Regulation on Intellectual Property for Fiduciary Security Finalized

Ministry of Creative Economy/Creative Economy Agency (Kementerian Ekonomi Kreatif/Badan Ekonomi Kreatif– Kemenekraf/Bekraf) is finalizing Regulation of the Minister (Peraturan Menteri/Permen) on the appraisal of intellectual property. This legal instrument enables intellectual property (Kekayaan Intelektual– “ IP ”) such as copyrights, trademarks, and patents to serve as collateral for loans in the form of fiduciary security.

“Permen on the appraisal of intellectual property is currently being finalized in coordination with the Ministry of Finance and the Financial Services Authority (Otoritas Jasa Keuangan– “ OJK ”). It is expected to be issued this year,” said Cecep Rukendi, Deputy for Strategic Development of the Creative Economy, in an interview with Hukumonline.

According to Cecep, the intangible nature of KI products makes them difficult to be used as collateral in conventional banking financing schemes without standardized and measurable appraisal methods. However, Regulation of the Government No. 24 of 2022 (“ PP 24/2022 ”) and Law (UU) No. 24 of 2019 on Creative Economy (“ UU 24/2019 ”) allow creative industry actors to use their works as collateral to obtain credit from banks or non-bank financial institutions.

“According to the Law, it is already permitted to be used as fiduciary collateral, and SEOJK also support this. Moreover, many non-bank institutions have shown interest in using KI as collateral for credit. However, banks remain cautious because, although allowed, risks still exist. Therefore, we will conduct gradual socialization on this matter,” he explained.