US Flags Mangga Dua for Piracy, Indonesia Vows Crackdown
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JAKARTA, Investortrust.id – The United States has raised concerns over Indonesia’s enforcement of intellectual property rights after identifying Mangga Dua, a major retail center in Jakarta, as a hub for counterfeit and pirated goods. In response, Trade Minister Budi Santoso stated that his ministry is prepared to take action, while declining to provide a timeline for enforcement.
The U.S. Trade Representative (USTR), in its 2025 National Trade Estimate Report on Foreign Trade Barriers, placed Mangga Dua on its "Notorious Markets List," which highlights global physical and online markets known for widespread copyright infringement. The report criticizes Indonesia’s weak law enforcement related to intellectual property, which it argues impedes trade relations.
Speaking after an event in Jakarta on Sunday, Trade Minister Budi Santoso said that government surveillance of illegal goods operates discreetly. “If enforcement is happening, I won’t announce it publicly. Monitoring is best done quietly,” he told reporters.
The minister emphasized that Indonesia prohibits the sale of illegal goods regardless of their origin. Enforcement is supported by national law and specific ministerial regulations. He added that the ministry recently seized counterfeit products valued at Rp 15 billion, or approximately $925,000.
“These are goods without Indonesian National Standard (SNI) certification or proper permits. Items that don’t comply with standards are not allowed to enter,” Budi said.
Beyond seizures, he noted that sanctions could be imposed on offending importers. “Once we identify the companies involved, we can impose a series of escalating penalties. These could include the confiscation of goods and even the closure of the business,” he warned.
The USTR report also includes several Indonesian e-commerce platforms under review for alleged involvement in facilitating the sale of counterfeit goods. The report urges Indonesia to activate its intellectual property enforcement task force, which brings together various law enforcement and regulatory agencies, and to establish a more effective system to prevent unfair commercial practices.
In its assessment, the USTR called on Indonesia to step up inter-agency coordination and ensure commercial use of copyrighted material is adequately protected. “The U.S. continues to urge Indonesia to provide an effective system to guard against unfair commercial use,” the report states.