Correlation of the Obligation to Implement a Patent by a Registered Patent Owner with the Drug Production Independence Policy in Indonesia

Abstract

Article 20 of Law Number 13 of 2016 concerning Patents, as amended by Article 107 of Law Number 11 of 2022 concerning Job Creation, regulates the provisions regarding the obligation to implement patents in Indonesia. This amendment removes labor supply, investment retention, and technology transfer restrictions and adds provisions for importing or licensing patented products or processes. Changes in regulation regarding the obligation to implement patents have changed the rules governing patent enforcement, making it challenging to achieve self-reliance in domestic drug production. This study uses a doctrinal approach by analyzing secondary data on regulations for implementing registered patents in Indonesia, which are linked to the policy of self-sufficiency in domestic drug production. Based on the results of the study, Article 20 of the Patent Law has been amended so that Patent Holders are not burdened with the obligation to support technology transfer, maintain investment or provide employment; Article 107 of the Job Creation Law has changed the way patents are implemented by Patent Holders registered in Indonesia. Changes to these points need to be reviewed because they are considered to be contrary to the Government Policy on the Independence of the Ministry of Health's Drug Production Number 21 of 2020 The Strategic Plan of the Ministry of Health for 2020–2024, which was previously in line with Article 20 of the Patent Law.