Jakarta. The US government has kept Indonesia on its intellectual property (IP) priority watch list for 2026, citing rampant music piracy and counterfeited footwear.

Every year, the office of the US Trade Representative (USTR) publishes a report that shows how partner countries are doing in terms of safeguarding intellectual property. The “priority watch list” indicates some problems related to the IP rules and enforcement within a country.

This year’s report indicates that Washington is still unhappy with Indonesia’s lack of “effective enforcement against widespread piracy and counterfeiting”. Factory relocations from China to Indonesia have fueled a hike in local manufacturing of counterfeit goods, including footwear. There are also concerns that Jakarta has been off-key. 

“Stakeholders report that Indonesia has one of the highest rates of music piracy in the world … Homegrown piracy sites and services have surged in popularity, with limited enforcement efforts against their operations,” the 102-page document reads.

The list of Washington’s concerns for Indonesia’s IP rights enforcement goes on. The USTR wrote that further work on addressing government use of unlicensed software remains. The The Donald Trump 2.0 administration urges the Indonesian police to set up a specialized IP unit to launch probes into the criminal organizations behind the counterfeiting and piracy.

“Using all the enforcement tools we have to address unfair trade practices is a top priority,” Trump’s trade chief Jamieson Greer said.

“We have rigorously reviewed our trading partners' IP practices and expect to take action where needed to protect American innovators and creators globally."

The US is now banking on the tariff deal that Indonesia had struck in February for some improvements in Southeast Asia’s biggest economy. Under the accord, Indonesia had pledged to step up IP enforcement actions. USTR plans to “engage intensively” with Indonesia following the report. 

Also on the priority watch list are Chile, China, India, Russia, and Venezuela. The USTR also named Vietnam a top concern, raising the possibility of a new trade probe into Hanoi.

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