Batik - Indonesia’s IP darling

Batik is arguably Indonesia’s favourite intellectual property.  It is frequently the focus of media attention, particularly at times when tensions flare up with Malaysia - both countries claim batik as their cultural heritage, and this is a source of conflict (see here).  Indonesia has strengthened its claim by having batik listed on UNESCO’s list of world's intangible cultural heritage (in 2009 - see here), and setting up the Indonesia Ethnic Designers Forum (Fodei) in 2014 (see our post here).  2009 also marked the re-introduction of batik in the workplace when then president Susilo Bambang Yudhoyono encouraged workers to wear batik to the office. 

Now, the Ministry of Trade has introduced new regulations to protect Indonesian batik businesses.  Regulation No. 53/M- DAG/PER/7/2015 on Import Provisions for Batik and Batik-Patterned Textiles and Textile Products comes into force on 14 October 2015.  It restricts imports of batik and batik-patterned products by introducing a requirement to register with the Director-General of Foreign Trade as an authorised importer.  An authorised importer is required to submit evidence of import and business licenses, but the regulation does not include specific limitations on the origin of the batik product - cheap batik from China challenging the viability of local businesses is a hot topic (see here, for example).  What the regulation should achieve is effective monitoring of how much batik product is being sourced from overseas, and this presumably could lead to the imposition of controls in the future.

Batik designs can be protected under the Copyright Law, and under industry-specific regulations - for example, restricting the use of certain patterns that have traditional significance, and the use of ‘batikmark’ certification.

(current President Joko Widodo and former president

Susilo Bambang Yudhoyono wearing batik shirts)

Preparing for the AEC

The Asean Economic Community (AEC) is set to commence at the end of this year, but there is very little public discussion about the opportunities and threats that this significant change presents for Indonesia (see commentary on point here).  The AEC will have more than 600 million people, and a GDP of USD 2.4 trillion (7th largest economy in the world).  Indonesia will account for roughly a third of this, and we expect to see other ASEAN countries taking advantage of access to the Indonesian market.

The Indonesian government has tasked the Creative Economy Agency with increasing awareness about intellectual property rights and helping Indonesian businesses ensure that products and services meet international standards (see here).  Whatever effect these measures may be having, they don’t appear to be resulting in a rush to protect intellectual property rights.

The introduction of the AEC will bring down trade barriers, but will have no impact on intellectual property laws - IP rights need to be protected under each member country's laws.  All businesses - local and foreign - that intend to trade in the Indonesian market should be reviewing IP Plans and portfolios in anticipation of an expected increase in competition.