OPUS CREATIVE ECONOMY OUTLOOK 2019 1 Opus Creative Economy Outlook 2019 2 OPUS CREATIVE ECONOMY OUTLOOK 2019 OPUS CREATIVE ECONOMY OUTLOOK 2019 3 4 OPUS CREATIVE ECONOMY OUTLOOK 2019 OPUS CREATIVE ECONOMY OUTLOOK 2019 5

“If we try to compete with Germany and China in ­hightech industries, we’ll lose. But in Creative Economy, the odds are in our favor!”

- Joko Widodo, President of The Republic of Indonesia.

ADVISOR: Fika Aprina Jasmine Triawan Munaf Joko Bramantio Ricky Joseph Pesik Nurhani Yatimah

DIRECTOR: CONTRIBUTORS: Abdur Rohim Boy Berawi Iqbal Bachtiar Mauliandini N.N PERSON IN CHARGE: Sarah Gracia Keinamada Wawan Rusiawan Sistri Riska Andini Edwin Muhammad Fadholi EDITORIAL TEAM: Yanuar Arief Dian Permanasari Christina Sariowan Rizky Deco Praha Ary Afiatur Rahman Celsius Creative Lab Anton Suprayogi Debby Permatasari EXECUTIVE TEAM: Usamah Widyatmo Dian Permanasari Adzania Wulandari Rizky Deco Praha Yusuf Rahmadi K. Sri Handoyo Mukti Biondi Nasution Socia Prihawanto Yoannes Baptista E. W. Heri Apriyanto Angelina Egawati Hermawan Prasetya Arief Wahyu Megatama Agus Sucipto Irfan Zayanto Atikah Nur Pajriyah Rozin Fathur Rahman Muhammad Sukma Dyah Nita Mahfud Ainun Najib Anisa Citra Masfuhurrizqi Iman Bagus Ghufron Rizka Dyah Utami M. Hafizh Zulfikar 6 OPUS CREATIVE ECONOMY OUTLOOK 2019

Foreword

Along with Indonesia’s economic prospect which is projected to become one of the largest economies by 2030, Creative Economy in Indonesia is also poised to grow into one of the world’s creative industry powerhouses. The outlook that Indonesia’s Creative Economy will become the country’s newest economic pillar is starting to materialize, as can be evidenced from the positively rising trends of the Creative Economy’s Gross Domestic Product (GDP) contributions towards the national GDP. The Indonesian Agency for Creative Economy (BEKRAF) is the Indonesian Government’s initiative to provide breakthroughs as well as support for this burgeoning economic sector, with the aim of exploring the potential and maximizing opportunities while overcoming the challenges of the Creative Economy in Indonesia. The Indonesian Agency for Creative Economy was officially formed on January 20, 2015, based on the Presidential Regulation Number 6 of 2015 concerning the formation of The Indonesian Agency for Creative Economy.

Every BEKRAF program and activity seeks to fulfill its vision of increasing the GDP, export value, and labor in the Creative Economy sector. To realize this vision, BEKRAF has a mission to build a solid and productive Creative Economy ecosystem through the publication of an outlook book containing updated data, information and reports on Creative Economy in Indonesia. Opus 2019 is one manifestation of such a mission.

As an annual book, Opus is designed to be used as a guidebook or point of reference for governments and Creative Economy players to allow them greater insights on the Creative Economy sector in Indonesia and continue creating high-quality, appealing contents and works. We sincerely hope that this Opus 2019 book in your hands right now can provide you with the latest insights and information regarding the Indonesia Creative Economy along with its opportunities in the next year.

On behalf of BEKRAF, I would like to extend my deepest appreciation and gratitude to the many parties who have participated in the making of this Opus 2019 book. We hope that this book can serve all Creative Economy players in Indonesia and other stakeholders.

JAKARTA, OCTOBER 2018 CHAIRMAN OF CREATIVE ECONOMY AGENCY OF REPUBLIC OF INDONESIA

TRIAWAN MUNAF OPUS CREATIVE ECONOMY OUTLOOK 2019 7 Table of

Preamble Insights

12 - Where We Stand Today 22 - Insight 2018

16 - Where We Are Heading 30 - Forecast 2019

18 - A Portrait of Indonesia’s Creative Economy Content

Updates On BEKRAF Activities Epilogue Creative Economy 2017 – 2018 Sub-Sectors

34 - Architecture 78 - Deputy of Research, 140 - Global Economic Education and Development Prospects 36 - Interior Design 94 - Deputy of Access to Capital 141 - Indonesia’s Economic 38 - Visual Design Conditions 108 - Deputy of Infrastructure 40 - Product Design 142 - Indonesia’s Creative 118 - Deputy of Marketing Economy Prospects 42 - Film, Animation and Video 124 - Deputy of Facilitation of 46 - Photography Intellectual Property Rights and Regulation 48 - Craft 130 - Deputy of Institutional 50 - Culinary and Regional Relation

52 - Music

54 - Fashion

58 - Application dan Game Developer

62 - Publishing

66 - Advertising

68 - Television dan Radio

70 - Performing Arts

72 - Fine Arts Preamble

12 OPUS CREATIVE ECONOMY OUTLOOK 2019

What Is Creative Economy?

John Howkins, the so-called “Father of the The Creative Economy’s primary resource is Creative Industry,” defines Creative Economy creativity, which is the quality to invent and as a new economic system that deals in ideas create new ways of thinking as well as unique and money. In his seminal book The Creative products which offer real-world solutions to Economy: How People Make Money from existing problems. Ideas (2001), Howkins wrote how the Creative Economy is the first kind of economy where Yet, perhaps the most important distinction imagination and ingenuity drives what people between true Creative Economy and other desire to do and produce. creative ventures is the economic value that Creative Economy can generate. A creative It is a new, novel economic paradigm which rely venture, if undertaken as merely a hobby and on ideas or creativity generated by individuals not an economic one, does not fall under the as its core product instead of hard commodities Creative Economy umbrella. produced by machines, which nonetheless carry the potential to affect systemic changes in society.

“Creative Economy is the materialization of added values from an intellectual property born of the human creativity, based on science, culture, and technology.”

Republic of Indonesia Creative Economy Bill

ADVANTAGES OF CREATIVE ECONOMY VS. TRADITIONAL ECONOMY

Improve Living Standards and Aver- age Salaries: The rapid development of the In- donesian Creative Economy sector and the large potential of its market will encourage Foreign Direct Low Cost: Collaborative: Investment into the country The Creative Economy sector The Creative Economy is requires little to no upfront capital, collaborative and communal, unlike traditional sectors which bringing together various require heavy investments in ma- individuals from different fields chineries or plants and backgrounds

Environmentally friendly: Promote Indonesian IP: The Creative Economy does Intellectual Property Rights are not tax the environment, since highly valuable assets not only for the primary product is human the individual creators, but also creativity for the culture, nation and state of Indonesia

Higher Value Economy: Flexible: Creative Economy has high The Creative Economy is, by added value, both culturally nature, flexible and not rigid like and economically Low Barrier to Entry: traditional industries, and can The Creative Economy sector has better adapt to a rapidly changing a relatively lower barrier to entry environment compared to traditional sectors, which may require a large capital or industries certifications OPUS CREATIVE ECONOMY OUTLOOK 2019 13

Where We Stand Today

In 2015, Ernst and Young (EY) released the In Indonesia, the seeds of the Creative Economy first-ever Creative Economy study of its kind, was first planted during the 2007 Indonesian which revealed that the Cultural and Creative Cultural Product Week. In 2009, the Indonesian Industries (CCI), as it was termed, was worth 2.3 Government issued Presidential Instruction trillion United States dollars, or equivalent to Number 6 Year 2009, a pioneer legislation which 3 percent of the total Gross Domestic Product sets forth the roadmap for the Development of (GDP) globally. Creative Economy and which placed the fledgling sector squarely on the national stage.

MILESTONES

2007 2009 2011

1st-ever Indonesian Cultural Presidential Instruction No. 6 of Presidential Regulation Number 92 Product Week 2009, pioneer legislation for of 2011 established a new ministry, Creative Economy in Indonesia namely the Ministry of Tourism and Creative Economy, with its first Change of name from “Indonesian minister, Mari Elka Pangestu Cultural Product Week” to “Indone- sian Creative Products Week”

2017 2016 2015

Three Sub-sectors, namely the BEKRAF pushed for the creation of The Creative Economy Agency Culinary, Crafts, and Fashion, a series of legislation addressing the (BEKRAF) was formed under the became the biggest contributor to fledgling Creative Economy sector administration of Joko Widodo Indonesia’s Creative Economy GDP in Indonesia and insuring protection through the Republic of Indonesia’s at 41.69%, 18.15%, and 15.70%, for creative players. Presidential Regulation Number 6 respectively. of 2015. BEKRAF received a direct BEKRAF began work at various mandate from the President to regions in Indonesia to build advance and develop the Creative efficient and conducive Ekraf Economy sector in Indonesia. ecosystems throughout the archipelago.

2018

Four out of 16 Sub-sectors were identified as potential new economic drivers, namely Film, Music, Fine Arts and Games (animation). These four Sub-sectors show the most growth in 2017 and 2018. 14 OPUS CREATIVE ECONOMY OUTLOOK 2019

The Indonesian Creative Economy possesses In addition to the GDP, Creative Economy sector tremendous earnings potential and economic also saw an increase in its labor workforce num- value. According to the results of a joint research ber. In 2016, 16.91 people were actively engaged between Statistics Indonesia and BEKRAF within the Creative Economy sector. This was an conducted in 2016, the Creative Economy sector increase of 5.95% compared to the number in contributed 7.38% of GDP towards the total GDP 2015’s record. of the country. Value-wise, the Creative Econ- omy sector is projected to exceed 1,000 trillion rupiahs in 2017 and increased to 1,102 trillion rupiahs in 2018.

CREATIVE ECONOMY CONTRIBUTION CREATIVE ECONOMY WORKFORCE GROWTH TO INDONESIAN GDP: RATE IN INDONESIA (2014-2017)

Creative Economy 2019 – Rp 1,211 T YEAR NUMBER (IN MILLIONS PEOPLE) GROWTH (%) GDP Projections 2018

2018 – Rp 1,105 T 2017 17.43 4.13%

2017 – Rp 1,009 T 2016 16.91 5.95% 2015 16.06 5.22% 2016 – Rp 922,59 T 2014 15.46 2.94%

2015 – Rp 852 T

CREATIVE ECONOMY WORKFORCE GROWTH 2016*

National Creative Economy 118,405,188 16,909,690 PEOPLE PEOPLE

3.02% 5.95% GROWTH RATE GROWTH RATE OPUS CREATIVE ECONOMY OUTLOOK 2019 15

INDONESIA’S STARTUP UNICORNS Sumber: foto istimewa foto Sumber:

Go-Jek Tokopedia Traveloka Bukalapak

Valuation Estimation (May Valuation Estimation (May Valuation Estimation (May Valuation Estimation (May 2018): US$ 5 Bn (Rp 69.4 Tn) 2018): US$ 1.062 Bn (Rp 15 Tn) 2018): US$ 2 Bn (Rp 28 Tn) 2018): US$ 1 Bn (Rp 14 Tn)

Leading Investors: Sequoia Leading Investors: Alibaba, Leading Investors: Tencent, Ex- Leading Investors: Emtek, 500 Capital, Temasek Holdings, CyberAgent Ventures, SIMI pedia, East Ventures, JD.com Startup, dan QueensBridge Google Inc, Tencent, JD.com, (Softbank Internet and Media Venture Partners Meituan-Dianping, KKR, War- Inc.), Sequoia Capital, SB Pan (Unicorn status achieved) burg Pincus, Farallon Capital, Asia Fund 2017: US$ 500 Mn (Rp 7 Tn) Funding Milestones: Capital Group Markets, GDP Not published Venture, Rakuten Ventures, Funding Milestones: (Unicorn status achieved) Allianz, dan Astra International 2011: US$ 700 Mn (Rp 9.8 Tn) 2018 (Largest funding in Indonesian Funding Milestones: startup history) 2016: US$ 550 Mn (company valuation: US$ 1.3 Bn) 2014: US$ 100 Mn (Rp 1.3 Tn)

2017: US$ 1.2 Bn (Rp 17 Tn) 2016: US$ 147 Mn (Rp 2 Tn) (Unicorn status achieved) 2018: US$ 150 Mn (Rp 2 Tn) 2017: US$ 1.2 Bn (Rp 15 Tn) 16 OPUS CREATIVE ECONOMY OUTLOOK 2019

Where Are We Going?

From the IMF research, Indonesia’s economic The government realizes the great potential position in 2016 was ranked 8th with a total GDP of this emerging sector and sets out several of US$ 3,028 billion. In line with this research, initiatives designed to promote growth, including PwC predicts that Indonesia can become the forming BEKRAF, the specialized agency tasked world’s newest “superpower,” occupying fifth with developing the Creative Economy sector. position in 2030 and fourth in 2050, capitaliz- ing on its relatively high economic growth and With the establishment of BEKRAF, Indonesia demographic bonus momentum. This position joins the rank of only a handful of developed will set Indonesia up as a big emerging market economies which have focused their efforts in considering Indonesia’s position as the country tapping onto the potential of the Creative Econo- with the strongest economy in Southeast Asia my including Britain, South Korea and Australia. today. Indonesia also has other potentials within As part of its efforts to develop Creative Econ- the Creative Economy sector that continues to omy in Indonesia, BEKRAF provides facilitation see positive growth and development in terms of and assistance to creative players in the form of its contribution to the national economy. funding, domestic and foreign marketing, educa- tion and workshops, as well as other facilitation and assistance.

SALES IDEA / PRODUCT

BEKRAF Building A Cohesive Creative Economy Ecosystem

MARKETING PRODUCTION

INTELLECTUAL PROPERTY

FACILITATIONS EXTENDED TO CREATIVE ECONOMY PLAYERS BY BEKRAF:

Education Free education and training programs, in various regions in Indonesia. Read more: IKKON :IKKON (Page. 87), Coding Mum (Page. 80),

Capital Access Facilitates and connects local creative players with investors. Read more: DEUREUHAM (page. 99).

IP Facilitation and Regulation i Facilitates submission of IPRs for creative players and providing information related to IPRs in digital applications format, forming anti-piracy task forces, and holding free IPR consultancies. Read more: (page 126) OPUS CREATIVE ECONOMY OUTLOOK 2019 17 Source : ISMAYA GROUP : ISMAYA Source

INDONESIA’S GLOBAL RANKING BASED ON GOVERNMENT FACILITATION LARGEST ECONOMY US$ 130 Bn AND SUPPORT FOR THE (PROJECTIONS FROM Projection for Indo- CREATIVE ECONOMY SECTOR PWC, 2018) nesia’s Digital Econ- omy in 2020 (11% of 2016 CONSTRUCTION OF THE national GDP)* PALAPA RING, WHICH WILL Rank *Source: Minister of Communication SERVE AS THE BACKBONE OF and Information, Rudiantara THE NATION’S DIGITAL ECO- NOMIC ECOSYSTEM

BUILDING 4G NETWORK CON- 8 RP 1,105 T* NECTIVITIES THROUGHOUT 2030 GDP GROWTH THE ARCHIPELAGO Rank TARGET FOR ISSUED THE E-COMMERCE ROAD MAP, A ROADMAP FOR THE CREATIVE ELECTRONIC-BASED NATION- 5 ECONOMY AL TRADE SYSTEM 2050 SECTOR IN 2018 ESTABLISHED BEKRAF, THE STATE-MANDATED CRE- Rank ATIVE ECONOMY AGENCY TASKED WITH DEVELOPING THE CREATIVE ECONOMY IN 4 INDONESIA 718º OPUS CREATIVE ECONOMY OUTLOOK 2019 A PORTRAIT OF To better meet the Creative Economy sector’s INDONESIA’S need of accurate, updated information regard- ing the creative industry and its related periph- CREATIVE ECONOMY eries, BEKRAF, along with Statistics Indonesia regularly conduct and release annual reports highlighting the performances of the Creative Economy Sector in the previous year. In this year’s report, the data presented herewith are taken from the combined surveys conducted by BEKRAF and Statistics Indonesia in 2017 and highlights finalized data recapitulations from 2016. Meanwhile, data for 2017 will be presented at the end of 2018. 8,203,826 TOTAL NUMBER OF BUSINESSES IN CREATIVE ECONO- MY SECTOR 2016

Provinces With Largest Creative Top 5 Provinces With Highest Contri- HIGHEST GROWTH SUB- Economy GDP Contribution 2016 bution to Creative Economy GDP 2016 SECTORS IN CREATIVE Yogyakarta — 16.12% West Java — 31.96% ECONOMY 2016 Bali — 12.57% East Java — 24.36% West Java — 11.81% Banten — 15.23% East Java — 9.37% Central Java — 14.49% North Sumatra — 4.77% DKI Jakarta — 8.97%

CREATIVE ECONOMY GDP SHARE, TOP TV Film, & Radio Animation & 5 PROVINCES VS. 29 OTHER PROVINCES Video 2014-2016 — — 10.33% 10.09% 5 29 Provinces Provinces 48.04% 51.96% Performing Communication arts Visuals (Yogyakarta, Bali, West Java, 29 Other Provinces — — East Java, North Sumatra) 9.54% 8.98% OPUS CREATIVE ECONOMY OUTLOOK 2019 7119

TOP CREATIVE ECONOMY EXPORT Rp 19.98 Bn COUNTRIES 2016 (% TOTAL EXPORT) Creative Economy Export Value 2016 United States 30.24% Swiss 0.45% Vs. Japan 6.79% Rp 19.33 Bn Creative Economy Singapore 6.14% Export Value 2015 Germany 4.43%

Top 3 Creative Economy 1 out of 5 Exports 2016 WORKER IN (Based on Sub-Sectors) THE CREATIVE ECONOMY Fahion — 54.54% SECTOR IS Craft — 39.01 AGED 20-24 Culinary — 6.31% YEARS

PROFILE OF CREATIVE ECONOMY LABOR 600 Mn VS. NATIONAL LABOR 2016 ESTIMATED TOTAL POPULATION IN SOUTHEAST ASIA

250 MN ESTIMATED

CREATIVE ECONOMY NATIONAL TOTAL POPULATION IN INDONESIA Male: 44.26% Male: 61.60% Female: 55.74% Female: 38.40% 130 Mn Active Social Media Users (49% from total 143.26 Mn 63.5% population.) Internet Users in Source: Digital in 2018 in Southeast Asia (www.hootsuite.com) Estimated Internet Indonesia Who Users in Indonesia Had Transacted 7 UNICORN STARTUPS IN 2016 (52% from Online 2016 SOUTHEAST ASIA 4 UNICORN STARTUPS total population.) Source: Tempo.co FROM / IN INDONESIA

Insights 22 OPUS CREATIVE ECONOMY OUTLOOK 2019

On its second annual publication, BEKRAF, in cooperation with partner research institutions in- cluding Statistics Indonesia (BPS), PwC, The Niel- sen Company (Indonesia), Snapcart, and others, attempts to present insights and analyses relevant to the Creative Economy in Indonesia along with predictions for the future.

This chapter is divided into two parts, name- ly Insight 2018, which presents the most update data available at the time of writing, and Forecast 2019, which attempts to present a forecast of the upcoming trends in Creative Economy as a road- map for creative players in Indonesia.

INSIGHTS 2019 Sumber: foto istimewa foto Sumber: OPUS CREATIVE ECONOMY OUTLOOK 2019 23

SNAPCART

Founded in 2015, Snapcart aims to become the most reliable offline data solutions company, working with clients in multiple sectors from market research to cloud marketing. Snapcart oper- ates in 4 countries: Indonesia, Philippines, Singapore and Brazil. The company provides its services to over 30 companies covering more than 100 brands including L’Oreal, Nestle, P&G and Unilever. Through its receipt scanning app, point-of-sale app and propri- etary machine learning, Snapcart collects billions of data points on an individual shopper and retailer level.

