Indonesia's Path to Exiting the USTR Priority Watch List: Challenges and Strategies

Indonesia has been on the USTR's Priority Watch List (PWL) for 16 years due to weak intellectual property (IP) enforcement, including piracy, counterfeiting, and inadequate laws. The 2025 Special 301 Report notes insufficient penalties, poor border controls, and outdated Copyright and Patent Laws as key issues.

Despite these challenges, Indonesia has taken steps to address the issues. The Directorate General of Intellectual Property (DGIP) has formed an IP Task Force, involving multiple ministries and law enforcement agencies, to coordinate enforcement efforts. Initiatives include certifying shopping centres to reduce counterfeit sales, conducting raids on piracy operations, and collaborating with international bodies like Interpol. The government has also engaged with the USTR and U.S. industrial associations to strategize improvements, aiming to enhance law enforcement and regulatory frameworks.

Exiting the PWL could boost Indonesia's attractiveness to foreign investors, signalling a robust IP environment. However, success hinges on consistent execution and addressing the root causes of enforcement gaps, ensuring that the country meets global IP standards and restores its international trade credibility.