CLIENT UPDATE:

INTELLECTUAL PROPERTY
JANUARY 2023

Government Regulation in Lieu of Law No.2 of 2022 on Job Creation:

Limited impact on Indonesia’s existing Patent Law and Trademark Law

Overview
Government Regulation in Lieu of Law No.2 of 2022 (New Regulation) became effective as
of 30 December 2022. The New Regulation was issued in the aftermath of Constitutional Court
Decision Number 91/PUU-XVIII/2020 dated 25 November 2021(CC Decision) and replaces
Law No.11 of 2020 on Job Creation (Job Creation Law) which the CC Decision deemed to be
“conditionally unconstitutional”.
Two main reasons underlying the CC Decision to find the Job Creation Law conditionally
unconstitutional were that: (i) it did not follow the recognized law-making process; and (ii) the
official version signed by the President contained many errors and substantive differences from
the version passed by Parliament.
Although many errors and differences were found in the different versions of the Job Creation
Law, the Job Creation Law provisions that amended various provisions in Law No.13 of 2016
on Patents (Patent Law) and Law No.20 of 2016 on Trademarks and Geographical Indications
(Trademark Law) did not need any substantial changes in the New Regulation. This means
that the changes made in the New Regulation to the Patent Law and Trademark Law are
virtually the same changes that were made in the Job Creation Law, but with the drafting
“cleaned up”.
(In the note below we refer to the Patent Law and the Trademark Law together as the IP Laws)
Implications
Since there are no significant differences between the New Regulation and the Job Creation
Law to the extent that they relate to the IP Laws, we set out a table below comparing only the
material changes made to the current IP Laws (as applicable) by the New Regulation (and the
Job Creation Law). This is not an exhaustive list of the new amendments. The table below
only highlights the amendments made to timelines and other important requirements.
New Regulation (and the Job Comments
Creation Law)
Patent Law reference
Simple patents Simple patents granted for new A “simple patent” is an innovation made
(Article 3 (2)) inventions, development from from an existing patented product. The
existing products or processes “practical function” requirement for the
applicable to industry, must have a grant of a simple patent was not
“practical function”. regulated under the Patent Law. Now
simple patents must all have a “practical
function”, which means that the patent
product must have a useful purpose.
Requirement A simple patent must be an This new provision limits the way that a
for a simple innovation from one of the following simple patent is created. Now,
patent: existing patents: developments must be made from an
development a. simple product; existing simple product, simple process
of an or simple method.
b. simple process; or
appropriate
existing patent c. simple method.
(Article 3 (3))
Patent One section concerning the The deletion of the relevant section
enforcement requirement of patent holders to means that patent holders are no longer
(Article 20 (2)) encourage certain specified required to “encourage transfer of
 domestic activities has been technology, investment absorption, or
deleted. employment” in Indonesia.
A patent holder can now enforce its: The new section regulates, clarifies and
a. patented products in expands the enforcement of patents in
Indonesia through the Indonesia.
manufacture, importation, or
licensing of the patented
product;
b. patented process in Indonesia
through the manufacture,
importation, or licensing of the
patented process; or
c. patented method in
Indonesia, system, or usage
through the manufacture,
importation, or licensing of the
patented method, system, or
usage.
Timeline for An application for substantive Before this amendment was made, an
substantive examination of a simple patent must applicant could request an examination
examination of now be lodged simultaneously with within 6 months of the submission of an
a simple patent the submission of the simple patent application for a simple patent.
application application. A substantive examination is when
(Article 122 officials examine whether an application
(2)) for a simple patent satisfies the
regulated requirements (article 3(2)).
Timeline for A simple patent application must This new regulation amends the
publication of a now be published within 14 business timeline. Previously, a simple patent
simple patent days of its acceptance date (and application must have been published
application published for a 14-business day within 3 months and 7 business days.
(Article 123 (1) period). This publication would last for 2 months.
and (2))
Timeline for The Minister must issue a decision Before this amendment was made, the
Minister to within 6 months of the acceptance Minister was required to issue a
issue decision date of a simple patent application. decision within 12 months of the
regarding a acceptance date of the simple patent
simple patent application.
application
(Article 124
(1))
Trademark Law reference
Admissibility of A trademark is unfit for registration if A trademark will contain a “functional
trademark it contains a “functional form”. form” if its wording contains the function
application of the product in question.
(Article 20)
Substantive If there is an objection to the Before this amendment was made, a
examination trademark application, the substantive examination was required
timeframe substantive examination must be to be completed within 150 business
(Article 23 (5)) completed within 90 business days. days, whether or not there was an
If there is no objection to the objection to the trademark application.
application, the substantive
examination must be completed
within 30 business days.
Ultimately, the New Regulation was only drafted and passed to clarify the patent and trademark
provisions that had already been amended by the Job Creation Law. With the above provisions
(that were set out in both the Job Creation Law and the New Regulation), the patent and
trademark registration processes have been streamlined and made more efficient. In addition,
several further provisions were added to protect the IP owners’ interests.
We will continue to monitor the implementation of the New Regulation and will issue further
updates on this topic as more information becomes available.

S&T is one of Indonesia’s

leading law firms with a
recognised market leading
Intellectual Property practice.
Romi Emirat Robert Reid
If you would like to discuss any Partner Foreign Counsel
aspect of this update, or your romi_emirat@soemath.com robert_reid@soemath.com
activities or plans, please feel
free to contact us.

Valeri Soekarno Giraldin Sarah Margaretha

Senior Associate Associate
valeri_soekarno@soemath.com giraldin_sarah@soemath.com