For foreign Patent owners—whether individuals or entities—navigating Patent Annuity payments in Indonesia requires careful attention to local legal requirements. Under the latest Indonesian Patent Law (Law No. 65 of 2024), foreign applicants or Patent Holders are not permitted to interact directly with the Directorate General of Intellectual Property (DGIP) for official filings, including Annuity Payments. Instead, they are legally required to appoint a registered Intellectual Property Consultant as their proxy.
Legal Basis: Article 28 of Law No. 65 of 2024
“An Application filed by an Applicant who does not reside or does not have permanent domicile in the territory of the Republic of Indonesia must be filed by his/her Proxy. The Applicant, as referred to in Paragraph (1), is required to state and select the address of the Attorney as the legal domicile in Indonesia.”
This provision applies not only to initial Patent filings but also to any subsequent procedures related to the Patent—including annuity payments.
Why Is a Local Proxy Mandatory?
The purpose of requiring a legal representative within Indonesia is to avoid complications in service due to geographic distance and travel time. As stated in the explanation of the Law:
“The appointment of power of attorney and legal domicile in Indonesia aims to not complicate services due to distance and travel time.”
In practice, this means that even if a foreign Patent Holder wishes to make timely Annuity Payments, such payments will not be accepted by the DGIP unless submitted through a registered local proxy.
What Happens If a Foreign Patent Owner Pays Without a Local Proxy?
Without a legally appointed Indonesian Intellectual Property Consultant, the payment is considered invalid. This could result in:
- Rejection of the Annuity Payment by the DGIP;
- Legal status of the Patent becoming vulnerable, especially if deadlines are missed as a result;
- Loss of Patent Rights if annuity obligations are not fulfilled properly through the designated channels.
How to Appoint a Local Proxy?
To comply with Indonesian law, foreign individuals or entities must:
- Sign a Power of Attorney (PoA) authorizing a registered Indonesian IP Consultant;
- Provide the necessary details for the Consultant to act as legal proxy and domicile;
- Work with the Consultant to monitor and schedule annuity payments according to Indonesian regulations.
If you’re a foreign Patent Owner, it is not just a matter of convenience but a legal obligation to appoint a registered Indonesian IP Consultant to handle your Patent Annuity fees. Doing so ensures compliance, avoids unnecessary risks, and maintains the enforceability of your patent in Indonesia.
Should you need more information about your annuity payments in Indonesia, feel free to contact us at [email protected].
