Governance and regulation of local working requirement and importation: Pharmaceutical industry study

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Kholis Roisah ORCID logo, Rahayu, Darminto, Zinatul Ashiqin Zainol ORCID logo, Leony Sondang Suryani

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This paper aims to analyze the governance and regulation of local working requirement (LWR) and importation of pharmaceutical products in Indonesia. Based on the theoretical perspectives of Cottier and Panizzon (2004) and Champ and Attaran (2002), this study aims to analyze the important role of patents through LWR and importation, both directly or indirectly to facilitate the transfer of technology and to stimulate technology transfer with the availability of technology information through patent documents. The research was conducted by using a qualitative descriptive-analytical method. A doctrinal approach was used in this study in the context of reviewing the laws and regulations in the field of patents, the World Trade Organization (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (hereinafter TRIPS Agreement), health law, and its derivative regulations. The theory used in this study is about the politics of patent law which focuses on the national interest to pursue local production of patented inventions. The results showed that LWR, pharmaceutical importations provisions, and intellectual property rights law policies as a whole in Indonesia need to be harmonized and integrated with policies on technology transfer, industrial development, trade, and investment. The results underscore the main way in which LWR can contribute directly to the transfer of technology in developing countries.

Keywords: Governance, Regulation, Local Working Requirement, Importation, Pharmaceutical Products, Indonesia

Authors’ individual contribution: Conceptualization — K.R.; Methodology — K.R., R., and D.; Data Curation — Z.A.Z. and L.S.S.; Formal Analysis — R., D., Z.A.Z., and L.S.S.; Resources — K.R.; Writing — Original Draft — K.R.; Writing — Review & Editing — K.R., R., D., Z.A.Z., and L.S.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: J81, K23, L79

Received: 12.02.2022
Accepted: 08.07.2022
Published online: 11.07.2022

How to cite this paper: Roisah, K., Rahayu, Darminto, Zainol, Z. A., & Suryani, L. S. (2022). Governance and regulation of local working requirement and importation: Pharmaceutical industry study. Journal of Governance & Regulation, 11(3), 61–69.