Legislator proposes guarantee institution for creative industry intellectual property

Jakarta (ANTARA) - Member of Commission VII of the Indonesian House of Representatives (DPR RI) Putra Nababan has proposed that the Ministry of Creative Economy establish a guarantor scheme or risk guarantee institution across ministries to cover creative industry business actors who wish to use intellectual property (IP) as collateral for bank loans.

“I propose that the Ministry of Creative Economy could initiate the formation of a Public Service Agency (BLU), or a guarantor scheme, or a risk guarantee institution with the Ministry of Finance to bear the burden of IP-based credit failures,” said Putra during a Working Plan and Budget meeting at the Parliament Complex in Senayan, Jakarta, on Monday.

Putra said the proposal was based on his visit to an animation studio in Cimahi, West Java, where he found that conventional banks, state-owned banks (himbara), and regional banks reject intellectual property as loan collateral because it is considered illiquid, volatile, and lacking a standard valuation.

According to him, this could kill the creative industry because loan collateral can support the production cycle, including animation, which requires investment in technology and a lengthy production time.

“Therefore, I believe there must be not only encouragement but systemic compulsion from the state in the form of policy intervention; it cannot be merely an appeal,” said the PDIP faction member.

Responding to this, Creative Economy Minister Teuku Riefky Harsya said he continues to build trust with stakeholders, in this case the banking sector, and coordinates with the Financial Services Authority (OJK) to socialise IP-based credit.

Riefky said his ministry’s relevant directorate is also continuously conducting outreach, from global IP bodies such as WIPO to MAPI, to build banking confidence in IP collateral.

“Building this trust is very important for us to start, even though the success ratio is very small, but we must indeed begin,” said Riefky.

The Creative Economy Ministry has also collaborated with the Coordinating Ministry for Economic Affairs, the Ministry of Finance, the Ministry of Law, and OJK in developing various regulations related to intellectual property, including IP Valuers and IP-based financing (Commercial Credit Facilities and KUR) for the creative economy sector.