The Development of Small and Medium Enterprises in Indonesia: An Overview

1
The Development of Small and Medium Enterprises
in Indonesia An Overview

• Prepared by
• Ms. Erbita D. R. Hutagalung
• Directorate General of Intellectual Property
  Rights,
• Ministry of Law and Human Rights of the Republic
  of Indonesia

2
Background

• The vast majority of businesses are SMEs,(99,98
  of total business nationwide)
• SMEs become economic strength
• SMEs are the main base of national economic
  development
• (Source www.depkop.go.id)

3
Indonesia
4
Current Situation

• Low interest of SMEs toward IP system
• SMEs have not utilized optimally current IP
  system
• SMEs have not take advantages the opportunity
  offered by the government
• Special incentives offered to SMEs have not being
  used
• SMEs only stress on the importance of
  manufacturing their products

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Why IP is important for SMEs?

• To protect domestic brands
• To prevent infringements
• To encourage innovations
• To strengthen business competitiveness in global
  market
• To enhance domestic industry competitiveness
• IP as a tool for marketing
• Opportunity for lisencing

6
Government Efforts to Encourage the Utilization
of IPR System

• Designation of Provincial Offices of Ministry of
  Law and Human Rights to receive IP applications
• Reduction Fee for SMEs
• IP Socialization for SMEs
• Subsidy for SMEs
• The establishment of Innovation Center for MSMEs

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Reduction Fee Policy to support SMEs

• 50 reduction of fees for industrial design
  registration for SMEs
• 50 reduction for renewal of trademark
  registration.

8
IP Socialization for SMEs conducted by DGIPR

• Dispatch IP experts/ speaker from DGIPR to give
  presentation, lectures
• Hold public awareness activities/campaign such as
  seminars, workshops, training courses
• IP awareness campaign through inter-active
  talk-shows on IPR in various TV and radio
• Dissemination of IP Information through the
  internet
• Publication of IP Information in the form of
  books, booklets, brochures, leaflets, posters,
  stickers.

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IP Socialization for SMEs Conducted by DGIPR
(2003-2007)
Palangkaraya
Gorontalo
Palembang
Manado
Balikpapan
Padang
Pangkal Pinang
Kendari
Bengkulu
Lampung
Makassar
Jayapura
Serang
Mataram
Jakarta
Kupang
Surakarta
Malang
10
Subsidy Support for SMEs

• Ministry of Cooperative and SME
• subsidy for trademark and industrial design
  application fee.
• Ministry of Industry
• subsidy for trademark and industrial design
  apllication fee.
• State Ministry of Research and Technology
• subsidy for patent application fee.
• Local Government
• - Province of Yogyakarta Special region
• - Province of West Java
• - Province of Central Java
• - Province of East Java
• - Province of west Nusa Tenggara (patent).

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Related Government Institutions that deal with
support SMEs

• Ministry of Laws and Human Right (DGIPR)
• Ministry of Cooperatives and SME
• Ministry of Industry
• State Ministry of Research and Technology
• Local government
• IP Clinic in Universities and R D Institutions

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Conclusion

• IP system for SMEs will accelerate the growth of
  industry and employment, stimulate the
  improvement of economic davelopment
• IP system will strengthen business
  competitiveness in national and international
  market

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Thank you for your attention

• http//www.dgip.go.id