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On 23rd April 2013, APINDO participated in a Roundtable Discussion themed ‘Improving Indonesia’s Competitiveness through Compliance and Enforcement of the American Unfair Competition Act’ which took place at the Grand Hyatt Hotel in Jakarta. The event was initiated by the Ministry of Trade and supported by APINDO and the Anti-Counterfeiting Society (MIAP). The discussion was held following the enactment of the Unfair Competition Act (UCA) in several states in the United States. Non-compliance with these new rules could hamper exports between Indonesia and the United States.
In his speech at the event, APINDO Chairman Sofyan Wanandi cited the findings of a study entitled ‘The Economic Impact of Counterfeiting’ which was done in collaboration with UI LPEM and MIAP in 2010. The study found that losses due to rampant counterfeiting equated to 43.2 trillion RP in Gross Output and 34.2 trillion RP in GDP. There is also a significant multiplier effect as a result of counterfeiting as communities lose out on revenue of 43.2 trillion RP and the government would lose out on tax revenue of 43.2 trillion RP.
Sofyan was also concerned about the rise of counterfeiting in Indonesia, not only for software, but also for other products related to arts and culture. From 2000 to date, Indonesia has entered the list of the most watched countries for copyright infringement. According to the International Data Corporation (IDC), in 2012 the use of illegal software in Indonesia reached 87 %. "Forgery or piracy cost the state in unpaid taxes. The rise of counterfeiting also inhibits the development of the creative industries. Intellectual Property Rights protection should be the responsibility of business owners and the government" said Sofyan.
Although focused on domestic interests, Sofyan acknowledged that the enactment of the UCA in some U.S. states required attention from the Indonesian government and the business community. The UCA promotes healthy competition and encourages manufacturers to respect the intellectual property rights of all manufacturers. The UCA requires manufacturers whose products are marketed in the U.S. to ensure the authenticity of the software used in the production process. Several companies from other countries have been affected by the UCA and law suits have been brought against companies believed to be using counterfeit software in their production.
"The United States is Indonesia’s third largest export destination with exports amounting to $ 14.59 billion USD, or 9.53 % of total national exports. Therefore, the UCA and other potential barriers to exports must be considered " said Sofyan.
In line with Sofyan, the Deputy Trade Minister Bayu Krisnamurthi also confirmed that IPR protection must not only be done in the context of compliance with U.S. rules, but primarily to improve the competitiveness of the national business climate. Bayu hoped that the Roundtable Discussion could be used as a platform to explain to the world that Indonesia is also making efforts in its IPR protection. "This kind of discussion forum should be used as a platform for mutual learning. The U.S. may have advantages in the protection of intellectual property in certain areas, but we also have experienced progress in IPR protection in other areas" said Bayu.
APINDO - 2013
Capital: Jakarta
Population: 259 million (2016)
Currency: Indonesian Rupiah
Nominal GDP: $936 billion USD (IMF, 2016)
GDP Per Capita: $3,620 USD at Current Prices (IMF, 2016)
GDP Growth: 5.0% (2016)
External Debt: 36.80% of GDP (BI, Q2 2016)
Ease of Doing Business: 91/190 (WB, 2017)
Corruption Index: 90/176 (TI, 2016)
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