Intellectual Property Financing in Indonesia

Posted by Written by Ayman Falak Medina Reading Time: 2 minutes

Indonesia’s GR 24/2022 is a new regulation that allows people and businesses in the creative economy to use their IP assets as collateral for financing from banks.

The government hopes this will boost the chances for players in the industry to access financing, which has hindered the sector’s growth potential. GR 24/2022 is scheduled to come into force in July 2023.

In a bid to support the creative economy, Indonesia’s government introduced Government Regulation 24 of 2022 (GR 24/2022) in July 2022, which allows creative economy actors to use their intellectual property (IP) assets as security to obtain financing from banks and non-bank financial institutions.

GR 24/2022 is scheduled to come into force in July 2023.

Through GR 24/2022, the government hopes this will encourage more added-value products in the sector and become an important driver of Indonesia’s economy going forward. The creative economy contributed to 6.98 percent of the total GDP in 2021, an increase of just over four percent from the previous year. This continued growth has been boosted by e-commerce as well as a consumer class that is showing an increasing preference for leisure over goods.

However, there is huge untapped potential as many businesses in this sector are micro, small, or medium-sized and have limited access to financing and technologies needed to expand their operations. Further, most do not understand the importance of IP rights that can add value to their business.

Creative economy sub-sectors

GR 24/2022 states that there are 17 creative economy sub-sectors that can be used as collateral for loans. These are:

  1. Architecture;
  2. Game development;
  3. Music;
  4. Product design;
  5. Visual communication and design;
  6. Interior design;
  7. Photography;
  8. Animated film and video;
  9. Food;
  10. Fashion;
  11. Applications;
  12. Publishing;
  13. Performing arts;
  14. Television;
  15. Radio;
  16. Fine arts; and
  17. Advertising crafts.

Applying for intellectual property financing

Creative economy actors will need to fulfill the following requirements when applying for IP financing:

  • Provide a proposal for financing;
  • Operate a business in the creative economy;
  • Have an arrangement related to the IP asset that is to be pledged as security; and
  • Possess proof of a certificate of IP.

IP financing

For banks and other non-bank financial institutions, they need to verify the creative economy business and their IP certificates before distributing the funds. In addition, the bank needs to perform a valuation of the IP that is being used as collateral.

The valuation of the IP that is used as collateral must be done using the following approach:

  • Cost approach;
  • Market approach;
  • Revenue approach: and/or
  • Other valuation approaches.


Collateral between the investor and the creative economy actor can be in the form of:

  1. Fiduciary guarantee of intellectual property;
  2. A contract for creative economic activities; and/or
  3. Receivables from the creative economic activities.

IP appraiser

The IP valuation is to be done by an IP appraiser who must be licensed by the Ministry of Finance. However, it is still unclear how many appraisers in Indonesia have the competency to appraise IPs since the majority are specifically qualified to appraise properties and businesses.

Another challenge the government must solve is access to IP data. Currently, the Directorate General of Intellectual Property has limited information in its publicly accessible IP database.

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