One of the attentions of the Indonesian Government under President Joko Widodo is to the creative economy. Remembering that Indonesia’s diversity of culture should be considered as a treasure, the President has a high expectation that Indonesia can maximize the utilization of its cultures. In this case, to maximize the potential of creative economy, the Indonesian Government finally issued the Law No. 24 of 2019 regarding Creative Economy (Creative Economy Law) on 24 October 2019.

In view of the above matter, according to Article 4 of the Creative Economy Law, there are seven purposes of the Indonesian Government issuing the new Creative Economy Law as follows:

1. To encourage all aspects of the Creative Economy by the development of culture, technology, creativity, innovation in Indonesian society, and changes in the global economic environment;
2. To improve the welfare of the Indonesian people and increase state revenue;
3. To Create a Creative Economy Ecosystem that is globally competitive;
4. To Create new job opportunities that favor the artistic and cultural values of the Indonesian people and local economic resources;
5. To optimize the potential of Creative Economy Actors;
6. To protect the creative output of Creative Economy Actors; and
7. To Mainstream the Creative Economy in the National Development Plan.

Further, besides the above-mentioned purposes, another thing that is important to note that there is a provision regulating that the intellectual property rights can be pledged as collateral to the financial institutions i.e. Bank. This provision is really important for the holder of Intellectual Property rights since the Government finally recognizes that Intellectual Property rights have high economic value.

However, the Indonesian Government has to work very hard to implement the above provision since up to this moment in Indonesia, it is still difficult to calculate the economic value of Intellectual Property rights. Therefore, it is necessary for the Government to support the Creative Economy Law together with the implementing regulations, namely Government Regulation and/or other regulations related to the financial system.

Source: Creative Economy Law No. 24 of 2019