IP Outreach Research > IP Crime


Title: Economic Impact Study of Counterfeiting Indonesia and Dialogue on Regulatory Remedies
Author: LPEM University of Indonesia and Masyarakat Indonesia Anti Pemalsuan [co-financed by the European Union]

Delegation of the European Commission to Indonesia and Brunei Darussalam

Year: 2005


Subject/Type: Counterfeiting
Focus: Apparel and Shoes, Brands (deceptive counterfeits), Brands (non-deceptive counterfeits), Consumer Electronics / Electronic Equipment, Medicines and Medical Devices, Personal Care Products
Country/Territory: Indonesia
Objective: Inter alia, to examine consumer perception of counterfeits.
Sample: 257 consumers in Jakarta (150) and Surabaya (107)
Methodology: On-the-spot interviews based on a questionnaire

Main Findings

62.32% feel that they are able to distinguish between the original products they buy and counterfeits. Consumers feel less confident about their ability to spot fake medicines than about any other product. Consumers care more about the function and the price of a product than they care about its brand or whether it is fake or original. They tend to judge whether a product is counterfeit or original based on the price and quality.

Consumers of fakes are motivated by their lower price and perception of no difference in function between the fake and the original. 92.61% are willing to buy original products if the price difference with the fakes is only 20%. When the price difference is 80% only 27.63% are still willing to purchase the original. Only 22.96% claim that they will never buy counterfeit goods due to their higher quality (49.38%), satisfaction they get from an original purchase (41.98%) and the illegality of counterfeit goods (8.64%). Consumers are much more reluctant to buy counterfeit products if the products are applied to the skin or swallowed.

[Date Added: Aug 12, 2008 ]