Geographical Indications for Indonesian Cuisine: Untapped Potential - AFFA IPR

Geographical Indications for Indonesian Cuisine: Untapped Potential

Intellectual Property, Geographical Indication1 Comment

According to data from the Ministry of Tourism and Creative Economy of the Republic of Indonesia, Culinary tourism accounts for about 30-40% of tourists’ total spending during their visit across the country. Names such as Kopi Gayo (Gayo Coffee), Kripik Sanjay (Sanjay Hot Chips), Sate Padang (Padang Satay), Pempek Palembang, Dodol Garut, Tahu Sumedang (Sumedang Tofu), Lumpia Semarang, Soto Madura, Bali Peanuts, and many more have become signature souvenirs that must be purchased when visiting these destinations.   These popular culinary products also bolster the local economy, as most originate from Small and Medium Enterprises (SMEs) that play a vital role in job creation and increasing local income. However, one untapped potential for these regional-based culinary items is their registration as Intellectual Property, specifically as Geographical Indications.   So, why have people yet to do this? What are the obstacles? And what’s the difference between a Trademark and a Geographical Indication in Indonesia? Here’s the explanation…   Legal Basis for Geographical Indications in Indonesia   Geographical Indications, along with Trademarks, are regulated by Indonesian Law No. 20 of 2016 on Trademarks and Geographical Indications (Trademark and GI Law). The law defines:   “A Geographical Indication is a sign indicating the origin of goods and/or products from a certain area that, due to geographical factors such as natural elements, human factors, or a combination of both, gives the goods and/or products a specific reputation, quality, and characteristics.”   Article 53 of the Trademark and GI Law:  The applicant can be the provincial or district/city government or an organization representing the community in a specific geographical area involved in producing goods and/or products such as:   natural resources; handicrafts; or industrial goods.   Thus, if a natural product like coffee, cloves, nutmeg, shrimp, pearls, woven goods, batik, or traditional cuisine comes from a specific geographic area, as long as it doesn’t conflict with national ideology, laws, morality, religion, decency, and public order, isn’t misleading, and is not the name of a plant variety (unless paired with a geographic indication term), it can be registered as a Geographical Indication.   Benefits of Geographical Indications   Registering a product as a Geographical Indication (GI) offers many benefits, particularly for local producers and communities involved in the production. Here are some of the main benefits of GI registration:   Legal Protection for Name Usage One of the most significant benefits of registering a product as a GI is legal protection over using the product’s name. GI registration ensures that only producers from the specified geographic area and those who meet specific production standards can use the name. This prevents others outside the area or those not adhering to the standards from using the GI name indiscriminately.For example, only producers from Garut who meet the standards can use the name “Dodol Garut.” This helps maintain the product’s reputation and quality in the market, ensuring it meets consumer expectations for taste. Increases Product Value and CompetitivenessProducts registered as GIs usually have higher market value due to their reputation associated with a particular area and recognized quality. Consumers are often willing to pay more for products known for their specific geographic origin, associating them with quality, uniqueness, and tradition. This enhances the product’s competitiveness in both domestic and international markets.For instance, Gayo Arabica Coffee, registered as a GI in 2018 by the Directorate General of Intellectual Property (DGIP), has a premium quality reputation in international markets, boosting demand and selling prices.   Preserves Tradition and Local KnowledgeGI registration helps preserve traditional knowledge and production techniques passed down through generations. The standards set in GI registration often include conventional production methods, ensuring producers adhere to established practices, thereby preserving the tradition.For example, “Tenun Ikat Sikka” (Sikka Traditional Weaving) from East Nusa Tenggara, registered in 2018 by DGIP, guarantees that every weaving product is crafted by local communities who consistently maintain their unique production techniques and cultural identity. Boosts Local EconomyRegistering a product as a GI can drive the local economy, from increasing product demand to making it a tourist destination. With GI recognition, local producers can better market their products domestically and internationally. Ultimately, communities’ incomes dependent on the product can increase, especially if they manage the production center as a tourist destination that offers added value for visitors.For example, Kintamani Arabica Coffee from Bali registered as a GI, has significantly boosted the economic standing of coffee farmers in the area. Builds International Reputation and BrandingProducts registered as GIs are typically easier to promote in international markets due to their reputation linked to a specific geographic area. GIs help products gain global recognition and become stronger brands. Moreover, GI registration protects products from unauthorized use in international markets.Today, Indonesia is recognized as a high-quality coffee producer. Over 50 coffee-related Geographical Indications are registered with DGIP, making it the dominant GI category. Prevents Counterfeiting and FraudThe legal protection a Geographical Indication provides prevents the growth of counterfeit or lower-quality products using the same name to exploit the registered product’s reputation. This safeguards the original product’s quality and integrity in the eyes of consumers, protects the original producers from losses, and prevents consumers from being deceived.For example, if “Sumedang Tofu” were registered as a GI, it could prevent parties outside Sumedang from using the name without permission or failing to meet production standards. Strengthens Consumer RelationshipsConsumers tend to trust GI-registered products because they know the product is made to specific standards and has unique characteristics tied to its geographic origin. This helps build trust between producers and consumers, which is key for long-term success.Why Have Many Local Culinary Products Not Been Registered as GIs?   There are several reasons why culinary delights like Padang Satay, Sumedang Tofu, and Madura Soto have not been registered as Geographical Indications (GI) despite their significant potential as distinct regional products:   Lack of Awareness or Knowledge About Geographical IndicationsMany local producers, organizations, or even local governments may need to fully realize the potential benefits of Geographic Indication protection. Coordination Required for RegistrationGI registration requires…

