Indonesia: Using IP assets as collateral for financing
With the introduction of Indonesia’s GR 24/2022, individuals and organizations involved in the creative sector are now able to use their IP assets as collateral for financing from banks.
The government thinks that by doing this, participants in the sector will have an increased chance of gaining access to funding, which has hampered the sector’s potential for expansion. In July 2023, GR 24/2022 is expected to go into effect.
Government Regulation 24 of 2022 (GR 24/2022), which was introduced by the Indonesian government in July 2022 in an effort to support the creative economy, enables participants in the creative economy to use their intellectual property (IP) assets as security to acquire financing from banks and non-bank financial institutions.
In July 2023, GR 24/2022 is expected to go into effect.
The government anticipates that this will promote the sector and make it a significant future contributor of Indonesia’s economy by GR 24/2022. In 2021, the creative economy produced 6.98 percent of the overall GDP, up slightly more than 4% from the year before. E-commerce and a consumer class that is increasingly favoring leisure over products have contributed to this ongoing growth.
However, there remains a significant degree of unrealized potential because many companies in this industry are micro, small, or medium-sized and have limited access to the funding and technologies they need to grow. Additionally, most people are unaware of the value that IP rights may provide to a company’s bottom line.
IP financing
Before redistributing the funds, banks and other non-bank financial institutions must confirm the creative economy company and its IP certificates. A value of the IP being used as collateral must also be done by the bank.
An IP appraiser who has been licensed by the Ministry of Finance must do the IP value. Since the majority are only qualified to appraise enterprises and properties, it is currently unknown how many appraisers in Indonesia are qualified to appraise the intellectual property.
Access to IP data is another issue that needs to be resolved by the government. The Directorate General of Intellectual Property’s publicly accessible IP database currently contains only a small amount of information.
*** Other Articles***
– You could visit here to see 05 Legal Notes About Trademark In Indonesia – Indonesia Trademark Law
– You could visit here to check the Trademark Registration in Indonesia.
– You could check the Procedure of Trademark in Indonesia here.
– You can also check the Required documents of filing trademark in Indonesia
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