Indonesia needs stronger IP regulations for creative economy financing

Digital economy expert Heru Sutadi from the University of Indonesia has emphasized that strengthening regulations and implementation ecosystems is essential to optimizing intellectual property (IP) as a financing source for Indonesia's creative economy actors.

Sutadi noted that the government needs to align financial sector regulations, establish applicable IP valuation standards, and clarify execution mechanisms for IP in the event of debtor default. He suggested the creation of a secondary market to allow pledged IP to be sold or transferred.

Clear valuation standards are critical because the value of creative works is influenced by factors such as income potential, market prospects, and popularity. Establishing a consistent methodology would allow financial institutions to measure financing risks more accurately while providing creative actors with a clearer view of their asset potential.