The The Indonesian Defense Transfer of Technology (ToT) Agenda and Indonesia’s Policy on Defense Technology Property Right

Abstract

Securing a transfer of technology (ToT) is increasingly one of the key components of a country’s agenda to strengthen its defense sector. A mastery of defense technology, after all, will bring about effciency and deterrence via the acquirement of the latest defense capabilities. However, such mastery has also been always the most diffcult to adopt, as it requires the collaboration of many domestic and international stakeholders, not to mention a willing technology leader who sees the beneft of the transfer. As such, defense technology has always been classifed as an expensive commodity. A key component to allow for a healthy and competitive environment of a transfer of defense technology is a fair and sustainable regulation of defense technology property rights, as it is usually demanded by states leading in defense technology, especially to avoid the potential abuse of such technology for harmful means or to prevent it from going to the hands of their rivals. This article aims to describe and analyze Indonesia’s regulation and mechanisms for the ToT, especially by identifying existing government regulations related to ToT and defense technology property rights. In particular it examines two important regulations, Law No. 16 of 2012 on Defense Industry and Law No. 13 of 2016 on Patent. This article argues that there is a need to better harmonize existing regulations through the creation of an omnibus law on technology property rights to better secure Indonesia’s place as a state that can adopt and develop the latest version of defense technology.