Indonesia strengthens IP protection to boost small, medium industries

Indonesia has taken steps to enhance intellectual property (IP) protection for small and medium enterprises (MSMEs), aiming to elevate their product value and global competitiveness. According to Antara News, the Ministry of Industry has intensified efforts to support MSMEs by reinforcing IP safeguards, emphasizing the importance of legal certainty and brand identity for these businesses. Industry Minister Agus Gumiwang Kartasasmita highlighted that IP protection is crucial for fostering innovation and ensuring long-term business sustainability. He noted that modern industrial competition extends beyond mere production quality, requiring companies to safeguard their unique features, branding, and design elements. The initiative follows a broader strategy to bolster MSMEs within Indonesia's evolving industrial landscape. Despite progress, the country continues to face challenges in developing a robust IP ecosystem. The U.S. Trade Representative’s 2026 Special 301 Report categorized Indonesia under its Priority Watch List, underscoring ongoing concerns regarding IP enforcement. Agus stressed that for MSMEs, IP is not just a bureaucratic formality but a vital asset contributing to economic stability and growth. He emphasized that protected IP enables businesses to mitigate risks such as counterfeiting and imitation, thereby enhancing consumer trust and market expansion. To implement this strategy, the Ministry of Industry’s Directorate General of Small, Medium and Miscellaneous Industries conducted IP outreach programs in several districts, including Bantul, Sleman, and Yogyakarta City, during late August. Director General Reni Yanita underscored the necessity of cultivating IP awareness from the outset of business operations. She explained that IP serves both legal and economic functions, supporting business continuity and growth. Proper IP protection, she added, helps MSMEs avoid counterfeit threats and build consumer confidence in their offerings. Yogyakarta Special Region, or DIY, was chosen as a focal point due to its substantial industrial and creative economic potential. In 2025, the region’s economy expanded by 5.49%, with a gross regional domestic product of Rp208.13 trillion. Manufacturing contributed significantly, accounting for 11.80% of the GDP. Reni pointed out that the region hosts 419 MSME clusters encompassing 12,977 businesses, highlighting the need for enhanced IP knowledge and capacity among these entities. The ministry aims to align this potential with improved IP management practices to ensure sustainable development. In addition to general IP promotion, the ministry is focusing on strengthening geographical indications (GIs) for traditional crafts. In Bantul District alone, three GI-certified products, Yogyakarta Nitik Batik, Kasongan Bantul Pottery, and Pucung Bantul Carved and Painted Leather Puppets, are already recognized. Secretary Yedi Sabaryadi of the Directorate General outlined the advantages of IP protection, including legal security, reduced counterfeiting risks, and opportunities for commercialization through licensing and franchising. He mentioned that the ministry is assisting local artisans in preparing documentation necessary for registering the Muntuk Bantul Bamboo Weaving GI, further integrating traditional craftsmanship into the national IP framework. These measures reflect a growing recognition of IP as a cornerstone for economic resilience and international trade. As Indonesia seeks to position itself more effectively in global markets, the emphasis on IP protection signals a shift toward valuing innovation and heritage equally. The government’s continued engagement with MSMEs underscores a commitment to addressing systemic gaps while leveraging existing strengths in artisanal and manufacturing sectors. The upcoming initiatives aim to solidify Indonesia’s standing in the competitive global marketplace by empowering local producers with the tools needed to thrive.