Intellectual property‐based financing scheme for creative industry in Indonesia: Policy, progress, challenges and potential solutions

Abstract

Despite the massive growth of creative industries, 92.37% of creative industry players in Indonesia are independently self‐funded and have not received any outside funding such as banking credit. The government then issued Law Number 24 of 2019 concerning the Creative Economy (“Creative Economy Law”) where Article 16 verse (1) states that the government facilitates the development of Intellectual Property (IP)‐Based Financing for Creative Economy actors. The “Creative Economy Law” was then followed by the issuance of Government Regulation Number 24 of 2022 concerning the Implementing R egulations of Law Number 24 of 2019 concerning the Creative Economy (“Indonesian Government Regulation of Creative Economy”) as the regulatory framework. Using the normative juridical and comparative approach, this article examines the implementation of those regulations in establishing the IP‐based financing scheme for the creative industry in Indonesia, the progress, challenges, and potential solutions. This study shows that there's still a lack of political willingness from Indonesian banking institutions to accept and implement IP assets as collateral, therefore, concrete steps need to be taken for the formulation of IP‐based financing and IP‐based collateral through coordination and synergy between state holders and stakeholders for example by formulating pilot project led by the government.