction.

Industrial design in Indonesia

According to Indonesian Industrial Design Law No. No. 31 of 2000, an industrial design shall mean a creation on the shape, configuration, or the composition of lines or colours, or lines and colours, or the combination thereof in a three or two dimensional form which gives aesthetic impression and can be realized in a three or two dimensional pattern and used to produce a product, goods or an industrial commodity and a handy craft. Industrial design protection will be given to a design which has a aesthetic feature and the design must be a new design. A multi-design application can not be filed in Indonesia since an application can only be filed for one design or several designs that constitute a unity of an industrial design, or that have the same class. To be eligible for protection in Indonesia, industrial designs must be registered with the Indonesian IP Office. To be registrable, industrial designs must be “new” (novel)and have no elements which contradict with the prevailing laws and regulations, morality of religion or public order. An Industrial Design shall be deemed new if on the filing date, such industrial design is not the same as any previous disclosures which have existed before the filing date or the priority date. An industrial design registration is protected for 10 years from its filing date, and it cannot be renewed.

Copyright in Indonesia

Moral and economic rights are granted automatically to the creator on the declaration of any protected creation (see Question 28). The creation must a work at the field of art, science, and literary resulted from inspiration, capability, thoughts, imagination, agility, skill or other competences that are being expressed in a tangible form. Associated rights are granted only to certain parties (such as show performers, phonogram producers or broadcasting institutions). Although not necessary, copyright can be recorded at the Directorate of Copyright and Industrial Designs, within the DGIP. Copyright protection arises automatically and therefore even an unrecorded copyright will still be protected. However, recordal is advisable as a proof of ownership against infringement. The registration procedure is available at: http://www.dgip.go.id/prosedur-diagram-alir-permohonan-hak-cipta (in Indonesian language only).

IP enforcement in Indonesia

Indonesia is a civil law country therefore, written laws set out all the rules and procedures for IP enforcement. As a WTO TRIPS member, Indonesia commits to providing enforcement measures which comprise:

▪ civil remedies, including judicial procedures, evidence rules, injunctions, damages, other remedies, information to rights holder and right of indemnification to defendants, as well as provisional measures (preliminary injunctions and search and seizure orders);

▪ criminal remedies, at least for wilful trade mark counterfeiting or copyright piracy on a commercial scale

▪ suspension of release by customs authorities

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Eleven Facts About Indonesia You Might Not Know

1. Its name is Latin and Greek
The name Indonesia comes from the Latin word Indus and the Greek word nesos meaning ‘Indian island’. The reason being that Indonesia was originally called the Indian Archipelago or East Indies Islands. Because both are quite long, English ethnologist George Windsor Earl, proposed the terms Indunesians for the inhabitants of the Indian Archipelago. In a published paper one of his students, James Richardson Logan, used Indonesia as a synonym for Indian Archipelago.

2. It’s Massive!
Most people don’t realize that Indonesia is a huge country. It takes over 12 hours to fly from North Sumatra in the East to West Papua. The total land area is 1,919,440 square kilometers, which is almost 8 times the size of the UK.

3. It’s Made Up of A Lot of Islands!
Indonesia’s enormous amount of land mass is actually made up of over 18,000 islands. This makes it the largest archipelago in the world and also ensures you can never get tired of exploring the country. The most famous of these islands is probably Bali, where upwards of 5 million foreign tourists visit every year.

4. It Has So Much Coastline!
Thanks to all the islands, Indonesia has the second longest coastline in the world after Canada. The country’s 54,000 kilometers of coasts encompass everything from towering cliffs, to pristine beaches, and even cityscapes of coastal cities like the capital Jakarta.

5. It’s Been Inhabited for at Least A Million Years
Some of the world’s oldest fossilized remains have been found on the island of Java. The first find, often referred to as Java man, are somewhere between 700,000 and 1 million years old. Since the late 1800’s many more have been found that could be even older. This means Indonesia has been inhabited for at least 1 million years!

6. It’s a Volcanologists Dream
Indonesia is home to 127 active volcanoes. This may sound scary, but in fact many, like Mount Bromo in Java, and Mount Agung in Bali attract tourists from all over the world. However, this doesn’t mean they aren’t dangerous. Visitors should be aware of volcanic warnings and safe zones before visiting any of the active volcanoes in Indonesia.

7. It is Extremely Culturally Diverse
Spread across Indonesia’s 18,000 islands are over 300 ethnic groups. Each group has their own customs and traditions. While traveling in Indonesia you may see all kinds of amazing cultural sights like the Balinese Hindu processions, the extraordinary freediving Bajau people in Sulawesi, or the wonderful crafts of the Sasak people in Lombok.

8. Its People Speak Over 700 Languages
Within these hundreds of ethnic groups there are hundreds more indigenous languages – over 700 to be precise. Indonesian is the national language, but most Indonesians also speak at least one other language. The majority of people speak Indonesian at school or work and then speak their mother tongue or indigenous language at home.

9. It Has UNESCO World Heritage Sites

Indonesia is home to 8 UNESCO World Heritage Sites. 4 of these are natural wonders – Komodo National Park, Lorentz National Park, Tropical Rainforest Heritage of Sumatra and Ujung Kulon National Park. The other 4 are cultural sites – Borobudur Temple, Bali’s Subak System, Prambanan Temple, and the Sangiran Early Man Site. These sites are all fantastic to visit and will give you a wonderful insight into the history of this incredible archipelago.

