Creative Economy Ministry adopts cross-sector approach to transform Intellectual Property into economic assets

The Minister of Creative Economy, Teuku Riefky Harsya, stated that the ministry is actively pursuing a cross-sector approach, ranging from the banking sector to local communities, to build confidence in Intellectual Property (IP) as additional collateral for obtaining bank credit.

“What we are currently doing is building trust, both from the banking side in providing credit, and from the creative economy practitioners who often feel they cannot access such funding,” Riefky said during a working meeting with Commission VII of the Indonesian House of Representatives (DPR RI) in the Parliament complex, Senayan, Jakarta, on Tuesday.

He noted that since its inception, the ministry has been encouraging an IP-based financing ecosystem, recognising that current business trends allow creative works to be utilised as collateral. The Ministry of Creative Economy is also engaging with the Financial Services Authority (OJK) to ensure that the State-Owned Bank Association (Himbara) can provide funding based on IP certificates. He identified this as a significant challenge in establishing trust among both banks and creative industry practitioners.

In addition to the banking sector, the ministry is collaborating with the Indonesian Society of Appraisers (MAPPI) to provide IP appraisal services. Furthermore, in partnership with the World Intellectual Property Organization (WIPO), the ministry has provided training and the inauguration of 64 IP valuators.

“We are currently working with Himbara and OJK to establish a team to announce a specific KUR (People’s Business Credit) ceiling for the IP-based creative industry. We have contacted various associations, resulting in over a thousand applicants who are currently undergoing curation and assistance,” he added.

As of mid-year, out of the 1,000 creative practitioners who applied, only 57 have met the necessary requirements. The Minister stated that the ministry will continue to coordinate with OJK, IP valuators, Himbara, and various associations to encourage members to utilise IP-based KUR. Riefky also mentioned that the Ministry of Finance has approved several creative practitioners to use their registered intellectual property as additional collateral, with flexibility levels being continuously improved and implemented.