Intellectual Property Law Reform
Intellectual property law reform was necessary to appease certain mobile investors and thereby attract foreign investment into the country. The relatively limited protection given to intellectual property by Indonesia's commercial legal system provided an environment in which it was easy and profitable to produce counterfeit goods. One area in which there was strong international concern about intellectual property rights violations was the pharmaceutical industry. The US government's strategy for improving intellectual property protection in Indonesia was not to be limited to diplomatic appeals. Greater protection of intellectual property in Indonesia would be necessary before many foreign investors would invest in Indonesia was made clear to the Indonesian government by a range of foreign government and business representatives. A separate Directorate-General within the Ministry of Justice was established during 1988 to deal with the implementation and enforcement of the new law and any subsequent intellectual property laws.