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Government Drives Innovation to Boost Creative Economy

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By: Rivka Mayangsari

The creative economy has become one of Indonesia’s key sectors. Recognizing its vital role in driving national economic growth, the government continues to implement various policies to accelerate innovation and strengthen the creative ecosystem across regions.

As part of its effort to foster sustainable economic growth, the government is intensifying innovation within the creative economy sector. Various policies and strategies have been introduced to empower the younger generation and enhance the creative economy ecosystem at the regional level. With a target economic growth rate of 8%, the creative economy is a strategic sector that can boost national income while creating quality job opportunities.

Deputy Speaker of the People’s Consultative Assembly (MPR), Edhie Baskoro Yudhoyono (Ibas), emphasized that empowering young people through the creative economy is a strategic step toward achieving sustainable economic growth. Ibas encouraged young individuals to avoid fleeting trends or the Fear of Missing Out (FOMO) and instead focus deeply on a single field, a concept he referred to as You Only Need One (YONO).

Ibas also highlighted that youth empowerment is an integral part of the national strategy, where the creative economy plays a strategic role in supporting President Prabowo Subianto’s economic growth target of 8%. Additionally, he stressed the importance of balancing creative economic innovation with the Four Pillars of Nationality to preserve national identity and cultural heritage.

To further strengthen this sector, Minister of Creative Economy (Menkraf) Teuku Riefky Harsya encouraged regional leaders to establish Creative Economy Departments in their respective areas. This initiative aims to reinforce the regional creative economy ecosystem and improve community welfare.

Riefky emphasized that the creative economy is crucial for driving national economic growth from the regional level. He also pointed out that as Indonesia moves toward its “Golden Era” in 2045, the creative economy will be a priority in fostering national self-reliance.

Furthermore, Riefky highlighted the immense potential of the creative economy in increasing regional revenue and creating quality job opportunities. The government has set targets to boost the creative economy’s contribution to Gross Domestic Product (GDP) and regional income through 17 priority subsectors, including culinary arts, crafts, fashion, and fine arts. He added that this potential must be harnessed to maximize regional revenue and job creation.

Echoing this sentiment, Belgi Alhuda, a representative from the Department of Culture and Tourism (Disbudpar) and a creative economy practitioner, emphasized that the creative economy grows alongside arts and culture, which reflect the nation’s identity. He also stated that innovation and self-reliance must be supported by good health as a key factor in sustainable development.

According to Belgi, in line with the spirit of Asta Cita, the development of a creative economy based on arts and culture must be accompanied by efforts to improve children’s health. He stressed that free nutritious meal programs should be integrated into the strategy for creative economic development.

He further added that the government’s mission to promote entrepreneurship and the creative industry must align with efforts to preserve arts and culture while advancing the creative economy. With supportive policies favoring creative entrepreneurs, Indonesia’s creative economy is expected to continue growing and become a fundamental pillar in achieving the grand vision of Indonesia’s Golden Era 2045.

The government remains committed to supporting innovation in the creative economy sector by creating conducive regulations, providing access to funding, and developing infrastructure to support the creative ecosystem across Indonesia. Collaboration between the government, entrepreneurs, and the community is key to accelerating creative economic growth for more equitable prosperity.

In line with digital technology advancements, the government is also encouraging the use of digital platforms to enhance the competitiveness of creative economy players. Digitalization enables Indonesian creative products to reach a broader market, both nationally and globally. Therefore, digital literacy programs for creative entrepreneurs continue to be promoted to help them adapt to changing times.

Additionally, the government continues to optimize funding and financing programs for creative entrepreneurs, including business capital assistance schemes, tax incentives, and easier access to bank credit. These efforts aim to enable more creative economy players to grow and compete in the international market.

Moreover, the tourism sector also plays a role in supporting creative economic growth. The synergy between the creative economy and tourism can create more engaging experiences for both domestic and international tourists. Local creative products, such as handicrafts, performing arts, and regional culinary specialties, serve as key attractions that can boost regional income and promote culture-based economic growth.

With various strategies and initiatives in place, the creative economy is expected to continue expanding and positively impacting national development. The younger generation, as the driving force of this sector, is encouraged to play an active role and establish the creative economy as a key pillar in advancing Indonesia’s economy toward a brighter future.

*) Economic Observer

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