[Reminder] Indonesia – Patent Working Statement to be Submitted Before 31 December 2025

All Patent Owners in Indonesia are reminded to submit their Patent Working Statement or ‘Statement of Use’ no later than 31 December 2025 or before the date of the annuity deadline. This requirement applies to all Granted Patents and is mandated under the latest amendments to Indonesia’s Patent Law. Failure to comply may result in legal consequences, including compulsory licensing and/or invalidation.

 

Previously—and still applicable—Article 20 of the Patent Law has regulated the obligation to implement Patents in Indonesia as follows:

 

• Product Patent: Obligated to manufacture, import, or license the product.

• Process Patent: Obligated to manufacture, license, or import the product resulting from the patented process.

• Method, System, & Use Patents: Obligated to manufacture, import, or license the product resulting from the method, system, or use.

 

Obligation to Implement Patents in Indonesia

 

In this third amendment, Article 20A has been added to the Patent Law, stipulating that every Patent holder is required to submit a declaration of Patent use in Indonesia and report it to the Minister through the Directorate General Intellectual Property (DGIP) at the end of each year, accompanied by proof of implementation. The implementation of the Patent may be carried out either by the Patent holder or by a third party under license from the Patent holder. The objective of this provision is to encourage technology transfer, investment, job creation, and tangible economic growth for Indonesia.

 

Forms of Patent implementation may include:

• Manufacturing the patented product but it has not been commercialized yet;
• Manufacturing the patented product and it has already been commercialized;
• Utilizing the patented process but it has not been commercialized yet;
• Utilizing the patented process and it has already been commercialized;
• Importation; and
• Licensing.

 

Consequences of Non-Implementation of Patents

In this latest amendment, provisions regarding consequences such as compulsory licensing or Patent revocation, which were previously regulated under Articles 82 and 130 of the Patent Law, have been removed.

 

Instead, the annual reporting obligation as stipulated in Article 20A serves as an instrument for the government to monitor Patent utilization in Indonesia.

 

Although administrative sanctions for non-compliance with the reporting obligation are not explicitly regulated yet, this obligation opens the possibility for the government to issue further implementing regulations or administrative policies in the future.

 

Acceptable Reasons for Delayed Implementation

Previously, the Patent Law allowed Patent holders to provide legitimate reasons for not yet implementing their Patent, such as:

 

• Force majeure circumstances.
• Regulatory or licensing obstacles to production.
• Production is still in preparation stages.

 

In the amended Patent Law, although these reasons are no longer explicitly listed, Patent holders may still include such reasons in their annual reports as part of the explanation or justification in cases where implementation has not been optimal.

 

You might also want to read:
5 Stages of Patent Registration Process in Indonesia

 

Should you need further information regarding the submission of Patent Working Statement in Indonesia, please contact us through the channels below:

📩 E-Mail : [email protected]
📞 Book a Call : +62 21 83793812
💬 WhatsApp : +62 812 87000 889

 

About AFFA: Established in 1999, AFFA Intellectual Property Rights is an Indonesia-based boutique IP law firm serving international brands and innovators, offering full-service support—from prosecution and licensing to enforcement and commercialization—in Indonesia’s dynamic IP landscape. Our firm is widely recognized for its excellence, with accolades including “Best Boutique Law Firm in Indonesia” and “IP Enforcement Firm” at the Indonesia Law Firm Awards 2025 by Asia Business Law Journal, as well as being listed as a “Recommended Firm 2024 — Indonesia” by WTR 1000: The World’s Leading Trademark Professionals. For more information, please visit: www.affa.co.id.