A SNAPSHOT OF SHOPPING BEHAVIOR IN THE INDONESIAN E-COMMERCE MARKET 2018* *Survey was conducted in July 2018 with 3,286 respondents in Indonesia through the Snapcart application

Gender: Ages: SES:

Female: 51.1% 15-24: 24.8% 25-34: 25% > Rp 4 Mn) monthly expenditure 26.6% 1.75

A BRp 2.5 – 4 Mn (monthly expenditure 26.3% C1Rp 1.75 – 2.5 Mn) (monthly expenditure 19.7% C2 35-44: 21.9% Male: 48.9% 45+: 28.2%

PROVINCES WITH HIGHEST CONCEN- TRATION OF E-COMMERCE USERS:

MOST USED E-COMMERCE Greater Jakarta Area 20.4% Dl Yogyakarta 2.7% PLATFORM IN INDONESIA: East Java 17.8% Bali 2.6% Central Java 12.7% Riau 2.4% Shopee 41.2% West Java 9.3% East Kalimantan 1.5% Tokopedia 27.4% North Sumatera 7.6% West Kalimantan 1.5% Lazada 13.6% South Sulawesi 3.7% Riau Islands 1.4% Bukalapak 12.7% South Sumatera 3.4% Jambi 1.3% JD.id 1.9% Lampung 3.2% South Kalimantan 1.3%

SOURCE OF INFORMATION REGARDING E-COMMERCE:

Social Media (Facebook / Instagram / Twitter,dll) 53.4% TV 41.7% AVERAGE MONTHLY Ads in other online websites 33.8% SPENDING IN E-COMMERCE Family / Relatives / Friends 29.3% (LAST 3 MONTHS, ALL Ads in Other Apps 25.9% PLATFORM) “Social media is OOH (Ads in Buildings, Offices, Hospitals etc.) 11.3% the main source Other 8.5% Rp 101,000 -250,000 40.5% for e-commerce related infor- Billboard Ads 8.4% Rp 251,000 – 500,000 27.0% mation” Ads in Public Transport 7.3% < Rp 100,000 14.7% News 6.2% Rp 501,000 – 1 Mn 10.3% Ads in Streaming Music (Joox, Spotify, etc.) 3.4% Rp 1.1 Mn– 3 Mn 5.3% Booth/Event 3.0% > Rp 5 Mn 1.1% Ads in Radio 2.8% Rp 3.1 Mn – 5 Mn 1.0% 24 OPUS CREATIVE ECONOMY OUTLOOK 2019

E-COMMERCE SHOPPING FREQUENCY HIGHEST TOP-OF-MIND E-COMMERCE BRAND >1x per month 11.9% 1x per week 8.8% Shopee 38.6% 2 – 3x per month 24.2% Tokopedia 26.6% 1x per month 19.7% Lazada 15% 1x per 2 – 3 month 17.7% Bukalapak 13.1% <6x per month 11.9% Blibli 2% 1x per 4 – 6 month 5.8%

MOST PURCHASED CATEGORIES IN E-COMMERCE

Gadgets & Accessories 34.7% Digital Products (Data packages, mobile games voucher, social security, electricity, etc.) 34.5% Personal care & cosmetics 29.2% Bags 27.7% Shoes 26.8% Fashion & Hobbies & Collections 20.7% Groceries 18.9% Accessories Kids & Baby Products 12.5% Home Appliances 12% Sports & Outdoor 7.2% 48.2% Office supplies 5.2% Sumber: Lulu Lutfi Labibi Lutfi Lulu Sumber: OPUS CREATIVE ECONOMY OUTLOOK 2019 25

PWC TRENDING NOW: CONVERGENCE, CONNEC- TIONS, AND TRUST PwC is one of the largest professional auditor services in the world today with over 236,000 In an annual study conducted by PwC, titled employees spread throughout the world. In Perspective from the Global Entertainment & Indonesia, PwC Indonesia has become part of Media Outlook 2018-2022, the global Entertain- the nation’s economic success story for more ment & Media (E&M) industry is believed to be in than 45 years. the midst of a severe disruption. To succeed and thrive in the future, PwC inferred that creative All data is taken and sourced from a special players in each Sub-sector must identify and report by PwC, titled Perspective from the understand the three trends currently engulfing Global Entertainment & Media Outlook 2018- the E&M industry: Convergence, Connections 2022 which can be accessed at www.pwc.com/ and Trust. outlook.

RAPIDLY EVOLVING Connections MEDIA Trust ECOSYSTEM

Specializations and niches Big Data Relevance to target audience Privacy Technology (AI, VR) Convergence 3.0 Data Security Distribution of contents

Multiple dimensions Multiple layers Vertikal - Horizontal Horizontal - Vertikal Supercompetitors

WHAT IS CONVERGENCE 3.0?

In its simplest term, Convergence 3.0 is a phenomenon where traditional borders that once separated the entertainment and media, technology and telecom industries are dissolving. Large Internet access providers and delivery platforms are integrating vertically, and online giants are expanding horizontally into content. Traditional segment distinctions are blurring – between print and digital, video games and sports, wireless and fixed access, cable and online, social and traditional media.

Convergence matters because it offers a real solution to real- world problem(s). 26 OPUS CREATIVE ECONOMY OUTLOOK 2019

CASE STUDY

Amazon

Origin: Online bookstore, founded in 1994 Valuation in 1997: US$ 8 Mn (Series A raised just Convergence 3.0: Becoming the world’s largest before IPO, June 1996) internet retailer and e-Commerce platform Valuation in 2018: US$ 1 Tn — Became the second offering a multitude of entertainment and media company in history to reach a trillion dollars options offered in both digital, print, and video valuation after Apple Inc. (September 2018), or an streaming; Becoming a leader in fullfilment and increase of 134,000 (one hundred and thirty-four logistics services; Becoming a serious contender thousand) percent since IPO in May 1997. as a technology player especially in A.I.; Ven- turing into telecommunications with its Amazon Conclusion: Today, Amazon falls squarely under Web Service in 2006; Venturing into the media the category of a supercompetitor, which will business with its purchase of The Washington likely continue its course of converging its services Post in 2013; Venturing into the foods business to further maintain its grip in the market. with its purchase of Whole Foods in 2017; Ven- turing into the motion picture business with its Amazon Studios.

Gojek

Origin: Offline motorcycle taxi service (order by Conclusion: From its humble beginnings in 2010, phone), started in 2010 Go-Jek has morphed into a giant with holdings in Convergence 3.0: A convergence of a range of the media, transportation, logistics, advertising, services covering the traditional motorcycle taxi and even banking. It has been converging horizon- industry, courier, massage parlor, salon, food tally and vertically over the years, turning it into delivery, auto rental, bank (payment platform), a supercompetitor which has started to encroach film studio (Go-Studio); video streaming; and on other sectors. According to a PwC survey incubator (Go-Academy). Has its own in-house released on July 12, 2018, 72 percent of bankers creative division to produce vertically-integrated in Indonesia sees Go-Jek as an emerging threat to contents which are distributed through its own their business. platform or others. Valuation in 2010: Rp 5 Bn Valuation in 2018: Rp 69,4 Tn

Problem: Problem: Problem: Problem: TAKE AWAY Parking hassle Traffic jams Too lazy to Pressed for time move In a rapidly changing world, having access to the right technology Problem: Problem: and content, delivered Comfortable & Alternative payment cost-effectively to the affordable public system besides debit / right audience who transportation credit trusts the brand will be keys that unlock future Convergence opportunities.

Integrated solution OPUS CREATIVE ECONOMY OUTLOOK 2019 27

Recipe For Success 2018-2022 Right Technology > Right Content > Right Distribution Channel > Right Audience > Brand Trust (you have successfully owned the user experience)

NIELSEN

Nielsen, a leading global information and mea- Top Products / Brands with Highest ADEX in surement company, provides market research, Indonesia 2017 (in trillion rupiah, rounded decimals) insights and data about what people watch, listen to and buy; providing valuable information Meikarta Cikarang 1,539 on specific sectors on request since 1923. In Traveloka 1,137 Indonesia, Nielsen is represented by The Nielsen Indomie 981 Company (Indonesia), which releases its annual VIVO Smartphone 823 ADEX (Advertising Expenditure) report on the Clear Anti Ketombe 795 regular. www.nielsen.com/id SGM Eksplow 1 Plus 770 Kemenkes RI 702 The data used in this report is taken from the 2017 ADEX annual report released by The Nielsen Company Samsung Smartphone 640 (Indonesia). www.nielsen.com/id Dove Nutrition Solutions Total Damage 610 Cap Bango 590 Rp 145.5 T Total Adspent TV & Print FMCG Sectors with Highest ADEX 2017 2017 (+8% Vs. 2016) (in trillion rupiah) )

ADEX 2017 5.25 Mn Personal Care 24.9 Number of Spots TV & Print Beverage 21.6 Food 19.1 2017 (-2% Vs. 2016) Pharmaceutical 10.4 Household 5.9 Rp 115.8 T ADEX in TV 2017 (Vs. Non-FMCG Sectors with Highest ADEX 2017 Rp 103.8 T in 2016) (in trillion rupiah)

Rp 28.5 T ADEX 2017 ADEX in Newspaper Telco & Digital 13.3 Cigarette 5.4 2017 (Vs. Automotive 5.4 Rp 29.4 T in 2016) Properti 4.1 Finance 3.4 Rp 1.1 T ADEX in Magazine & Tab- loid 2017 (Vs. Rp 1.6 T in 2016) 28 OPUS CREATIVE ECONOMY OUTLOOK 2019

Databott

HARA Founded in 2015, HARA is a blockchain-based data exchange from Indonesia that is focused 92.37% on improving the asymmetric information in Percentage of Creative the food and agriculture sector. HARA provides farmers and all other players in the agricultural Players in Indonesia Using sector access to reliable data and secure trans- Own Funds actions. The data exchange ecosystem’s tested incentive mechanisms ensure continuous usage of the application. HARA’s pilot projects have al- 53.49% ready shown an encouraging impact on farmers. Percentage of Creative Through a partnership with one of the largest public banks in Indonesia, HARA has successfully Players in Indonesia enabled hundreds of farmers in remote villages Without Legal Entity to get access to microcredit loans.

This year, HARA focuses its report on the block- 88.95% chain technology, a database-like list of records, called blocks, which are linked and secured using Percentage of Creative cryptography. Blockchain, as one may recall, Players in Indonesia became popular thanks to bitcoin, an alterna- tive payment system which besieged the global Without IPR financial system overnight. In this report, HARA conducted a study of the Indonesian Creative Economy and presented the following ideas and insights regarding ways the creative industry can utilize this technology to distribute their content digitally, and help alleviate rampant Intellectual Property (IP) piracy in Indonesia.

CASE STUDY: SOUTH KOREA 2009 The South Korean government established an agency to oversee and coordinate the South Korean creative industry 2013 The South Korean President announced a national strategy towards “Creative Economy” and readied 1 billion US dollars in funds to stimulate Research and Technology and protection of IP rights for SMEs. Any government must take an ac- tive role in developing the national Creative Economy, which begins 2016 Export of Korea’s creative culture content increased 9.7% (year- with efforts to protect its IPs. The on-year) despite the slowdown in the country’s economy South Korean government is an ex- emplary case of how a government can successfully jump-start one of 2019 the world’s youngest, most dynam- The South Korean government announced a roadmap to develop ic creative economies in the world. its domestic blockchain industry with an investment of US $ 9 million OPUS CREATIVE ECONOMY OUTLOOK 2019 29

HILL/ Hakuhodo

Established in 2014, Hakuhodo Institute of Life and Living ASEAN (HILL ASEAN) is the Hakuhodo Group’s new think tank in the ASEAN region. It is dedicated to helping companies with their marketing efforts in ASEAN countries, as well as observing the new lifestyles emerging in this dynamic region and sharing ideas about them.

A SNAPSHOT OF GENDER EQUALITY IN INDONESIA

4 INDONESIA’S RANKING ON 84 INDONESIA’S GENDER EQUALITY AMONG WORLD RANKING ASEAN AND ASIA-PACIFIC ON GENDER NATIONS 2018 EQUALITY 2018 >70% Percentage of married couples in Indonesia who both work (dou- ble income household) 2018

53%PERCENTAGE OF MARRIED COUPLES IN INDONESIA WITH TASK-BASED SHARING HOUSEHOLD PROFILE 2018 EQUAL DIVISION OF Wife earns more: 6% WORK (TASK-BASED Both earn same: 16% SHARING) 2018 Husband earns more 787% Satisfaction level with this arrangement: Husband: 89% Wife: 79% 30 OPUS CREATIVE ECONOMY OUTLOOK 2019

FORECAST 2019

PROJECTED DATA CONSUMPTION BY CONTENT TYPE (CAGR) 2017-2022

Communications Games 27.8% 28.5%

THE ESSENTIAL EIGHT

Internet of Things (IoT) Video 25.4% Other digital content 24.2% Robots Drones 3D Printing

Artificial Intelligence (AI) Music 23.9% Social Networking 20.7% Blockchain Virtual Reality (VR)

Augmented Reality (AR) Source: PwC Global Web Browsing Entertainment & Media 18.8% Outlook 2018-2022. www.pwc.com/outlook

7* 56.9% 92% INDONESIA’S PROJECTED WORLD RANKING, BASED ON PROJECTED PERCENT- SURVEYED CONSUM- LARGEST ECONOMY, 2030 AGE OF EARNINGS IN ERS WHO AGREED *Source: McKinsey DIGITAL SEGMENT VS. THAT COMPANIES TOTAL GLOBAL REVE- SHOULD TAKE A NUE 2022 PROACTIVE ROLE IN 4 PROTECTING PERSON- INDONESIA’S PROJECTED AL DATA* WORLD RANKING, BASED ON Source: PwC Global Entertainment & Media Outlook 2018-2022. www.pwc. LARGEST ECONOMY, 2050 com/outlook *Source: PwC OPUS CREATIVE ECONOMY OUTLOOK 2019 31

BLOCKCHAIN

According to research from HARA, blockchain technology can be used to protect the intellectual properties of content creators and help stimulate Creative Economy ecosystem in Indonesia. Also, according to predictions from PwC, blockchain will play an important role in the future as one of the most influential technol- ogies in the world.

HOW CAN BLOCKCHAIN HELP THE INDONESIAN CREATIVE ECONOMY?

Intellectual Property Rights (IPR) Protection

Blockchain technology allows the original IP owner to be credited even if his/her work is played in other media.

Blockchain technology presents more inconvenience to pirates compared to other traditional IPR technologies.

Within the ASEAN regions, platforms like Six Network from Thai- land and Ink Labs Foundation from Singapore are currently using blockchain to provide a transparent and secured ecosystem for stakeholders in the creative economy.

Blockchain technology is starting to gain more recognition in IP legal proceedings and court cases.

Micropayments

Creative contents on the blockchain network can receive royalty payments automatically.

Blockchain minimizes the need for third parties, eliminating un- necessary fees and costs.

In the United States, Ujo Music is a popular blockchain platform that is often used by players in the Music Sub-sector and has successfully increased IP protection for its users.

Re-empowering Creators

Blockchain technology brings features that reduce financial barri- ers for content creators, such as crowdfunding.

The blockchain platform is popular for crowdfunding: Fanship (for Kpop), Hubii Network (for funding films).

Indonesia Blockchain Hub: The first blockchain forum in Indone- sia, which is founded by KADIN (Indonesian Chamber of Com- merce), BEKRAF, and startup agritech, HARA. Updates on Sub Sectors 34 OPUS CREATIVE ECONOMY OUTLOOK 2019 Architecture

Today, Architecture is regarded as one of mankind’s most important disciplines, not only for its real-world application for building constructions and forms and functions, but also as an expression of art based on aesthetics at its core. In this sense, architecture is not limited to only points, lines, or fields, but also a beauty of art often derived from cultural values, morals, life, history, and so on. An architectural de- sign must, therefore, be able to communicate its very func- tion and purpose succintly.

6.05% 5.740 52.20% Number of Percentage GDP Growth Creative of Creative Rate in Archi- Businesses in Businesses Utilizing tecture 2016 Architecture 2016 the Internet 2016 rd (2nd highest) (3 highest usage) Persentase TK Berdasarkan Gender 2016 Rp 21,567 Bn GDP Value of Male — 92.39% Rp 5,331,833 / mo Female — 7.61% Average Salary in Architecture Architecture 2016 2016 64.04% (highest average Percentage of Creative among all Sub-sec- 53.844 Businesses Utilizing tors) Number of Creative E-Commerce 2016 Workers in Architec- Utilizes E-Commerce ture 2016 in Business / Does Not Utilize E-Commerce in Business OPUS CREATIVE ECONOMY OUTLOOK 2019 35

ANDRA MATIN Isandra Matin Ahmad, or better known as Andra Matin, is one of Indonesia’s young, most talented architects with numerous awards and recognitions from both home and abroad under his belt. His works are renowned for conveying a simple yet brilliant design philosophy: every space, every design, and every line must have its own specific function apart from its character. As a result, his designs are instantly recognizable thanks to his bold lines and minimalist-contemporary approach, while inviting second looks with his use of traditional materials such as Siyalti wood com- bined with rattan, or ironwood with concrete. Andra believes that function trumps form, as he describes function as a “sensitivity towards the environment” in which the design or space exists. Andra’s portfolio spans from commercial to public to residential projects, and his latest works saw him revamping the looks of the Aquatic Stadium at Gelora Bung Karno Main Stadium in Jakarta for the 2018 Asian Games, as well as building the Indonesian Pavilion at the 2018 Venice Architecture Biennale entitled “Elevation,” of which he won the “Special Mention” award from the Venice Architecture Biennale jury. www.andramatin.com 36 OPUS CREATIVE ECONOMY OUTLOOK 2019 Interior Design

Over the past two decades, developments in the Interior Design Sub-Sec- tor has shown very rapid progress. More and more people are increasing- ly becoming aware of the importance of aesthetics or design in an interior space, as can be evidenced by the proliferation of residences, hotels, and offices that are specially designed by professional interior designers to fit a specific client needs. This is an emerging potential which can serve as a positive momentum for the rise of the Interior Design Sub-sector, and coupled along with the growth of interior design schools, studios, companies and associations, can propel this Sub-sector into the interna- tional stage. Indonesia, with its rich cultural heritage that are reflected in the country’s designs, has a real chance to shine and proudly displays its national identity.

5.92% 798 23,967 Number GDP Growth Rate in Number of Creative of Creative Interior Design 2016 Businesses in Interior Design 2016 Workers in Rp 1,483.7 Bn Interior Design GDP Value of Interior Breakdown of Creative La- 2016 Design 2016 (Vs. Rp bor Force Based on Gender 1,354 Bn in 2015) (%) 2016 36.47% Male — 77.7% Percentage Female — 22.3% of Creative Businesses 71.13% Utilizing the Percentage of Creative Internet 2016 Businesses Utilizing E-Commerce 2016 Provinces with Highest 6.6% Concentration of Interior Labor Workforce Design Businesses Growth Rate in In- terior Design 2016 West Java (17.7%) DKI Jakarta (15.3%) East Java (14.2%) OPUS CREATIVE ECONOMY OUTLOOK 2019 37

DIANA NAZIR In 1991, Diana Nazir founded Artura Insanindo, an interior design firm which later would become one of the top leading interior consultants in Indonesia with some of the largest commercial projects under its belt; founder of Indonesian Contem- porary Art and Design (ICAD), one of the archipelago’s most important art event; and which later opened its first Designershop, an interior boutique shop that sells products such as Wiron Dining Chair (2016), Jejari Hanging Lamp (2014), Tweet Tweet (2011), Wiron Sofa (2010), and many others. Diana’s illustrious career in the creative universe has also elevated her country’s name into the international stage, including at the 2018 Super Design Show, part of the Milan Design Week which was the world’s largest design event, and the Home Décor exhibition in Europe through the Ambiente 2017 event held in Frankfurt, one of the largest international exhibi- tions in Germany. Diana’s participation in the events, along with the other Indone- sian contingents, was made possible thanks to an initiative carried out by BEKRAF to encourage export of the national craft products to overseas, via exhibitions, tours, and other promotional and marketing initiatives. 38 OPUS CREATIVE ECONOMY OUTLOOK 2019 Visual Design

The Visual Design Sub-sector has great potential in increas- ing the growth of the Creative Economy. This potential is driven by the development of technology in facilitating the creation of creativity. Correspondingly, human needs for the visualization of products in everyday life continue to rise, which in turn will increase demand for Visual Design in the future. In addition, Visual Design has also been identified as one of the most interconnected Sub-sectors within the Creative Economy sphere, impacting other Sub-sectors such as Publishing, Advertising, Animation, Interactive Games, Architecture, Film, Video, Photography, Packaging Design, Crafts and Fashion

According to data compiled by BEKRAF from 2011 to 2016, the GDP growth rate of the Visual Design Sub-sector was the fourth highest in the Creative Economy sector. This shows that the Visual Design Sub-sector has tremendous poten- tial, but is still constrained by limited ecosystems and facilities. Going forward, the government must encourage the development of the Visual Design Sub-sector so that it can grow further and GDP revenue can continue to be increased.

