Intellectual Property-Based Financing as Alternative Collateral for Creative Economy MSMEs: Implications for Financial Inclusion and Business Growth in Indonesia

Abstract

The creative economy is a major driver of innovation-led growth, yet creative economy MSMEs face limited access to formal financing because their business models depend on intangible assets rather than physical collateral. Indonesia has introduced a regulatory framework recognizing intellectual property (IP) as an alternative form of collateral for financing. This study examines how Indonesia’s IP-based financing framework is intended to expand financial inclusion for creative economy MSMEs, using a qualitative policy analysis approach evaluating five key regulatory instruments issued between 2019 and 2026 that collectively establish IP as a recognized, valuable, and financeable asset. The findings indicate that Indonesia has developed an initial institutional architecture for transforming intellectual property into a financing instrument, but this architecture remains partial rather than comprehensive: it stops short of specifying enforcement, liquidation, and dispute-resolution mechanisms, and implementation challenges remain significant, including institutional risk aversion, limited IP literacy among MSMEs, and unequal digital access. Recent developments, including the inauguration of Indonesia's first certified IP Appraisers and a dedicated IDR 10 trillion KUR Ekraf platform launched in February 2026, indicate the framework has begun moving toward operational practice, though no disbursement data are yet available to confirm effectiveness. This study contributes to the MSMEs financing literature by positioning IP as an instrument that may enhance financial inclusion and support business growth, while cautioning that regulatory recognition alone does not guarantee improved access without parallel investment in valuation capacity and MSMEs readiness.