Intellectual property (IP) has become one of the most valuable assets in today’s knowledge-based economy. Intellectual property refers to a type of asset that contains intangible creations of the intellect that hold not only artistic and technical value but also significant economic potential. In the context of growing startups, creative industries, and technological advancements, the most recognized forms of IP include patents, trademarks, copyrights, trade secrets, and industrial designs. However, the implementation of IP as collateral still faces various obstacles, including regulatory, legal, and institutional challenges.

Fiduciary security is governed by Law No. 42 of 1999 concerning Fiduciary Security (Fiduciary Law), which essentially allows movable assets, including intangible property rights, to be used as credit collateral. Based on Article 1 point 2 of the Fiduciary Law, the object of fiduciary security includes “Movable objects, both tangible and intangible, and immovable objects, particularly buildings that cannot be encumbered with mortgage rights as referred to in Law No. 4 of 1996 on Mortgage Rights, which remain under the control of the Fiduciary Grantor, as collateral for the repayment of a specific debt, giving a preferential position to the Fiduciary Recipient over other creditors.”

Based on this definition, intellectual property certificates which represent rights to intangible assets, may normatively qualify as fiduciary objects. A stronger legal basis for recognizing intellectual property as fiduciary collateral in Indonesia was established with the issuance of Government Regulation No. 24 of 2022 on the Creative Economy (GR 24/2022), which specifically introduces financing schemes based on intellectual property.

GR 24/2022 opens the way for financing schemes based on intellectual property. Article 1 point 4 of the regulation defines “An Intellectual Property-Based Financing Scheme is a financing scheme that uses Intellectual Property as an object of debt collateral for banking and non-bank financial institutions in order to provide financing to Creative Economy Actors.”

This financing may come from banking or non-bank institutions. Article 4 of the regulation states that the government facilitates IP-based financing schemes through utilization and valuation of economically valuable intellectual property. Furthermore, Article 5 outlines that such facilitation includes assistance in the process of IP registration or recordation and the optimization of IP as collateral objects.

In practice, Article 7 stipulates that creative economy actors may apply for IP-based financing by submitting a proposal to banking or non-bank financial institutions. The minimum requirements include:

• A financing proposal;
• Proof of operating a creative economy business;
• An agreement relating to the IP of the creative product; and
• Proof of IP recordation or a valid IP certificate.

Following the application, the financial institution will verify and assess the creative business and the IP certificate proposed as collateral, as provided in Article 8. In implementing this financing scheme, Article 9 of GR 24/2022 regulates that the collateral object in fiduciary security may include Fiduciary security over intellectual property; Contracts within creative economy activities; and/or Accounts receivable in

creative economy activities. It is important to note that only intellectual property that has been registered or recorded with the Ministry of Law, and that has been managed independently or had its rights transferred to another party, may qualify as collateral.

The potential of intellectual property certificates as fiduciary collateral in Indonesia is significant, particularly to support financing for startups and the creative sector. However, the implementation of this legal framework still requires systematic efforts across various sectors and the active involvement of relevant stakeholders. With stronger technical regulations, improved legal literacy among business actors, and increased support from financial institutions, intellectual property certificates can serve as a legitimate and economically valuable form of collateral that significantly contributes to the development of Indonesia’s creative economy.

If you have further inquiries regarding this topic, Schinder Law Firm has extensive experience handling corporate and financial regulatory matters. Our team of seasoned corporate and civil lawyers stands ready to assist. Please contact us at info@schinderlawfirm.com for further consultation.

Author:
Dewi Susanti