In a bid to realize a more conducive environment for innovation within Indonesia, the House of Representatives (House) finally passed the Bill on Patents (“Bill”) on 28 July 2016.[1] The Bill sets out a new framework for the implementation and protection of patent rights in Indonesia, an area which was previously regulated under Law No. 14 of 2001 on Patent Law ("Patent Law").
 
This revision is deemed urgent and necessary, as the obsolete Patent Law has not made any significant contribution during the 25 years of its enforcement as regards encouraging innovators across Indonesia to both create and register technological inventions. According to official data, during 2011 around only 5,348 applications for patent registrations were submitted in Indonesia. This is in contrast with Singapore, which saw some 9,794 applications being filed during the same year. Even worse, only 200 national inventions were ultimately patented during the year in question, whereas more than 2,000 international inventions were officially registered in Indonesia.[2]
 
Technological innovation plays a hugely important role in national development, especially during an era in which Indonesia can no longer rely chiefly on its natural resources and will thus have to focus more upon its industrial sector. Meanwhile, the industrial sector itself is increasingly becoming more technologically driven, and is leaving more conventional, traditional methods in its wake. Technological invention has effectively doubled productivity across almost every industry by creating more efficient production chains, spurring greater cost efficiency, and implementing less labor-intensive processes. Ultimately then, the utilization of technology leads to greater industrial competitiveness.
 
With these issues clearly in mind, the new Bill strives hard to rectify what was perceived to be lacking under the previous legal framework by incorporating more than 30 new articles. Through the introduction of these new details, it is expected that the Bill will be able to provide greater certainty as regards the registration, protection and transfer of patent rights.