Indonesia

• Available Market Research
• Best Prospects in the ICT Market
• Chambers of Commerce
• Channels of Distribution
  • Agents / Distributors
  • Business to Business (B2B)
    • Airlines
    • Banks
    • Newspapers
    • US Subsidiaries
  • E-Commerce
    • Internet Service Providers
  • Educational
  • Governmental
  • Telecommunications Systems Operators
  • Used / Refurbished
• Directories and Databases
• Duties, Tariffs & Taxes
• General Country Information
• Intellectual Property Rights
• Legal Issues
• Market Research
• Search Engines
• Trade Associations
• Trade Publications
• Trade Shows, Exhibitions and Seminars
• Trade Statistics
• User Groups
• E-Mail Links to the Respective Industry Specialist(s)

Available Market Research

Industry Sector Analyses are industry specific reports prepared either by US Commercial Service Staff or local market research contractors.  Typical reports include:

• A Market Overview
• Market Highlights and Best prospects
• Statistical Data
• Best Sales Prospects
• Competitive Analysis
• End-User Analysis
• Market Access (includes information on duties, taxes, standards etc.)
• Trade Promotion Opportunities
• Trade Publications
• Market Research Companies
• Trade Associations
• Agents, Distributors and Manufacturers

International Marketing Insights (IMI) contain industry specific information and are short, concise reports. 

For a listing of available ISAs and / or IMIs, please click here.

This information is available free of charge to all US companies. 

Welcome to the U.S. Commercial Service

The U.S. Department of Commerce is represented worldwide by the Commercial Service.  The Commercial Service supports U.S. commercial interests and assists American businesses in their export marketing efforts.

Our offices offer business counseling and a wide range of tailored services to assist American firms to identify business opportunities throughout the world. Our offices foreign companies who wish to partner with American companies in areas of distribution of American products, joint ventures, and licensing. While some services are fee-based, many are provided free of charge. We welcome you to our site and encourage you to visit other websites that are likely to be of interest to you.  To find the country of interest, please visit: http://www.buyusa.gov/home/export.html. 

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Best Prospects in the ICT Market

For further information about the Indonesian market, please consult the Country Commercial Guide.

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Chambers of Commerce

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Channels of Distribution

For further information of the definitions of the channels of distribution, please click here. The following are known ICT sales channels.   They may or may not be available in all markets

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Agents / Distributors

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Business to Business (B2B)

Airlines

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Banks

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Newspapers

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US Subsidiaries

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E-Commerce

Internet Service Providers

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Educational

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Governmental

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Telecommunications Systems Operators

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Used / Refurbished

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Directories and Databases

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Duties, Tariffs & Taxes

For additional ICT specific information, please see http://web.ita.doc.gov/.

Please see: http://www.apectariff.org.  
-- Single column tariff schedule; rates applied on the CIF value.
-- Value Added Tax of 10 percent applied on the CIF + duty value.
-- 10-40 percent Sales Tax on "luxury items." 

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General Country Information

http://coombs.anu.edu.au/	Categorized directory that includes business directories and general country info
http://www.usembassyjakarta.org/	This is the homepage of the US Embassy Jakarta, Indonesia, including US Commercial Service information and selected business/economic reports
http://www.swa.co.id	SWA business magazine
http://www.vogel-media.com/	Vogel Media's guide to Indonesia
http://www.state.gov/	US Dept. of State's Background Notes
http://travel.state.gov/	US Dept. of State's Consular Information Sheet
http://www.odci.gov/cia/	CIA Factbook
http://www.eia.doe.gov/	US Dept of Energy's Country Analysis Brief
http://home1.swipnet.se/	Links to info about Indonesia
http://www.fodors.com/	Fodors is known for being the best site for travel offering hotel, restaurant reviews and their series of mini-guides to specific destinations.
http://geography.about.com/	About's guide to Indonesia
http://travel.lycos.com/	Lycos Guide for Indonesia

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Intellectual Property Rights

Foreign entities have no freehold rights to land ownership in Indonesia. Foreign investors' land holdings are usually obtained through long-term lease agreements (normally for 30 years) with the Government or private parties. These lease holdings can be used as collateral. Government regulations allow mortgages to be registered against real property and seagoing vessels in their appropriate registries, as well as security interests in chattel, equipment, accounts receivable, and insurance proceeds. A search facility currently exists only for mortgages. The lack of transparency in Indonesia's courts means uncertainty whether security interests will be recognized and enforced. Foreign companies may also establish a limited company under Indonesian law that can legally obtain rights to land.
 
