FAQ About Patent Licensing in Indonesia With Straight Answers You Need to Know

FAQ about Patent Licensing Indonesia is something many people search for when they need quick, practical answers — not long theory. The real questions are usually simple, what must be in the contract, does the licence need to be recorded, and if the patent holder refuses to license it, is there still another option?
This walkthrough goes straight to those points, no detours.

1. What must be included in a patent licensing agreement?

For a licensing agreement to be recordable and legally enforceable, the document needs to cover several basic elements. Think of it as a checklist:

• date and place of execution

• full identity and address of the licensor and licensee

• details of the licensed patent

• type of licence (exclusive/non-exclusive, sub-licensing allowed or not)

• duration of the licence

• territory where the licence applies

• who is responsible for paying the annual patent annuity

Missing one point may delay the recordal — which is why making sure the contract is complete is not just formality, but essential.

Legal basis: Government Regulation No. 36/2018 on IP Licence Recordal

If either party is domiciled outside Indonesia, the recordal must be filed through a registered IP consultant. Many foreign companies overlook this step.

2. Is recording the licence with the IP Office mandatory?

In short, yes — if the goal is for the licence to have binding effect against third parties.
Without recordal, the licence can still be valid between the parties, but it becomes weak when used for enforcement, dispute settlement, or infringement actions.

Legal basis:
Indonesian Patent Law No. 13/2016, Articles 79–82

3. Does compulsory licensing exist in Indonesia?

It does, but only as an exception. A compulsory licence allows a third party to use a patent without the patent holder’s approval, but only under specific conditions, such as:

• the patent has not been worked in Indonesia within 3 years of grant

• there is a greater public interest involved

• negotiations to obtain a voluntary licence have been attempted for up to 12 months but failed

Applicants also need to demonstrate production capability and clear reasons why the patent must be implemented immediately.

Legal basis:
Ministerial Regulation No. 30/2019 (amended by No. 14/2021)
Indonesian Patent Law No. 13/2016 — compulsory licensing provisions

READ MORE : How to Register Patent in Indonesia: 5 Stages of Patent Registration Process

The bottom line of Patent Licensing in Indonesia

Those are the three core points most people search for when looking up FAQ about Patent Licensing Indonesia. The essence is simple, make sure the contract is complete, record the licence, and note that compulsory licensing only applies in limited cases. Beyond that, it’s strategy, negotiation, and execution.

If you need help drafting or recording a patent licence, feel free to contact us, we handle both local and cross-border licensing matters from document preparation to filing with the IP Office.