Low Number of Patent Applications in Indonesia: Patents in the Knowledge-Based Economy

In Indonesia, currently, public awareness on patent rights is very low. This can be seen from the low number of patent applications in Indonesia. In fact, Indonesia already has a regulation on patent which provides legal protection to inventors of technology. Data from the Directorate General of Intellectual Property Rights the Ministry of Law and Human Rights have revealed the number of foreign patents filed in Indonesia in 2012 has reached 6,212 applications. This indicates current domestic market, particularly technologicalproducts, is practically “monopolized” by foreign players. TRIPs aim at protecting and enforcing law on intellectual property right to encourage the innovation, transfer, and deployment of technology, the achievement of mutual benefits for technology creators and users, by ways that create social and economic wellbeing and balance between rights and obligations. Creations and innovations in technology of a country bring prosperity and economic development for the community. With the patent right, the creations and innovations in technology of a country bring prosperity and economic development for the community.  This study tends to identify the low level of Indonesian awareness to act in patent's registration. The methodology used is this study is document analysis. Reviewing relevant documents pertaining to the questions rose in the study.  The results show that patent's law is not yet properly functioning as refer to a tool of economic development. The results in line with the fact that patent's right in Indonesian yet purposed by government to only normative and fulfillment of ratification of TRIPS Agreement.