Creativity is always part of Indonesia’s way of life. Rich tradition, multicultural situation, vibrant
population and dynamic economy are greatest assets to Indonesia’s creative economy. Indonesia
first recognized the potential of creative economy in the wake of 2008-2009 global economic crisis, when the country established the Ministry of Tourism and Creative Economy (MoTCE) in 2011, in an attempt to build a resilience and pursue economic diversification.
Indonesia is among the first countries to have a ministry which specifically handle creative economy. Matters related to creative economy were administered by the Agency for Creative Economy (BEKRAF/Badan Ekonomi Kreatif ) during the period of 2014 – 2019, before returned to the MoTCE from 2019 onwards. In 2019, the Indonesian Parliament adopted Law No. 24 Year 2019 on Creative Economy. Under the Law, creative economy is defined as an “embodiment of the added value of intellectual property generated from human creativity, cultural heritage, science and technology.
Indonesia pays significant attention to creative economy, as the sector is highly transformative, in terms of income generation, job creation and export earnings with spillover effects that stimulated innovation in other sectors. In Indonesia, creative economy employs approximately 19.39 million people and contributes about USD 82 billion to GDP. In other parts of the world, creative economy also becomes increasingly more important. It is well-known concept of meaningful contributor to national gross domestic product since the 1990s. Dating back to the financial crisis in 2008, the report from UNCTAD mentions that creative industry had proven itself to be robust. Trade in creative goods doubled from USD 208 billion in 2008 to USD 509 billion in 2015, exceeding the average growth rate at 7%, supported by high growth of design, fashion, and film industries. Now, around the world, there is a widespread trend of shifting the global economy from natural resources-based to human resources-based growth, which significantly relies on creativity and innovation. Before the pandemic, creative economy was one of the fastest growing sectors in every region of the world. According to a UNESCO report, creative economy accounts for 3% of global GDP and generates 2.2 trillion USD annually. Similar to other sectors, creative economy has been hit hard by the COVID-19 pandemic, rising food and energy prices, and the global economic slowdown.
Understanding the fundamental role of networking into creating an enabling environment for creative economy, the Government of Indonesia facilitates the establishment of creative economy networks across Indonesia. One key example of this effort is “Creative Cities” {Kabupaten/Kota (KaKa) Kreatif }. As of 2022, the MoTCE has designated 64 Creative Cities. These Creative Cities were selected after going through rigorous selection process, measured by indicators, such as the existence of creativeeconomy-friendly policies in local government and the number of creative economy communities. The selected Creative Cities receive assistance priorities from the MoTCE, including entrepreneurship workshops, partnership between SMEs and national/ multinational companies, and promotion assistances.
Diplomacy plays an important role to promote creative economy. The Indonesian Ministry of Foreign Affairs has been working closely to support the Ministry of Tourism and Creative Economy, other Government agencies and other stakeholders to foster creative economy. The great potential of creative economy has inspired Indonesia to work to elevating the creative economy into world economic and development agenda. Indonesia’s diplomacy consistently attaches the importance on being “inclusive and sustainable” d i m e n s i o n s o f c r e a t i ve economy. As creative economy is based on individual creativity, it has a huge potential for involving people with diverse backgrounds and experiences. It increases employment opportunities, enhances entrepreneurship and innovation, as well as empowers women, youth and marginalized groups. Such positive dimensions of creative economy could help countries accelerate achievement of SDGs. The great potential of creative economy has inspired Indonesia to work to elevating the creative economy into world economic and development agenda. In that context, Indonesia aspired to work together with the international community to position the creative economy as an inclusive economic paradigm which delivers a significant impact to sustainable development.
To raise a global awareness of the potential interconnection between creative economy and sustainable development, Indonesian MoTCE, supported by MoFA, hosted the 1st World Conference on Creative Economy (WCCE) in Bali, 6 - 8 November 2018. The 1st WCCE carried the theme “Inclusively Creative” which discussed five main issues – (i) social cohesion, (ii) regulation, (iii) marketing, (iv) ecosystem, and (v) creative industry financing. The 1st WCCE 2018 was well attended by participants from 50 countries and international organizations. The Conference successfully adopted the Bali Agenda for Creative Economy, consisting of 21 actions for countries to further advance their creative economy sector. The Bali Agenda aimed to serve as a bridge for connecting countries and cultures and connecting governments and various stakeholders to work together enhancing the significance of the creative economy to national and global SDGs.
In addition to meetings in an intergovernmental setting, the 1st WCCE also facilitated dialogue among various creative economy stakeholders (governments, international organizations, regional organizations, creative economy entepreneurs, business sectors,academics, media, and communities) through a Friends of Creative Economy (FCE). Indonesia hosted other two FCE Meetings to follow up the 1st WCCE outcomes and discuss emerging issues of creative economy in 2019 and 2020. Extensive support from various stakeholders in the 1st WCCE encouraged Indonesia to initiate a draft Resolution to UN General Assembly concerning the relation between creative economy and sustainable development. Co-sponsored by 81 countries, the Resolution was adopted by UN GA as A/RES/74/198 which declared “International Year of Creative Economy for Sustainable Development 2021.”
