Protecting intellectual property (IP) is more than legal compliance. It is a statement of a company’s commitment to safeguarding and managing its innovative assets. When a business holds patents or other forms of IP protection, it signals serious investment in research, development, and long-term strategy.
For business partners and stakeholders, including investors, this demonstrates technological strength and reduced exposure to plagiarism or legal disputes. A strong IP portfolio also enhances a company’s professional image and credibility in the market. Well-managed IP protection not only shields innovation but also strengthens a company’s competitive position within the industry.
How Patents Increase Company Value in the Eyes of Investors
Patents serve as both an indicator of innovation and a legal safeguard for technological inventions. For investors, patents are tangible assets that can be commercialized, licensed, or leveraged in business expansion. Strong patent protection allows companies to secure exclusive rights over their innovations, which translates into increased economic value.
With legally recognized exclusive rights, companies can:
- Prevent unauthorized use of their inventions
- Develop licensing strategies for additional revenue streams
- Safeguard the uniqueness of their products or processes
- Build a foundation for sustainable, innovation-driven growth
When patented inventions become integral to operations or business models, a company’s overall valuation can rise significantly through additional revenue, greater production efficiency, or stronger commercial appeal.
Legal Framework: Patent Rights Under Indonesian Law
Patent protection in Indonesia is regulated under Law No. 65 of 2024, the Third Amendment to Law No. 13 of 2016 on Patents (“Patent Law”).
Article 18 – Exclusive Rights of Patent Holders
A patent holder is granted exclusive rights to exploit the invention, license it to others, and prohibit unauthorized use. This includes:
- For patented products: making, using, selling, importing, leasing, distributing, or offering products protected by the patent.
- For patented processes: applying the patented process to produce goods or carrying out related acts.
- For patented methods, systems, or uses: applying the patented method, system, or use for production or other relevant acts.
These exclusive rights provide legal certainty and create opportunities for:
- Technology commercialization and licensing
- Direct asset value enhancement
- Stronger innovation-driven business models
Patent Registration in Indonesia: Key Requirements
To be granted a patent in Indonesia, an invention must meet three fundamental requirements:
- Novelty,
The invention must be entirely new and not publicly disclosed anywhere in the world.
- Inventive Step
The invention must not be obvious to a person skilled in the relevant technical field.
- Industrial Applicability
The invention must be practically usable in industry, not merely theoretical.
If any of these criteria are not satisfied, the application risks rejection during substantive examination by the Directorate General of Intellectual Property (DGIP).
Step-by-Step Guide to Patent Registration in Indonesia
- Conduct Prior Art Search
This step is taken to ensure that the invention has not been disclosed or patented previously.
- Determine Patent Type
This step involves choosing between a standard patent (complex inventions) or a simple patent (incremental improvements).
- Prepare Technical and Administrative Documents, including:
- Complete invention description
- Patent claims defining protection scope
- Abstract and drawings
- Ownership declaration
- Power of attorney, if using an IP consultant
- Online Application Submission
This step involves filing the application via DGIP’s official portal (paten.dgip.go.id), uploading documents, and paying applicable fees.
- Administrative & Substantive Examination
DJKI verifies documentation and evaluates novelty, inventive step, and industrial applicability.
- Technical Response, if required.
Applicants may need to provide clarifications or amendments.
- Patent Grant & Certificate Issuance
If approved:
- 20 years validity for standard patents
- 10 years validity for simple patents
Also read: Expert Guide to Patent Registration in Indonesia: Secure Your Innovation
Why Patent Protection Fuels Long-Term Business Growth
Strong patent portfolios not only protect intellectual assets but also create strategic advantages:
- Revenue Opportunities
Licensing, royalties, and joint ventures
- Risk Mitigation
Protection from infringement and legal disputes
- Investor Confidence
Increased valuation and funding potential
- Sustainable Growth
Incentivizing innovation and R&D investments
For businesses aiming to thrive in Indonesia’s competitive market, patent protection is not optional. It is a cornerstone of sustainable and innovation-driven growth.
Protecting Innovation, Unlocking Business Value
Patent protection ensures that technological innovations remain exclusive assets of their inventors while enhancing company valuation, investor confidence, and competitiveness. In Indonesia, securing patents through DGIP is not only a matter of legal compliance but also a strategic business decision.
Companies that leverage patent protection effectively are better positioned to expand, attract global investors, and achieve long-term growth.***
Also read: Patent Licensing in Indonesia: How to Monetize Your Innovation Legally and Effectively
Consult Our IP Consultants for Patent Licensing Support!
A qualified IP attorney in Indonesia can assist with drafting or reviewing the license agreement, registering the license with DGIP, advising on royalty and sublicensing issues, and ensuring compliance with updated Indonesian patent regulations
Regulations:
- Undang-Undang Nomor 65 Tahun 2024 tentang Perubahan Ketiga Atas Undang-Undang Nomor 13 Tahun 2016 tentang Paten (“UU Paten”).
- Peraturan Pemerintah Nomor 24 Tahun 2022 tentang Peraturan Pelaksanaan Undang-Undang Nomor 24 Tahun 2019 tentang Ekonomi Kreatif (“PP 24/2019”).
References:
- Pentingnya Manajemen Hak Kekayaan Intelektual dalam Konteks Global dan Korporasi. HukumOnline. (Diakses pada 25 Agustus 2025 pukul 08.03 WIB).
- IPXPose 2025 Sototi Komersialisasi Paten sebagai Penggerak Ekonomi Nasional. IPXPose DJKI. (Diakses pada 25 Agustus 2025 pukul 08.16 WIB).
- Cara Mengajukan Permohonan Paten. HukumOnline. (Diakses pada 25 Agustus 2025 pukul 08.23 WIB).
- Permohonan Paten. Direktorat Jenderal Kekayaan Intelektual (DJKI). (Diakses pada 25 Agustus 2025 pukul 08.41 WIB).