Lately discussions over the
Creative Industry were being intensified. In various seminars, and public for a
opinions were expressed about the role of creative economy for national
economy.
The Creative Economy was a concept in the era of new
economy which intensified information and creativity that stems from Man’s
creative juices as the essence of production commercial value.
As time goes by, economic development had come to
creative economy after previously the world was dominated by Information
Economy where information was the core of business. John Howkins in his book
The Creative Economy How People Make Money from Ideas was the first person to
introduce the term Creative Economy.
Howkins realized the emergence of a creative-based
economy when in he saw that in 1997 America produced products of Intellectual
Wealth acknowledged as Intellectual Rights [HKI] worth USD 414 billion, making
it number one export commodity of the USA.
Howkins defined Creative Economy as “The Creation of
Value as a Result of Idea” In an interview with Donna Ghelfi of World
Intellectual Property Organization [WIPO] Howkins elaborated on Creative
Economy as “economic activities among the people who spend most of their time
creating ideas instead of doing the same thing repeatedly. To these people, to
create ideas is something to be done for progress”.
Meanwhile the United Nation conference on Trade and
development defined creative economy as “an evolving concept based on creative
assets generating economic growth and development, Furthermore the Department
of Culture, Media and Sport [DCMS] defined creative economy as “Creative as
those industries which have their origin in individual creativity, skill and
talent and which have potential for wealth and job creation through the generation
and exploitation of intellectual property and content.”
In fact the Creative Economy was often seen as a concept
which enfolded other concepts which was also becoming popular on the eve of
this 21st century i.e. the Creative Industry. In fact the term
‘Creative Industry’ already popped up in 1994 in the report “Creative Nation”
released by Australia” but this term was only uplifted in 1997 when DCMS United
Kingdom set up Creative Industry Task Force.
So if the Government of RI set up the Ministry of Tourism
and Creative Economy, it was indeed right. In the blueprint of development of
Indonesia’s Creative Economy 2009 – 2015 Creative Economy was defined as “the
new economic era after Agriculture, industry and information economy which
intensified information and creativity by relying on ideas and knowledge of
people as main production factor in the economic activities” with further
elaboration elaboration as follows:
Firstly to promote increase of income, creation of
employment and income from export and at the same time to promote social care,
cultural diversity and human talent development.
Secondly to enhance the social aspect, culture and
economy in the development of technology, Intellectual Rights and Tourism.
Thirdly economic activities based on knowledge with
trans-sectoral connectivity within the dimension of development at micro and
macro economic level as a whole.
Fourthly, a choice of development strategy which needed
trans ministerial action and policy which was innovative and multi
disciplinary.
It was presumable that Creative Economy in relation with
Creative Industry was economy activity which relied on industry with human
creativity as main asset to create economic added value. The only thing was to
refer to the statement of the Ministry of Tourism and development of Creative
Economy was still obstacle by many factors, in spite of the rich potential in
that sector.
Having run Creative Economy for many years Indonesia had
estimated data that the sector constituted 7% of national economy and divided
into 15 sub-sectors of creative economy, of which 3 main sectors were culinary,
fashion, an handicraft – while others were relatively less sizable but had high
growth potential like the information Technology sectors.
Beside, access to technology by players of the Creative
Economy was hard. The same was with
access to financing, access to market especially the global market and a conducive
climate for the Creative Industry to grow including legal protection for
Intellectual Right, and incentive and Government’s support. The last handicap
was quality of Human Resources as related to formal education.
In fact Indonesia had great advantage compared to other
countries like Singapore and Malaysia especially in terms of domestic market
which was immense and strong. Indonesia must make the best of local asset found
elsewhere.
The ministry of Tourism and Creative Economy themselves
had schemed up long term plan in regard to development of National Sub-sector
2015 – 2019 15 sub-sectors like architecture, design, cinematography, and
culinary. Besides also handicraft, fashion, music, publication and printing,
interactive games, advertising, Fine Arts, entertainment, Information
Technology and Broadcasting [TV and radio].
In the future, Creative Economy must be seen as a
strategic sector in national development. This was because Creative Economy
contributed significantly to national economy, i.e. 7% against GDP inclusive of
multiplier effect.
Besides, the Creative economy could employ 11.8 million
workers or 10.72% of total national workforce, create 5.4 million business
units or around 9.68% of total national companies contributing Rp. 119 trillion
to states’s forex reserve or 5.72% of total national export.