Rp 579.3 Bn 616 81.72% GDP Value of Number of ­Creative Percentage Visual Design 2016 Businesses in Visu- of Creative al Design 2016 Businesses Utilizing 8.98% E-Commerce 2016 GDP Growth Rate In Visual Design 2016 Breakdown of Creative Labor Force Based on 88.80% Percentage of Gender (%) 2016 Visual Design Male — 92.05% Businesses Female — 7.95% Without Legal 73.70% Entity 2016 Percentage of Creative Businesses Utilizing the Internet 2016 Provinces with Highest Concentration of Visual Design Businesses

DI Yogyakarta Bandung DKI Jakarta OPUS CREATIVE ECONOMY OUTLOOK 2019 39

FEAT Founded in 2009, Feat, a graphic design studio based in Jakarta, finally found nationwide recognition when it won the design com- petition for 2018 Asian Games’ new logo and mascot. Chairman of BEKRAF, Triawan Munaf, explained during the launch of the new logo and mascot at the Presidential Staff Office in 2016 that Feat was chosen as the winner due to the design team’s creative interpretation of the theme of the contest, dubbed “The Energy of Asia.” Inspired by the Gelora Bung Karno Main Stadium in Jakarta, the Feat team designed the logo and mascot around the symbol- ism of the sun which shines upon all of Asia. The designers, com- prising of six individuals who were deployed on short notice and worked day and night to complete the project on time, described their design approach as exceeding mere design and attempting to create a sense of identity for one of the world’s premiere sporting events. The new logo and mascot replace the old logo and mascot, Drawa, which symbolizes the bird of paradise, with three endemic animals from Indonesia that also represent the Indonesian slogan of Bhinneka Tunggal Ika. www.featstudio.com 40 OPUS CREATIVE ECONOMY OUTLOOK 2019 Product Design

Product design is described as a process of combining function with form or aesthetic, creating a new product with high-added values. The Product Design Sub-sector is currently enjoying a rising recognition from the general public and marketplace, attributing to quality as the primary driving factor in their purchasing decisions. Local product designers are urged to explore and elevate Indonesian cultural wealth in their works. BEKRAF, as a representative of the government, administered several initiatives to stimulate the Product Design Sub-sector further, approaching it from upstream and downstream and collaborating with various associ- ations to increase the use of local product designs.

Rp 2,281 Bn Breakdown of Creative Labor Force Based on Gender (%) GDP Value of Product 2016 Design 2016 3,367 Number of Creative Male 53.96% Businesses in Product Design 2016 Female 46.04% 20.20% PERCENTAGE OF CREATIVE 72.21% BUSINESSES UTILIZING THE Percentage of Creative Businesses Utilizing INTERNET 2016 E-Commerce 2016

MYCOTECH Tempeh-style furniture? That’s the impression most peo- ple get after seeing Mycotech’s product, best illustrated by its environmentally-friendly, sustainable eco-boards. The boards, which are made from agricultural wastes such as palm tree or tapioca husks and binded by all-natural Mycelium fungi, can be used as building material, furni- ture, or shaped into any form or shape a client may have a need for. Adi Reza Nugroho, CEO & Co-founder Myco- tech, explains that using tempeh as an analogy to explain his breakthrough product to the public is fitting as most people are already familiar with the process. “Mycotech’s primary benefit is its direct contribution in the national economy and welfare of farmers across Indonesia,” he said, “agricultural wastes that were previously burned away or just fed to livestocks can be transformed into higher-value products. And, our business model has the potential to convert this country’s economic model from that of a commodity-based to a knowledge-based one.” Mycotech’s products feature boards and sheets which can be used as building blocks or formed into basic furniture or even art installations or watch cases. The boards are lightweight (0,62 kg/m3), yet fire-proof (class A) and, most importantly, toxic-free. It is also affordable to manufac- ture, which potentially benefits construction-building projects throughout the world. www.mycote.ch OPUS CREATIVE ECONOMY OUTLOOK 2019 41

ALVIN T Alvin Tjitrowirjo, Creative Director & Founder alvinT & alvinT Studio, is a talented young product designer from Indonesia who started his ascend to the national de- sign stage in 2006, when he held his first solo exhibition sponsored by Volvo, luxury watch retailer The Hour Glass, and kitchen surface manufacturer DuPont Corian. The 34-year-old Royal Melbourne Institute of Technology (RMIT) and IED European Design Labs alumni rejects the notion that local furniture products are of inferior quality and unable to compete internationally, and opted instead to create high-val- ue, high-quality furnishing label that feature Indonesian culture or heritage and ma- terial. Consequently, his eponymous furniture label features rattan, bamboo, mar- ble, stone, and teak to create a distinct brand of Indonesian design that is wrapped in organic lines and neutral colors. In 2010 and 2011, Alvin’s work was chosen to be displayed at the prestigious Harrods department store in London. His most recent works included the newly opened restaurant section of Soekarno-Hatta Airport and seating area at Terminal 3, as well as the Indonesian Pavilion at Milan Design Week 2017, entitled “Identities” and commissioned by BEKRAF. In the near future, he will hold an exhibition tour that will visit, among others, Frankfurt in February, Milan in April, New York in May, and Paris in September. www.alvin-t.com 42 OPUS CREATIVE ECONOMY OUTLOOK 2019 Film, Animation & Video

The Film, Animation & Video Sub-sector has a significant and massive impact on the economy. Data compiled from the UNESCO Institute for Statistics shows that from 2005 to 2017, the global film industry has sig- nificantly grown to reach a 64-percent increase. Furthermore, PwC pre- dicts that by 2019, revenues from the global film industry will reach US$ 104.2 billion.

In Indonesia, the GDP growth rate of the Film, Animation & Video Sub-sector has gone up, along with the increase in national film produc- tion and audience. The national film industry’s potential is heightened by the proliferation of various video streaming applications and services, thus providing various choices for people to enjoy films.

Top Export Countries 39,546 for Film, Animation & 10.09% Video 2016 Number of Cre- GDP Growth Rate ative Workers in in Film, Animation Hong Kong & Video 2016 (2nd Film, Animation highest) & Video 2016 Singapore (+5.85% vs. 2015) 78.66% 42,7 Mn Businesses in Film, Number of Animation & Video Indonesian Cinema- 2,418 with Revenue +/- goers 2017* Number of Cre- Rp 300 Mn / Year *Source: Statistics Indonesia ative Businesses in Film, Animation & 10.96% Video 2016 Businesses in Film, Animation & Video with Revenue Rp 2,5—50 Bn / Year 1,681 Total Screens in Indonesia (Nationwide) 2018 OPUS CREATIVE ECONOMY OUTLOOK 2019 43

PENGABDI SETAN (2017) Pengabdi Setan, or Satan’s Slaves, is a wildly successful reboot of the 1980 Indo- nesian film of the same title which broke various box office records both at home and abroad when it was released in September 2017, 37 years after the original. Joko Anwar, one of Indonesia’s highly acclaimed modern-day directors, recently shared through his social media that Scott Derrickson, director of the blockbuster hit Doctor Strange (2016), had professed his admiration for Joko’s movie, which he described as a “gem” among the myriad of newly released films. Previously, Satan’s Slaves had broken the box office record at home as Indonesia’s top horror movies of all time as well as top film of 2017, along with box office records in Singapore, Malaysia, and Hong Kong, famously known as one of Asia’s biggest and most im- portant film markets. Satan’s Slaves also occupied the top ten box office rankings in Thailand and Mexico. In June 2018, it was reported that Joko’s film had been screened at 42 countries around the world, including in Taiwan, the Netherlands, and Spain. In the same month, Satan’s Slaves also won the highest award in the most prestigious horror film festival in the United States, the Overlook Film Festival. The resounding success of Satan’s Slaves and Joko Anwar as its director proves that Indonesia does indeed harbor great cinematic talents who must be further galva- nized and cultivated, so as to produce more talents in the future. 44 OPUS CREATIVE ECONOMY OUTLOOK 2019

Provinces with Highest Concentration of Film, Animation & Video Businesses:

Sumatera (19.35%) DKI Jakarta (16.79%) 16 Mn Number of Market Share in The- Indonesian 93% ater Held by Cineplex 21, CGV Cinema, and Cinemagoers Cinemaxx BEST SELLING INDONESIAN FILM 2015 * OF ALL TIME (THROUGH JUNE *Source: Triawan Munaf, Chairman of BEKRAF (27/02/2018) 2018)

Warkop DKI Reborn: Jangkrik Boss! Part 1 (2016)

4,000 Targeted New 6,858,616 audiences Screens in Indonesia, Dilan 1990 (2018) As Set by BEKRAF 6,315,664 audiences

Largest Concentration of Theaters in Indonesia Laskar Pelangi (2008) is in Java Island 183 theaters in Java vs. 305 theaters outside Java 988 screens vs. 1,641 4,719,453 audiences screens nationwide *Source: Data from Association of Indonesian Cinema Entrepreneurs (GPBSI) Habibie & Ainun (2012) (18/05/2018) 4,583,641 audiences 70% Concentration of theaters Pengabdi Setan (2017) in Java Island 58 / 21 Cities 4,206,103 audiences / Regencies in Indonesia with Warkop DKI Reborn: Jangkrik Boss! theater facility vs. 99 / 416 Cities / Part 2 (2017) Regencies in Indonesia 4,083,190 audiences Source: http://news.metrotvnews.com/read/2018/02/19/833684/jumlah-layar-bioskop- indonesia-meningkat-pesat-dalam-lima-tahun-terakhir (19/2/2018), Katalog Film Ayat-ayat Cinta (2008) Indonesia (KFI) dalam artikel Kaleidoskop 2017 3,676,135 audiences

Indonesia Theater Market Share (Nationwide) 2018: Ada Apa Dengan Cinta? 2 (2016)

Company/Chain Screen Theater 3,665,509 audiences My Stupid Boss (2016) Cineplex 21 1003 177 CGV Cinemas 275 42 3,052,657 audiences Cinemaxx 203 41 Platinum 28 7 Ayat Ayat Cinta 2 (2017) New Star 20 9 Movimax 6 2 2,840,159 audiences Lainnya 46 16 Source: filmindonesia.or.id OPUS CREATIVE ECONOMY OUTLOOK 2019 45

KULARI KE PANTAI (2018) Mira Lesmanawati is one of Indonesia’s most prolific next-generation filmmakers with blockbuster hits such as Kuldesak (1999), Petualangan Sherina (2000), Ada Apa Dengan Cinta? (2002) and its sequel Ada Apa Dengan Cinta? 2 (2016), and Laskar Pelangi (2008). After a lengthy absence from children-themed movies, of which Mira is highly known and lauded for, she is back with another kid-friendly fea- ture film Kulari Ke Pantai (2018), released in June 2018 to rave reviews. Kulari Ke Pantai became an instant hit, strategically released during the national school holi- day and successfully capturing the imagination of hundreds of thousands of parents and children alike. Mira explained that the country is in dire need of family-friendly content, as many Indonesian kids today are consuming adult contents due to lack of choices. Earlier in the year, President Jokowi had summoned her along with the chairman of BEKRAF, Triawan Munaf, to the Merdeka Palace and pushed for them to coordinate efforts to to increase family content. To that end, Mira and BEKRAF collaborated to hold a songwriting competition to find the best five original songs to be included in the film’s soundtrack compilation. The competition, dubbed “Lomba Cipta Lagu Anak” (LCLA or Children’s Song Contest Competition), attracted over 1,000 contestants and was produced by RAN and Miles Music in cooperation with Miles Films dan International Design School (IDS), with BEKRAF serving as sponsor. 46 OPUS CREATIVE ECONOMY OUTLOOK 2019 Photography

The rapid development of digital technology has had a major influence on the development of photography on the global stage. Digital cameras have given rise to an entire industry of photography, which can now be made much easier, and cheaper. What’s more, the presence of smartphones with sophisticated cameras have further disrupted the traditional industry and turned anyone into a photographer. This phenomenon can be harnessed to jump-start the Photography Sub-Sector in Indonesia, and to grow the Sub-sector’s community and eco- system.

69,826 6.89% Number of Creative Growth Rate in Pho- Workers in tography 2016 Photography 2016 40,436 Number of Creative 58.78% Businesses in Percentage of Creative Photography 2016 Businesses Utilizing E-Commerce 2016 Breakdown of Creative Labor Force Based on 17.74% Gender (%) 2016: Percentage of Creative Male — 91.77% Businesses Utilizing Perempuan — 8.23% the Internet 2016 OPUS CREATIVE ECONOMY OUTLOOK 2019 47

ANTON ISMAEL The 1975, Jakarta-born has been active in the photography world since 2000. During this period, Anton Ismael has produced works such as Tuhan dan Hantu, Ingin Dekat dengan Tuhan, Dosa, and Karma that are all widely praised; held several photo exhibitions with his students from Kelas Pagi (Morning Class), a free photography class which he opened in 2006; and developing the Third Eye Space’s business, a commercial creative studio he founded in 2005. Amazingly, as the creative director of a wildly successful photography venture with clients ranging from celeb- rities to international brands to other famous artists, Anton still makes the time to teach his photography school free of charge at Kelas Pagi, which he holds regularly every morning at 6 AM without fail. The morning classes, according to Anton, person- ify his personal belief summarized in the following sentence: “Keluar, tumbuh, liar” (Grow out, grow into, be ever-wild). Since its inception until today, Kelas Pagi has graduated 11 class- es, and in 2018, Anton added a new course titled “Kelas Pagi Militan,”a platform to bridge the creative world with competent human resources in the industry. In 2017, Anton was recognized by BEKRAF, which named him as one of the inspirational figures in the creative world in Ideafest 2017; and from Rolling Stone magazine, which named it as “Editor’s Choice Award 2017.” www.thirdeyespace.com

LANS BRAHMANTYO Lans Brahmantyo, born in Surabaya in 1966, seems to personify the stereotype of the “Renaissance Man.” Born on July 7, 1966, the photographer best known for his Soul Odyssey book, a sem- inal fine arts photography book, obtained a Bachelor’s degree in Electrical Engineering and a Masters degree in Management In- formation Systems from the University of Denver, United States, in 1992. After graduation, he worked as a campus consultant at NeXT Computer Inc., Steve Jobs’ famed new startup venture during the period when the Apple visionary was shunned from his own company. His experience working with the NeXT system led him to a prolonged adventure in the graphic and visual world, and one he never left. Lans worked as creative director at the Satuka- ta advertising agency; Co-Founder Forum Grafika Digital (FGD); Co-Founder & Creative Director Hexart Publishing; and Founder & Creative Director dari Afterhours Design, the forerunner of Afterhours Books, which released one of the greatest photog- raphy books in the world, Soul Odyssey. Released in 2005, Soul Odyssey is an epic fine arts book which went on to win several international awards including the Prix de la Photographie Paris ( PX3) and covered in depth in the prestigious Leica Fotografie Internationale (LFI) magazine in 2007. He was also the winner of PCS Sagamihara Asia Gold Winner Photography in 2008 and the International Photography Awards 2008 in New York City, USA, and in Russia in 2009. www.afterhoursbooks.com 48 OPUS CREATIVE ECONOMY OUTLOOK 2019 Crafts

Indonesia possesses great potential to offer craft products which fits the modern, international lifestyle with local inspiration. Currently, the Crafts Sub-sector is one of the top three Sub-sectors within the Creative Econo- my sector with the highest contribution towards Indonesia’s GDP, exports and labor absorption. The Crafts Sub-sector is promising, as Indonesian craft products are known for their handmade quality, fetching higher market prices. As the government’s representative in Creative Economy, BEKRAF is responsible in managing this Sub-sector and providing various facilitations. Collaborations between designers, small and medium en- terprises, and manufacturers are increasingly encouraged. BEKRAF also prioritizes the promotion of craft products at home and abroad as its core program for this Sub-sector.

15.40% 3.72 Mn Switzerland is #1 GDP Contribution in Crafts Number of Export Destination 2016 (3rd highest) for Crafts 2016 Creative Workers US$ 2.06 Bn Export in Crafts 2016 Value in Crafts to Rp 142 Tn (+1.99% Vs. 2015) Switzerland 2016 GDP Value of Crafts 2016 (3rd largest) 21.99% 77.93% Labor Workforce Growth Percentage of Creative 39.01% Rate in Crafts 2016 (3rd Businesses in Crafts Found- Export Contribution in highest) ed in 1990-2014 Crafts 2016 (2nd largest)

22.03% 95.19% 1,194,509 Labor Workforce Ab- Percentage of Creative Number of Creative Busi- sorption in Crafts Vs. Businesses in Crafts nesses in Crafts 2016 Total Labor Workforce Without Legal Entity (3rd largest) in Creative Economy 2016 2016 15% Percentage of Creative 1,247 Businesses in Businesses in Crafts Vs. 57.48% Crafts with Revenue Total Businesses in Creative Percentage of Creative >Rp 50 Bn / yr (highest Businesses Utilizing Economy Sector 2016 among all Sub-sector) E-Commerce 2016 Breakdown of Creative Labor Force Based on Gender (%) 2016 US$ 7,797.6 Mn Export Value in Crafts 2016 Male — 54.03% (2nd largest) Female — 45.97% OPUS CREATIVE ECONOMY OUTLOOK 2019 49

RAJA SERAYU Raja Serayu is a brand name of batik and bamboo weaving products from Cilacap, Indonesia. It is a collaborative work of Mufti Alem (www.alemplus.com) and Rajasa Mas (a Batik brand from Maos, Cilacap). The Raja Serayu brand originated out of the collaborative Designer Dispatch Service (DDS) program initiated by the Ministry of Trade and BEKRAF in 2016, with the latter responsible for branding and promotional support and expanding the brand’s exposure at Ambiente 2017, one of the largest and most influential international trade shows in Europe. Euis Rohaini dan Tonik Sudarmaji, the founders of Rajasamas Batik, now works at their production center in Nuwawungu, Cilacap, where they work day and night to meet demands from Russia, Germany, Italy and Saudi Arabia with total production of 7,000 to 10,000 prod- ucts per year. Raja Serayu products boast a unique combination of hand-crafted bamboo woven and high-quality and chic batik plaits, packaged in attractive materials such as rattan, weeds (al- ang-alang), and even water hyacinth. Raja Serayu’s business mod- el, which re-purposes batik wastes and turns them into high-value products derivative product is nothing short of exemplary. www.rajaserayu.com

SEPIRING INDONESIA Sepiring Indonesia was founded by two Indonesian wom- en, Eridanie Zulviana and Jasmyne Oei, two close friends who handle totally different aspects of their business - Eridanie focuses on design, while Jasmyne handles sales and marketing. Sepiring Indonesia’s success story orig- inated from the Jakarta Souvenir Design Award (JSDA), when Eridanie first won Best Design in JSDA 2012. Since then, her whimsical and lively illustrations have captured the hearts of numerous tourists, foreign buyers, artists and, increasingly, local consumers. The name “Sepiring Indonesia” alludes to “a plateful of Indonesia,” personified by caricature Indonesians decked in a series of traditional clothing and sold as a collection dubbed “Joged Jakarta,” “Jawa Semanak,” “Legong Bali,” “Rancak Minang,” “Tatau Dayak,” and “Bugis Makanja.” Leveraging Indonesian craftsmanship, Sepiring Indonesia has brought Indonesian culture closer to an international audience at New York Now and Milan’s Salone Del Mobile. Today, Sepiring Indo- nesia produces a plethora of creative works from coasters, stationary sets, to leather-lined wallets which cover 32 designs in 80 different products, in addition to creating custom-made pieces for corporate clients. www.sepiringindonesia.com 50 OPUS CREATIVE ECONOMY OUTLOOK 2019 Culinary

The culinary industry fulfills one of humanity’s basic need which is food, hence it is no exaggeration to say that the Culinary Sub-sector, which falls under the Creative Economy Sector, will continue to grow in scale and importance for the foreseeable future. Culinary’s modern-day status in Indonesian society as both a lifestyle and leisure activity ensures that this Sub-sector will continue to lead the entire Creative Economy Sector.

