Intellectual property can boost national economic growth: ministry

Intellectual property can boost national economic growth: ministry

Director general of intellectual property at the Law and Human Rights Ministry, Freddy Harris. (ANTARA/HO-DJKI)

This means that if the number of patents can increase just by 10 percent, then Indonesia's economic growth can be 0.6 percent higher
Jakarta (ANTARA) - Protecting intellectual property can encourage national economic growth, Director General of Intellectual Property at the Law and Human Rights Ministry, Freddy Harris, has said.

In a press statement released on Monday, he referred to research conducted by the Institute for Development of Economics and Finance and said that every 1 percent increase in the number of patents can push the national economy up by 0.06 percent.

"This means that if the number of patents can increase just by 10 percent, then Indonesia's economic growth can be 0.6 percent higher," he remarked.

Intellectual property can contribute to nation branding as well as give a competitive advantage to countries, especially those that have the advantage of communal intellectual property, Harris noted.

One of the potentials of communal intellectual property that needs to be encouraged in order to be competitive in the global market is manufacturing products that rely on the potential of Indonesia's geographical characteristics, or commonly known as geographical indications, he said.

"Geographical indications have proven to be a catalyst for nation branding and support the economic independence of a country," he remarked.

He cited the example of Gayo coffee from Aceh, which has become Indonesia's first geographical indication product to be accepted in the European Union.

In terms of price, Gayo coffee has been valued at Rp120 thousand (US$8.51) per kilogram upon registration. Prior to registration, it was only Rp50 thousand (US$3.55) per kilogram, he pointed out.

Another example is the registration of the Amed Bali salt geographic indications product in 2016, Harris said. It boosted the ecotourism potential of the Karangasem district area, where Amed salt originated from.

"The residents there use the area for their geographical indicator products to become a tourist attraction. Through the Amed salt festival, which presents a spectacle of producing traditional salt," he explained.

Another example of the use of intellectual property for nation branding has been the use of Balinese endek fabrics by the Christian Dior fashion house at the 2021 Paris Fashion Week. Nine out of the 86 designs of Christian Dior's latest collection incorporates Balinese endek fabrics, he noted.

Thus, intellectual property can be a very valuable economic asset if managed properly, he added.

"At the same time, it can shape the identity of the Indonesian nation to be known more widely by the international community," Harris remarked.

Therefore, it is necessary to have intellectual property management for economic and industrial development through a collaboration scheme that involves all stakeholders, he said.

"It must include the government, academics, industry, intellectual property activists, to creators and inventors, as well as law enforcement officers in the intellectual property field," he elaborated.

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