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STRENGTHENING CREATIVE ECONOMY AS PART OF ECONOMIC DIPLOMACY IN INDONESIAN FOREIGN POLICY By : Danny Rahdiansyah JAKARTA NOVEMBER 2012

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The broad theme of this paper is on the relations between creative economy and economic diplomacy in the Indonesian context. The paper believes that creative economy is a valuable asset in Indonesian economic diplomacy, besides other more established sectors, inter alia trade, investment, tourism, and services. The contribution of creative economy to the economic growth of Indonesia is evident from its share to the GDP growth, workforce absorption, and export balance. Furthermore with the establishment of the Ministry of Tourism and Creative Economy (being the first of its kind in the world), creative economy is also in synergy with the tourism sector in strengthening and promoting each other. This paper recognized that in the venture of advancing creative economy, several challenges exist and if not carefully managed, they will shroud and hinder the creative economy to rise to a higher notch. Indeed there has to be a comprehensive approach to optimize the development of creative economy; including the creative ideas, creative technology, creative industries, and human resources. Furthermore, market penetration and access to financing have to be expanded. Despite the current challenges that are still faced by the creative economy sector, the opportunity is still promising. The potency of the external market has not been fully utilized. In this regard, greater focus and attention for strategies to penetrate these markets, both in the traditional markets as well other countries as the nontraditional market are crucial. In addition to this, creative economy could play a very important role in promoting national tourism, including local culture and wisdom to the international audience. On the recommendation part, this paper put forward ideas in the form of thirteen strategies to be considered by policy makers, as well as for diplomats posted in Indonesian Embassies/Consulate Generals abroad in doing their function in the economic and/or socio-culture sections, by emphasizing the synergy between the Ministry of Foreign Affairs and the Ministry of Tourism and Creative Economy.

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Page 1: Creative economy   November 2012

STRENGTHENING CREATIVE ECONOMY

AS PART OF ECONOMIC DIPLOMACY

IN INDONESIAN FOREIGN POLICY

By : Danny Rahdiansyah

JAKARTA – NOVEMBER 2012

Page 2: Creative economy   November 2012

EXECUTIVE SUMMARY

The broad theme of this paper is on the relations between creative economy and

economic diplomacy in the Indonesian context. The paper believes that creative economy is

a valuable asset in Indonesian economic diplomacy, besides other more established

sectors, inter alia trade, investment, tourism, and services. The contribution of creative

economy to the economic growth of Indonesia is evident from its share to the GDP growth,

workforce absorption, and export balance. Furthermore with the establishment of the

Ministry of Tourism and Creative Economy (being the first of its kind in the world), creative

economy is also in synergy with the tourism sector in strengthening and promoting each

other.

This paper recognized that in the venture of advancing creative economy, several

challenges exist and if not carefully managed, they will shroud and hinder the creative

economy to rise to a higher notch. Indeed there has to be a comprehensive approach to

optimize the development of creative economy; including the creative ideas, creative

technology, creative industries, and human resources. Furthermore, market penetration and

access to financing have to be expanded.

Despite the current challenges that are still faced by the creative economy sector,

the opportunity is still promising. The potency of the external market has not been fully

utilized. In this regard, greater focus and attention for strategies to penetrate these markets,

both in the traditional markets as well other countries as the nontraditional market are

crucial. In addition to this, creative economy could play a very important role in promoting

national tourism, including local culture and wisdom to the international audience.

On the recommendation part, this paper put forward ideas in the form of thirteen

strategies to be considered by policy makers, as well as for diplomats posted in Indonesian

Embassies/Consulate Generals abroad in doing their function in the economic and/or socio-

culture sections, by emphasizing the synergy between the Ministry of Foreign Affairs and

the Ministry of Tourism and Creative Economy.

--ooOoo--

Page 3: Creative economy   November 2012

CHAPTER ONE: INTRODUCTION

I.I. Background

The concept of “Economic Diplomacy” is now interpreted widely. Its borders have

become more and more blurred, intertwining various fields of economic, political, strategic

studies, as well as disciplines of the international relations and foreign policy.