The Resolution acknowledged the rising role of creative economy on the global stage and highlighted the important role of the creative economy for sustainable development. Furthermore, the Resolution underlined the need for global multi stakeholder cooperation to overcome many obstacles faced in developing the creative economy and called attention to, among others, on: The need to support developing countries in diversifying products and exports, including in creative economy; The necessity to serve protection and promote creative economy sectors by enforcing and protecting intellectual property; and Strengthening the role of creative economy sectors in stimulating innovation, empowering people, and reducing poverty. Unfortunately, three months after the said resolution was adopted, the world was hit by the COVID-19 Pandemic.
Most creative economy sectors were hit hard by the lock down, limitation of people movement and mass gathering. To address pandemic challenges, Indonesia held the 2nd FCE meeting on 11-12 November 2020 which was attended by delegates from 55 countries and 8 international organizations. In that meeting, various stakeholders exchanged information regarding the impact of COVID-19 on the creative economy sectors and shared best practices on the efforts to assist creative economy sub-sectors which were hit hardest by the pandemic. The meeting also encouraged various parties to take advantage of Resolution A/RES/74/198 as a momentum to increase cooperation to mitigate COVID-19 impacts on the creative economy.
Since the beginning of 2022, MoFA, in close cooperation with MoTCE and other stakeholders, organized events to work for achieving concrete collaborations, for example through a Public Discussion in March 2022 and Preparatory Meeting for the 3rd World Conference on Creative Economy (WCCE) in June 2022. The 3rd WCCE was successfully held in Bali, 5–7 October 2022.
Enthusiasm of participants to attend the 3rd WCCE was significantly beyond the prediction. Despite lingering effect of the Covid-19 pandemic and facing threat of a global recession, a significant number of participants came to Bali for that event. More than 1,000 participants registered to the event, with more than 800 participants attended the meeting physically. That figure included foreign participants from 52 countries. Foreign delegates representing their Governments coming from 38 countries, while participants other than Government representatives came from other 14 countries. Foreign delegates included Ministers from 5 countries, Secretary Generals of the Developing-8 and the Indian Ocean Rim Association, and representatives from 5 other international organizations. The high attendance at this event reflected the global acknowledgment to the huge potential of creative economy as an important sector to solve current challenges and a new source of the future economic growth.
The 3rd WCCE’s main events consisted of Ministerial Meeting, Friends of Creative Economy (FCE) Meeting, Plenary, and Expo. Ministers, delegates and participants shared many important and valuable insights on how to unleash the potential of creative economy. Through constructive deliberation, delegates at the Ministerial Meeting adopted an outcome document called “Bali Creative Economy Roadmap 2022.”
The Bali Creative Economy Roadmap, developed during the 3rd World Conference on Creative Economy (WCCE) held in Bali in 2022, serves as a strategic framework to enhance the creative economy globally. It outlines 16 actionable strategies designed to integrate creative economy initiatives into global recovery plans, improve ecosystems for growth, and strengthen data and policies at national and international levels.
Key Highlights of the Roadmap:
1. Integration with Global Recovery Plans: Recognizes the creative economy as a significant driver of economic recovery post-pandemic and a contributor to achieving Sustainable Development Goals (SDGs).
2. Enabling Ecosystems: Encourages the creation of inclusive ecosystems to support all creative economy actors, including women, youth, and vulnerable groups.
3. Creative Economy Hubs: Calls for establishing hubs and centers of excellence to foster collaboration, innovation, and knowledge sharing across regions.
4. Data Strengthening: Focuses on improving national and international data systems to measure the contribution of the creative economy and support decision-making processes.
5. Intellectual Property (IP) Management: Advocates policies to support creative economy players in protecting, managing, and commercializing their intellectual property.
6. Promotion and Global Integration: Aims to facilitate global market access for small and medium-sized enterprises (SMEs) through improved labelling, industrial design standards, and enhanced promotion and matchmaking activities.
7. Digital and Technological Transformation: Encourages reducing the digital divide and adopting digital innovations to empower creative sectors while ensuring fair compensation and rights protection in the digital era.
8. Inclusivity and Capacity Building: Promotes education, research, and innovation programs to develop skills and talents, particularly for jobs of the future.
Implementation and Collaboration
Indonesia committed to translating the roadmap into concrete actions, including capacity-building programs with the World Intellectual Property Organization (WIPO), promotion of creative economy products, and facilitating partnerships between grassroots actors and major industry stakeholders. As part of its ASEAN Chairmanship in 2023, Indonesia also planned to organize the ASEAN Creative Economy Business Forum (ACEBF) II, strengthening regional collaboration.
Conclusion
The Bali Roadmap represents a milestone in positioning the creative economy as a vital contributor to sustainable development and global recovery. Its emphasis on international cooperation, inclusivity, and innovation highlights the sector’s potential to drive socio-economic growth while achieving broader global objectives like the SDGs.