In October 2024, Indonesia introduced noteworthy amendments to the Patent Law through Law No. 65 Year 2024, amending Law No. 13 Year 2016 on Patents, which aims to modernize the country’s intellectual property regime, encourage innovation, and align national practice with international norms. The two most notable updates are (1) clearer definitions of excluded subject matter and (2) an extension of the novelty grace period for prefiling public disclosures. Together, these reforms are expected to reduce uncertainty, foster local innovation, and enhance Indonesia’s attractiveness as a hub for research and development.

Clearer Exclusions: Defining the Limits of Patentability

A longstanding challenge in Indonesia’s patent system has been ambiguity regarding which types of inventions qualify for protection. The amendments provide much-needed clarity by updating the list of excluded inventions. This approach reflects global practices while ensuring that protection is reserved for genuinely technical contributions.

Among the notable clarifications:

• Aesthetic Creations and Artistic Works: Purely artistic expressions and designs, which fall under copyright or industrial design regimes, remain excluded from patentability. This separation prevents overlap and ensures that patents focus on technical rather than creative innovation.‍
• Business Schemes and Abstract Methods: Business models or financial strategies, when claimed without technical application, are not patentable. This aligns Indonesia with jurisdictions that resist monopolizing abstract economic practices.‍
• Computer Programs per se: Basic computer code or software without a technical effect remains outside the scope of protection. However, the amendment explicitly recognizes computer-implemented inventions with technical effects as eligible. For example, an algorithm that improves image processing or network efficiency may now qualify. This is a significant development for Indonesia’s growing technology sector, where software-driven innovation is increasingly vital.‍
• Medical and Pharmaceutical Innovations: Previously, restrictions existed on certain medical uses, particularly second medical use claims and new forms of known compounds. The amendment reverses this position, allowing such inventions to be patentable if they meet novelty and inventive step criteria. This shift signals a stronger commitment to pharmaceutical innovation and is expected to encourage more investment in healthcare within Indonesia.

By clarifying what is excluded and what is not, the law reduces legal uncertainty for applicants. Innovators now have a clearer pathway to assess the patentability of their ideas before committing to costly filings.

Extending the Novelty Grace Period: More Flexibility for Inventors

The second major change addresses the grace period - the window during which an inventor’s own disclosure will not beheld against them when assessing novelty. Previously, Indonesia allowed only a six-month grace period, which often proved insufficient for academics, start-ups, and small enterprises that needed time to secure funding or market interest after publicly presenting their innovations.

The amendment doubles this window to twelve months. Inventors now have a full year to file a patent application after disclosing their work through publications, exhibitions, or presentations. This extension provides critical breathing room for innovators who may lack immediate resources for patent filings.

The benefits of this change are significant:

• Academic Researchers can publish findings without fearing loss of patent rights, encouraging knowledge sharing while safeguarding commercial potential.‍
• Start-ups and SMEs gain flexibility to showcase products at trade fairs or pitch to investors before filing, reducing financial risk.‍
• International Harmonization is improved, as many patent offices worldwide—including the United States—already operate with a one-year grace period. This alignment makes Indonesia a more predictable jurisdiction for global applicants.

Implications for Innovators and Businesses

The 2025 amendments are not merely technical adjustments; they reshape how innovation will be nurtured in Indonesia. By expanding patent eligibility to include computer-implemented inventions with technical effects and recognizing second medical use claims, the law supports both the digital economy and life sciences. The extended grace period, meanwhile, provides inventors with a stronger safety net, balancing the need for disclosure with the realities of commercialization.

For businesses, these reforms reduce uncertainty and make Indonesia a more attractive destination for investment in research-intensive sectors and protect a broader range of technologies under amore flexible legal framework.

Conclusion

Indonesia’s 2025 Patent Law amendment marks a turning point in the country’s intellectual property regime. By clarifying exclusions and extending the novelty grace period, the government has taken meaningful steps toward fostering a more innovation-friendly environment. These reforms not only align Indonesia with international best practices but also provide inventors and businesses with the clarity and flexibility they need to thrive. For policymakers, the next challenge will be ensuring consistent application of these rules by examiners and courts, so that the benefits of reform are fully realized.