In a simple definition, “Economic Diplomacy” is related to the diplomatic official

activities that are focused on increasing exports, attracting foreign investment and

participating in work of the international economic organizations, i.e., the activities

concentrated on the acknowledgement of economic interests of the country at the

international level.1

In other words, we can also say that “Economic diplomacy“ is the process through

which countries tackle the outside world, to maximize their national gain in all the fields of

activity, including trade, investment and other forms of economically beneficial exchanges,

where they enjoy comparative advantage; it has bilateral, regional and multilateral

dimensions, each of which is important.2

In a more scientific formulation, “Economic Diplomacy” can be defined as the specific

area of modern diplomatic activity concerned with economic issues3, connected with the

use of economic problems as object and means of struggle as well as cooperation in the

international relations. Economic diplomacy, as well as diplomacy in general, is a

component of foreign policy4, related to the international economic activity of the country.5

As a main actor in international relations, Indonesia - as a state - also implements

economic diplomacy to pursue the economic growth and prosperity for its people; by doing

the abovementioned activities, including trade, investment and other forms of economically

beneficial exchanges in bilateral, regional and multilateral dimensions, as appropriate.

Currently there is common understanding that Indonesia has a stronger economic

foundation then before, and is performing well in the international fora.

1 Pavol Baranay, “Modern Economic Diplomacy”, Publication of Diplomatic Economic Club, 2009, p.1

22 Kishan S Rana, “Economic Diplomacy: the Experience of Developing Countries”, http://www.cuts-citee.org/CDS03/pdf/ CDS03-

Session1-02.pdf 3 Raymond Saner and Lichia Yiu, “International Economic Diplomacy: Mutations in Modern Times”, Netherlands Institute of

International Relations ‘Clingendael’, 2003, p.13 4 The foreign policy defines the objectives and purposes of economic diplomacy which represents the whole set of activities, forms,

means and the methods used for realization of foreign policy 5 Pavol Baranay,op.cit, p.2

Page 4: Creative economy   November 2012

Figure 1.

McKinsey Report which was

recently published in September

2012 stated that Indonesia’s

economy has enormous promise.

Currently Indonesia is already the

16th largest economy in the world,

and Indonesia has the potential to

be the 7th biggest economy in the

world by 2030.

Source : McKinsey Global Institute, September 2012

In recent years, Indonesia has made enormous strides in its macroeconomic

management. Inflation has dropped from double into single digit, and government debt as a

share of GDP is now lower than in the vast majority of advanced economies.6

According to the World Economic Forum’s competitiveness report, in 2012 Indonesia

ranked 25th on macroeconomic stability. It is a dramatic improvement from its 2007 ranking

of 89th place. Indonesia now ranks ahead of Brazil and India, as well as several ASEAN

neighbors including Malaysia, Thailand, and the Philippines.7

Furthermore the report also stated that Indonesia has a young population and is

quickly urbanizing, powering growth in incomes. Between now and 2030, Indonesia will be

home to an estimated 90 million additional consumers with considerable spending power.

This growth in Indonesia’s consuming class is stronger than in any economy of the

world apart from China and India. It is a signal to international businesses and investors of

considerable new opportunities.8

Economic diplomacy is a broad concept. As has been briefly pointed out previously,

it covers a wide range of issues, including ,but not limited to, Trade, Investment, Tourism

and Services. These sectors when grouped together are popularly known as TTIS. As a

bridge to the subsequent parts of this paper, the following part will outline the broad policy

of Indonesia in these sectors.

6 McKinsey Global Institute, “The Archipelago Economy: Unleashing Indonesia’s Potential”, September 2012, p.1

7 McKinsey Global Institute, Ibid

8 McKinsey Global Institute, Ibid

Page 5: Creative economy   November 2012

I.I.1. Trade

Based on the document of Strategic Plan of the Ministry of Trade, 2010-2014,9 the

broad direction of Indonesian foreign trade policy is “to increase the competitiveness of

non-oil-and-gas export products, with the aim to boost the market diversification for export

destination, as well as to enhance the variety, quality and image of export products”.

