As a brief background, under the old Indonesian patent law (i.e. before 26 August 2016), annuities could be paid up to three years from the due date. If annuities were not paid within three consecutive years, the patent would be deemed null and void but a patent owner is still obligated to pay the outstanding annuities accrued during the three year period in view that the patent owner had technically benefited from the patent protection accorded to the patent owner during this period (which is regarded as a “post-protection system”). The outstanding annuities would be deemed as being owed to the DGIP. This obligation is not applicable under the new law (i.e. with effect on or after 26 August 2016), because the new law provides for a “pre-protection system” such that a patent will be considered null and void if annuities are not paid by the due date without incurring any outstanding annuities.
As an update, the Ministry of Finance issued Regulation No. 15/PMK.06/2021 concerning Settlement of State Receivables under a “Crash” Program on 9 February 2021. In summary, unpaid annuities can now be paid with a discount.
In particular, a patentee with unpaid annuities that joins the “Crash” Program will be given a 60% discount on the principal debt amount and full waiver for any interest, penalty and/or other administrative charges.
A further reduction of the principal debt amount will be granted based on the period which the patentee joins the “Crash” Program. As a guideline, the percentage of further reduction is:
- 50% additional reduction from 40% of the remaining principal debt after the initial reduction for any request filed in June 2021;
- 30% additional reduction from 40% of the remaining principal debt after the initial reduction for any request filed from July 2021 to September 2021; and
- 20% additional reduction from 40% of the remaining principal debt after the initial reduction for any request filed from October 2021 to December 2021.
Once a patentee is notified that participation in the “Crash” Program is successful, all unpaid annuities must be settled within 1 (one) month. The exception is for any request filed in December 2021 for which payment must be paid by 20 December 2021.
Please do not hesitate to contact us for more details.