Indonesia Pioneers IP-Backed Financing for MSMEs: A Transformational Leap Toward Innovation-Led Growth

Indonesia Pioneers IP-Backed Financing for MSMEs: A Transformational Leap Toward Innovation-Led Growth

“Collaborative efforts between Indonesian government and banks to implement IP-backed loan frameworks”

Indonesia has taken a significant step toward redefining economic empowerment for its micro, small, and medium enterprises by launching a groundbreaking intellectual property-based financing program. This historic initiative was unveiled during the IPXpose Indonesia 2025 event held in Jakarta, signalling a paradigm shift in how intangible assets are recognized and utilized in the national economic landscape.

Revolutionizing Access to Capital for MSMEs

The newly launched policy, spearheaded by Minister Supratman Andi Agtas, allows MSMEs to use registered intellectual property certificates—beginning with trademarks—as collateral for obtaining bank loans. This marks a pivotal development for the MSME sector, which constitutes the backbone of Indonesia’s economy but has long struggled with limited access to formal financial resources due to a lack of tangible assets. “This is a major breakthrough for MSME players. IP certificates can now serve as financing instruments, let us mark today as a historic milestone in utilizing IP to support the national creative economy.” said Minister Agtas.

Expanding the Definition of Value

By positioning intellectual property as a bankable asset, Indonesia is not only fostering innovation but also acknowledging the evolving nature of value in a digital and creative economy. Initially focusing on trademarks, the program is expected to broaden its scope to include patents, industrial designs, and copyrights, thereby offering a wider array of creative entrepreneurs’ access to capital. This progressive approach is aligned with global trends that recognize the rising economic significance of intangible assets, particularly in sectors such as technology, media, fashion, and design.

Strategic Collaboration and Implementation

Despite the promise of the initiative, its successful implementation hinges on the coordinated efforts of multiple stakeholders. Minister Agtas highlighted the necessity for close collaboration among key entities, including relevant government ministries, the Financial Services Authority, and the national banking sector. Establishing a robust, transparent, and efficient framework is essential to ensure the program’s credibility and scalability. The policy’s long-term success will also depend on awareness-building among MSMEs regarding the importance of IP registration and management, as well as the financial sector’s readiness to accurately assess and underwrite IP assets.

Implications for Indonesia’s Creative Economy

This initiative is expected to catalyse the growth of Indonesia’s creative economy by removing one of the most significant barriers to entry: access to funding. With greater financial inclusion and empowerment, small businesses will be better equipped to invest in research, innovation, and market expansion. Moreover, the policy could encourage a cultural shift toward greater intellectual property literacy, prompting businesses to formally protect their creative assets and, in turn, contribute to national IP portfolios.

Indonesia’s launch of the IP-based financing program represents a bold and forward-looking move toward building an innovation-driven economy. By enabling MSMEs to monetize their intellectual property, the government is not only unlocking new financial opportunities but also reinforcing the strategic value of creativity and innovation in national development. As the program evolves and expands, it holds the potential to serve as a model for other emerging economies seeking to harness intangible assets as engines of inclusive and sustainable growth.