Already, Culinary is the main engine of growth within Indonesia’s creative industry, contributing the most in terms of GDP. At present, due to its im- mense growth, BEKRAF is considering to elevate the Culinary Sub-sector into a champion program. In addition, The Culinary Sub-sector also has a great potential for innovation and to expand its market size and scale in the near future.

41.40% 5,550,960 GDP Contribution in Number of Creative Work- Founding Year and Number of Creative Businesses in Culinary Culinary 2016 (highest ers in Culinary 2016 (largest) Founded in 1990-2014 among all Sub-sector) Year <1990 1990 – 2014 > 2014 67.66% Number of actors 231,922 4,069,932 1,249,106 5.06% Percentage of Creative Percentage 4.18% 73.32% 22.50% GDP Growth Rate in Businesses in Culinary Culinary 2016 Vs. Total Businesses in Creative Economy Sector 38.86% 2016 (highest) Percentage of Creative Rp 381,985.7 Bn Businesses Utilizing GDP Value of Culinary E-Commerce 2016 2016 (biggest among all 7,983,259 Sub-sectors) Number of Creative Workers in Culinary 2016 US$ 1,260,503,586 (largest) Export Value in Culinary 2016 (3rd largest)

6.31% 47.21% Export Contribution in Labor Workforce Absorption in Cu- Culinary Vs. Total Export linary Vs. Total Labor Workforce in in Creative Economy Creative Economy 2016 (highest) 2016 (3rd largest)

97.89% Percentage of Creative Businesses in Culinary Without Legal Entity 2016 (5,434,047 busi- nesses) OPUS CREATIVE ECONOMY OUTLOOK 2019 51

MATCHAMU Matchamu is the first and largest curator of processed matcha (Japanese green tea powder) and its derivative products in Indo- nesia, which was started in 2013. Matchamu presents a variety of loose and powdered green tea from the Kyoto Test, a region in Japan that is renowned for being the best green tea-producing region in the world. The uniqueness of the Matchamu product offering is the quality of the tea which, although in a processed powder form, still preserves the premium quality and is priced competitively to boot. Matchamu’s business model was proven to be effective, and the BEKRAF-supported startup was soon seeing sales turnover of around 9,000 sachets sold every month through 15 retail outlets, 20 B2Bs and 44 resellers. This was further elevated when BEKRAF enrolled Matchamu in the 2017 and 2018 Food Startup Indonesia (FSI) programs, one of its most popular programs that facilitates and bridges meetings between the culinary sector with prospective investors. Now, Matchamu boasts 51,000 sachets sold per month through 725 retail outlets, 97 B2Bs, 1 national distributor, and 3 export clients in Singapore, Malaysia and Japan. During FSI 2018, Matchamu also attract- ed five potential investors and one investor which had officially signed a contract with the food startup. www.matchamu.com

TOKO KOPI TUKU Tuku Coffee Shop is one of Indonesia’s “Third Wave Coffee” icons that was successful in capturing and harnessing the market demand for coffee products that are relevant to the lifestyle of middle-class workers in Jakarta. The owner and founder, Andanu Prasetyo, or Tyo, was keen to capture the market opportuni- ties which he recognizes as being one of the world’s best coffee producing-countries but which surprisingly has a low level of local coffee consumption. Based on this observation, Tyo formulated a coffee product that was palatable to the general public while allowing them to consume it regularly, or in other words, af- fordable enough for the average consumer. Tyo’s success story culminated in the surprise visit by the President of Republic of Indonesia, Jokowi, and his entourage at his outlet in Cipete Raya, South Jakarta. In the near future, Tyo hopes to be able to fulfill his mission in increasing coffee consumption for the average Indone- sian consumer, so that the Indonesian coffee ecosystem can grow unhindered. Today, Tuku Coffee Shop has locations in Cipete, Pasar Santa, Bintaro, and BSD; and employs around 70 baristas and 10 people from the management team where they work out of the office in Antasari, Jakarta. www.tuku.coffee 52 OPUS CREATIVE ECONOMY OUTLOOK 2019 Music

The International Federation of the Phonographic Industry (IFPI) in one of its reports stated that music can become a driving force in the global economy, particularly in areas involving exports, labor workforce ab- sorption, and tax revenue. In line with this report, the Music Sub-sector in Indonesia is also reported to be currently experiencing rapid GDP growth, reaching over seven percent in 2016. Due to this positive result, BEKRAF is optimistic towards the Music Sub-sector’s prospect as one of its prior- ity programs. Facilities and programs conducted by the agency include establishing anti-piracy task force, supporting various music events, and establishing music cities ecosystem.

Top Export Breakdown of Creative Labor Force Based on 7.59% Countries for GDP Growth Rate Gender (%) 2016 Music 2016 in Music 2016 Male — 82.85%

Female — 17.15% SINGAPORE Rp 4,426.4 Bn

GDP Value of BELGIUM 53.35% Music 2016 Percentage of

Creative Busi- TAIWAN 56,891 nesses Utilizing Number of Cre- E-Commerce 2016 ative Workers in Provinces with Highest Con- Music 2016 10.37% centration of Interior Design Percentage of Cre- Businesses: 4.9% ative Businesses West Java (17.57%) Labor Work- Utilizing the Inter- East Java (16.14%) force Growth net 2016 Rate in Music Central Java (14.7%) 2016 Rp 3,061,858 / mo 34,242 Average Salary in Music 2016 Number of Cre- (5th highest among ative Businesses in all Sub-sectors) Music 2016 OPUS CREATIVE ECONOMY OUTLOOK 2019 53

KARINDING ATTACK WE THE FEST Since its inception in 2009, Indonesian metal band Karind- We The Fest (WTF) 2018, the groundbreaking Indonesian summer ing Attack, or Karat, as they prefer to be called, has taken music festival featuring rising international stars such as Ellie up the world by storm. Infusing fast-paced and aggressive Goulding, Sam Feldt, and Flight Facilities as well as local artists heavy metal and punk tunes with traditional Indonesian including Teza Sumendra, Rich Chigga, and Kimokal, has just musical instruments, the music of Karat was an immediate completed its fifth anniversary. This year, Ismaya Live, the leading success in Indonesia and was quickly discovered by global promoter and organizer of some of the most popular music festi- listeners who were eager for something new. Karinding vals in Indonesia, claimed that WTF 2018 was bigger, better, and Attack is currently comprised of seven personnel who have more inclusive than ever before. Featuring no less than 61 local all learned to play various bamboo instruments such as and international artists and bands including Lorde, alt-J, The flutes, xylophones, and even Karat’s own custom-made Neighborhood, Greenhouse Effect, Isyana, Albert Hammond Jr. percussions, known as Karinding, while belting out System (guitarist of The Strokes), and other famous musicians, WTF 2018 of A Down-like tunes to amusing effects. In 2011, Karat established Ismaya Live’s position as one of the leading players in released its first album, Gerbang Kerajaan Serigala, the Music Sub-sector. WTF 2018’s highlight was when President which featured senior musician Trie Utami and which Jokowi attended the festival and sat together with the Chair- propelled the band to national and international fame. In man of BEKRAF, Triawan Munaf, during the live performance of 2017, Karat was appointed by the Indonesian government Indonesian bank White Shoes and The Couples Company. In the to represent the country at the Europalia Arts Festival future, BEKRAF will seek to forge a stronger ecosystem within the 2017, the largest international arts and cultural festival in Music Sub-sectors by facilitating creative players in the industry, Europe, which began in Germany, Belgium and the Neth- including providing assistance, sponsorships of music festivals, erlands, on November 15-19, 2017. Not stopping there, and many others. Karinding Attack also toured Denmark, Italy, Belgium, www.wethefest.com the Netherlands, and Germany as part of the Karinding Attacks Europe 2017 tour, which was held with Morphine Records. In early 2018, Karat is preparing its second album which it touted as possessing a more powerful and unique music concept, and also finalizing its plans for a second tour in Europe, including at the Radio Asia Festival in Warsaw, Poland. www.karinding-attack.com 54 OPUS CREATIVE ECONOMY OUTLOOK 2019 Fashion

The value of fashion extends far beyond mere articles of clothing that satisfy basic human need. Fashion is also related to aspects of lifestyle and appearances, as well as a reflection of one’s identity or a group. The importance of fashion is further proven through its large contribution to the added value of the Indonesian economy, as well as contributions to the national GDP and exports. The Fashion Sub-sector has become one of the leading Sub-sectors in the Creative Economy. Sustainable fashion and Muslim fashion are some important issues that must be considered in order to develop the national fashion Sub-sector.

18.01% Breakdown of Creative La- 57.10% GDP Contribution bor Force Based on Gender Percentage of Creative (%) 2016 Businesses Utilizing in Fashion 2016 E-Commerce 2016 (2nd highest) Male — 45.75% Female — 54.25% 94.41% 4.05% Percentage of Creative Laju pertumbuhan 4,130,000 Businesses in Fashion GDP Growth Rate in Number of Creative Without Legal Entity Fashion 2016 (+2,78 Workers in Fashion 2016 Vs. 2015) 2016 (+3.05% Vs. 2015) 865 Rp 166.1 Tn Businesses in Fashion GDP Value of Fashion 24.42% with Revenue

DANJYO HIYOJI PT Danjyo Cipta Rega Pratama, the company behind the wildly popular Jakar- ta-based fashion label Danjyo Hiyoji, was officially founded in 2009 by Dana Maula- na and Liza Masitha, after previously existing under the name “Danjyo” since 2001. Danjyo Hiyoji’s impressive growth can be attributed to its breakthrough designs that are at once simple yet innovative. Its trademark look is the layers of drapes that are sometimes asymmetrical, but always proportional. Its ready-to-wear collections are offered in subdued hues and neutral colors, and priced competitively. Danjyo Hiyoji has been crowned as winner of “The Most Innovative Local Brand” at Cleo Indo- nesia Fashion Award 2009, “Label of the Year 2010” by ELLE Indonesia Magazine, Instyle Indonesia and Men’s Health Magazine Award 2012, and Kuningan City Iko- nography Awards 2016, raising its profile to become one of the revered local brands in the Jakarta fashion scene. Today, Danjyo Hiyoji’s operation is based on a 400 sqm land in south Tangerang, where its design, manufacture, marketing, and sales are horizontally integrated into one studio. www.danjyohiyoji.com 56 OPUS CREATIVE ECONOMY OUTLOOK 2019

TORAJA MELO MUSLIM FASHION FESTIVAL INDONESIA Toraja Melo, a Social Enterprise initiative (MUFFEST) 2018 founded by two Indonesian women in 2008, Following the success of the Indonesian Muslim sells and markets fashion and souvenir products Fashion Festival (MUFFEST) in 2016 and 2017, made from woven materials created by native MUFFEST 2018 this year featured 200 brands Toraja artisans in four regions in Indonesia, and 100 designers from local and overseas in namely Toraja and Mamasa in Sulawesi; and in a fashion week that lasted for four consecutive Adonara and Lembata in East Nusa Tenggara. days. President Joko Widodo, in the opening Dinny Jusuf and Nina Jusuf, founders of Toraja remarks of MUFFEST 2018 on April 19, 2018, Melo, decided to start the enterprise when they welcomed such fashion weekend as MUFFEST to learned about disadvantaged women from these promote the development of the fashion industry areas. Dinny, whose background is Secretary and ecosystem in the country. Jokowi remarked General of the National Commission on Violence that Indonesia, with the largest Muslim popula- Against Women, explained that Toraja Melo aims tion in the world, needs to work hard to catch to improve the welfare of Indonesian tradition- up with foreign brands and manufacturers which al weavers, especially marginal women in the have begun to explore the global Muslim fashion archipelago. These women, according to Dinny, market, including Indonesia. In his speech, Joko- often have little to no other choice but to become wi also hoped for Indonesia to become the lead- Indonesian laborers overseas, where they are er in its own large market in relation fo Muslim prone to becoming victims of violence. Toraja fashion. Along with Indonesia’s unique strength Melo has participated in various international which is culture, the biggest Muslim fashion show exhibitions and have expanded their products in Indonesia aims to realize the government’s offering in Singapore, Japan, France, England, aim to turn Indonesia into the world’s premier the United States, and Australia. Yet, the found- Muslim fashion center by 2020. MUFFEST 2018 ers said, they will continue to focus their efforts also featured seminars and talk shows, including towards the “Conscious Market” or the segment Trend Forecasting 2019/2020 by BEKRAF and of buyers who makes purchasing decisions based associate designers. www.muslimfashionfestival. on social considerations above all else. www. com torajamelo.com OPUS CREATIVE ECONOMY OUTLOOK 2019 57 LULU LUTFI LABIBI Lulu Lutfi Labibi, a rising young talented designer from Yogyakarta, has been active in the local fashion universe since 2006, when he started to enroll in myriad fashion competitions in the capital city and beyond. His hard work and perseverance finally paid off when he won his first award in the Lomba Perancang Mode (Fashion Design Competition) 2011. Lulu’s designs, which highlights lurik, a traditional motif cloth from Central Java, use an innovative draping techniques, where fabric can be wrapped, stacked, or combined according to the wearer’s desire and creativity; making his seasonal offerings comprising of dress, pants or jacket never boring and always fresh. Today, the Lulu Lutfi Labibi label is gaining increasing prominence both in the domestic and international stage, with regular customers visiting his Yogyakar- ta-based boutique and online customers ordering via his social media outlets, which Lulu revealed to comprise a good portion of his total revenue these days. 58 OPUS CREATIVE ECONOMY OUTLOOK 2019 Applications & Game Developer

The growth of the global application and gaming industry has opened up a new venue of economic potential. The Applications & Game Developer Sub-sector is project- ed to grow further in the coming years as more and more startups have sprung up in recent years, such as Agate Studio, Altermyth Studio, Toge Production, Tinker Games, Touch Ten Games, and many others. Its positive growth has in turn attracted funding from investors, who in turn help to generate even larger transaction values within this Sub-sector. This is inseparable from the fact that mobile usage is increasing around the world. According to a report from Super Data, the average smartphone user playing mobile games plays three times a day, with an average time spent of ten minutes per game session. Games with simple, short, and easily accessible gameplay gain more following than ones with complex gameplays.

Labor Workforce Absorption The digital applications industry (apps) contrib- uted positively towards the national absorption of labor workforce. Surveys conducted on the apps developer segment revealed data that shows that on average, one company employs around 139 people, comprising almost entirely of local labor.

8.06% 77.24% US$ 879.7 Mn Rp 68 Tn GDP Growth Rate in Apps & Percentage of Creative Valuation of the Indonesian Total Sales Value in Game Developer 2016 (5th Businesses Utilizing Games Market 2017 E-commerce in Indo- nesia 2017 highest) E-Commerce 2016 43.7 Mn 35-40% Rp 17,142.8 Bn 47.89% Number of Gamers in Indo- Average Annu- GDP Value of Apps & Game Percentage of Creative nesia 2017 al Growth Rate of Developer 2016 Businesses Utilizing the E-Commerce in Indo- Internet 2016 (4th highest) 17 nesia (lead by fashion) Breakdown of Creative La- Indonesia’s World Ranking bor Force Based on Gender 30.81% (Revenue Estimate, Games Rp 252 Tn (%) 2016 Percentage of Creative Market) 2018 Total Transaction Businesses in Apps & Game Source: Newzoo (www.newzoo.com) Value In Fintech 2017 Male— 74.65% Developer Founded After Female — 25.35% 2014 Rp 135.364 Tn Rp 1.7 Bn Projected Valuation of Total Funding in 41,065 Rp 3,647,134 / mo Indonesia’s Digital Econo- Indonesia’s Startup Number of Creative Average Salary in Apps & my 2020 Industry 2017 Workers in Apps & Game Game Developer 2016 (3rd Developer 2016 highest) Rp 1,759 Tn Projected Transaction Val- 12,441 US$ 137.9 Bn ue in Digital Economy 2020 Number of Creative Busi- Valuation of the Global nesses in Apps & Game Games Market 2018 Developer 2016 OPUS CREATIVE ECONOMY OUTLOOK 2019 59

GHOST PARADE Ghost Parade is a 2D side-scrolling adventure game developed by Indonesian studio Lentera Nusantara and slated for release on the PlayStation 4, Switch, and PC via Steam in 2019. Ghost Parade’s gameplay boasts a unique environment that is centered on Indonesian culture such as Bali, West Java, Dutch colonial, and other Indonesian-related locales which serve as the back- drop of the game. Players control a character named Suri, who is trying to return to her native village but must survive the journey against a myriad of ghosts and spooky creatures. To further boost awareness for this rising game developer company from Bandung, BEKRAF facilitated the participation of Lentera Nusantara at Anime Expo 2018 in Los Angeles and Game Connection Ameri- ca 2018, one of the most important game forums in the United States. Through this event, Lentera Nusantara secured a commit- ment from Aksys Game, publisher of the wildly popular Guilty Gear and Blazblue series, to release Ghost Parade worldwide on various platforms, including on Steam, the largest and most popular digital distribution platform for video games in the world. www.ghost-parade.com

SAYURBOX SayurBox is an innovative new e-commerce platform distributing fresh, organic, local produce and dry goods from local farmers and producers. The young startup was founded in 2016 by two women, Metha Trisnawati and Amanda Susanti, who took on the roles of Chief Product Officer and CEO, respectively, and Marvin Kalibonso. Within a year of its founding, SayurBox has grown to serve 3,000 customers and 22 local farmers spread across the greater Jakarta area (Jakarta, Bogor, Tangerang, Depok, Bekasi), as well as Sukabumi and Bandung. According to its founders, SayurBox’s success stems from the startup’s innovative new sup- ply chain model: farmers sell directly to consumers living in urban cities, through its platform. The model effectively undercuts middlemen and streamlines the supply chain, enabling customers to get fresh deliveries of high-quality, pesticide-free vegetables right at their doorstep. The products are carefully curated by the startup, while partner farmers undergo strict quality control assurances. In return, farmers enjoy higher selling price and im- proved livelihood. The farm-to-table concept has been such a hit with the market that impact investment fund Patamar Capital has made its first direct investment in seed funding from its Women Fund program with an estimated amount between US$ 200,000 and 300,000, not including other funds investors. Going forward, SayurBox’s founders aspires to expand its services and ecosys- tem nationwide, enabling more farmers across the archipelago to reach more consumers directly and jump-starting a nationwide farming movement. www.sayurbox.com 60 OPUS CREATIVE ECONOMY OUTLOOK 2019

DREADOUT DreadOut is the first classic horror video game from Indonesia that feature local Indonesian characters and culture as part of its unique gameplay, incorporating elements from visual designs that illustrate the distinctiveness of Indonesian culture to the unset- tling folk-based song Lengser Wengi as soundtrack. Since its first release in 2013 by the game developer studio Digital Happiness, based in Bandung, DreadOut has seen over a million downloads on various platforms including Microsoft Windows, OS X, and Linux; and spawned three sequels and spinoffs, making it one of the most successful Indonesian games in history. In 2018, Digital Happiness, a recipient of BEKRAF’s Government Incentive Assistance (BIP) program, gained international recognition when it participated at SXSW 2018 in Austin, Texas, and was nominated for “Gam- er’s Voice Awards.” In 2019, the big screen film adaptation of DreadOut, titled Dreadout the Movie, is slated to be released by goodhouse.id with director Kimo Stamboel from The Mo brothers. Digital Happiness is also developing an adaptation of the Dread- Out game into a comic web titled DreadOut: the Untolds which is slated to be launched this October and which can be accessed at www.ciayo.com. OPUS CREATIVE ECONOMY OUTLOOK 2019 61 62 OPUS CREATIVE ECONOMY OUTLOOK 2019 Publishing

In the digital age, printed books are no longer the sole medium for the publishing industry. Various alternatives have now sprung up including e-books, blogs, and social medias. Yet, the publishing industry survives the onslaught and has even continued to post increased contribution towards the Creative Economy sector. The digital realm has provided new challenges and opportunities while at the same time negates the thought that it presented significant threat to the Publishing Sub-sector.

Indonesia’s large population base becomes an important drivers of growth for the Publishing Sub-sector. The population size of Indonesia presents significant opportunities only if they are coupled with increased reading interests among the populace. Other contributing factors include freedom of creation, whereupon writers are given flexibilities and freedom to create innovative works. This will make Indonesia as both the creator and consumer of books in the world.

