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OPUS CREATIVE ECONOMY OUTLOOK 2019 1 Opus Economy Creative Outlook 2019 Outlook 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
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