The Role of Creative Economy in Indonesia’s GDP Growth
As Southeast Asia’s largest economy, Indonesia is no longer defined solely by its natural resources or manufacturing output. Instead, its creative economy—which spans fashion, digital content, architecture, music, film, and more—is emerging as a powerhouse of GDP growth, innovation, and cultural influence. With the sector contributing over IDR 1,300 trillion (USD 86 billion) to Indonesia’s GDP in recent years, the creative economy is now considered one of the key pillars of sustainable national development.
This blog explores the significance of Indonesia’s creative economy, the government’s role in supporting it, and why both local entrepreneurs and foreign investors are betting big on the sector.
What Is the Creative Economy?
The creative economy refers to sectors where value is generated through creativity, cultural knowledge, and intellectual property. In Indonesia, it includes 17 subsectors such as:
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Fashion
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Culinary arts
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Film, animation, and video
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Music
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Architecture
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Applications and game development
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Crafts
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Advertising
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Performing arts
According to Bekraf (Indonesia’s Creative Economy Agency) and its successor Kemenparekraf, the creative economy not only employs millions of Indonesians, but also drives exports, enhances tourism, and shapes national identity.
Economic Contribution: By the Numbers
According to data from Statistics Indonesia (BPS) and Bank Indonesia:
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The creative economy contributed approximately 7.5% to Indonesia’s GDP in recent years.
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Fashion, culinary, and crafts account for over 75% of this contribution.
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Over 17 million Indonesians are directly employed in creative sectors.
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In 2023, the creative economy generated export value exceeding USD 20 billion.
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Indonesia is home to more than 8.2 million creative businesses, most of which are SMEs and startups.
📌 Related reading: How Indonesian Universities Are Supporting Innovation
Creative Hubs: Jakarta, Bandung, and Beyond
The heart of the creative economy beats strongest in urban centers like Jakarta and Bandung, where a vibrant community of artists, developers, and entrepreneurs are thriving.
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Jakarta leads in advertising, digital startups, and film production.
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Bandung, designated a UNESCO Creative City, excels in fashion, graphic design, and tech-based crafts.
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Yogyakarta has become a hub for fine arts, performing arts, and gamified education platforms.
Government Support and Strategic Policies
To boost the creative economy, the Indonesian government has implemented several national strategies, such as:
1. Presidential Regulation No. 142/2018
This established the National Creative Economy Committee, integrating policy-making and stakeholder collaboration across ministries.
2. BEKRAF & Kemenparekraf Initiatives
These include:
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Funding programs like Dana Indonesiana and LPDP creative grants
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Digital literacy training for rural creative workers
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Export support for creative SMEs (e.g., participation in trade shows like Trade Expo Indonesia)
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Development of Creative Economy Zones (KEK Ekonomi Kreatif)
📌 Explore: How Indonesia-Agent.com Supports Export-Ready Creatives
Digitalization as a Growth Driver
With over 210 million internet users, Indonesia’s digital transformation has significantly impacted the creative sector. Platforms like Tokopedia, Shopee, Instagram, and YouTube have enabled creators to monetize their content and reach global audiences.
Example:
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Indonesian indie fashion labels are now selling directly to consumers in Japan and Australia via platforms like Shopify and Tiktok Shop.
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Local animators are gaining recognition through Netflix and YouTube with original short films and series.
🎮 Related topic: Indonesia’s Unicorn Startups and the Digital Creative Surge
Youth and the Rise of Creative Startups
A younger generation of Indonesians, often educated in design, digital marketing, and IT, are launching ventures that blend creativity with entrepreneurship:
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Game developers building localized apps and mobile games
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Content creators and influencers monetizing short-form videos
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Sustainable fashion startups innovating with local fabrics and ethical supply chains
These youth-driven businesses are gaining traction not only in local markets but also internationally.
Challenges Facing the Creative Economy
Despite its promise, the sector faces several challenges:
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IPR (Intellectual Property Rights) enforcement is still weak, leading to widespread piracy.
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Access to funding for early-stage creatives remains limited.
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Lack of infrastructure in rural areas restricts participation.
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Digital skills gap, especially in less urbanized provinces.
That said, these challenges present opportunities for foreign investment, especially in areas like training, IP management, digital platforms, and logistics.
📌 Read: How Logistics Tech Is Driving Economic Modernization in Indonesia
Foreign Interest in Indonesia’s Creative Ecosystem
Countries like Japan, South Korea, and the United States are increasingly collaborating with Indonesia on creative initiatives. Examples include:
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Joint film production agreements
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Scholarship programs in design and animation
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Creative economy incubators, supported by international donors and agencies
These partnerships reflect a growing confidence in Indonesia’s talent pool and market potential.
What’s Next for the Creative Economy?
Indonesia’s long-term vision, outlined in Vision Indonesia 2045, identifies the creative economy as a key contributor to its goal of becoming a top 5 global economy. With increasing digitization, better policy support, and global exposure, the sector is set to:
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Grow its export footprint, especially in halal fashion and Islamic design
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Create millions of new jobs in rural and urban areas alike
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Foster sustainable and culturally rooted development
Final Thoughts: Why It Matters for Investors and Entrepreneurs
The creative economy in Indonesia is not just a cultural asset—it is a strategic economic driver. For brands, marketers, and investors, now is the time to:
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Partner with local creators
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Support creative startups through funding or tech enablement
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Help bridge infrastructure and training gaps
The sector’s growth is not just about GDP—it’s about empowering a generation of innovators who can carry Indonesia into the digital future.