IP Enforcement in Indonesia for Foreign Brands: Marketplace Liability Explained

For many foreign brands, entering the Indonesian market is rarely the real challenge. The real issues tend to surface once the business is up and running—when counterfeit products start appearing on marketplaces, prices are undercut, and brand reputation begins to suffer. At that point, IP enforcement in Indonesia for foreign brands becomes a very practical question, can Indonesian law genuinely protect foreign trademarks, and who bears responsibility when violations occur?

Marketplaces Cannot Simply Step Aside

Over the past few years, Indonesia’s legal approach has begun to shift. Marketplaces are no longer seen merely as neutral venues connecting sellers and buyers. As a result, when a platform allows counterfeit products to circulate without proper oversight, it exposes itself to legal responsibility.

In practice, recent legal research shows (Research Horizon, 2025) that marketplaces are expected to take an active role, including by:

• monitoring the products offered on their platforms,

• responding to trademark infringement reports,

• implementing effective notice and takedown mechanisms, and

• verifying sellers.

Where these obligations are ignored, a marketplace may be considered negligent.

Legal Basis for Trademark Enforcement

Importantly, this approach is not theoretical. Instead, it rests on clear statutory foundations.

Article 1365 of the Indonesian Civil Code

Under this provision, negligence that causes loss gives rise to liability for damages. In the marketplace context, failing to act on reports of counterfeit products may qualify as an unlawful act.

Electronic Information and Transactions Law (Law No. 11 of 2008 as amended by Law No. 19 of 2016)

In addition, as electronic system operators, marketplaces are required to ensure system reliability and prevent transactions based on misleading information. Accordingly, the sale of counterfeit goods through online transactions falls within this obligation.

Consumer Protection Law (Law No. 8 of 1999)

At the same time, marketplaces are treated as business actors who share responsibility for ensuring that products offered are safe, authentic, and consistent with the information provided to consumers.

Taken together, these legal instruments significantly strengthen IP enforcement, particularly across the e-commerce ecosystem.

What This Means for Foreign Brands

For foreign trademark owners, the implications are straightforward:

• Enforcement does not always require pursuing individual sellers one by one.

• Marketplaces become accountable when they fail to act.

• Measures such as takedowns, account suspensions, and civil claims have a solid legal basis.

With the right approach, enforcement can do more than stop current violations—it can also help prevent repeat infringements.

Practical Implications for Foreign Brands in Indonesia

Ultimately, IP enforcement in Indonesia for foreign brands is not determined by how comprehensive trademark registration may be, but by how effectively those rights are enforced when violations arise on marketplaces. Indonesia’s legal framework now provides a clearer basis for holding platforms accountable, making trademark protection for foreign brands more realistic and enforceable in practice.

Legal Sources & References

• Indonesian Civil Code (Article 1365)

• Law No. 11 of 2008 as amended by Law No. 19 of 2016 on Electronic Information and Transactions

• Law No. 8 of 1999 on Consumer Protection

• Nugraha, A. S. et al. (2025). Legal Responsibility of Marketplace Platforms for Counterfeit Products Based on Civil Law and ITE Law. Research Horizon, 5(6), 2875–2888.