KUALA LUMPUR - Indonesia is developing a new film financing mechanism to protect intellectual property (IP) and expand market access, as the government moves to strengthen the creative economy and attract more investment.

Creative Economy Minister Teuku Riefky Harsya said the ministry is working with partners to ensure intellectual property plays a bigger role in financing creative businesses, especially in the film sector.

“The Ministry of Creative Economy continues to push for intellectual property to be recognised as collateral,” Harsya said in a statement in Jakarta, last Thursday.

He said limited venture capital and difficulties in commercialising intellectual property remain major challenges for Indonesia’s creative industries, particularly film, which depends on long-term funding and strong distribution networks.

Harsya said the government aims to complete studies by early 2026 on incentives for priority creative subsectors such as film, gaming and digital applications to make them more attractive to investors.

“We want to open wider opportunities for investors to participate in the creative economy,” he added.

Beyond tax and fiscal incentives, the ministry has proposed structural measures, including the creation of the Indonesia Creative Content Fund (ICCF) to support creative projects.

Deputy for Media Creativity, Agustini Rahayu said the planned ICCF is intended to strengthen a sustainable financing ecosystem, particularly for content creators facing limited market access and weak IP protection.

“The ICCF is being initiated as a reference model for creative content financing,” she said.

The initiative follows talks in July 2025 with state-owned film producer Produksi Film Negara (PFN) on improving the distribution and promotion of Indonesian films.

The ministry is encouraging PFN to develop into a National Content Hub to support wider access and visibility for local productions.

PFN Director of Development Narliswandi Iwan Piliang said the agency plans to set up a dedicated venture capital fund to support creative industries and expand production capacity.

PFN is also developing the Indonesia Film Facilitation (IFF) programme to boost film exports, create jobs for young Indonesians and promote Indonesia’s creative sector globally.