Indonesia establishes new mechanism for IP assets
12 December 2025
The Indonesian government has officially allocated Rp10 trillion (US$600 million) in microcredit financing backed by intellectual property assets. The new mechanism, proposed by the Ministry of Law and Human Rights, received approval from the Coordinating Ministry for Economic Affairs and the Ministry of Finance.
Minister of Law Supratman Andi Agtas said the IP-backed microcredit scheme is designed to give IP owners broader access to funding, noting that many institutions developing IP-based products struggle with capital despite having strong market prospects.
“The market guarantee is there, and the legal framework is ready. What has been lacking is research funding. With the IP-based KUR (Kredit Usaha Rakyat or People’s Business Credit), we can accelerate the development of innovation,” Supratman said in a press release on Wednesday, November 19, 2025.
He confirmed that the programme will begin in 2026. Under the scheme, creative economy players may use intellectual property projects as primary collateral, with banks offering a competitive annual interest rate of 2.4 percent.
To implement the programme, banks and financial institutions will require valuation estimates from certified IP appraisal agencies. These valuations will determine the final loan amount. If additional capital is needed, IP certificate holders may provide supplementary collateral.
Supratman added that the government will use the remainder of the year to finalize supporting instruments and train valuers to ensure a smooth rollout in 2026. Early collaboration began in mid-2025 with the Ministry of Law, the Ministry of Cooperatives and small- and medium-sized enterprises (SMEs), and state-owned bank BRI.
“The government aims to expand patent, industrial design and copyright registrations once regulatory mechanisms and valuation standards are fully strengthened,” he said.
Global trend and national gap
Ministry of Law’s Director General of Intellectual Property Hermansyah Siregar emphasized that IP-based financing is an established global practice. He noted that investment in intangible assets – such as software, research and development, trademarks and designs – has exceeded investment in physical assets since 2009 and continued growing through 2024.
“This shift shows that the value of the world economy now depends on creativity and innovation, not just physical assets,” Hermansyah said.
He underscored the scheme’s potential to help close Indonesia’s financing gap, pointing to Indonesia’s 26 million creative economy workers and 63 million SMEs producing local products and brands. “The future tasks of the Directorate General of Intellectual Property (DGIP) are to ensure valuation standards, integrate IP data, and strengthen legal protection so this scheme can truly work,” he concluded, urging the public and SMEs to register their IP through official DGIP channels.
- Excel V. Dyquiangco
