Industry Minister Agus Gumiwang Kartasasmita said intellectual property protection gives small and medium industry players legal certainty over their creativity and innovation while strengthening product identity and creating opportunities to increase economic value.
"Intellectual property protection is an important part of the strategy to develop small and medium industries. With protected IP, businesses have a stronger foundation to increase product value, build consumer trust, expand markets and improve competitiveness," Agus said in a statement confirmed in Jakarta on Wednesday.
He said industrial competition was no longer determined solely by the ability to produce quality goods, but also by businesses’ ability to create and protect their identities, innovations, designs, brands and distinctive characteristics.
Indonesia still faces challenges in strengthening its intellectual property ecosystem. The 2026 Special 301 Report released by the United States Trade Representative (USTR) placed Indonesia on its Priority Watch List.
"For small industry players, intellectual property is not merely an administrative or registration matter. It is an asset with strategic and economic value for business continuity and development," Agus said.
As a concrete measure, the Ministry of Industry’s Directorate General of Small, Medium and Miscellaneous Industries held intellectual property outreach and facilitation activities for small industries in Bantul District, Sleman District and Yogyakarta City on Aug. 26-27.
Director General of Small, Medium and Miscellaneous Industries Reni Yanita said awareness of intellectual property should be developed from the early stages of a business because it concerns not only legal protection but also an economic asset supporting business sustainability and growth.
"With proper protection, small and medium industry players can reduce the risk of counterfeiting and imitation while building consumer confidence in their products," Reni said.
She said protecting brands, designs, works, innovations and potential geographical indications would give products a stronger foundation to increase value, expand markets and compete nationally and globally.
The ministry selected Yogyakarta Special Region, or DIY, because of its significant industrial and creative economy potential. The region’s economy grew 5.49 percent in 2025, with gross regional domestic product reaching Rp208.13 trillion.
Manufacturing accounted for the largest share of the region’s gross regional domestic product at 11.80 percent, according to the ministry.
"The potential is further strengthened by 419 small and medium industry clusters comprising 12,977 businesses. This potential needs to be matched by greater understanding and capacity to protect the intellectual property assets they own," Reni said.
The Ministry of Industry is also promoting stronger protection of geographical indications for handicraft products in Bantul District.
Eight geographical indication products are currently registered in DIY, three of which originate from Bantul District: Yogyakarta Nitik Batik, Kasongan Bantul Pottery and Pucung Bantul Carved and Painted Leather Puppets.
Secretary of the Directorate General of Small, Medium and Miscellaneous Industries Yedi Sabaryadi said intellectual property protection provides various benefits, including protection against counterfeiting, legal certainty for owners and greater security in running businesses.
It can also create opportunities for commercialization through licensing, inheritance and franchise partnerships, Yedi said.
"We will assist in preparing the Description Document required as one of the requirements for applying to register the Muntuk Bantul Bamboo Weaving Geographical Indication," Yedi said.
He also called for commitment from the Geographical Indication Protection Society (MPIG), the Bantul District Government and other relevant stakeholders to support the registration process.
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Translator: Ahmad Muzdaffar F, Martha Herlinawati Simanjuntak
Editor: Primayanti
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