Criminalizing Fraud in Intellectual Property Collateralization in Indonesia’s Creative Economy

Abstract

This study analyzes the criminal liability of creative economy actors for fraud and digital asset manipulation in Indonesia's intellectual property collateralization. The formal recognition of intellectual property as debt collateral under recent regulatory frameworks introduces profound criminogenic vulnerabilities into the banking sector. Debtors can easily exploit valuation uncertainties and the absence of a mature secondary market to commit financial fraud or embezzle fiduciary objects. Through an economic analysis of Law, these unique intangible attributes create severe information asymmetries that economically incentivize malicious manipulation of digital metrics. This research uses a normative juridical method, supported by statutory and conceptual approaches, to develop a robust criminal law enforcement framework. The findings indicate that domestic criminal provisions remain structurally inadequate to prosecute sophisticated digital asset fraud. Establishing precise criminal liability requires proving actual financial loss using global risk metrics such as the Basel III/IV capital adequacy standards and the World Intellectual Property Organization valuation guidelines. Integrating the UNCITRAL Model Law on Secured Transactions provides indispensable legal certainty about digital ownership, without which fraudulent intent and unlawful acts cannot be established during collateral execution. Safeguarding the national banking sector from creative economy financial crimes requires a comprehensive penal policy that integrates these global benchmarks to effectively prosecute digital asset embezzlement.

Keywords: Criminal Liability; Collateral Fraud; Intellectual Property; Economic Analysis of Law; Penal Policy.