The court system does not provide effective recourse for settling property disputes. The fall of President Soeharto's regime and Indonesia's decentralization process unleashed a flurry of new land claims by local residents against companies, often operating on Government-granted concessions located in their communities. The problem of incomplete or inaccurate record keeping is compounded by an ineffective and corrupt enforcement system.
 
The U.S. Government in May 2003 again placed Indonesia on the Special 301 Priority Watch List for inadequate protection of Intellectual Property Rights (IPR), where Indonesia has been since the 1980s. Although the Indonesian Government has steadily improved the regulatory and legal framework for the protection of IPR, enforcement continues to fall short. U.S. businesses reported that Indonesia ranks as the third largest producer of pirated products. They maintain that 80 percent of all CDs (audio, video, and software) sold in Indonesia are pirated and estimate that industry suffered losses in 2002 of US$ 253 million, a 33 percent increase over prior year.
 
Indonesia's new copyright law (Law 19/2002) takes effect on July 29, 2003. The new law increases fines up to Rp 500 million (USD 62,000) and provides for prison terms of up to five years for dealers of pirated materials. The law directs cases of alleged copyright violations to be tried in commercial courts, and for the rendering of judgments within 90 days. As part of the law's implementation, the Ministry of Industry and Trade plans to issue optical disc regulations that would enhance the Government's ability to identify and prosecute producers of pirated products. In an effort to enhance interagency coordination on enforcement, Indonesia's Ministry of Justice recently formed an IPR task force made up of the national police, customs, attorney general, judiciary, and members of the computer software and entertainment industries. The task force has already conducted a few high profile raids.
 
Indonesia is a member of the World Intellectual Property Organization but has not yet ratified the related WIPO Performances and Phonograms Treaty (WPPT). The Ministry of Justice prepared a Presidential decree ratifying WPPT last year, and Justice officials expect the President to sign the decree sometime in 2003. Indonesia acceded to numerous international conventions on intellectual property rights, including the Paris Convention for the Protection of Intellectual Property; the Berne Convention for the Protection of Literary and Artistic Works (with a reservation on Article 33); the Patent Cooperation Treaty; Trademark Law Treaty; the Nice Agreement for the International Classification of Unclassified Goods and Services.
 
Patents: The current patent law dates from 2001, which amended and consolidated in a single text all previous legislation. In 1997, Indonesian law extended the term of patent protection to 20 years from 14 years, and maintained the provision for a two-year patent extension. The amendment allows for the patenting of plant and animals. However, some of the weaknesses of the old law persist. Chief among these flaws is the requirement that an inventor must produce a product or utilize a value-added process in Indonesia in order to obtain patent protection for the product or process. Inventions that are contrary to Indonesian laws and regulations are excluded from patent ability, and the standard for excluding inventions without domestic content appears to be inconsistent with TRIPS requirements.
 
Trademarks: Indonesia enacted its new trademark law on August 1, 2001. Like the new patent law, the latest version consolidated into one text a series of trademark laws enacted over the past 20 years. The new law raised the maximum fine for trademark violations to Rp 1 billion (USD 95,000) and slightly reduced the maximum possible prison term. The Government justified this move by claiming that financial penalties were a greater deterrent to IPR violators than imprisonment. Foreign rights holders, arguing that most IPR cases never result in the maximum sentence, had pushed for minimum sentencing guidelines rather than higher fines.
 
The trademark law provides for the determination of trademark rights by priority of registration, rather than by priority of commercial use. The law also provides for the protection of well-known marks, but offers no administrative procedures or legal ground under which legitimate owners of well-known marks can cancel pre-existing registrations. Currently, the only avenue for challenging existing trademark registrations in Indonesia is through the commercial courts, which generally have issued decisions within three months upholding legitimate trademarks.

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Legal Issues

None Noted

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Market Research

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Search Engines

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Trade Associations

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Trade Publications

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Trade Shows, Exhibitions and Seminars

Additional information on how to prepare for and select an international trade show can be found at

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User Groups

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E-Mail Links to the Respective Industry Specialist(s)

Mr. Kalung Riang, Commercial Specialist

T. (62/21) 526-2850
F. (62/21) 526-2855

EMail: kalung.riang@mail.doc.gov 

Industry Sectors: Computer and Peripherals; Robotics; Computer Software; Computer Services; Information Services; Telecommunications Equipment; Telecommunications Services

OFFICE INFORMATION

STREET ADDRESS

American Embassy

U.S. Commercial Center

Wisma Metropolitan II, 3rd Floor

JI. Jend. Sudirman Kav. 29-31

Jakarta 12920, Indonesia

U.S. MAILING ADDRESS

American Embassy - Jakarta

Box 1 Unit 8129 FCS

FPO, AP 96520

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Revised: November 08, 2008

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