Enhancing Competitiveness in Indonesia by strengthening intellectual property rights

The objective of the Indonesian-Swiss Intellectual Property Rights Project ("ISIP") is to strengthen the application of IPR in Indonesia in order to contribute to better competitiveness, increase value creation for Indonesian products and exert a positive influence on Indonesian economic development.
 
An effective IPR (Intellectual Property Rights) system in Indonesia is also in Switzerland's interest. Only an efficient Indonesian IPR office is in a position to comprehensively protect patents, trademarks and GIs (Geographical Indications) of Swiss companies. The planned free trade agreement between Switzerland/EFTA and Indonesia underlines the importance of this emerging market. Due to the clearly positive results of the first phase of ISIP and the continuing need for support, all parties involved agreed to transfer the project to a second phase.  
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Jakarta
-6.198747
106.897188
Project duration
2017 - 2021
Financed by
  • State Secretariat for Economic Affairs SECO

The project

The ISIP project was initiated at the request of the Indonesian Government to the Swiss Confederation, and its first phase was successfully implemented from 2012 to 2016. An effective IPR system in Indonesia is also in the interest of Switzerland. Only an efficient Indonesian intellectual property office (the DGIP) is able to provide solid protection for patents, trademarks and GIs of Swiss companies. The planned free trade agreement between Switzerland/EFTA and Indonesia underlines the importance of this emerging market. Due to clearly positive results of the first phase of ISIP, and ongoing need for support, all parties agreed on entering into the second phase of the project.

Goals/ Objectives

While the core focus areas remain the same as in the first phase, the second phase puts more emphasis on making geographical indications economically sustainable, and on supporting Indonesia’s creative industry. Selected thematic areas of high relevance to Indonesia include:

  • Further support the intellectual property expertise of the DGIP examining patent applications and preventing IP disputes;
  • Provide advice to the revision of IPR policy frameworks;
  • Strengthen the capacities of the DGIP to provide internal trainings and external information to IPR users;
  • Provide advice on the use of IPRs for exports of creative industry SMEs;
  • Support producers of GI value chain products with tailor-made trainings on market access, quality control, and organizational development; and
  • Build capacities of Collective Management Organizations

Beneficiaries

The main beneficiary of the project is the Indonesian government agency DGIP through direct technical capacity building. In addition, local small and medium enterprises (SMEs) and relevant associations such as Collective Management Organizations, MIAP, INNOPA,ASKII, and UNPAD benefit from tailor-made workshops and training programmes, while other economic actors as well as the wider Indonesian public benefit indirectly through improved IPR services and increased quality and competitiveness of Indonesian goods and products. The impact of the second phase of the ISIP project also extends to more vulnerable segments of the population, such as rural communities, mainly through the use of GIs to market local specialties (support to GI producer associations).

Project partner

  • Swiss Federal Institute Of Intellectual Property – IPI
  • Indonesian Directorate General Of Intellectual Property - DGIP

Results

  • ASKII (Association of Indonesian Intellectual Property Centres) and INNOPA (Indonesian Invention and Innovation Promotion Association) improved their IP and IP commercialisation capacity as well as their network relations with  DGIP, INNOPA, MIAP, Polytechnics under S4C, Directorate of Customs, and Ministry of Foreign Affairs in planning and creating better services for their members. The members of ASKII increased from few into hundreds of members and they are now paying the membership fee;
  • Strong interest of several polytechnic institutes (not initially foreseen as project partners) in improving their technology transfer and IP commercialisation skills resulted in intense support provided by the project (synergies with S4C project) and finally also resulted in the establishment of a new Sentra KI (technology transfer centre at Polytechnic Institute of Kendal), which reflects the high relevance of IP for the academy; 
  • Hundreds of researchers, lecturers and patent examiners of ISIP partner organizations were trained and improved their knowledge on intellectual property focusing on patent drafting and IP commercialization;
  • The management workshops that strengthened capacities of 8 music CMOs (Collective Management Organizations) and the NCMO resulted in the drafting of implementing regulations in the sector. The regulations were enacted by the government in April 2021; 
  • Increased production for:
  • Sikka Weaving (Tenun Ikat Sikka) by 134% from averagely 215 sheets/ year to 503 sheets/ year
  • Amed Salt by 148% (average 13.3 kg/ year to 33 kg/ year) by registering product as GI products;
  • The average annual income of household producers resulted from the sale of their GI product had increased in Sikka (East Nusa Tenggara) and most significantly in Amed (Bali);
  • As a direct outcome of the virtual Bajawa coffee auction, a strong request for training on GIs was communicated from the side of the Indonesian coffee sector (traders, roasters). Relevant training was provided to buyers and traders of coffee in Indonesia which resulted in a nation-wide dialogue how to best use GIs to ensure quality and origin of coffee and thereby strengthen coffee producers.