In this connection, the strategy of promoting Indonesian foreign trade policy for the

period of 2010-2014 includes the following aspects: (1) To increase high value-added

export products, (2) To promote export of creative products and services, especially

products and services produced by small and medium enterprises (SMEs), (3) To diversify

export-destination markets and to reduce dependency from certain countries (traditional

markets), (4) To maximize the utilization of various preferential trade schemes and

international trade cooperation for the benefit of national interest, (5) To promote the

development of border exports, (6) To strengthen institutions for foreign trade.

I.I.2. Investment

In the field of investment policy, the current directive which serves as the guidelines

of investment in Indonesia is the Presidential Regulation (Perpres) No. 16 year 2012.

According to this regulation, the policy direction for investment in Indonesia, includes:10 (1)

Improvement of investment atmosphere, (2) Diversification of investment, (3) Particular

focus on investment in Food, Infrastructure and Energy sectors, (4) Promotion of green

investment, (5) Promotion of small and medium enterprises, and cooperatives, (6)

Facilitation and incentive for investment, and (7) Promotion of investment.

I.I.3. Tourism and Services

In the tourism sector, based on the document of Strategic Plan of the Ministry of

Tourism and Creative Economy (Kemenparekraf) 2012-2014, the priority of national policy

in this field includes: (1) Development of tourism industry, through enhance of investment,

(2) Development of competitive tourist destinations in global market, (3) Development of

marketing and promotion of tourism sector, and (4) Development of human resources in

tourism sector.11

9 Strategic Plan of the Ministry of Trade, 2010-2014, p.67

10 Presidential Regulation (Perpres) No. 16 year 2012 on General Planning for Investment, Art.2

11 Strategic Plan of the Ministry of Tourism and Creative Economy (Kemenparekraf) 2012-2014, p. 119

Page 6: Creative economy   November 2012

I.II. Main thesis of the paper

Besides the abovementioned sectors (i.e. Trade, Investment, Tourism, Services),

nowadays, Indonesia has also been advancing another sector as part of its economic

diplomacy at large. This sector is creative economy.

This paper believes that the issue of creative economy is very much actual, highly

relevant, and at the vanguard on the development agenda.

In recent years, the creative economy sector has contributed positively to the

Indonesian economic growth in general, including to its GDP as well as the absorption of

work force and balance of trade. In 2010, creative economy contributed approximately Rp.

468.1 trillion, or equivalent to 7.29% of national GDP.12 This significant contribution was

achieved through 14 subsectors of creative industry13 namely: Advertisement; Architecture;

Artwork and antiques; Handicraft; Design; Fashion (mode); Film, Video and Photography;

Interactive games; Music; Performing arts; Printing and publishing; Computer service

(information technology) and software; Radio and Television; Research and Development.

Besides these 14 subsectors, the Ministry of Tourism and Creative Economy also develops

the 15th sector of creative economy, namely Culinary.

In the same year, creative economy also successfully absorbed approximately 8.6

million workforce, or equivalent to 7.9% from the total national amount. In comparison, the

tourism sector absorbed 7.4% million people, or 6.9% of national work force. In terms of

balance of trade, in 2010, the value of export was much higher than the value of import.

This resulted in high surplus of net trade, amounting to of Rp. 115 trillion.14

In this connection, this paper also believes that creative economy is also inter-

dimensional, where it is very closely linked with other various sectors of economy and need

coordination among its related stakeholders. Furthermore, there is a trend that creative

economy absorbs greater number of workforce in Indonesia. In other words, more and

more Indonesian people are becoming more dependent for their livelihoods to the creative

economy.

Looking at the positive trend, this paper will attempt to dwell on the notion of creative

economy as a valuable asset in Indonesian Economic Diplomacy as well as means to further

advance the potential of creative economy to the betterment and wellbeing of Indonesian people.

12

Ibid, p.xxvii 13

Based on the Presidential Directive/Inpres No 6 year 2009 on Development of Creative Economy, 2009-2014 14

Strategic Plan of the Ministry of Tourism and Creative Economy (Kemenparekraf) 2012-2014, op.cit

Page 7: Creative economy   November 2012

I.III. Systematization of this paper

This paper will be structured in four chapters, namely: Chapter 1: Introduction;

Chapter 2: Theoretical Framework; Chapter 3: Analysis, and Chapter 4: Conclusion and

Policy Recommendation. The systematization of this paper is intended to provide a simple

structure and an easy-to-read message from the beginning until the end.

