The US has raised concerns about Indonesia’s enforcement of intellectual property rights (IPR), especially in the digital and ecommerce sectors.

In the “2025 National Trade Estimate Report on Foreign Trade Barriers,” the US Trade Representative (USTR) highlights widespread copyright infringement and trademark counterfeiting in online markets.

Platforms like Bukalapak and Shopee are listed in the “2024 Review of Notorious Markets for Counterfeiting and Piracy” due to the high volume of counterfeit goods such as fashion items, toys, and branded clothing.

Bukalapak has invested in anti-counterfeiting measures, but counterfeit goods remain widespread. Automated filtering systems and proactive tools are only partially effective. Penalties are also seen as too weak to deter violations.

Shopee has also been flagged for similar issues, despite having an intellectual property portal that lets brand owners report violations.

🔗 Source: Katadata

🧠 Food for thought

1️⃣ Indonesia’s dominant position in Southeast Asia’s e-commerce creates heightened IP enforcement stakes

Indonesia has emerged as the regional powerhouse in e-commerce, accounting for 52% of all ASEAN e-commerce revenue in 20221.

This dominance is expected to continue with projections showing Indonesia’s e-commerce market growing from $52.93 billion in 2023 to $86.81 billion by 2028, representing a 10.4% compound annual growth rate1.

The sheer scale of Indonesia’s digital marketplace makes effective intellectual property enforcement particularly challenging, as platforms must balance rapid growth with increasingly complex monitoring requirements.

For U.S. businesses, which have generated $130 billion in economic impact in Indonesia from 2014-2023 through direct investments and other activities, IP protection represents a critical concern for continued engagement2.

This tension between growth and regulation has created a complex dynamic where Indonesia’s desire to nurture its digital economy sometimes conflicts with international pressure for stronger IP protections.

2️⃣ Counterfeiting challenges reflect broader regional shifts in Southeast Asia’s digital landscape

The counterfeit problem highlighted in Indonesia mirrors a broader regional trend, with Southeast Asia increasingly becoming a significant source of counterfeit goods globally3.

E-commerce platforms like Bukalapak, Tokopedia, and Shopee have been specifically identified in reports by both U.S. and European authorities as “notorious marketplaces” for counterfeit sales4.

Recent Bukalapak developments