6.32% 464,579 Breakdown of Creative La- GDP Contribution Number of Creative Work- bor Force Based on Gender in Publishing 2016 ers in Publishing 2016 (4th (%) 2016 largest) Male— 88.47% 3,6% GDP Growth Rate Female — 11.53% 83,496 in Publishing 2016 Number of Creative Work- ers in Publishing 2016 (4th 83.36% Rp 58,313.2 Bn largest) Percentage of Creative GDP Value of Businesses in Publishing Publishing 2016 Without Legal Entity 2016 1.02% US$ 26,166,775 Percentage of Creative Export Value in Publishing Businesses in Publishing Vs. 64.04% 2016 (4th largest) Total Businesses in Creative Percentage of Creative Economy Sector 2016 Businesses Utilizing E-Commerce 2016 Top Export Countries for Publishing 2016 Provinces with Highest Concentration of Publishing 23.24% HONG KONG Businesses: Percentage of Creative East Java (16,805 pelaku) Businesses Utilizing the THE PHILIPPINES West Java (13,669 pelaku) Internet 2016 Central Java (13,345 pelaku) MALAYSIA OPUS CREATIVE ECONOMY OUTLOOK 2019 63

LAKSMI PAMUNTJAK Born in 1971, Laksmi Pamuntjak has been active in the world of literature for almost two decades as a bilingual novelist, poet, columnist, culinary critic, and even as a co-founder of the Aksara bookstore in Jakarta. Her works have elevated Indonesia’s name to several international stages, including the Frankfurt Book Fair, the Berlin International Literature Festival (ILB), and also in the highly competitive United States market where her second novel was published under the title Aruna dan Lidahnya (The Birdwoman’s Palate). The national bestseller was also featured as one of the five highlights in Kusala Sastra Khatulistiwa 2015, and has been adapted into a full length feature film directed by Edwin and starred by Dian Sastrowardoyo and Nicholas Saputra. Previously, Laksmi’s debut novel which was published in 2012, Amba, successfully attracted international attention during the 2015 Frankfurt Book Fair, where Indo- nesia was also a guest of honor for that year. Next year, Amba, which translates to Alle Farben Rot in German, won the prestigious LiBeraturpreis 2016 literary award in Germany, the only literary award given to women writers from Asia, Africa, Latin America, the Caribbean and the Middle East. Today, Laksmi is busy promoting her film adaptation and as a speaker at a number of international literary festivals, such as the Frankfurt Book Fair 2018 (panelist for “Women Writers in Asia Pacific”), the International Literature Festival Berlin (ilb) 2018 as speaker in “The Art of Cooking and Food Writing” panel, and Keynote Speaker at Oxford University for the opening of EuroSEAS (European Southeast Asian Association), “Between Hope and Despair: On Living with Difference in Today’s Indonesia,” coinciding with the 72nd anniversa- ry of the Republic of Indonesia. www.laksmipamuntjak.com 64 OPUS CREATIVE ECONOMY OUTLOOK 2019

LONDON BOOK FAIR 2018 After a successful run as guest of honor at the Frankfurt Book Fair 2015, Indonesia is once again at the center of attention at one of the most prominent international book exhibition events, the London Book Fair (LBF) 2018. Through BEKRAF and the Ministry of Education and Culture (Kemendikbud), and in collaboration with the National Book Committee and Association Indonesian Publisher (IKAPI), the Indonesian delegation brought no less than 300 titles for the three-day event. The delegation representatives, in addition to signing a Memorandum of Understanding with the LBF committee to become a Market Focus Country in 2019, also achieved a significant increase in copyright sales compared to last year: 14 book titles sold and 135 potential sales titles and four series to 14 countries. This was a substantial achievement and a new milestone in the history of the Indonesian literary industry, which was almost non-existent previously. As a comparison, only two books were successfully sold last year. Indonesia also earned the honor to become the first Southeast Asian country to be designated as the Market Focus country on the main stage of the LBF. To prepare for the arrival of Market Focus 2019, the Indonesian delegation also presented Indonesian films that were adaptations of popular novels and books, namely Laskar Pelangi (2008), Sang Penari (2011), or Filosofi Kopi (2015), curated by Sekar Ayu Asmara, author, film director, and producer who also serves as a reference at LBF 2018. www.londonbookfair.co.uk OPUS CREATIVE ECONOMY OUTLOOK 2019 65 66 OPUS CREATIVE ECONOMY OUTLOOK 2019 Advertising

Advances in technology have driven the humanity race to adapt to an increasingly digitized world, Advertising Sub-sector included. As a Sub-sector with one of the highest spreads across the country’s economic system, the Advertising Sub-sector exerts great influence in shaping the consumption pattern, lifestyle, and mindset of the general populace. The high growth of national advertising spending each year proves that adver- tising is still the most efficient media to promote products and services in Indonesia.

7.07% 70.16% US$ 19.58 Bn GDP Contribution in Percentage of Creative Projection for Digital Advertising 2016 Businesses Utilizing Advertising Expen- E-Commerce 2016 ditures in Indonesia Rp 7.5 T 2019 GDP Value of Source: eMarketer Advertising 2016 62.85% Percentage of Creative 10.1% Rp 5,124,319 / mo Businesses Utilizing Growth Rate in Enter- Average Salary in Adver- the Internet 2016 (2nd tainment & Media Ex- tising 2016 (2nd highest) highest) penditure in Indonesia (highest in the APAC region) 3,055 Source: PwC Number of Creative 86 Businesses in Adver- Businesses in Adver- tising 2016 tising with Revenue Rp 50 Bn / yr Breakdown of Creative La- bor Force Based on Gender (%) 2016 47.95% Male — 82.03% Percentage of Creative Female — 17.97% Businesses in Adver- tising As Legal Entity 2016 40,990 Number of Creative US$ 2.8 Bn (Rp 37.3 T) Workers in Advertis- Total Ad Expenditures ing 2016 (+4.35% Vs. 2017 (Rp 37.3 T) 2015) Source: eMarketer, IAB Singapore 79.18% Percentage of Creative Businesses in Ad- vertising Founded in 1990-2014 OPUS CREATIVE ECONOMY OUTLOOK 2019 67

FLOCK Flock, a new, “hybrid” full-service creative agency that combines traditional advertising services with that of a startup sophistication, was founded by two J. Walter Thompson Jakarta veterans: Ivan Hadywibowo, who now serves as CEO of the fledgling agency, and Erwin Santoso, who now heads the creative department as Creative Partner. Since its inception in 2016, Flock has grown phenomenally, de- fying logic in a highly competitive, cutthroat industry. Part of Flock’s success today can be attributed to the initial round of seed funding secured from East Ventures, Southeast Asia’s most prominent venture capitalists, as well as Flock’s revolution- ary, breakthrough business model—a unified, all-in-one advertising solution uti- lizing traditional marketing mix such as above the-line (ATL), below-the-line (BTL), and digital seamlessly integrated with the startup ecosystem.

Ivan explained that convergence is key in today’s rapidly changing world: by con- verging multiple disciplines and blurring the traditional lines between ATL, BTL, and digital, Flock is able to better meet its clients’ needs in a faster, nimbler, and cost-effective way. Willson Cuaca, managing partner of East Ventures, explained that he sees Flock’s great potential to become an enabler of change for the archi- pelago’s burgeoning startups, who will need a marketing partner that can help them grow faster. “Most of the startups need brand awareness with a limited budget. With someone taking care of the collaboration effort, we can make it cost-effec- tive,” Ivan said. Flock’s innovative offerings have earned the young agency national recognition over their works for Tokopedia dan Tehbotol Sosro, which went viral in 2018, as well as for its pioneering IVPL (Indonesia Virtual Pro League) championship through Cocoo (a subsidiary of the Flock network), the first Indonesian league within the wildly popular Virtual Pro League community worldwide. www.flock.company 68 OPUS CREATIVE ECONOMY OUTLOOK 2019 TV & Radio

The digital era has pushed creative players within Indonesia’s Creative Economy sector to continuously innovate their offerings which are rele- vant to the modern lifestyle. However, advances in digital technology have also raised concerns regarding the sustainability of the print, television and radio industries. Yet, the digital era has so far not been proven to diminish the roles of TVs and radios as primary information and enter- tainment mediums for the Indonesian populace. In fact, the TV & Radio Sub-sector recorded one of the highest growth rates among all Sub-sec- tors within Creative Economy sector. TV and Radio each have their own special characteristics which relates to their respective audiences, namely fresh and innovative programming for TV, and real interactivity for ra- dio. Digitization proves to be a boon rather than bane for the TV & Radio Sub-sector and must be developed further to attract larger audiences base.

8.27% 68.5% 58.54% GDP Contribution Percentage of Percentage of Cre- in TV & Radio 2016 Creative Work- ative Businesses ers in TV & Radio Utilizing E-Com- 10.33% With Average Age merce 2016 GDP Growth Rate of 25-40 years in TV dan Radio of age (high- 2016 (highest) est among all 47.08% Breakdown of Creative Sub-sectors) Percentage of Labor Force Based on Creative Business- Gender (%) 2016 12,441 es Utilizing the Number of Cre- Internet 2016 Male — 41.32% ative Businesses Female — 58.68% in TV & Radio 2016 71,294 Number of Cre- 73.73% ative Workers in Businesses in TV TV & Radio 2016 & Radio with Rev- enue +/- Rp 300 Mn / yr OPUS CREATIVE ECONOMY OUTLOOK 2019 69

RADIO DAY 2017 NET On Monday, December 11, 2017, 37 member radios of Entering its fifth year of broadcast, NET. TV consistently broad- the Jakarta National Private Broadcast Radio Association casts quality terrestrial television programs. In early 2018, NET. (PRSSNI) DKI Jakarta held “Radio Day 2017” as part of held the “Indonesian Choice Awards 5.0 NET.” which was broad- BEKRAF’s effort to stimulate the TV & Radio Sub-sector. cast live from Sentul, Bogor, and featured international guest Radio Day 2017 featured a series of campaigns which star Hailee Steinfeld and timeless musician, Craig David. NET. began with a teaser on social media one day before the TV’s works in the archipelago have also won it many prestigious launch of Radio Day 2017, and culminated in the complete awards, such as “Indonesia Most Creative Companies 2017” shutoff of all radio activities (off-air) for 10 to 15 minutes, from SWA magazine, “Indonesia WOW Brand 2018,” “KPI Award starting from 7:45 AM, Jakarta local time. The campaign, 2017,” and Ideafest 2017’s “Indonesia’s Influential Person in Cre- followed by all 37 member radio stations and carried out ative Industry.” As one of the leading actors in Creative Economy, simultaneously during one of Jakarta’s heaviest commut- NET. also actively participate in building the domestic ecosystems ing period, successfully captured the attention of mostly to improve the nation’s GDP, especially in terms of exports. Last Jakarta-based community, the only region or city where year, NET. facilitated by BEKRAF, signed an agreement to produce Radio Day 2017 was held. According to data released by high-quality television contents for both for terrestrial, pay and PRSSNI, Radio Day 2017 generated 40 million impres- digital TV. These contents are expected to reach the kind of status sions on social media with #radioguemati hashtags, and that South Korean TV drama series have enjoyed for years and 200 million impressions with #radioguegakmati hashtags. can be exported to more than 120 countries; giving Indonesia’s According to M. Rafiq, Chairman of PRSSNI DKI Jakarta, Creative Economy a new source of income. Chairman of BEKRAF, Radio Day 2017’s primary aim is to make people aware of Triawan Munaf, revealed at a press conference that President the importance of radio, an audio-based mass media that Jokowi had asked him last year to advance the national television is designed to be listened seriously or leisurely. Radio Day industry to match that of South Korea, and that a joint venture 2017 was officially ended with a recording of the President with South Korean television networks was one of the realizations of the Republic of Indonesia, Joko Widodo, teasing listen- of such initiative. ers with the statement “Emang enak nggak ada radio? www.netmedia.co.id Saya Joko Widodo, pendengar radio,” (Do you like not having radio (broadcast)? My name is Joko Widodo, radio listener) and followed with the return of normal broadcast. 70 OPUS CREATIVE ECONOMY OUTLOOK 2019 Performing Arts

Indonesia possesses a diverse wealth of arts and performance traditions, such as wayang (traditional Indonesian leather puppets), theater, dance, and so on. Performing arts is especially endemic to Indonesia as each region has its own version, with several regional performing arts gaining international fame. As a government institution, BEKRAF will continue to support the development of this potential Sub-sector. BEKRAF strives to provide regulatory facilitations, the establishment of performing art boards / councils, art performance festivals, and so on. BEKRAF is highly optimistic that the Performing Arts Sub-sector will continue to shine and show its full potential in the coming years.

9,54% GDP Growth Provinces with Highest 62.97% Rate in Performing Concentration of Performing Arts Percentage Arts 2016 Businesses of Creative West Java (22.91%) Businesses 170,994 orang East Java (21.70%) Utilizing Number of Creative Central Java (15.53%) Workers in Perform- E-Commerce ing Arts 2016 2016 90.02% Businesses in 15.71% 19,772 Percentage of Number of Cre- Performing Arts with Revenue Creative Businesses ative Businesses Utilizing the Internet in Performing Arts +/- Rp 300 Mn 2016 2016 / yr

Breakdown of Creative Labor Force Based on Gender (%) 2016 Male — 76.24% Female — 23.76%

OPUS CREATIVE ECONOMY OUTLOOK 2019 71

NAN JOMBANG Indonesia’s famous choreographer, Ery Mefri, performed at the Europalia Arts Festival for the first time in 2017. Previously, the woman who founded the Nan Jombang dance studio in 1983 in Padang, West Sumatra has also brought Indonesia’s name to various world festivals and dance events, among others in Essen, Mülheim an der Ruhr, Berlin, Tokyo, Singapore and London, which began in 2004 when the Nan Jombang Dance Company began its international tour. Described as a contemporary Minang dance form that adapts many elements of traditional Minangkabau dance, Nan Jombang boasts discipline, en- durance, and integrity for the choreography of the dance which has received wide acclaim and praise. In 2008, Ery Mefri was awarded the Tuah Sakato award from the Gover- nor of West Sumatra, for her contribution in advancing the arts and culture of West Sumatra through her involvement at the Indonesian Arts Coalition, a community organiza- tion aiming to advance the national dance art, which she founded together with Angga Djamar. In the near future, Nan Jombang will re-appear at the Opening Taiwan East Coast Arts Festival, as well as the Changpu Changing International Performing Arts Festival in Seoul, 27 to 30 August 2018. www.nanjombangdance.id

ABDI KARYA Abdi Karya, a longtime theater activist, has dabbled in the performing arts world since 2004, when he began to explore the Bugis epic manuscripts from the 13th century, I La Galigo. His works since then have always tried to interpret the rich mean- ing and the visuals of philosophical ideas found in customs, old stories, and Bugis mythology — a rather noble initiative that is becoming very rare nowadays — through theatrical arts, perfor- mances, choreography, musical arrangements, and mixed media. The 1982-born has worked as an actor, director, stage leader, stage designer, dancer, crew, musician, cultural programmer, and casual worker and volunteer for arts and cultural projects in Indonesia and abroad. In 2017, he and dozens of other domestic and foreign artists, including Garin Nugroho, Alastair MacLennan (Northern Ireland), and Luc Tuymans (Belgium), participated in the 2017 Jakarta Biennale with his work entitled Used. Being Used, a seminal work that is based on the epic of I La Galigo and inspired by the richness of the archipelago tradition in sarongs. Today, he is involved in various theater initiatives throughout Asia, including at 5ToMidnight, the Makassar Theater Forum, the Makassar Cre- ative Summit; British theater groups, Imitating The Dog; Caglar Kimyoncu; and Compagnie X-Press dance group with support from the British Council Indonesia and Institut Français Indonesia. 72 OPUS CREATIVE ECONOMY OUTLOOK 2019 Fine Arts

Within the scope of Indonesia’s Creative Economy, Fine Art is defined as a form of pure art which is in itself is a manifestation of intellectual and creative works. The Fine Arts Sub-sector already has a pretty well-developed network both at home and abroad, as can be seen from the involvement of Indonesia, represented by BEKRAF, at various world stages including Art Fair, ArtJog, Bazaar Art Jakarta, Pasar Seni ITB, Biennale, Triennale, and many other art events at various commercial galleries. BEKRAF’s primary aim in all of these initiatives are to increase contributions from all Sub-sectors of the Creative Economy, including GDP, labor workforce absorption and exports.

The Fine Arts Sub-sector has a slightly different market charac- BIGGEST CHALLENGES AFFLICTING THE FINE ARTS teristics compared to other Sub-sectors in the Creative Economy SUB-SECTOR TODAY sphere. At first glance, it may appear as if its market share is Lack of facilities and infrastructure within the Fine insignificant, however this is actually due to the specialized nature Arts ecosystem: exhibition spaces, museums, funding, of the Fine Arts community and buyers. The Indonesian art market marketing, distribution, forum, etc. is essentially driven by the collectors community, as well as the middle- and upper-class. This is exacerbated by the small to Uneven pockets of development within only several big cities in Indonesia micro community that these artisans work in.

Nevertheless, data compiled from Statistics Indonesia and BEKRAF points to positive trends occuring within the Fine Arts IMPERATIVES OF THE INDONESIAN GOVERNMENT TOWARD THE CREATIVE ECONOMY Sub-sector, including high growth potential and a ready supply of young, talented Indonesian artists the likes of Eko Nugroho and I Increasing the number of art festivals and events within Nyoman Masriadi, who have garnered international acclaims and the country and opening their access to the general recognitions, as well as attracting international interests toward population as much as possible Indonesia’s Fine Arts industry. Cultivating and building upon a collaborative ecosystem comprised of the local artisan and creative communities In the 2015-2019 Indonesian National Art Development Plan (Rencana Pengembangan Seni Rupa Nasional 2015-2019), de- Increasing the number of art and cultural spaces across velopments within the Fine Arts Sub-sector is focused on areas Indonesia involving the economic potential of Fine Arts industry and bench- Adding mandatory curriculum in the nation’s fine arts mark indicators for GDP growth, labor workforce absorption and faculties across the country to better understand the export earnings. Indonesian traditional heritage and culture

Increasing market research and studies to keep track of world trends and provide a roadmap for domestic creative players

Increasing government funding towards the devel- opment of young and talented creative players in Indonesia

17,044 Number of Creative 71.74% 15.88% Businesses in Fine Arts Percentage of Creative 2016 Businesses Utilizing Percentage of E-Commerce 2016 Creative Businesses Breakdown of Creative La- bor Force Based on Gender Utilizing the Internet (%) 2016 Male— 76.05% 2016 Female — 23.95% OPUS CREATIVE ECONOMY OUTLOOK 2019 73

ART | JOG 2018 ArtJog (stylized as “ART|JOG”) 2018, one of Indonesia’s largest and most re- nowned contemporary art festival, this year features radical new curatorial concept compared to previous events. Held at the National Museum of Jogja (JNM) in Gampingan, Wirobrajan, Yogyakarta, from May 4 to June 4, 2018, ArtJog 2018 successfully attracted tens of thousands of local and international visitors. Heri Pemad, of Heri Pemad Art Management, this year’s Artjog organizer, explained that he tried to present a different feel and experience from last year’s show, focusing heavily on presentation format and curatorial concepts. “This year’s theme, which is ‘Enlightenment’, tries to refocus ArtJog’s visual art presentation. We showcase more than 120 works of art in various formats and mediums, from paintings to graphics, installations, sculptures, and kinetic arts and performances. We also brought in a multi-disciplinary panel of practitioners and creative actors from within and outside the country, which all helped to make this year’s event to be much more collaborative than in previous years,” Heri said, who stressed that he plans to continue the multi-disciplinary collaboration in the upcoming years. ArtJog 2018 was themed “Enlightenment: Towards Various Futures” and featured the works of 54 local and foreign artists, including featured Bandung visual artist Mulyana with his work “Sea Remembers”, Nasirun with “Hutan Dilipat” and Davy Linggar x Tulus dengan “Yang Juga Mendengar”. www.artjog.co.id 74 OPUS CREATIVE ECONOMY OUTLOOK 2019

UJI HAHAN Uji “Hahan” Handoko Eko Saputro, a rising young artist based in Yogyakarta, started to attract a following in 2003, when his works “Biennale Yogyakarta VII: Countrybution feat. Daging Tumbuh Community” and“Exploring Vacuum I feat. Daging Tumbuh Community” were first displayed at the Taman Budaya Yogya- karta and Cemeti Art House Yogyakarta. A year later, his works began to be displayed abroad, including at the Australian National University, Canberra, Australia. In 2008, Uji Hahan received his first residency at the National Art Studio, Seoul, South Korea, as well as his first international award, The 2008 Sovereign Asian Art Prize, which was awarded by The Sovereign Art Foundation, Hong Kong. In 2009, Uji Hahan graduated from the Faculty of Fine Arts, Yogyakarta Institute of Art, while simultaneously organizing and holding his first solo exhibition in Jakarta, entitled Sorry, No Canvas Today.