10. It Has Biodiversity Galore
Indonesia possesses 10% of the world’s flowering plants, about 12% of the world’s mammals, 16% of the world’s reptiles, and 35 species of primate. Birdwatchers will be happy to know that 17% of the total species of birds also live in Indonesia. Indonesia also ticks all the boxes with divers who often have places like Raja Ampat on their bucket lists. This is because it has 75% of the world’s species of coral and 1,400 species of fish, there is really nowhere on our globe with more to see underwater.

11. It was Part of a Major Real Estate Deal
On September 8, 1664, while most of Indonesia was under Dutch rule, Director General of New Netherland Pieter Stuyvesant made arguably the most famous real estate deal in history. He traded the rights of a little island called New Amsterdam for the even smaller island of Run in the Banda Sea with the British. New Amsterdam’s name was changed to New York and the rest is history… So, if it hadn’t been for the tiny Indonesian island of Run, New York might have remained a Dutch colony.

Bud & Prairie helps your business navigate Indonesia’s laws and regulations. Our solutions manage and process your issues, as well as enhance your potentialities. Partnering with Bud & Prairie means a quick, cost-effective, and compliant way to grow at the Indonesian market.

Indonesia employment and human resources

The Labour Law in Indonesia is regulated mainly by Law No. 2 of 2022 on Job Creation (Regulation) and Government Regulation 35/2021. The Regulations govern the terms and conditions of employment such as working hours, holidays, rest periods, wages, overtime, leave and termination of employment, etc. Though Indonesia employment rate fluctuated substantially in recent years, it tended to increase through 2002 – 2021 period ending at 64.71 % in 2021.


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📝 Contract Formation and Enforcement in Indonesia

The Civil Code in Article 1320 stipulates in the general term that “there must be consent of the individuals who are bound thereby”. The Indonesian Civil Code does not specifically stipulate paper documents or wet ink signatures. But this is what the Indonesian courts have come to expect in order to prove the existence of a contract. The conventional view of a valid contract is therefore that captured in a formal document with both parties appending their wet ink signature onto a paper document. This view is not likely to change in the near future. So, it will not be possible to apply common law concepts of contract formation such as contract by conduct or contract by correspondence – where the act of assent is not captured in the same document.

📅 Indonesia public holidays

Date Description
1 Jan New Year’s Day
22 Jan Chinese New Year
23 Jan Chinese New Year Holiday
18 Feb Isra Mi’raj
22 Mar Bali Hindu New Year
23 Mar Bali Hindu New Year Holiday
7 Apr Good Friday
21 Apr Lebaran Holiday
22 Apr Hari Raya Idul Fitri
23 Apr to 26 Apr Lebaran Holiday
1 May Labour Day
18 May Ascension Day of Jesus Christ
1 Jun Pancasila Day
2 Jun Waisak Day Holiday
4 Jun Waisak Day
29 Jun Idul Adha
19 Jul Islamic New Year
17 Aug Independence Day
28 Sep Prophet Muhammad’s Birthday
25 Dec Christmas Day
26 Dec Christmas Holiday

🏦 Construction and Projects in Indonesia

All the current major infrastructure projects are government-sponsored infrastructure projects, as follows:
▪ Land transportation: Mass Rapid Transit (MRT) East to West Corridor and Phase II Light Rail Transit (LRT) (Kelapa Gading – JIS) projects in DKI Jakarta.
▪ Toll roads: The Trans-Sumatra toll road in Sumatra, the Balikpapan-Samarinda toll road in East Kalimantan, and the Serang-Panimbang and Semanan – Balaraja toll roads in Banten (Java Island).
▪ Seaports: Sorong-Seget Port in West Papua and the Cikarang-Bekasi-Laut Jawa Inland Waterways in West Java.
▪ Energy: Jambaran Tiung Biru gas processing facility in East Java, steam power plant in Lombok, Nusa Tenggara Barat, Bontang oil refinery in East Kalimantan and the Tuban oil refinery in East Java.

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    Why choose Bud & Prairie?

    Bud & Prairie offers a full complement of services in all areas of IP law and other legal practices, including without limitation patents; trademarks; copyrights; industrial designs; IP litigation; anti-counterfeiting and enforcement; and licensing, due diligence, and contract review. Our strong technique fields include bio-chemistry, biotechnology, pharmaceutical, superconductor devices and systems, civil engineering, electrical engineering, mechanical engineering, electronics, computer software, telecommunications, information technology, communications, media, construction.

    Bud & Prairie boasts a team of highly-qualified lawyers, licensed patent and trademark agents, engineers, paralegals, technical staff and legal professionals whose knowledge, experience, and acumen are second to none. Most of our attorneys and consultants own advanced degrees from both domestic and foreign institutions. We have the depth of experience of our partners with a perfect combination of knowledge, foresight and creativity, making us possible to analyse and solve issues faced by clients from various industries and providing them with all-round or holistic solutions that are not only legally sound, but also commercially sensitive.

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