recent spotlight by the United States Trade Representative (USTR) on Mangga Dua Market as a center for counterfeit goods has once again brought Indonesia’s intellectual property (IP) enforcement challenges to the fore.

Background and Government Response

The USTR’s 2025 National Trade Estimate Report identifies Mangga Dua Market in Jakarta as a hub for counterfeit products, highlighting persistent concerns over the enforcement of intellectual property rights (IPR) in Indonesia. The Indonesian Minister of Trade, Budi Santoso, has responded by affirming the government’s commitment to regular monitoring and enforcement actions against illegal goods, including recent confiscations at Mangga Dua. He acknowledges the importance of IPR enforcement but also notes the complexity and persistence of the problem.

Legal and Enforcement Landscape

Indonesia has made progress in establishing cross-agency task forces to address IP violations, such as the destruction of counterfeit goods led by the Directorate General of Intellectual Property (DGIP) and other relevant agencies. These efforts are intended to send a strong deterrent message to offenders and reassure IP owners of protection. However, several systemic issues persist:

– Reactive Enforcement

Enforcement remains largely reactive, with limited proactive raids and inconsistent application of the law.

– Resource Constraints

Under-resourcing of enforcement personnel and lack of coordination between agencies hamper effective action.

– Legal Barriers

Many IP crimes are “complaint-based” (delik aduan), meaning that enforcement often requires a formal report from the rights holder or brand owner before authorities can act. This places a significant burden on rights holders, especially smaller businesses.

– E-Commerce Challenges

The rise of online sales has outpaced regulatory adaptation, with counterfeit goods readily available on digital platforms. Current laws lack strong provisions to hold online intermediaries accountable or to facilitate swift takedowns of infringing listings.

– Procedural Hurdles

Complex procedures, high costs (such as storage and destruction of seized goods), and requirements for local representation further complicate enforcement for foreign and domestic rights holders.

– Corruption and Local Protectionism

These factors continue to undermine consistent enforcement, particularly at the local level.

International and Domestic Implications

The USTR’s continued placement of Indonesia on the Priority Watch List underscores the international community’s concern and can have trade implications, including the potential for increased tariffs or other barriers.

Domestically, the prevalence of counterfeit goods not only harms IP owners but also poses risks to consumer safety and undermines local industry innovation.

To strengthen Indonesia’s IP enforcement regime, several reforms are necessary:

• Simplify customs and enforcement procedures, reduce costs, and shift the financial burden of storage/destruction to importers once counterfeits are confirmed.

• Set minimum enforcement quotas for police and customs to encourage proactive action.

• Enhance legal frameworks to impose liability on online platforms and require robust seller vetting.

• Increase resources, training, and inter-agency coordination to ensure consistent and effective enforcement.

• Encourage public awareness campaigns to reduce demand for counterfeit goods, as highlighted by government officials.

While Indonesia has demonstrated commitment to improving IP protection, significant structural and procedural challenges remain. Addressing these will require comprehensive reforms, increased resources, and stronger collaboration between government, rights holders, and the public. Only through such concerted efforts can Indonesia hope to shed its reputation as a haven for counterfeit goods and foster a truly innovation-friendly.

[RH & PARTNERS/ KHudewi]

 By: Khurnia Hudewi

Indonesia’s framework for platform liability regarding intellectual property (IP) is primarily governed by:

– Government Regulation No. 80 of 2019 on Electronic-Based Trading.

– Minister of Communication and Informatics Regulation No. 5 of 2020 (MOCI 5/2020).

– Circular Letter No. 5 of 2016 on Platform and Merchant Liability for User-Generated Content (UGC) in e-commerce.

Platform Obligations

Indonesian electronic system providers (ESPs), including e-commerce and digital content platforms, must:

– Ensure their platforms do not facilitate the distribution of electronic information violating existing laws and regulations, especially IP.

– Implement robust content governance and reporting mechanisms, allowing public complaints regarding infringing content.

– Respond to takedown requests regarding prohibited or infringing content within 14 days.

Safe Harbor and Liability Limits

Indonesian law provides “safe harbor” protections for platforms if they:

– Take prompt action on takedown requests and confirm the absence of direct involvement in the infringement.

– Demonstrate active monitoring and control mechanisms to remove or disable access to IP-violating content.

Platforms that meet these standards may be protected against liability for IP infringement committed by platform users. However, the recent Constitutional Court decision broadened the scope of platform responsibility, emphasizing the platform’s duty to anticipate and mitigate infringement risks.

Recent Developments and Enforcement Trends

– Platform liability has come under scrutiny with high-profile enforcement actions and rising IP complaints against e-commerce platforms in 2024–2025. Major platforms such as Shopee and Tokopedia have been required to strengthen their anti-infringement mechanisms, with the U.S. Trade Representative maintaining some Indonesian platforms on the Notorious Markets list for IP violations.

– The Constitutional Court of Indonesia recently declared Article 10 of the Copyright Law unconstitutional to the extent that it did not encompass digital service platforms, effectively increasing responsibilities for UGC platforms in monitoring and acting against infringing content.

– IP owners are encouraged to take advantage of available complaint and takedown channels and where necessary, pursue complaints to enforcement authorities for persistent offenders.

RH & Partners’s Practical Recommendations

– IP owners who find their rights infringed on digital platforms should promptly report such content through the platform’s complaint mechanisms and document their complaints and any platform responses.

– Platform operators should ensure their internal procedures and systems are compliant with content governance requirements and able to provide timely responses to takedown requests to maintain safe harbor protection status.

– All industry stakeholders should watch for further regulatory amendments and judicial decisions, as Indonesia continues to harmonize its approach to platform liability with global enforcement trends.

For further inquiries on IP platform liability or assistance with enforcement actions, contact RH & Partners’ IP team at rhp@rhp.co.id or Khudewi@rhp.co.id.

By: Khurnia Hudewi