By Alvin Boey
The 2024-25 Surge and Why 2026 Could Be Even Bigger
Over the past two years, Indonesia’s intellectual property landscape has shown remarkable momentum. According to both Direktorat Jenderal Kekayaan Intelektual (DGIP) and global IP sources, patent filings in Indonesia are not only increasing, they are accelerating. A major driver of this trend is foreign participation, particularly from China, as more companies view Indonesia as a “China +1” innovation and production gateway. For IP practitioners, 2026 is shaping up to be an exceptional year.
A New Wave of Filings
Some key insights from recent data:
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- Domestic and total patent applications: According to DGIP, Indonesia’s patent applications rose in 2024 to one of the highest levels in recent years, supported by the “Patent One-Stop Service” program, which covered all 33 provinces. (Reference)
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- Global context: WIPO reports that in 2024, filings from Indonesia increased by +8.4% among the top origin countries. (Reference)
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- Patent and trademark volume: Indonesia reportedly surpassed the US, China, and other major economies in total patent and trademark applications. (Reference)
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- Industrial design filings: DGIP reports that Indonesia achieved the world’s largest annual national growth in industrial design filings in 2023 (37.3%), with further increases in 2024. (Reference)
Key Takeaways
- Indonesia’s patent filings are accelerating – 2024 saw one of the highest levels of patent applications in recent years, driven by both domestic and foreign applicants.
- China +1 strategy fuels IP growth – Chinese companies relocating manufacturing and innovation to Indonesia are significantly contributing to the surge in patents, designs, and trademarks.
- Top foreign applicants – Japan, the United States, China, South Korea, and Germany are the leading contributors to Indonesia’s foreign-origin patent filings.
- Multiple drivers of the surge – Factors include manufacturing relocation, export-oriented growth, strong IP infrastructure, regional hub appeal, and regulatory incentives.
- 2026 looks promising – Continued growth in filings, increased demand for IP services, and Indonesia’s strategic ASEAN position indicate a strong upward trend for the next wave of innovation.
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Graph 1: Total Patent Applications in Indonesia (Indonesian Applicants + Foreign Applicants, 2020–2024)
Indonesia has experienced a remarkable rise in patent applications over the past five years, with growth fueled by both domestic and foreign applicants. The combined effect has positioned Indonesia as an increasingly attractive destination for innovation and IP protection in Southeast Asia.
The Chinese Factor & “China +1” Pivot
A key driver of this surge is the influx of Chinese-origin applicants, reflecting the broader trend of companies relocating manufacturing and innovation outside mainland China, a strategy commonly referred to as “China +1.”
Key Observations
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- Many Chinese-based companies are actively seeking new manufacturing and innovation hubs in Southeast Asia. For example, a Hong Kong-based printing company recently selected Central Java, Indonesia, as its production base to better connect China with ASEAN markets.
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- This relocation naturally generates IP filings, not only patents but also industrial designs, packaging innovations, and trademarks.
Recent Developments
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- Relocation Interest
Title: Kemenperin benarkan pabrik asal China tertarik relokasi ke KEK Kendal
Key Point: Indonesian Deputy Minister of Industry confirmed that some Chinese companies are exploring relocation of factories to the Kendal Special Economic Zone (SEZ) in Central Java. (Reference)
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- Chinese MedTech Factory
Title: Produsen alkes China investasi Rp 1,7 triliun bangun pabrik di Jateng
Key Point: Chinese medical equipment manufacturer Allmed Medical is investing US$100 million (~Rp 1.7T) to build a healthcare factory in the Batang Integrated Economic Zone (KEK Industropolis), Central Java. (Reference)
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- Chinese Investments in Central Java
Title: Chinese businesses to invest in Central Java, says Chinese ambassador
Key Point: The Chinese Ambassador to Indonesia reported that more Chinese investors are targeting Central Java, especially following the designation of the Batang integrated industrial zone (KIT) as a special economic zone. (Reference)
Graph 2: Top 5 Foreign Patent Applicants in Indonesia (2020–2024)
These developments are reflected in patent application trends, with foreign-origin filings particularly from Japan, the United States, China, South Korea, and Germany, contributing significantly to Indonesia’s IP growth.
Drivers Behind the Surge
Several converging factors are driving Indonesia’s IP boom:
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- Manufacturing & Supply-Chain Relocation – China +1 strategy increases Indonesian local innovation, necessitating patents.
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- Export-Oriented Growth – Indonesian industries targeting international markets prioritize IP protection.
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- IP Infrastructure & Awareness – DGIP initiatives, including the Patent One-Stop Service and growing global recognition, encourage both domestic and foreign filings.
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- Regional Hub Appeal – Strategic location, cost advantages, and improved industrial parks attract global firms.
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- Regulatory & Institutional Incentives – Efficient IP processes and local incentives further drive filings.
Why 2026 Could Be Even Bigger
Looking ahead:
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- With 2024 showing strong growth and 2025 maintaining momentum, 2026 is expected to build on this trend.
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- Chinese-origin firms already operating in Indonesia will increasingly file patents for inventions, manufacturing processes, packaging innovations, and green technology.
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- IP practitioners, both local and foreign will see increased demand for filings, portfolio management, licensing, and infringement monitoring.
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- Indonesia’s strategic position in ASEAN offers a gateway for regional and global IP protection.
Our Regional Presence & How We Can Help
Our Indonesian Office is staffed with experienced patent and trademark attorneys, fluent in cross-border IP matters. We assist firms especially Chinese and other foreign applicants seeking to protect innovations in Indonesia and across ASEAN, offering:
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- Filing and prosecution of patent applications (resident and non-resident)
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- Strategic counsel on China +1 supply-chain innovation and IP integration
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- Trademark and industrial design filings
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- IP monitoring, enforcement, and portfolio management
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- ASEAN-wide IP planning
Conclusion
The surge in Indonesian patent filings creates opportunities for both innovators and IP service providers. Firms relocating production or innovation into Indonesia, or expanding their China +1 strategies, should consider robust local IP protection.
Secure your innovation today and position your IP for regional and global success.