Indonesia's Creative Industry and Tourism

Indonesia’s creative economy provides a unique selling point for the country as it seeks to carve out a position in Asia’s highly competitive tourism market. It is a platform that includes a variety of industries, encourages the promotion of Indonesia’s unique and diverse cultural heritage as well as the participation of the local inhabitants to play an active role in the development of their region. However, while the plans on paper are being received positively; coordinated execution of the priorities such as transport infrastructure will be the crucial issue as to whether it succeeds. 

Source: Ministry of Tourism and Economy Creative, Processed by PT. Invisindo

Local development is important but the country has plenty of natural attributes and cultural sites to share with tourists already. Well thought out promotional campaigns that highlight such attributes make a significant impact on tourism numbers as Malaysia has proven and piquing the interest of adventurous travelers who are willing to take on a challenge can raise tourism numbers even in the short term. Indonesia therefore sorely needs to invest in its national image for efforts in other areas such as infrastructure and the creative industries to pay off and ensure tourism plays its rightful role in the nation’s economy.

In Indonesia, creative industry had contributed 7.3% for GDP and 7.76% in employment of workers. Relatively, it was equal with the US and England, and was bigger than Australia, New Zealand, Taiwan, and Singapore. In term of employment, Indonesia was the largest compared to the other 6 countries. With this condition, it was perfectly accurate for Indonesian Government to appoint new department that focused on the administration of creative economy, and it is called the Ministry of Tourism and Creative Economy.

Source: BPS, Processed by PT. Invisindo

In 2011, art goods market gave contribution of Rp 1.61 trillion or 0.3% from total creative industry contribution to Indonesian GDP. Creative economy contribution toward national GDP keeps increasing for the last few year, where in 2010 it contributed Rp 472.8 trillion by absorbing 11.49 million labor foces, and increased to Rp 526 trillion by absorbing 11.51 million labor forces in 2011. It is predicted that it will increase to Rp 573.4 trillion by absorbing 11.57 labor forces by 2012.

Source: Ministry of Tourism and Economy Creative, Processed by PT. Invisindo

Creative industry has bigger GDP contribution comparing to other sectors such as (1) Transportation and Communication; (2) Building; (3) Electricity, Gas, and Clear Water (Indonesian Department of Trade, 2006). During 2002-2006, creative industry absorbed 5.4 million labor forces or around 5.79% from total labor forces in Indonesia. In 2006, creative industry experienced a declining since the falling of crafts, design, fashion, film, video and photography industries. 

Indonesian First Lady Hj. Ani Bambang Yudhoyono asked music industry in Indonesia to develop children’s segment to they can have choice of musics that are suitable with their age. Children need to get more attention through music, this is why it involves musician, industry, special institutions that handle basic education. Indonesia First Lady urged private sectors to user their CSR funds to help facilitating children’s songs program. She believes Indonesia has creativity creating musics for children among young generation in the country. 

Please contact us for further information about insight creative industry and tourism including potential opportunity lies within.