Creative Economy Ministry: IP-Based Financing Drives Creative Business Growth

Jakarta - Secretary of the Creative Economy Ministry (Sesmen Ekraf) Dessy Ruhati stated that an intellectual property (IP)-based financing scheme can broaden access to capital for creative economy players, whilst simultaneously driving the growth of creative businesses. Dessy said the ministry, together with the Financial Services Authority (OJK), Bank Mandiri, MAPI, and a number of other stakeholders, is conducting a pilot project to test whether the economic value of IP can be used as a basis for credit analysis by financial institutions. “What we are testing is not only its economic value, but also whether the valuation results can be translated into a professionally accountable credit analysis. Several players have entered the credit analysis stage and provided very valuable lessons,” Dessy said during a hearing with Commission VII of the Indonesian House of Representatives (DPR RI) in Jakarta on Monday. She said the project has revealed a number of challenges that need to be resolved, such as from the business side, many creative enterprises do not yet have proper financial records, adequate financial literacy, or complete intellectual property protection. Meanwhile, from the financial institution side, the creative economy business is still considered to have a higher risk level compared to conventional sectors. Therefore, Dessy stressed that the main challenge is not just the availability of funds, but building confidence so that intellectual property is recognised as an economic asset worthy of financing. “We still need stronger valuation standards, guarantee mechanisms, a secondary market for intellectual property, and a more comprehensive risk mitigation system,” Dessy said. To support this, the Creative Economy Ministry is implementing mentoring according to the business development stage, starting from incubation, improving financial literacy, financing access, business matching, to opportunities for obtaining investment and listing on the stock exchange through the Kreatif IPO programme. The financing facilitation process is carried out in stages, starting from identifying the needs of business players, curation, mentoring, bootcamps, business matching, to the due diligence process by financing institutions. After financing is provided, mentoring continues to ensure that the capital disbursed can increase business capacity, boost turnover, create jobs, and encourage sustainable creative economic growth.