Tuesday, 1 July 2014

THE ROLE OF CREATIVE INDUSTRY BECOMING MORE IMPORTANT TO NATIONAL ECONOMY



The Government was determined to enhance the role of creative industry as one of the pillars of national economy. To quote data of the Ministry of Tourism and Creative Economy of 2013, the contribution of Creative Industry to national GDP was Rp 92.6 trillion and creative industry came to Rp 641.815 trillion. The prospect of Creative Industry as national pillar of economy was reflected in people’s increasing purchasing power which increased year after year. Even the Creative Industry market, domestically or globally was highly prospective.

The Ministry of industry set target for national creative industry growth at 10% in 2014 and could be among the top three contributor to GDP. The Ministry of Industry MS Hidayat stated in Jakarta on Tuesday [17/6] that the growing number of players in the industry and increased export projection was sustainer to growth of the creative industry, which last year was at 6%. In 2013, export of creative products came to Rp 119 trillion or equal to USD 10 billion, an increase of 8% against 2012.

Hidayat admitted that some obstacles were still haunting the creative industry such as poor access to financing, protection of intellectual Rights [HKI] as well as market access which had strong resistance from foreign products. In case of market access, the e-commerce could be an effort for players of the creative industry to explore the market.

Minister Hidayat pled players of the creative industry to register their products as Intellectual Rights to keep it from being stolen by competitors. Furthermore Hidayat would discuss with BI and the Ministry of Trade the special scheme for financial aid for players of the Creative Industry.

Meanwhile Euis Saedah, the Director General of Small and Medium Industry [IKM], the Ministry of Industry disclosed that fashion and handicrafts were prevalent sub-sectors in contributing to economy. The two industries were the locomotive of the national creative industry. Euis saw that the contribution of fashion and handicraft had by far excelled over other sub0industries.

According to Euis, to develop the creative industry propelled by IKM, the Government had issued the Presidential instruction [Inpres] No. 6 year 2009 on Creative Economy Development as the underlying base for all stakeholders to develop 14 sub-sectors of the creative economy.

The added value from fashion and handicraft subsectors, were 44.3% and 24,8% respectively of total contribution of the creative industry. Employment in this two sub-sectors came to 54,3% and 13,13% with total companies numbering 51.7% and 35.7%. Domination of the 2 subsectors was because the population was spread out nation wide, supported by diversed ethic culture of each region. Euis rated that growth of the creative industry must be supported by 6 pillars, among others talent resources, industry, technology, natural resources, institutions and financing institutions.

Furthermore it was reported that as a whole, growth of Gross Added Value of Indonesia’s creative economy 2012-2013 for computer service sub-sector was 9.44% and architecture 8.04%. In terms of growth of Indonesia’s creative economy 2012-2013, the Advertising sub-sector posted highest, i.e. 4.72%; research and development 4.21% and film, video and photography 4.15% - while growth of export of Indonesia’s creative was posted at 8.01%, twice the growth of Indonesia’s export of 4.03%. (SS)

Business News - June 20, 2014

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