Building-ASEAN-Competence-in-the-World-Through-Geographical-Indications-affa-global

Building ASEAN Competence in the World Through Geographical Indications

Intellectual Property

Building ASEAN Competence in the World Through Geographical Indications Geographical indications (GIs) are vital in identifying products from specific regions known for their unique quality and characteristics. These indications are increasingly crucial to consumers who seek authenticity and quality in their purchases.    GIs apply to various sectors, including industry, agriculture, and handicrafts, promoting diversity within these domains. GIs guarantee product quality for consumers, offering protection against misleading origin descriptions. Furthermore, they foster trade on national, regional, and international scales, support rural development by creating jobs and higher incomes, and promote regions as tourism destinations. GIs also significantly preserve traditional knowledge and local biodiversity, often rooted in community-driven, traditional processes. Since the inception of the World Trade Organization (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) in 1994, GI protection systems have expanded globally, notably in Asia. The Association of Southeast Asian Nations (ASEAN) countries have actively embraced GI identification and registration as a strategic tool for domestic and international market presence. As of January 2019, ASEAN countries have registered an impressive 346 GIs. This includes 37 foreign GIs, illustrating ASEAN nations’ remarkable interest in GI protection.   Thailand, Malaysia, & Indonesia Lead the Awareness These registrations vary among countries. Thailand leads with 115, followed by Malaysia at 84, Indonesia at 74, Vietnam at 69, Cambodia at 3, and Lao PDR at 1. Eight GIs have been registered in the European Union market, such as Kampot Pepper from Cambodia and Nuoc Nam Phu Quoc from Vietnam. The EU-Singapore Free Trade Agreement is poised to introduce EU GIs to Singapore, further underscoring the global significance of GIs in trade and commerce.     As with other Intellectual Property Rights, there is no common legal framework for protecting GIs at the ASEAN regional level. Each country has its own GI legal framework. Due to their relationship with the EU, most ASEAN member states (8 out of 10) have followed the sui-generis approach for protecting GIs, where the application includes a “book of specifications” or “description document” comprising the descriptions of the product, geographical area, method of production, and the link between the product and its geographical origin. The exceptions are the Philippines and Brunei Darussalam, which protects GIs through its Trademark systems.   Geographical Indications Increase Various Product Prices In the EU, the price of a GI product has been estimated at 2.23 times the price of a comparable non-GI product (on average, 1.5 times more for agro-food products).  Another worldwide study estimates that the GI premiums lead to prices 20% to 50% higher than comparable non-GI products. In the ASEAN region, GIs show a positive impact in terms of volumes, prices, and local development. For example, for all the GIs for pepper, there has been an increase in prices during a period where the international price of pepper was relatively stable. The price of Kampot White Pepper (Cambodia) increased by a factor of 2.6 between 2009 and 2018, the price of Muntok White Pepper (Indonesia) increased by a factor of 6 between 2009 and 2015, while the price of Sarawak Pepper (Malaysia) increased by a factor of 4.32 from 2003 (before GI registration) to 2016 (after GI registration) for sales in bulk.     Other successful GIs are in the area of coffee, with the farm gate price of Flores Bajawa Arabica Coffee Red Berries (Indonesia) increasing by a factor of 2.2 between 2005 and 2015, although such price increase remains unstable. For Doi Chaang Coffee (Thailand), the price of coffee berries evolved by a factor of 2. Buon Ma Thuot Coffee (Vietnam) benefits from an added value of 2–3% compared with the standard comparable coffee. Fruits also primarily benefit from GI protection, with the Koh Trung Pomelo (Cambodia) farm gate price increasing by a factor of 1.33 and the price of Pakpanang Tabtimsiam Pomelo (Thailand) rising by a factor of 1.75.     Finally, handicraft goods such as the Lamphun Brocade Thai Silk have seen some higher revenues following GI registration, with an increase in price by a factor of 1.5.  Other vital benefits of GIs are the development of the GI product value chain structure and the creation of a collective organization of producers and processors for the management of the GI, such as the Community for the Protection of Geographical Indication of Amed Bali Salt (Indonesia). Agro-tourism, another key benefit, was developed in the Sarawak Pepper (Malaysia) area, coffee festivals have been organized in Buon Ma Thuot (Vietnam), and the preservation of traditional rice varieties is carried out with the GI Khao Kai Noi (Laos).   Protecting GIs in the European Union and International Markets Like other forms of Intellectual Property, GIs need to be protected in each country where protection is sought, according to the legal framework of that particular country. For non-EU products to be registered in the EU market, producers send their applications directly or via national authorities to the European Commission.  For spirit drinks and agri-food products, the European Commission has a maximum of 12 and 6 months to examine the application. Foreign GIs will be registered as GIs in the EU market if they fulfill the conditions of the EU system, which are a link between the product and its place of origin and the presence of a control mechanism. Foreign GIs can be protected as a Protected Designation of Origin (PDO) or a Protected Geographical Indication (PGI), the two systems in place in the EU.   PDO or PGI? Product names registered as a PDO have the most vital links to the place they are made, with every part of the production, processing, and preparation process taking place in the specific region. For wines, this means that the grapes have to come exclusively from the geographical area where the wine is made.   PGI emphasizes the relationship between the specific geographic region and the product’s name, where a particular quality, reputation, or other characteristic is essentially attributable to its geographical origin. For PGI, for most products, at least…