Today, the 1983-born is a regular face at the Art Basel Hong Kong and ART|JOG, as well as a popular guest star in spaces such as the Hurley Space Gallery in Bali, and Fantasy Island at the Louis Vuitton Marina Bay Singapore, and Louis Vuitton Hong Kong. In 2017, the artist known for his sharp observations and criticisms of the sociopolitical environment featured his latest works in a solo exhibition titled “Wall Street Gymnastics” in various media and expressions through ROH Projects in Jakarta, and furthering his ongoing project, Speculative Entertainment, which focuses on building the contemporary art ecosystems with wholesome values. www.rohprojects.net OPUS CREATIVE ECONOMY OUTLOOK 2019 75 BEKRAF Activities 2O17 2018 Deputy of Education D-1 Research and Development

BEKRAF Activities 2017-2018 80 OPUS CREATIVE ECONOMY OUTLOOK 2019

The Deputy of Research, Education ACTIVITIES & ACHIEVEMENTS OF 2017 - 2018 and Development is responsible for Since 2015, the Deputy of Research, Education developing policies and programs and Development has developed a series of Center for Excellence in Creative Economy and related to the facilitation of research, ran several successful programs such as Coding Mum, IKKON, CREATE and ORBIT. Their prima- education and development in the ry aims are to strengthen the foundations of Cre- Creative Economy sector. The Deputy ative Economy within the Indonesian ecosystem is comprised of two directorates, based on accurate research and benchmarks. headed by the Director of Creative The Center for Excellence in Creative Economy was established as an autonomous organization Economy Research and Development to carry out research and development on 16 and Director of Creative Economy Creative Economy Sub-sectors. Education.

CODING MUM

Coding Mum is a free-of- charge training programs given >6* (8.)* .3/- 70# to housewives and disabled INDONESIAN INDONESIAN FOREIGN TOTAL MENTOR women to provide them with CITIES WITH CITIES WITH COUNTRIES FOR CODING CODING MUM CODING MUM WITH CODING MUM 2016 computer training including 2016 2017 MUM 2017 programming and coding so (HONG KONG, SINGAPORE, that they can earn additional MALAYSIA) income as freelance program- mers to improve their welfare. 160. ^70) 239. TOTAL TOTAL TOTAL MENTOR FOR PARTICIPANT PARTICIPANT CODING MUM CODING MUM CODING MUM 2017 2016 2017

PROJECTED MANPOWER PER 1,000 STARTUP DI 100,000 INDONESIA OPUS CREATIVE ECONOMY OUTLOOK 2019 81

CODING MUM ACTIVITY LOCATION LOCATION OF MUM 2017 2016 - 2018 (DOMESTIC) CODING ACTIVITIES - 2018 “After my (OVERSEAS) training at Coding 2017 Mum, I was Hong Kong able to earn Singapura Kuala Lumpur extra income as website 2018 developer

Singapura while remaining at 2016 2017 2018 CODING MUM TRAINING Jakarta Medan Kendari PROVIDED: home.” Bogor Denpasar Batam Bandung Banda Aceh Depok -Anggia, Jakarta, Coding Mum HTML Malang Bekasi Manado Alumni Class of 2017 CSS Surabaya Belitung Samarinda Javascript Makassar Jakarta Jakarta* Front-end Tulung Agung Bandung* e-Commerce Yogyakarta Semarang* Surabaya*

*Coding Mum Difabel

CODING MUM SUCCESS STORY

With her newfound website-making skills after completing her training Coding Mum, Anggia, who is also a member of Tangan Di Atas, has helped many of her friends to build their own websites for business.

www.mynutrikidz.com & www.cemilanbayi.com 82 OPUS CREATIVE ECONOMY OUTLOOK 2019

INDONESIA TREND FORECASTING In 2017, ITF featured the theme “Greyzone,” (ITF) while this year the featured theme is dubbed “Singularity.” This theme was inspired by the Trend Forecasting is a collaborative program paradox between machine and technology, which between the Republic of Indonesia’s Creative are increasingly converging upon one another Economy Agency (BEKRAF) with several design and raised the question whether they will even- associations in Indonesia (Indonesia Trend tually replace us in the future. This year’s launch Forecasting or ITF team). ITF’s primary purpose of ITF’s latest theme was held on September is to release trend reports (trend forecasting) 27, 2018. In addition to the theme launching, concerning fashion-related material, content, ITF also launched the trendforecasting.id portal design and coloring that can serve as a reference which will serve as a forum for designers to in- for stakeholders, especially for creative players teract with fellow designers, academics, or other in Indonesia. Creative Economy players.

Universities / Academies - Maranatha Christian University Bandung - Semarang State University Using ITF’s “Greyzone” in - Islamic Fashion Institute - Petra University Surabaya - FSRD ITB - Taman Siswa University Yogyakarta Curriculum: - Jakarta Institute of Arts - Indonesian Institute of Arts and Culture (ISBI) - Malang State University Bandung - SMK 1 Buduran, Sidoarjo - Textile University Bandung - Yogyakarta State University - Quinna School of Fashion Malang - Surabaya State University - Bandung College of Textile Technology - Yogyakarta Indonesian Art Institute OPUS CREATIVE ECONOMY OUTLOOK 2019 83

Differing from IKKON CREATE which targets regional CREATE (Creative Training & Education) is a free training program provided by BEKRAF for development, CREATE certain communities, professional associations, focuses on developing and universities to grow the capacities of its members within the Creative Economy sector. individual member’s skills within partnering organizations with BEKRAF.

CREATE LOCATIONS 2016 - 2017

2016 2017

Yogyakarta Yogyakarta Lampung Lampung Bandung Bandung Pekanbaru Pekanbaru Banda Aceh Banda Aceh Palu Palu Pontianak Pontianak Banjarmasin Banjarmasin Makassar Makassar Palembang Palembang Mataram Mataram Jambi Jambi Pacitan Pacitan Ambon Ambon Jayapura Jayapura Pekalongan Pekalongan Labuan Bajo Labuan Bajo 84 OPUS CREATIVE ECONOMY OUTLOOK 2019

CREATE 2016 VS 2017 2016 2017

CITY WORKSHOP CITY WORKSHOP

1. Yogyakarta film & management 1. Wakatobi Packaging 2. Lampung writing, product design 2. Lampung coffee 3. Bandung photography, culinary 3. Tanjung Pinang, Kepri Packaging 4. Pekanbaru culinary, performing arts 4. Pangkal Pinang, Babel Packaging 5. Banda Aceh fashion, writing 5. Ternate Packaging 6. Palu music, culinary 6. Manado Packaging 7. Pontianak writing, product design 7. Pontianak Photography 8. Banjarmasin fashion, product design 8. Manado Photography 9. Makassar performing arts, 9. Bintan, Kepri Packaging business management for 10. Manado Packaging performing arts 11. Pontianak Writerpreneur 10. Banjarmasin fashion, product design 12. Ambon Radio 11. Palembang fashion, product design 13. Pidie Tangekon, 12. Mataram fashion, product design Banda Aceh Packaging 13. Jambi fashion, product design 14. Garut Packaging 14. Pacitan interior design, product design 15. Bengkalan Packaging 15. Ambon fashion, product design 16. Timika Packaging 16. Jayapura business management, 17. Padang Radio performing arts 18. Manado coffee 17. Pekalongan fashion, product design 19. Gunung Kidul, DIY Packaging 18. Labuan Bajo fashion, product design 20. Lampung Tengah Packaging 21. Singkawang Packaging 22. Balikpapan Writerpreneur 23. Jepara Packaging

PARTICIPANTS OF PARTICIPANTS OF 3,160 CREATE 2016 3,600 CREATE 2017 OPUS CREATIVE ECONOMY OUTLOOK 2019 85

33,900

BEKRAF FESTIVAL

BEKRAF Festival is a proprietary medium to re- TOTAL VISITORS TO BEKFEST 2017 port on BEKRAF’s previous year’s performance. In 2017, BEKRAF Festival was held for three days and featured 39 flagship BEKRAF pro- grams in various formats such as video mapping, interactive floor, film screenings, workshops, talk shows, fashion shows, art performances and 45TOTAL WORKSHOP 2017x 24TOTAL BAND 2017 x music shows. 86 OPUS CREATIVE ECONOMY OUTLOOK 2019

ORBIT

ORBIT is a mentorship program for young Indonesian designers whose aim is to create new talents that can be the vanguard of the future. ORBIT’s scope of activities includes architecture, interior design, visual communication design, fashion design, lighting design, product design, textile design, craft and landscape. OPUS CREATIVE ECONOMY OUTLOOK 2019 87

IKKON program IKKON IKKON (trans. lit. Innovation and Creativity participants consist through Nationwide Collaboration) is an empow- erment program that places a group of Creative of individuals and Economy actors in certain regions in Indonesia Creative Economy that are deemed to have the potential to be developed. IKKON instructors and extension players, including staff, consisting of various professionals from design, business and other Creative Economy mentors, instructors, backgrounds, collaborate directly with local communities in certain areas to develop the and designers. regional handicraft products according to market demand.

IKKON LOCATIONS 2016 - 2018

2016 2017 2018

Sawahlunto, Banyuwangi, Belitung, Sumatera East Java Bangka Belitung

Pesawaran, Bojonegoro, Siak, Riau Lampung East Java

Ngada, East Banjarmasin, Singkawang, Nusa Tenggara Kalimantan Kalimantan

Rembang, Belu, East Nusa Dompu, West Central Java Tenggara Nusa Tenggara

Brebes, Toraja Utara, Wakatobi, Central Java South Sulawesi Sulawesi 88 OPUS CREATIVE ECONOMY OUTLOOK 2019

DOCS BY THE SEA

Docs By The Sea is an international documentary forum that focuses on Southeast Asia documen- tary film funding and distribution. The forum aims to get Southeast Asian documentaries to get guidance from experienced international mentors, as well as open up opportunities to get international funding and distribution networks. OPUS CREATIVE ECONOMY OUTLOOK 2019 89

TOP 10 FILM DOCS BY THE SEA 2017

FILM DIRECTOR PRODUCER COUNTRY

01 A Braveman Story Yogi Asroful Fuad Bani Nasution Indonesia 02 A Good Business Hark Joon Lee Talk Young-hwan South Korea Erni Iizuka Lee Do Ang 03 A Letter to Jejara Sein Lyan Tun Sein Lyan Tun Myannmar 04 All Grown Up Wena Sanchez Abigail Lazaro Phillippines 05 Aswang Alyx Ayn Arumpac Armi Rae Cacanindin Phillippines 06 Audio Perpetua Universe Baldoza Silver Dan Belen Phillippines 07 Boarding School Shalahuddin Siregar Shalahuddin Siregar Indonesia 08 Eye on the Ball Chen Yih Wen Chen Yih Wen Erni Malaysia Nandita Solomon 09 Goods & Robots Anand Tharaney Ruchi Bhimani India 10 Going Straight Kristoffer Brugada Charena Escala Phillippines

MENTOR (INTERNASIONAL) PITCHING EVENT DOCS BY THE SEA 2017 (INTERNASIONAL) Johnny Bassett DOCS BY THE SEA 2017 Did You Know? Menno Boerema Niels Pagh Andersen Docedge Kolkata, India Docs By The Sea Sebastian Winkels is the first and Anne Fabini CNEX China Documentary Don Edkins Forum, China only international Ulla Simonen documentary forum Amy Hobby Tokyo Docs, Japan Karolina Lidin in Southeast Asia. Kristine Ann Skaret Incheon Docsport, South Korea Peter Jaeger 90 OPUS CREATIVE ECONOMY OUTLOOK 2019

BIGGER (BISMA Goes to Get Member) DATES PLACE

BIGGER (BISMA Goes to Get Member) is a series 21 Mei 2017 Bandung of events conducted by the Director of Creative 10 Agustus 2017 South Tangerang Economy Research and Development to intro- 17 Maret 2018 Cirebon duce the BISMA Application. BIGGER activities 11 April 2018 Surakarta consist of open discussions, parallel sessions 28 April 2018 Semarang and master classes. 09 Mei 2018 Bandung 28 Juni 2018 Manado 10 Juli 2018 Yogyakarta 9 Agustus 2018 Makassar 6 September 2018 Medan OPUS CREATIVE ECONOMY OUTLOOK 2019 91

BEACON Activities: BEACON (BEKRAF Animation Conference) Beacon Bandung: BEACON is an event organized by the Indone- 26 Agustus 2017 sian Agency for Creative Economy to bridge the 900 Participants collaboration and interaction between Creative Economy actors who play a role in the devel- opment of animation in Indonesia, including: BEACON Jakarta: national animation actors / IP owners, Distribu- tors / TV, Agency, Investors, Government, and 1-2 September 2018 Media. WithIn BEACON, it is expected that there will be an exchange of information, experience, 1,500 Participants business transactions and means to publish the animation works of the nation which will eventually develop a comprehensive national Creative Economy, especially in the Animation Sub-sector. 92 OPUS CREATIVE ECONOMY OUTLOOK 2019

BCL (BEKRAF Creative Labs)

BCL is a collaborative program between BEKRAF and national universities in Indonesia to fill the flagship Creative Economy program in each of the 16 subsectors. The main objective of BCL is to develop a Creative Economy Leading Center Cluster (PU EKraf).

BCL is an ongoing program that is carried out every year where the activities are adjusted to the PU Ekraf Managing Management Roadmap prepared in 2016. OPUS CREATIVE ECONOMY OUTLOOK 2019 93

BISMA (BEKRAF INFORMATION SYSTEM IN MOBILE APPLICATION)

Digital application developed specifically by BEKRAF to collect data on the actors and become a one-stop registration portal for the perpetrators of Creative Economy in Indonesia. The benefits obtained by creative industries reg- istered in the BEKRAF database include getting priority in activities held by BEKRAF, including Creative Industry competitions, Exhibitions, Training, Technical Guidance, IPR Registration, 4,182 Marketing, Financing, Incubators and Market Place. In addition the actors will get 5BE profit, namely Be Updated, Be Marketed, Be Support- ed, Be Integrated and Be Engaged.

TOTAL PRODUCTS OFFERED WITHIN BISMA APP

5,044

TOTAL BUSINESSES WTIHIN BISMA APP

20,471 REGISTERED MEMBERS GROWTH IN BISMA APPS 2016 400

TOTAL REGISTERED 2017 6,600 MEMBERS (INDIVIDUALS) 2018 20,471 WITHIN BISMA APP Deputy of D-2

Access to Capital

BEKRAF Activities 2017-2018 96 OPUS CREATIVE ECONOMY OUTLOOK 2019 Based on the regulation of the Chairman of the Indonesian Agency for Creative Economy No.1 / 2015 Article 70 concerning the organizational structure and governance of BEKRAF, the Deputy of Access to Capital has been tasked with formulating, coordinating and synchronizing policies and programs related to access to Creative Economy capital.

The Deputy of Access to Capital oversees two Target: Fulfillment of capital and capacity build- directorates, namely Director of Access to ing for Creative Economy players. Non-Banking Finance and the Director of Access to Banking Finance. Tasks: • Identification of Creative Economy players Objective: To increase the competitiveness of to be financed Creative SMEs, help reduce poverty and expand • Help finding market taker / guarantor employment opportunities and increase the • Intermediary facilities to access credit / added value of players in the Creative Economy financing to Creative Economy players to Sub-sector. banking institutions • Mentoring on product marketing and development, financial management and IPR registration through technical guidance • Developing partnership programs • Credit / financing oversight / management

ACTIVITIES & ACHIEVEMENTS 2017 – 2018

In Indonesia, access to capital is one of the big- In this program, BEKRAF’s frameworks include, gest hindrances for Creative Economy players in among others, offering intellectual proper- developing their businesses and also for the Cre- ty-based financing solutions that can be in the ative Economy sector as a whole. The Banking form of brands, copyrights, and patents as Access Program, which is run under the Deputy collateral for accessing banking financing. for Access to Capital, is part of BEKRAF’s efforts to bridge Creative Economy players with conven- tional and Islamic-based banking. OPUS CREATIVE ECONOMY OUTLOOK 2019 97

Supply Business Demand (Banking) Matching (CCE Players)

Capacity Building Bekraf

Financial Club Finance Classes

Approach to the Activities of the Banking Access Directorate

BUSINESS MATCHING BUSINESS MATCHING LOCATION 2017 Business Matching is one of the banking pro- 1,000 grams conducted by BEKRAF to bring together Batusangkar Creative Economy players with banks or finan- Participants of Semarang ciers and facilitates access to financing. Business Matching Aceh 2017 Bandung Jakarta 1,800 BUSINESS MATCHING Participants of LOCATION 2018 Business Matching Pekanbaru Aceh (Sharia-based) 2018 Bali Madura Tegal 2,200 Medan Bandung Participants Palembang Ambon Malang of Business Yogyakarta Purbalingga Matching Salatiga Magelang (Convention- Toraja Gorontalo al) 2018 Pontianak Bengkulu Semarang 98 OPUS CREATIVE ECONOMY OUTLOOK 2019

BEKRAF FINANCIAL CLUB (BFC) FINANCIAL CLASS SERIES Location of 2017 Financial Management Classes BEKRAF Financial Club (BFC) is a forum for Financial class is an activity of capacity building Manado Creative Economy players and national banks for Creative Economy actors in terms of financial Pontianak facilitated by the Director of Access to Banking management. Through this activity, it is expected Tasikmalaya Finance. In this event, creative actors from each that Creative Economy actors are able to manage Medan Sub-sector will provide an explanation of their their business finances from planning to prepar- Garut respective financing pattern of the Sub-sec- ing financial statements and understanding the Ambon tor, and may continue discussions in private meaning of financial statements. Riau to secure funding or further explore financing Yogyakarta patterns. For creative (demand) actors, capital is Kupang one of the biggest obstacles in developing their Pelabuhan Ratu businesses, both from the administrative and technical aspects of the field. Meanwhile, from Location of 2017 Islamic the banking (supply) side, Creative Economy still Financial Classes largely represents an abstract concept and its 1,000 Total number of Malang potential are not well understood. Therefore, a 2017 Financial Semarang bridge is needed to bring the two parties toge­ Bengkulu ther and forge new ecosystems for the future. Management Class Sukabumi participants (10 Cities) Bondowoso Samarinda Makassar 420 TOTAL PARTICIPANTS 1,000 Total number Tanjung Pinang Ternate OF BFC 2018 (70 of participants in Aceh PARTICIPANTS IN 6 CITIES) 2017 Islamic Financial Financial Class Classes (10 Cities) Management 2018 Jambi Jayapura 700 TOTAL NUMBER Jawa Timur Jawa Tengah OF PARTICIPANTS Sumatera Utara IN MANAGEMENT Sulawesi Selatan FINANCIAL CLASS 2018 Maluku 2018 Islamic (7 CITIES) Financial Class Papua Barat Jawa Timur 700 Total number of Jawa Barat participants in 2018 Jawa Tengah Sumatera Barat Islamic Financial Surabaya Classes (7 cities) Sulawesi Selatan OPUS CREATIVE ECONOMY OUTLOOK 2019 99

DERAP EKRAFPRENEUR HASANAH MULIA 600 TOTAL PARTICIPANTS OF (DEUREUHAM) 2018 ROADSHOW DEUREUHAM 2018 DEUREUHAM or Derap Ekrafpreneur Hasanah Mulia is a collaboration program between the 250 TOTAL WORKSHOP Deputy for Access to Capital (funneled through the Director of Access to Banking Finance) and PARTICIPANTS (FROM 5 CITIES) BNI Syariah to provide facilitations for Creative Economy players from 16 Sub-sectors to gain access to capital sources or owners. 6 TOTAL WINNER FOR DEUREUHAM 2018 COMPETITION (GENERAL The DEUREUHAM 2018 program focuses on CATEGORY & TECHNOLOGY a series of programs that aim to encourage sharia-based Creative Economy players to get CATEGORY) financial support from Islamic banks. 100 OPUS CREATIVE ECONOMY OUTLOOK 2019

1st Place (General Category): Sipetek Crispy 1st Place (Technology Category): Muslim Life (Application (Culinary Sub-sector) - Jakarta (Aang Permana) and Game Sub-sector) - Palembang (Tri Wahyudi)

Aang Permana, an entrepreneur from Jakarta Muslim Life is a digital application that serves who previously won the 2017 Young Hero Kick the needs of education and worship for Muslims. Andy, produces processed food products made Created by Tri Wahyudi, from Palembang, this from crispy fish and high in calcium, and empow- innovative application is a true solution for users ers the community and utilizes local resources. with complete service quality and features, inte- grated with index-based curriculum, and easy to use with beneficial features. Tri himself has won various awards, including the National Award for the Kemenpora Entrepreneurship Field (2014) and the Second Champion of the Student Entre- preneurial Category Student (2009). OPUS CREATIVE ECONOMY OUTLOOK 2019 101

In addition to the above activities, the Director of Access to Banking Finance also actively coop- erates with several banks and regulators. In the beginning of 2018, an MoU was signed between BEKRAF and BNI Syariah, Maybank and Bank Indonesia.

