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Long way to go for IP rights to become loan collateral
The government has allowed intellectual property to be used to access financing in a bid to boost the country’s creative economy, but wide-scale adoption of the scheme will take time.
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Visitors examine small and medium enterprise (SME) products during the Bandung Creative Market 2020 exhibition at Trans Studio Mall in the West Java provincial capital on Sept. 11, 2020. (Antara/Novrian Arbi)
T
he government has allowed intellectual property to be used as collateral to access financing in a bid to boost the country’s creative economy, but wide-scale adoption of the scheme will take time.
Government regulation No. 24/2022 on the creative economy, which will take effect a year after it was introduced on July 12, stipulates that intellectual property can be used as collateral to acquire loans from financial institutions like banks.
The regulation also allows creative-economy players to engage in securities crowdfunding, a relatively novel fundraising scheme that was previously limited to small businesses in Indonesia.
Securities crowdfunding allows issuers to offer investors equity or debt papers through crowdfunding platforms.
Tourism and Creative Economy Minister Sandiaga “Sandi” Uno hailed the regulation as a way for people working in the creative industry, like artists, singers or YouTube content creators, to acquire funds to support their work.
“It’s a game changer,” Sandi told reporters during a press briefing on Monday.
Read also: Indonesia’s pottery industry finally gets its moment
