The Development of Small and Medium Enterprises in Indonesia: An Overview

Prepared by: Ms. Erbita D. R. HutagalungDirectorate General of Intellectual Property Rights, Ministry of Law and Human Rights of the Republic of Indonesia

Background

• The vast majority of businesses are SMEs,(99,98% of total business nationwide)*

• SMEs become economic strength• SMEs are the main base of national

economic development

* (Source: www.depkop.go.id)

IndonesiaIndonesia

•Low interest of SMEs toward IP system•SMEs have not utilized optimally current

IP system•SMEs have not take advantages the

opportunity offered by the government•Special incentives offered to SMEs have

not being used•SMEs only stress on the importance of

manufacturing their products

Current Situation

Why IP is important for SMEs?

• To protect domestic brands • To prevent infringements• To encourage innovations• To strengthen business competitiveness

in global market• To enhance domestic industry

competitiveness• IP as a tool for marketing• Opportunity for lisencing

Government Efforts to Encourage the Utilization of IPR System

• Designation of Provincial Offices of Ministry of Law and Human Rights to receive IP applications

• Reduction Fee for SMEs• IP Socialization for SMEs• Subsidy for SMEs• The establishment of Innovation Center for

MSMEs

Reduction Fee Policy to support SMEs

• 50% reduction of fees for industrial design registration for SMEs

• 50% reduction for renewal of trademark registration.

IP Socialization for SMEs conducted by DGIPR

• Dispatch IP experts/ speaker from DGIPR to give presentation, lectures;

• Hold public awareness activities/campaign such as seminars, workshops, training courses;

• IP awareness campaign through inter-active talk-shows on IPR in various TV and radio;

• Dissemination of IP Information through the internet;

• Publication of IP Information in the form of books, booklets, brochures, leaflets, posters, stickers.

IP Socialization for SMEs Conducted by DGIPR (2003-2007)

Padang

Bengkulu

Serang

Jakarta

Lampung

Palembang

Surakarta

Pangkal Pinang

Malang Kupang

Mataram

Makassar

Kendari

Jayapura

Manado

Palangkaraya

Balikpapan

Gorontalo

Subsidy Support for SMEs

• Ministry of Cooperative and SME: subsidy for trademark and industrial design

application fee.• Ministry of Industry: subsidy for trademark and industrial design

apllication fee.• State Ministry of Research and Technology: subsidy for patent application fee.• Local Government:

- Province of Yogyakarta Special region;- Province of West Java; - Province of Central Java; - Province of East Java;- Province of west Nusa Tenggara (patent).

Related Government Institutions that deal with support SMEs

1. Ministry of Laws and Human Right (DGIPR)2. Ministry of Cooperatives and SME3. Ministry of Industry 4. State Ministry of Research and Technology5. Local government6. IP Clinic in Universities and R & D

Institutions

Conclusion

• IP system for SMEs will accelerate the growth of industry and employment, stimulate the improvement of economic davelopment

• IP system will strengthen business competitiveness in national and international market

Thank you for your attention

http://www.dgip.go.id