This collaboration aims to support the devel- opment of capital access from banks for the Creative Economy sector in Indonesia. 102 OPUS CREATIVE ECONOMY OUTLOOK 2019

GOVERNMENT INCENTIVE ASSISTANCE (BIP)

BEKRAF, through the Deputy of Access to Cap- ital, distributes funds assistance or additional working capital and/or fixed asset investment to Creative Economy players.

2017 2018 Rp 200 Mn 34 56 Maximum People / Business People / Business Amount Recipients of BIP Recipients of BIP Of Funds Disbursed Per Recipient*

*Set by the Commitment APPLICATION CULINARY APPLICATION CULINARY & GAME & GAME Officer by considering the DEVELOPER DEVELOPER curator’s recommendation

13 July - 24 July 2017 Program Registration Period BIP 2017 Rp 6 Bn FASHION CRAFT Total Funding To Be Distributed 2018 April 30 - May 20 2018 2018 BIP Program Registration Period OPUS CREATIVE ECONOMY OUTLOOK 2019 103

FOOD STARTUP INDONESIA (FSI)

A forum for Creative Economy players, especial- ly in food or culinary engaged both online and offline. BEKRAF’s main functions in the FSI, in addition to partnering with FoodlabIndonesia. com, is to bring together creative players and investors together. BEKRAF also facilitates mentorship programs, acceleration and other support.

Online Platform FSI ACTIVITIES TIMELINE 2018 - FSI can be accessed online at Tanggal Kota Aktivitas www.foodstartupindonesia.com. 26 Januari 2018 Jakarta KickStart FoodStartup Indonesia 2018 Intended For: 13 Februari 2018 Medan Roadshow FSI 2018 Prospective new culinary entrepreneurs (no 20 Februari 2018 Bandung Roadshow FSI 2018 products, not registered in the BEKRAF system, 23 Februari 2018 Makassar Roadshow FSI 2018 and not connected to the online ecosystem). 01 Maret 2018 Semarang Roadshow FSI 2018 06 Maret 2018 Banjarmasin Roadshow FSI 2018 09 Maret 2018 Malang Roadshow FSI 2018 Offline Platform 13 Maret 2018 Yogyakarta Roadshow FSI 2018 - 20 Maret 2018 Surabaya Roadshow FSI 2018 Known as Demoday, offline activities include 23 Maret 2018 Mataram Roadshow FSI 2018 roadshows to major cities in Indonesia, mentor- 27 Maret 2018 Belitung Roadshow FSI 2018 ship programs, and funding facilitation. 28 Juni 2018 Proses Kurasi Ditutup (Nasional) 28-30 Juni 2018 Surabaya Curation Stage Ended (National) Intended For: 27-29 Juli 2018 Surabaya Expo & Demoday FSI Surabaya Prospective culinary entrepreneurs who already 30 - 31 Juli 2018 Mentoringship program (30 Mentor) have real products and business traction. 1 Agustus 2018 Surabaya Final FSI 104 OPUS CREATIVE ECONOMY OUTLOOK 2019

AKATARA INDONESIAN FILM FINANCING AKATARA SCHEDULE OF ACTIVITIES 2018 FORUM Date City Activites AKATARA is a national forum or medium for filmmakers and other players in the film industry End of May 2018 Call for Entry and investors both from local and overseas to End of Juni 2018 Opening Submission meet and collaborate. AKATARA’s primary aim End of Juli 2018 Closing Submission is to widen access to funding and financing for 19 April 2018 Makassar Roadshow Indonesian film projects through pitching and 2 Mei 2018 Malang Roadshow matchmaking process, as well as hold awarding 5 Juni 2018 Jakarta Pressconfrence, nights sponsored by BEKRAF and the Indonesian Investor Gathering, Vidsee event, Film Board (BPI). Akatara X (Short Film Financing) 3 Juli 2018 Bandung Roadshow 18 Sept 2018 Live presentation 20 shortlisted 19 Sept 2018 One-on-one meeting (filmmaker with investor) 18-20 Sept 2018 Jakarta IFDC Awards: Awarding of the best 5 directors selected by the Indonesian Film Director Association; Giving gift Grant Proposal to fund Script Writing. OPUS CREATIVE ECONOMY OUTLOOK 2019 105

GO STARTUP INDONESIA

GO STARTUP INDONESIA

Go Startup Indonesia is a BEKRAF program Indonesia’s Go Startup activities include com- aimed at building and strengthening Indonesia’s petitions at the regional and national levels and startup ecosystem. The main objective of this seeking new talent, to select potential startups, program is to improve the status of startups and continue with facilitation to the international from the Development stage to Scaling Up, level for selected finalists (sponsorship, ambas- which is achieved through integrative collab- sadorship, mentoring etc.). oration in the realm of the Indonesian startup ecosystem.

Emerging

NETWORKING WITH CORPORATE PARTNERS TALENT DEVELOPMENT

HUBS-TO-HUBS (OVERSEAS RESIDENSIES)

Development STARTUP INDONESIA (PORTAL SATU PINTU STARTUP) Scalling Up TALENT DEVELOPMENT THROUGH ECOSYSTEM (BEKUP, FSI, BIP)

CONTENT DEVELOPMENT PITCHING (JAKARTA CAPITAL WEEK)

INVESTOR RELATION GO INTERNATIONAL

SECOND BOARD (CREAX)

GO STARTUP CHAMPIONSHIP (GSC)

GoStartupIndonesia’s Startup Championship (GSC) is the nation’s preeminent competition startup. GSC features 15 to 30 top early stage startups pitching top judges in front of a vast live audience, present in person and online. The winners of the Startup Cham- pionship, which will be determined during the Grand Finale on the Jakarta Capital Week, will also represent Indonesia at various international startup competitions and conferences such as Tech- crunch Disrupt, SXSW, Get In The Ring and Startup World Cup. 106 OPUS CREATIVE ECONOMY OUTLOOK 2019

GET FUNDED

Get Funded is a workshop program that provides practical guidance on aspects of the startup business, especially related to funding. 1,000 Participants

GET FUNDED SCHEDULED 2018 of Get Funded At

Date City Activities Present

8 FebruarY 2018 Jakarta Workshop 1 March 2018 Batam Workshop 12 March 2018 Yogyakarta Workshop 7 Locations of 22 March 2018 Bali Workshop 3 April 2018 Padang Workshop the Get Funded 22 May 2018 Surabaya Workshop 25 May 2018 Bandung Workshop Workshop OPUS CREATIVE ECONOMY OUTLOOK 2019 107

Rp 5,2 Tn TOTAL REALIZATION OF FUND DISBURSEMENT 2017*

* Funneled by conventional and Islamic banks

778 PEOPLE RP 4,4 Tn TARGET OF CAPITAL FOOD STARTUP INDONESIA 2017 FUND DISTRIBUTION LOCATION: MEDAN, MATARAM, MAKASSAR, SURABAYA, JAKARTA, BALI, TO CREATIVE ECON- BANDUNG, YOGYAKARTA OMY PLAYERS 2017

2,180 PEOPLE REALIZATION OF MENTORSHIP IN 2017* 230 PEOPLE *Including Business Management Financial Classes and Sharia Financial Classes AKATARA INDONESIAN FILM FINANCING FORUM 108% REALIZATION OF 2017 CITY: SURABAYA, MENTORSHIP VS. TARGET MAKASSAR, JAKARTA OF MENTORSHIP FOR (NON-BANKING ACCESS) CREATIVE ECONOMY PLAYERS 2017

2,010 PEOPLE TARGET OF MENTORSHIP 118% FOR CREATIVE ECONOMY REALIZATION OF FUND DISTRIBUTION VS. 2017 FUND DISTRIBUTION TARGET PLAYERS 2017 7º OPUS CREATIVE ECONOMY OUTLOOK 2019

Deputy OPUS CREATIVE ECONOMY OUTLOOK 2019 71

D-3

of Infrastructure

BEKRAF Activities 2017-2018 110 OPUS CREATIVE ECONOMY OUTLOOK 2019

The growth and development of the Creative Economy sector in Indonesia is still constrained by several factors, both internal and external. The internal factor that is often complained by creative actors is the lack of a potential cultural landscape and the limited availability of buildings as creative spaces and creative space facilities.

The main task of the Deputy of Infrastructure is to facilitate physical and ICT Infrastructure, namely by providing space and means to develop the Creative Economy subsector potential in an area.

ACTIVITIES & ACHIEVEMENTS 2017-2018 GOVERNMENT ASSISTANCE PROCESS

One of the Deputy’s main programs is Banper (Government Assistance) in the form of Facili- Current Year Technical Updates tation of Revitalizing Physical Infrastructure of Creative Space, Creative Space Facilities, and In- formation and Communication Technology (ICT) Socialization and building creative city networks that enable creative businesses to interact and collaborate with ease. Media Publication

BIP is categorized into three categories: Determine Supervisory Consultants Revitalizing Physical Infrastructure of Creative Spaces Creative Space Facilities Determination of Beneficiaries Information and Communication Technology (ICT) Administration & Verification Selection

Kick Off

Monitoring & Evaluation

Handover OPUS CREATIVE ECONOMY OUTLOOK 2019 111

BOTTOM-UP STRATEGY EXECUTED

BEKRAF’s series of activities are also intended to serve the needs of creative players actors SUPPORTED as outlined in the facilitation proposal and the support proposed by both the Local Government and the Community. ASSESSED (CURATION TEAM)

Proposal from Local Government / Community

Government Assistance Government for Creative Space Assistance for Creative Facilities 2017 Space Revitalization - 2017 Rp 19 Bn - 38 Locations > IDR 26 Bn 7,000 Goods / 24 Locations Equipment 7,000 Goods / Equipment 48 Government Government Assistance for ICT Assistance Recipients Facilities 2017 2017 - >Rp 2,5 Bn 6 Locations Rp 166 Goods / Equipment 1 Website 45,5 Bn Total Budget Allocated by Government 112 OPUS CREATIVE ECONOMY OUTLOOK 2019

ACHIEVEMENT OF GOVERNMENT ASSISTANCE PROGRAMS FOR REVITALIZA- TION, DEPUTY OF INFRASTRUCTURE, SEMESTER I, FISCAL YEAR 2018

KUB Rifaiyah, Kabupaten Batang

Transformasi Teater garasi, Kabupaten Bantul

Rp 8.7 Bn Total Government Assistance Disbursed

7 Revitalization Recipients (5 Cities) Dinas Pariwisata dan Kebudayaan Kota Sabang OPUS CREATIVE ECONOMY OUTLOOK 2019 113

ACHIEVEMENT OF GOVERNMENT ASSISTANCE PROGRAMS FOR FACILITIES, DEPUTY OF INFRASTRUCTURE, SEMESTER I, FISCAL YEAR 2018

Rp 11.1 Bn Total Government Assistance Disbursed

18 Revitalization Recipients (15 Cities)

335 Submitted Proposals for Government Assistance Through May 2018 Jogja Creative Society, Kabupaten Sleman

Lembaga Binaan Nani House, Kabupaten Sikka

Gedung Aisyah Sulaiman, Kota Tanjungpinang, Riau 114 OPUS CREATIVE ECONOMY OUTLOOK 2019

INDEPENDENT ASSESSMENT OF INDONE- SIAN REGENCY / CREATIVE CITY (PMK3I)

Indonesia’s Independent Regency / Creative City Assessment Program (PMK3I) is one of the programs of the Deputy of Infrastructure which aims to identify the potential of a city / district in becoming a center of excellence in a new Creative Economy.

The PMK3I program uses online tools and applications as a communication infrastructure that can be used independently by Indonesian creative actors wherever they are.

2016 2017 2018 Visit: www.kotakreatif.id

DISTRICT / CITY DISTRICT / CITY DISTRICT / CITY TESTED TESTED TESTED OPUS CREATIVE ECONOMY OUTLOOK 2019 115

CREATIVE VILLAGE / DISTRICT / CITY ESTABLISHMENT OF CREATIVE ECOSYSTEM FORMATION 2017 VILLAGES / DISTRICTS / CITIES 2017

Nias, North Sumatra West Manggarai, East Nusa Tenggara • Period: February 17 - September 3, 2017 • Period: February 20 - October 13, 2017 • Subsector: Craft (wood) • Subsector: Craft (Weaving) • Participants: +/- 94 people • Participants: +/- 25 people

Samosir, North Sumatra Konawe Selatan, Southeast Sulawesi • Period: February 17 - October 5, 2017 • Period: 24 February - 14 August 2017 • Subsector: Kriya (Tenun Ulos) • Subsector: Craft (Wood) • Participants: +/- 143 people • Participants: +/- 49 people

Batang, Central Java Ternate, North Maluku • Period: February 16 - September 14, 2017 • Period: February 23 - October 26, 2017 • Subsector: Craft (Batik) • Subsector: Crafts (Woven) • Participants: +/- 50 people • Participants: +/- 43 people

Pemalang, Central Java • Period: February 16 - September 10 2017 • Subsector: Craft (Batik) • Participants: +/- 52 people

Central Lombok, West Nusa Tenggara • Period: February 17 - August 26 2017 • Subsector: Craft (Weaving) • Participants: +/- 95 people

Komodo Island, Nusa Tenggara • Period: 20 February - 14 October 2017 • Subsector: Craft (Wood) • Participants: +/- 30 people

Maumere, East Nusa Tenggara • Period: February 20 - September 22 2017 • Subsector: Craft (Weaving) • Participants: +/- 34 people 116 OPUS CREATIVE ECONOMY OUTLOOK 2019

BEKRAF FOR PRE-START UP (BEKUP) 15 CITIES BEKUP is one of the Deputy of Infrastructure programs specifically designed to finalize the in- 72 LOCATION OF FACILITATED tegration of startup ecosystems from upstream PRE-STARTUPS to downstream, namely the maturation of 2017 BEKUP 2017 candidates for Human Resources who will build ACTIVITIES startups in the country. 200 TARGETED PRE-STARTUP TO BE FOSTERED BY BEKUP 2018

MEDIS ONLINE INDONESIA

MOI (Indonesian Online Medical) is a BEKUP 2017 startup alumni from Medan, North Suma- tra. MOI is an on-demand digital application for professional nurses and midwives who have been trained in the Indonesian Online Medical Training Center for home care services. MOI serves users who need healthcare services with an easy-to-use application system and fast service. MOI services include:

- Preparation for pregnancy - Services for pregnant women - Preparations for childbirth and postpartum - Health services for babies, children, adolescents - Pain treatment to Palliative services

MOI is the winner of the 2018 Samsung Global Startup Acceleration Program and will represent Indonesia in competitions with startups from South Africa, Malaysia and India. OPUS CREATIVE ECONOMY OUTLOOK 2019 117

BEKRAF DEVELOPER DAY (BDD)

BDD is one of the Deputy of Infrastructure’s programs in the development of digital econ- omy ecosystems in the field of application and game development, especially in improving the capacity and competence of Indonesian ICT developers.

BEKRAF BEKRAF BEKRAF FOR BEKRAF FOR DEVELOPER DEVELOPER PRE-STRAT PRE-STRAT DAY 2017 DAY 2018 UP 2017 UP 2018

CITY CITY

8 6 15CITY 10CITY 7,500 TOTAL 4,397 TOTAL PARTICIPANTS PARTICIPANTS 72 PRE-STARTUP 200 PRE-STARTUP TOTAL TOTAL 7º OPUS CREATIVE ECONOMY OUTLOOK 2019

Deputy of OPUS CREATIVE ECONOMY OUTLOOK 2019 71

D-4

Marketing

BEKRAF Activities 2017-2018 120 OPUS CREATIVE ECONOMY OUTLOOK 2019

The Deputy of Marketing is responsible for expanding the market for Indonesia’s creative products and services so that they are competitive in the global market. The strategy undertaken by the Deputy included exhibitions, promotion and branding of Indonesia’s creative products and services, and building a comprehensive and consistent national product image both in Indonesia and abroad.

The Deputy of Marketing is comprised of two directorates which are headed by the Director of Domestic Market Development and the Director of International Market Development.

ACTIVITIES & ACHIEVEMENTS 2017-2018

DOMESTIC ACTIVITIES 2017-2018

ICINC METRO TV

KREATORIAL is a regular rubric in leading With a total of 18 segments, ICINC BEKRAF’s national newspapers which presents updated video appears among the Metro TV program information on the development of Creative changes. TV viewers can find out directly the Economy sector in Indonesia and other related information of creative actors and the various information of Creative Economy. KREATORIAL activities that BEKRAF has done in encouraging is a form of support from BEKRAF to encourage the growth of the Creative Economy. Creative Economy through media publications, both print and visual.

16 KREATORIAL Editions 2017

26 August 2017 KREATORIAL premiere edition 2017 OPUS CREATIVE ECONOMY OUTLOOK 2019 121

KREATIFOOD

Kreatifood 2018 features a a different concept from previous years, whereupon the creative products sold in Kreatifood 2018 comprise of products that have passed the Indonesian Food Startup curation.

Activities include sales transactions, networking, business negotiations, product sampling and tasting, knowledge-sharing across startup businesses in the culinary field, to cross product sales between startups in Food Startup Indonesia

ACTIVITIES TIMELINE KREATIFOOD 2018

No Venue City Date

1 Ciputra World Surabaya 27-29 Juli 2018 2 Manhattan Times Square Mall Medan 10-12 Agustus 2018 3 Opi Mall Palembang 24-26 Agustus 2018 4 Hartono Mall Jogjakarta 7-9 September 2018 5 Gandaria City Jakarta 21-23 September 2018 6 Festival Citylink Mall Bandung 5-7 Oktober 2018 7 Malang Town Square Malang 19-21 Oktober 2018 8 Big Mall Samarinda Samarinda 22-28 Oktober 2018 9 Ratu Indah Makasar 9-11 November 2018 10 Mall Bali Galeria Bali 17-19 November 2018

93 – Total Number of 100 Business Leads 10 CITIES WITH Creative Players in in Kreatifood 2018 KREATIFOOD 2018 Culinary Facilitated in (in Surabaya, Medan, Marketing at Kreati- Palembang, and food 2018 Yogyakarta

Rp 552 Mn – Total >Rp 600 Mn Projected Transaction Value Value Created During During Kreatifood Kreatifood 2018 2018 (Surabaya, Medan, Palembang, Yogyakarta) 122 OPUS CREATIVE ECONOMY OUTLOOK 2019

OVERSEAS ACTIVITIES 2017-2018

SXSW (South by Southwest) An annual film, music and interactive media festival, SXSW is one of the largest music festivals in the world with 2,500 artists, performers and bands playing in more than 100 places.

New York Now An annual exhibition and marketplace for house- hold and lifestyle products attended by more than 2,800 companies, New York Now is a form of support by BEKRAF in collaboration with the Indonesian Consulate General in New York to fa- cilitate land leasing, booth design and construc- tion, cargo and promotions for eight Indonesian brands in the United States.

