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Indonesia’s government has tabled a draft bill to modernize its 2014 Copyright Law, introducing comprehensive reforms across four key areas: AI-generated content regulation, expanded digital asset protection, platform liability…
Indonesia
Intellectual Property
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The Indonesian government has formally tabled a draft bill to overhaul its 2014 Copyright Law (Law No. 28 of 2014). Aimed at modernizing copyright rules for the digital economy, the proposed 2026 amendments focus on 4 major areas:
1. Regulation of Artificial Intelligence (AI)
The draft introduces a tiered “human-involvement” test for AI-generated output. Works created using AI with sufficient human creative direction will qualify for standard copyright protection. Conversely, autonomously generated works with minimal human input will receive a more limited “related-rights” protection, typically vesting initial ownership in the system’s deployer or commissioner.
2. Expanded Scope of Digital Works
The legal framework expands protected Works to explicitly encompass modern digital assets such as e-books, blogs, digital artwork, virtual/augmented reality works, and blockchain-based media. For Non-Fungible Tokens (NFTs), the law clarifies that purchasing a token serves as a certificate of authenticity but does not automatically transfer the underlying copyright.
3. Improved Platform Liability
Following a Constitutional Court ruling regarding user-generated content (UGC), the draft holds digital intermediary platforms legally accountable for hosting infringing content. It introduces a structured notice-and-takedown regime with mandatory response timelines, content-identification protocols, and strict record-keeping logs for takedown requests. Compliance then provides platforms with Safe Harbour. The director of Enforcement at the IPO recently stressed the need to deal with pirated digital content to protect Indonesia from USTR related problems.
4. Royalty Collection & Governance Reform
To ensure fair compensation, the amendment establishes a National Collective Management Committee to restructure existing Collective Management Organizations (LMKs). Digital platforms making copyrighted content publicly available will face new mandatory usage-data reporting and royalty-settlement obligations. Indonesia has long been a proponent of better royalty collection and has made various WIPO proposals to that effect. The Indonesian Press Council has been a regular advocate of royalty structures for journalists.
The draft will take time to progress through Parliament. IP owners will watch closely, to see if protection of content is matched with sufficient enforcement which is where Indonesia has (per the USTR) faces challenges to date. IP owners and related groups including tech platforms like Google have met with the government to discuss the amendments.
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