Monday, 22 April 2013


Attempt of development of creative industry in Indonesia is facing some problems. These prob­lems are, amongst others, weak human resource and technology development, unavailability of creative in­dustry development scheme, lack of funding aspect, lack of access of industry operators to market, and creative industry is institutionally weak.

Vice Minister of Trade, Bayu Krisnamurthi, on Tuesday (11/27), said that Indonesia still needs vocational school and high school graduates who have competency in information technology. Mean­while, for funding access, many banks are unwilling to provide capital loan to creative industry operators. Concerning market access, Bayu said that the gov­ernment is continually attempting to facilitate exhibi­tion locations domestically and overseas. He said that there should be an encouragement for protection of intellectual property rights and availability of public spaces to support creativity.

Beyu admitted that human resource, either by quantity or quality, is the main problem to development ­of creative industry. This problem must become a collective attention because the contribution of this sector to national economy is quite significant. He said that development of creative economy in Indo­nesia is still on a very early step. So, there are many problems faced collectively in every plan on creative economy development in the future.

It is important to create strong and tough young entrepreneurs who are able to create business opportunity in the midst of tight business competition like recently. His expectation is that there will be more young generations who are interested in creative in­dustry and could become stimulators of change to­ward business and independence, so support from capital owners and banks is needed. Training on how to develop business properly is also necessary.

In addition to the foregoing problems, creative economy growth is also hampered by packaging and marketing. He said that creative industry can actually improve sharply if entrepreneurs improve market­ing system, brand, and packaging. Small and medium businesses in Indonesia have their own uniqueness. Indonesia market is highly oriented toward brands. Consumers are also sensitive to branding. Bayu said that number of creative industry consumers is esti­mated at 50 million people, most of them are young people. 52% of them live in the cities, therefore brand is an important point of consideration in buying a product.

Bayu said that creative economy is the fourth largest sector out of 10 national economic sectors from the aspect of labor absorption after agriculture, animal husbandry, forestry and fisheries, trade, hotels and restaurants, and service sector. Creative econo­my sector absorbs workers through creation of new businesses. Subsectors absorbing the largest num­ber of workers are fashion, culinary, and handicraft with the highest growth recorded by handicraft subsector at 1.42%.

Quoting data of the Ministry of Tourism and Creative Economy, creative economy industry ab­sorbs 11.57 million workers in 2012, or increases slightly from 2011 at 11.51 million people. In 2011, Gross Domestic Product (GDP) of creative economy sector grows by 4.91% reaching Rp 526 trillion. In 2012, nominal GDP of creative economy sector reaches Rp 573.4 trillion. Some creative economy sub-sectors are culinary, handicraft fashion, pub­lishing, design, performance arts, music, interactive games, television and radio, information technology, art market, advertisement, architecture, and research and development.

Business News - November 30, 2012

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