In 2017, the B2B event was held on August 19-23, 2017 at the Jacob K. Javits Convention Center, New York, United States.

US$ 71,117* Total Sales by Indonesian Delegates During New York Now 2017 (Rp 974,842,800) *Hasil penjualan langsung atau dari kontrak dan janji pembelian yang terealisasikan pasca event OPUS CREATIVE ECONOMY OUTLOOK 2019 123

Salone Del Mobile Salone Del Mobile is one of the most prestigious product and craft design exhibitions held annu- ally in Milan, Italy. In 2017, Indonesia broke the milestone by participating for the first time at this world exhibition.

Venice Art Biennale Venice Biennale Arte, also known as La Biennale di Venezia, is the world’s oldest and most presti- gious bi-annual art exhibition. At the 2017 Venice Art Biennale, which took place from 10 May to 26 November 2017, the Indonesian Pavilion at Arsenale forged a new history after Indonesian artist Tintin Wulia built her stage in two different cities, Jakarta and Venice, simultaneously with the help of internet. 7124º OPUS CREATIVE ECONOMY OUTLOOK 2019

Deputy of Intellectual and Regulations OPUS CREATIVE ECONOMY OUTLOOK 2019 71251

D-5 of Facilitation of Intellectual Property Rights

Bekraf Activities 2017-2018 126 OPUS CREATIVE ECONOMY OUTLOOK 2019

The Deputy of Facilitation of Intellectual Property Rights and Regulations is responsible for building the awareness and ecosystem of national intellectual property rights (IPR). The programs of Deputy of Intellectual Property Rights and Regulation include providing information on IPRs in the form of applications, establishing anti-piracy Task Force, presenting IPR consultants to provide one-to-one consultations for free, and providing facilitation for IPR registration for Creative Economy players. In addition, the Deputy of Facilitation of Intellectual Property Rights and Regulations also provides facilities for professional certification for Creative Economy players, helps the formation of regional regulations related to the development of Creative Economy and also helps to establish a legal entity for Creative Economy businesses.

The Deputy of Facilitation of Intellectual Property Rights and Regulations oversees two directorates, headed by the Director of Facilitation of Intellectual Property Rights and Regulation, and the Director of Harmonization of Regulation and Standardization.

ACTIVITIES & ACHIEVEMENTS 2017-2018

1,000 1,650* 5,571 557,1 1801 109,15

Targeted Creative Economy Targeted Number of Players Receiving IPR 2017 Registration for Creative / Realization of Creative Products 2017 / Realization / Economy players Receiving Percentage of achievements IPR 2017 / Percentage of 2017 target realization

Source: Data on Administration *Originally 2,000, lowered to 1,650 Sub-Section on IPR Facilitation due to budget cuts Directorate (December 2017) OPUS CREATIVE ECONOMY OUTLOOK 2019 127

SOCIALIZATIONS FROM ANTI PIRACY TASK FORCE 590 TOTAL

The Creative Economy Anti-Piracy Task Force NUMBER OF Team is tasked with monitoring, responding to and handling complaints of piracy cases of Indo- PARTICIPANTS nesia’s creative products. 2017 1,000 TOTAL PARTICIPANTS DURING REGIONS IN INDONESIA WITH SOCIALIZATIONS FROM ANTI PIRACY SOCIALIZATIONS FROM ANTI TASK FORCE 2017 PIRACY TASK FORCE 2017 10 (JAYAPURA, AMBON, SOLO, SOREANG, LEMBANG, ACEH, IPR SOCIALIZATION: CREATIVE BANDUNG, PADALARANG, DIGITAL X LINE JAMBI, AND ACEH BESAR)

The IPR socialization to Creative Economy players in the creative digital field was carried out in collaboration with Line Indonesia, a digital application company. 128 OPUS CREATIVE ECONOMY OUTLOOK 2019

SOCIALIZATION, CONSULTATION AND FACILITATION OF REGISTRATION OF INTELLECTUAL PROPERTY RIGHTS (IPR) 30 KOTA* LOCATION OF SOCIALIZATION ACTIVITIES AND REGISTRATION OF In 2017, the IPR Socialization, Facilitation and PRODUCTS / SERVICES CREATIVE Registration Activities were carried out under the ECONOMY 2018 supervision of the IPR Management Sub-Di- rectorate and in collaboration with two state universities, UPN Yogyakarta and UNS Solo, from 2.250* Total Number of 12 July 2017 to 8 November 2017. Participants In IPR 2018 Socializations 2.009 / 660 NUMBER OF PARTICIPANTS OF IPR TARGETED (BRAND SOCIALIZATION ACTIVITIES / NUMBER / PRODUCT) IPR OF CONSULTATION AND FACILITATION 1.875* PARTICIPANTS FOR IPR 2017 REGISTRATIONS 2018 1,507 TOTAL NUMBER OF IPR 31 4 CITIES* WITH IPR REGISTERED CITIES WITH IPR MENTORING FOR CREATIVE SOCIALIZATION, THROUGH 2017 CONSULTATION ECONOMY PLAYERS AND ACTIVITIES FACILITATION ACTIVITIES 2017 *National Priority Program Activities Plan (PPN) 2018

DIRECTORATE OF REGULATION AND LMK & LMKN SOCIALIZATION STANDARDIZATION HARMONIZATION The Socialization of Collective Management Facilitation for the Establishment of Creative Institutions (LMK) and the National Collective Economy Regulations Management Institute (LKMN) was conducted in 8 cities in Indonesia in collaboration with UNS This program is designed to form new regulations Solo and UPN Yogyakarta. that support the development and enhancement of the Indonesian Creative Economy. PERIOD: 4 APRIL 2017 - 28 AUGUST 2017 540 TOTAL NUMBER OF PARTICIPANTS IN LMK & LMKN SOCIALIZATIONS 2017 OPUS CREATIVE ECONOMY OUTLOOK 2019 129

FACILITATION FOR THE ESTABLISHMENT OF LEGAL FACILITATION OF ESTABLISHMENT OF LEGAL ENTITY FOR CREATIVE ENTITIES FOR CREATIVE ECONOMY BUSINESSES ECONOMY BUSINESSES IN 2017

This facilitation program is carried out to City Date support Creative Economy players, especially in the MSME segment, to secure legal business Solo 17 July 2017 ownerships which will in turn stimulate the local Jakarta 31 July 2017 economy. This program is a collaborative pro- Jember 15 August 2017 gram between the Indonesian Notary Association Jakarta 22-23 September 2017 (INI) and various Indonesian Creative Economy Kab. Agam 5-6 October 2017 communities, such as the UMKM Community. Kediri 13-14 October 2017 Jakarta 19-20 October 2017 Palembang 7-8 November 2017 Batam 21-22 November 2017 Makassar 28-29 November 2017

3,460 / 28 NUMBER OF PARTICIPANTS (CREATIVE ECONOMY PLAYERS) IN PROFESSIONAL CERTIFICATION 18 FACILITATION PROGRAM Business Establishment 2017 / REGENCY / CITY Handbook Published by BEKRAF and Sebelas Maret State University 2017

161NUMBER OF PARTICIPANTS (CREATIVE ECONOMY PLAYERS) IN

1,644 / 20 NUMBER OF PARTICIPANTS ASSESSORS’ (CREATIVE ECONOMY PLAYERS) CERTIFICATION IN PROFESSIONAL CERTIFICATION FACILITATION PROGRAM THROUGH FACILITATION MAY 2018 / REGENCY / CITY PROGRAM 2017 7130º OPUS CREATIVE ECONOMY OUTLOOK 2019

Deputy and Regional OPUS CREATIVE ECONOMY OUTLOOK 2019 71311

D-6

of Institutional Relation

BEKRAF Activities 2017-2018 132 OPUS CREATIVE ECONOMY OUTLOOK 2019

The Deputy of Institutional and Regional Relation is tasked with formulating, establishing, coordinating and synchronizing policies and relations programs between institutions and regions both at home and abroad. The role of the Deputy of Institutional and Regional Relations is to build a comprehensive Creative Economy ecosystem in Indonesia that involves the academics, communities, media, business, and government both from within and outside the country.

In an effort to map out and develop the regional potential, the Deputy of Institutional and Regional Relations applies the principle of “3C: Connect - Collaborate – Commerce” towards all stakeholders, both within regional and national scale, and involving Pentahelix elements, namely Academician, Businesses, Community, Government, and Media (Pentahelix). The first stage of “3C,” namely “Connect” means to hold an activity in the form of a Memorandum of Understanding. The next stage is Collaboration and Commercialization, carried out by conducting the Pentahelix Integrated Group Discussions.

The Deputy oversees the Director of Domestic Relations and the Director of International Relations. OPUS CREATIVE ECONOMY OUTLOOK 2019 133

ACTIVITIES & ACHIEVEMENTS 2017-2018

KOPIKKON

Established in 2017, KOPIKKON is a cooperative program with the aim to accommodate Creative Economy players, especially participants from the IKKON program, to be able to more easily market their products.

KOPIKKON LOCATIONS IN INDONESIA THROUGH MAY 2018 (BREBES, NGADA, PESAWARAN, REMBANG, 5 AND SAWAHLUNTO)

22 Proposals 75 Proposals received in received in SATU PINTU The Satu Pintu (One Door) Program was started 2016 2017 in 2017 and is targeted to become a mechanism designed to facilitate public access to BEKRAF. The forms of support that BEKRAF can provide include operational assistance, facilities and in- frastructure assistance, rehabilitation assistance, PROPOSALS RECEIVED building, building construction, awarding, and 24 THROUGH JUNE 2018 so on.

FLOWCHART OF PROPOSAL SUBMISSION THROUGH SATU PINTU:

Submit propos- Submitted Internal Announcement Implementation als through on- proposals are curation and of selection of approved line and offline selected admin- selection results and activities (at booths at istratively process preparation BEKRAF events) for follow-up 134 OPUS CREATIVE ECONOMY OUTLOOK 2019

FACILITATION OF ESTABLISHMENT OF REGIONAL FILM COMMISSIONS

The Regional Film Commission (KFD) is an insti- tution formed by BEKRAF in collaboration with the Indonesian Film Agency (BPI) to facilitate and encourage local governments to initiate the for- mation of their respective KFDs in their regions.

Forms of Facilitation: 5 REGIONAL PILOT PROJECT LOCATIONS 2018 Licensing management including incentives in the local shooting area Province / City / Regency Institutions

Integrated services that are directly or indirectly Bandung Privat Swasta related to the technical needs of film production Bojonegoro BLU / UPT Banyuwangi In accordance with the Actively market the area as a location for shoot- Regent’s direction ing films. D.I. Yogyakarta cooperation between the government and the private sector Siak UPT

Hasil Capaian Tahun 2017 : Buku Pedoman Pembentukan Komisi Film Daerah OPUS CREATIVE ECONOMY OUTLOOK 2019 135

WORLD CONFERENCE ON CREATIVE ECONOMY 2018

The World Conference on Creative Economy 2018 is the first international-scale Creative Economy conference in the world. The creative industry has shown its excellent potential as one of the primary drivers of growth during the recent global financial and economic crisis. With technological growth and increasing in- come from developing countries, it is projected that the Creative Economy sector will be the future of the global economy. This conference will bring together representatives from government, business, think tanks, communities, international organizations, media and experts in the creative economy, who will all congre- gate at this year’s theme: “Inclusively Creative.” 136 OPUS CREATIVE ECONOMY OUTLOOK 2019

TRAVEL GRANT

One of the leading work programs to facilitate Creative Economy players in order to develop the Creative Economy in Indonesia is the Travel Grant. Creative Economy players, as the spearhead of the Creative Economy sector, need to be supported for capacity building in 3 things, namely:

First > Expand Creative Economy players’ horizon regarding the develop- ment of creative industries abroad; Second > Improve the competitiveness of Creative Economy players so they can compete in the international market; Third > Expand and strengthen international networks and investment cooperation opportunities. The program is supported through the One-Stop Integrated Service (www.satupintu.bekraf.go.id) BEKRAF in curating proposals in various overseas activities.

TRAVEL GRANT SUPPORT FOR CREATIVE ECONOMIC PLAYERS:

CEPA and WCCE I-EU Meeting in Brussels, London Book Fair 2018 in London, England Belgium Brussels Short Film Festival 2018 in Brussels, Ambiente 2018 in Frankfurt, Germany Belgium

Berlinale 2018 in Berlin, Germany The 16th Venice in the Musica Choir Festival and Competition in Venice, Italy London Fashion Week 2018 in London, England SOTOY - Thailand Toy Expo in Thailand Amazon Tokyo Fashion Week in Tokyo, Japan Contemporary Dance Show in Moscow, Russia ACBS Working Group Meeting & Asia Film For- Get in The 2018 Global Ring Portugal (Homade) ward in Hong Kong and Macau in Portugal

Daun Muda Awards, Citra Pariwara 2017 BG International Tokyo Pantomime Festival 2018 in Awards in Bangkok, Thailand Japan

Nusantara to Europe Islamic Roadshow with Ki Japan International Ensemble Guitar Festival in Ageng Ganjur in the Netherlands and Germany Japan

The 8th International Mission in Art and Culture Managing New Displacements From Geography in the 54th Montreux Choral Festival (PSM IPB) in Seminar in Chile Switzerland. IANTA (Brother None Goes to Broadway) in New Thailand SEAPAVAA 2018 Conference and 2018 York, United States Czech FIAF in Thailand and Czech OPUS CREATIVE ECONOMY OUTLOOK 2019 137

Epilogue 140 OPUS CREATIVE ECONOMY OUTLOOK 2019

GLOBAL ECONOMIC PROSPECT

The 3.1 percent global economic growth seen growth rate of 2.5 percent. In general, economic during 2017 was stronger value than previous- growth in the first quarter far exceeded the pro- ly estimated. According to the World Bank, jections predicted by the World Bank and IMF. this strengthening was caused by a significant However, the positive growth that occurred in recovery in the investment, manufacturing and the first quarter of 2018 is predicted to not last trade sectors. The increase in commodity prices until the end of the year. As had happened in the at that time also carried a considerable impact second quarter of 2018, the global economy be- as the profits gained by developing countries also gan to show a slowdown in economic activities. increased rapidly. Trade tensions such as the increase in world oil prices and the strengthening of the US dollar are However, the World Bank also said that the considered to be the biggest catalysts for the increase in 2017 could be seen as short-term decline in the economic performances of several progress due to the full use of labor and capital. countries. Therefore, prospects for crude oil ex- In 2018, the World Bank projects that global porting countries are likely to be bright, while for economic growth will be the same as last year, oil importers the opposite might be quite true. which is 3.1 percent. In 2019, the World Bank predicts that there will be a slowdown in global economic growth to The World Bank’s prediction also states that only 3 percent. This global economic slowdown developed countries will experience a decline in follows the trends of the economies of developed economic growth to 2.2 percent while develop- countries, Asia Pacific countries, and European ing countries will see an increase to 4.5 percent countries which are all predicted to experience a in 2018 due to increased commodity export significant slowdown. The cause of the slowdown activities. will be similar, which are protectionist trends, political and trade tensions, and declining global The IMF noted that in the first quarter of 2018 economic integration. there was a recorded global economic growth of 3.9 percent. Meanwhile, economic growth in developing countries (emerging markets) was 4.9 percent, while developed countries showed

Global Economic Growth Rate

2017 2018 2019 3.1% 3.1% 3.0%

Source: World Bank

Economic Growth Projections According to Economic Classification 2018

Developed Nations Developing Nations 2019

World Bank 2.2% 4.5% 3.0% IMF 2.5% 4.9% OPUS CREATIVE ECONOMY OUTLOOK 2019 141

INDONESIA’S ECONOMIC CONDITIONS

Based on data from Statistics Indonesia, Indone- sia’s economic growth in 2017 was recorded at 5.07 percent. While this number is lower than the target set by the government, it is still the highest growth seen since 2014.

Entering the first quarter of 2018, Indonesia’s economic growth was recorded at 5.06 percent. Trade balance deficit, where import increased while exports weakened, was blamed as the culprit which set back the government’s target of 5.2 percent. The increase in imports in the first quarter was generally influenced by the strengthening of investment in fixed assets due to the increase in global commodity prices.

Meanwhile, in the second quarter of 2018, In- donesia’s economy showed better performance with economic growth of 5.27 percent. This increase was influenced by an increase in several economic components such as other services, corporate services, transportation and ware- housing, and household consumption.

Positive trends in the first half of 2018 seem to provide a positive outlook on the overall econo- my of Indonesia in 2018. Indonesia’s economic growth, which was originally predicted by Bank Indonesia to hover around 5.1 to 5.4 percent, was tested by the weakening rupiah phenomenon which occurred simultaneously at that period of time. The trade balance deficit and the domi- nance of the consumer sector further exacerbate the weakening of the rupiah and the currency is not expected to recover until the end of 2018, diminishing the targeted economic growth.

Increased investment, controlling imports, and 5.06% encouraging exports are reasonable and sustain- able keys that can unlock economic growth for Indonesian Economic the second half of 2018 and the year as a whole. Growth Level Q1 2018

5.27% Indonesian Economic Growth Level Q2 2018

Key To Maintaining Strong Economic Growth 2018:

Increased investment Import control Export support 142 OPUS CREATIVE ECONOMY OUTLOOK 2019

Indonesia’s economic growth in 2019 is expected expected to continue to increase with growth to reach 5.3 percent (Asian Development Bank, above three percent on average per year until Focus Economy). The predicted increase in 2019. economic growth in 2019 will be achieved by encouraging various factors such as increased Creative Economy posseses great potential personal consumption stimulated by the 2019 and can serve to alleviate the problems of presidential elections, high infrastructure unemployment in various parts of the world. investment, improvements in the transportation Nearly 17 million workers were absorbed in the and connectivity sectors such as MRT which will Creative Economy sector in Indonesia in 2016. affect investment and export performance. This figure is believed to continue to increase to above 19 million workers in 2019. INDONESIA’S CREATIVE ECONOMY

The rapid development of digital technology can BIGGEST CHALLENGES IN THE INDONESIAN no longer be ignored or denied, as it has had a CREATIVE ECONOMY SECTOR 2019: significant influence on the world of creativity. Digital media can act as a medium for the distribution of creative ideas that are born of Unequal developments within the entire sub-sector the human mind. The use of digital technology seems to have spread in all Creative Economy Finance and capital access Sub-sectors, including Design, Film, Music, Fine Arts, and so on. The convenience offered by Market penetration to overseas market for local digital technology has also increased creative creative products outputs in the world economy. Relatively lax enforcement for IPRs for creative The Creative Economy sector in Indonesia is not players far behind when it comes to digital technology advancements among the world’s nations. The Relatively low level of education rising sector, which has increasingly becoming the focus of the Indonesian government, con­ tinues­­­ to grow rapidly over the past five years. 5.3% Prediction of Statistics Indonesia noted that the Creative Economy contributed 922 trillion, or around Indonesian Economic 7.44% of the national economy in 2016. This Growth Rate 2019* figure is expected to continue to rise significantly until 2019. Last year, the Creative Economy’s Source: Asian Development Bank, Focus Economy GDP was estimated to have reached more than one thousand trillion rupiahs. This figure will 7.44% continue to rise to over 1.2 thousand trillion in Creative Economy 2019. The Fashion, Craft and Culinary Sub-sec­ tor will continue to lead the creative industry, Contribution to the National especially since these Sub-sectors are also Economy 2016 rela­tively more resistant against global economic shocks. Rp 1,009 Tn At the same time, the weakening rupiah value GDP Value of Creative may become a boon for some Creative Economy Economy 2017 Sub-sectors in Indonesia. Creative products which use a lot of local raw materials such as Fashion and Craft will become more attractive Rp 1,106 Tn in the global market. Creative services will also GDP Value of Creative be increasingly sought out by foreign investors Economy 2018 or buyers. The latest Statistics Indonesia data states that exports of creative products reached 19.99 billion United States dollars or comprising Rp 1,211 Tn around 13.77 percent of total national exports. GDP Value Projection for Exports of these creative products are also Creative Economy 2019 Source: Nan Jombang Source: Anton Ismael

146 OPUS CREATIVE ECONOMY OUTLOOK 2019 OPUS CREATIVE ECONOMY OUTLOOK 2019 147 www.bekraf.go.id