U.S. Government Upgrades Indonesia’s IPR Enforcement Rating 

November 6, 2006

bahasa Indonesia

WASHINGTON – The Office of the United States Trade Representative (USTR) announced today that it has lowered Indonesia to the Watch List under the Special 301 review, which examines the effectiveness of intellectual property rights (IPR) protection.

“We are encouraged by the steps that Indonesia has taken to improve enforcement of intellectual property rights,” said USTR Susan C. Schwab. "The United States urges Indonesia to build upon the foundation it has laid to make further progress on protection of IPR to achieve its own objective of attracting high-quality foreign investment and to provide more jobs and economic growth opportunities.”

This decision to move Indonesia from Priority Watch List down to Watch List status is the result of an “Out-of-Cycle Review” (OCR) of Indonesia’s record on IPR, announced last spring. The OCR concluded that throughout 2006, Indonesia bolstered implementation of its optical disc regulations designed to stop illegal production of pirated CDs and DVDs by controlling the licensing of factories and conducting raids against pirate optical disc production facilities and retail outlets. During this period, the Indonesian Government’s minister-level National Intellectual Property Task Force and its working groups coordinated IPR enforcement strategy among agencies and conducted public awareness campaigns. Indonesia also passed a new Customs Law that gives Customs officers the authority to seize goods that infringe on IPR.

“This is a significant development, which will have positive implications for Indonesia’s economy,” said Assistant U.S. Trade Representative Barbara Weisel. “Foreign investors often evaluate the strength of IPR protection as a key element in its investment decisions. The steps that Indonesia has taken to improve its IPR regime will enhance Indonesia’s position in the fierce competition for foreign investment in this region.”

While recognizing Indonesia’s progress, the U.S. Government review also concluded that sustained effort on key IPR issues will be essential to avoid a return to the Priority Watch List. In addition, efforts to address other critical IPR issues will be essential to demonstrate that Indonesia is serious in creating and sustaining an effective IPR enforcement regime. Indonesia has been on the Special 301 Priority Watch List since 2001.

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