In 2013 last, growth of creative economy was posted at
5.76% or comparable to national economic growth at 5.78%. This was because
Creative Economy stems from creativity, skill, and individual talent to
contribute to the pursue of people’s welfare and job opportunities.
In some countries, Creative Economy played important
role. In England, the pioneer in Creative Economy development, Creative
Industry grew by 9% on the average per year, way above economic growth of 2% -
3%. The contribution to national in come was 8.2% or USD 12.6 billion and was
the second biggest source of income next to Financial Sector – it exceeded
income from manufacturing industry and oil gas. In South Korea, the Creative
Industry contributed more than manufacturing since 2005. In Singapore Creative
Industry contributed USD 5.2 billion or 5% of GDP.
Today Creative Industry in the world was growing fast.
Creative Economy at global level was projected to grow by 5% per year and grow
from USD 2.2 trillion to USD 6.1 trillion in 2020 next. In Indonesia Economic
Creative posted notable growth in national economy, only trouble was that in
Indonesia there was lack of Government support. Awareness among Government high
officials in this regard was still low. The Government was still focusing
attention on manufacturing, fiscal, and agro-business.
Mapping out of the Creative Industry by the Ministry of
Trade in 2007 unveiled that the contribution of Creative Economy to national
economy in Indonesia was seen in 5 main indicators, i.e. GDP, employment,
number of companies, export and impact on other sectors.
Data of the Ministry of Trade had it that Creative
Industry in 2006 contributed Rp104.4 trillion or 4.75% on the average of
national GDP through 2002 – 2006. This amount exceeded contribution from
electricity, gas and clean water. There subsectors contributing most were
fashion [30%], handicraft [23%] and advertising [18%].
This sector also employed 4.5 million workers with growth
level of 17.6% in 2006. This was way above growth of national workers which was
only 0.54%. However, this industry only contributed 7% to export; in other
countries like South Korea, England and Singapore above 30% on the average.
In the future creative economy was generally believed to
be future prima donna of industry. There were 3 underlying reason for it:
energy efficient, less dependency on natural resources, and promised higher
profit margin.
The above factors were supported by massive Human
Resources, although they still needed upgrading by quality. Today Indonesia’s population
was around 251 million. People of 15-29 years of age numbered 40.2 million or
nearly 18.4% - was a fat market for creative products.
The Ministry of
Trade had schemed up long term plan development of the Creative Industry. The
target was to increase contribution to GDP. In 2009 – 2015 was targeted at 7% -
8%. In 2002-2006 they contributed 6.2% worth Rp 100.7 trillion. Indonesia’s
position was below that of England [7.9%], but better than New Zealand [3.1%]
and Australia [3.3%].
The year 2009 – 2015 was mentioned as a phase of
consolidation, contribution of the creative Industry to national export to
become 11% - 12% while employment increased between 6% - 7%. The 2015 – 2025
period was a phase of acceleration, where contribution to GDP increased to 9% -
11%.
To develop Creative Economy was not as easy as imagined,
due to obstacles emerging from the Creative Industry itself; not just in
Government policy but also the businesspeople themselves.
They were rated as not having good entrepreneurship and
bad management such as mixing company’s cashbox with personal pocket and
recruitment of employees on the basis of friendship and no legal ground in
regulating company’s ownership and profit distribution, so in case of company
break up the industry would die. The business run by young entrepreneurs must
be navigated with strong mentality and motivation since the very start.
Personnel upgrading through trainings in the Creative
Industry must be promoted by the Government and schools, universities. Trainings
in skill development and management was most important to support
businessplayers in the Creative Industry.
It would be necessary to set up business associations for
companies of the creative industry to promote innovations and creative among members.
Art-based creative industry run by young entrepreneurs in Indonesia generated
fresh energy amidst exhausted big industries in Indonesia today.
The handicap in Creative Industry was among others low
awareness among Government officials of the potentials of the Creative Industry
which brought forex reserves to national economy. The integrated policy needed
would be among others to promote creativity among young Indonesian
entrepreneurs and facilitate easy access for them to register their copyright of
product to be mass produced and marketed.
This integrated policy would be applicable not just for
small and medium industry like clothing but also for music industry and pure
art: painting, handicraft, natured-based creative industry like bouquettes and
flower arrangement, recycle of disposed materials and other small industry
lines based on innovation and creativity. (SS)
Business New - July 4, 2014
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