Law Number 28 of 2014 concerning Copyright, particularly Article 16 paragraph (3), stipulates that copyright, as an intangible movable asset, may be used as fiduciary collateral. This provision implies that both banking and non-banking financial institutions may accept copyright as credit security. However, no financial institution in Indonesia has implemented this provision due to the banking prudential principle, particularly the 5C assessment: Character, Capacity, Capital, Collateral, and Condition of Economy. Among these, collateral must possess measurable value, legal certainty, and sufficient liquidity to secure loan repayment in the event of default. This study aims to examine whether Intellectual Property Rights (IPRs), particularly copyright, can effectively function as credit collateral in Indonesian financial institutions. Although Article 1 point 2 of Law Number 42 of 1999 concerning Fiduciary Guarantees provides a legal basis for fiduciary security over movable assets, financial institutions remain reluctant to accept copyright because of practical and legal uncertainties. This research employs a normative juridical method using a statutory approach. The primary legal materials include Law Number 28 of 2014 concerning Copyright, Law Number 13 of 2016 concerning Patents, the Criminal Code, and the Civil Code. The findings reveal that the principal obstacle is the absence of a specialized government institution authorized to assess the economic value of copyright for collateral purposes. Consequently, despite its legal recognition, copyright has not been effectively utilized as loan collateral. Establishing an authorized valuation institution would strengthen legal certainty and increase the feasibility of using copyright as collateral in Indonesia's financial sector.