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3 J. Priv. & Com. L. 1 (2019)

handle is hein.journals/jpcl3 and id is 1 raw text is: 

                                         JPCL   3(1) (2019)  1-7



                 JOUIRNAL OF PRV,\FAD                            MNFCA L.AW






 Urgency of Licensing Restriction in Joint Venture

                      Companies Related to TKDN


                                  Toebagus   Galang   Windi  Pratama'
                                        'Universitas PGRI Semarang

                   Received February 17 2018, Accepted April 22 2019, Published May 31 2019

                                       DOI  10.15294/jg.vl6il.18179

                                                 Abstract
Most companies that market their products in Indonesia in order to pass TKDN using the concept of Joint Venture agreements (PMA)
often the parties working together are unbalanced in real terms the shares of foreign owners are greater than domestic shareholders. In
such conditions the strong parties tend to impose their will on the weaker party. The restrictions in regulating technology transfer from
Advanced countries to developing countries are there to protect the interests of countries that divert technology because the inventor
of the technology is considered to have made maximum efforts to find related technology but on the other hand the state is also obliged
to protect and improve the welfare of its citizens from that, restrictions on patent licenses are needed so that the TKD is truly real and
does not reduce the incoming FDI. Based on this, the authors formulated a number of issues discussed in this article namely: Why are
restrictions on patent licenses needed and What are the legal consequences of limiting patent licenses. The results of the discussion show
that there is a dilemmatic situation on the one hand the acceleration of mastery of technology including the acceleration of development
needs to be done by being open to the owners of capital and technology (which generally comes from developed countries), while on
the other hand we still have to maintain national interests. Here is related to the authority of the state to regulate the process of technol-
ogy transfer. In this global era, after the WTO agreement was reached, which was linked to 2 (two) technology transfer agendas, namely
TRIMS and TRIPS. Foreign technology protection was very much needed in the context of foreign investment.

Keyword: Licensing Restriction; Joint Venture; TKDN


                                         INTRODUCTION
      In this Industrial Age 4.0, the Technology Industry holds a very important role. Indonesia, as a develo-
ping country, also does not escape the need for technology in various sectors. In developing countries techno-
logy transfer has proven to be a strategic means to complement the availability in the field of technology to face
competition with other countries.
      In the software sector, Indonesia should be proud, because until the beginning of 2019 in Indonesia it was
recorded that there were 4 companies with investment value above 1 million dollars, namely Bukalapak, Gojek,
Tokopedia  and Traveloka but what about the Hardware  sector? In this regard, the Ministry of Communication
and Information  together with the Ministry of Industry applies the Domestic Content Level (TKDN) policy as
stipulated in Minister of Industry Regulation No.65 / M-IND / PE / 7/2016 which requires foreign companies
to market their 4G smartphone  products in Indonesia to have Domestic Content  of 30 percent.
      The impact of the presence of TKDN  of 30 percent is quite significant in improving the economy in Indo-
nesia. Because as can be seen from the fact that domestic mobile phones continue to grow 36% from 2015 to 68
million units. Then in 2017, cellphone imports fell to 11.4 million units, while domestic cellphone production
was 60.5 million units.2
      TKDN   regulation is indeed a solution in improving the quality of Indonesian technology, but this should
continue to receive attention from the government because  this sector is very important in facing economic

1  https://selular.id/2018/11/empat-tahun-rudiantara-kebamanan-setengah-matang-tkdn-smartphone-bagian-tiga/ac-
   cessed on 17/01/2019
2  https://inet.detik.com/law-and-policy/d-3876005/berkah-tkdn-ponsel-made-in-indonesia-tembus-605-juta-unit ac-
   cessed on 17/01/2019
*E-mail :galangsnowfieldyahoo.co.id                                      p-ISSN 2599-0314 e-ISSN 2599-0306
Address : . Sidodadi TimurNo.24, Karangtempel,
        Semarang Timur Semarang City, Central Java50232

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