Chapter 1 consists of the background, main thesis of the paper and systematization

of the paper. The background part initially describes the concept of economic diplomacy in

general, followed by the elements of economic diplomacy, in the Indonesian context. The

main thesis of the paper outlines the main argument of the paper, which will be elaborated

in the subsequent chapter. The systematization of the paper-part is self-explanatory, which

is to outline the structure of the whole paper from the beginning until the end.

Chapter 2 consists of the theoretical framework on creative economy; including the

background of the creative economy in the global context and some definition on the

concept.

Chapter 3 consists of the discussion of the main thesis of the paper, namely the

notion of creative economy as a valuable asset in Indonesian Economic Diplomacy as well

as means to further advance the potential of creative economy to the betterment and

wellbeing of Indonesian people.

This chapter starts with the explanation of development of creative economy in

Indonesia. Then, the chapter continues to discuss the challenges and opportunities. Finally,

the chapter will present a set of policy recommendation for further advancing creative

economy as part of Indonesian economic diplomacy, with the emphasis of synergy between

the Ministry of Foreign Affairs and the Ministry of Tourism and Creative Economy.

Chapter 4 consists of the conclusion and recommendation. It will reiterate the main

points of the paper as well as the suggested policy recommendation on how to further

advance the development of creative economy.

--ooOoo--

Page 8: Creative economy   November 2012

CHAPTER TWO: THEORETICAL FRAMEWORK CONCEPT OF CREATIVE ECONOMY

II.I. Background

In the last decade, a novel development

paradigm is rising that links the economy and

culture. It embraces aspects of economic, cultural,

technological as well as social aspects of

development at both the macro and micro levels. A

fundamental element of this new paradigm is the fact

that creativity, knowledge and access to information

are progressively more recognized as strong

engines driving the economic growth and promoting

development in a globalizing world.15 Source : UNCTAD 2008

The concept of creativity is associated with originality, imagination, inspiration,

ingenuity and inventiveness. It could be found in all societies and countries – rich or poor,

large or small, advanced or developing. In this regard, every society has its stock of

intangible cultural capital articulated by people’s identity and values.16 Furthermore,

creativity is now acknowledged as fostering cultural, social as well as economic gains.17

Creativity is also understood as the formulation of new ideas and to the use of these ideas

to produce original works of art and cultural products, functional creations, scientific

inventions and technological innovations. In this regard, there is an economic aspect to

creativity, apparent in its way to contribute to promote entrepreneurship, encourage

innovation, increase productivity, as well as promote economic growth.18

In light of the above, the twenty-first century has seen a growing understanding of the

interface between creativity, culture and economics, the rationale behind the emerging concept of

the “creative economy”.

The notion of “creative economy” is an evolving concept. It has been gaining ground

in the contemporary discourse on economic development. It involves a swing from the

traditional models towards a multidisciplinary model, dealing with the interface between

15

Creative Economy Report 2008, “The Challenge of Assessing Creative Economy: toward informed policy making”, UNCTAD, 2008, p.3 16

Ibid 17

European Union, “The Entreprenurial Dimension of the Cultural and Creative Industries”, December 2010, p.8 18

Creative Economy Report 2008, op.cit

Page 9: Creative economy   November 2012

economics, culture and technology. It also centered on the predominance of services and

creative content. Recognizing its multidisciplinary nature, creative economy can offer a

practical option as part of a results-oriented development strategy for developing countries.

Creative economy also encourages a more effective cross-cutting mechanisms and

innovative inter-ministerial policy action.19

In this connection, it is clear that creative economy has become a topical issue of the

international economic and development agenda, calling for informed policy responses in

both developed and developing countries.

II.II. Definition

There is no single definition of “creative economy”. It is a dynamic concept that is still

being shaped. Nonetheless, there is a growing convergence in the international community

on the definition. One of the main reference with regard to the definition of creative

economy in the international community is the definition provided by the United Nations

Conference on Trade and Development (UNCTAD).

In light of the above, UNCTAD proposed a definition for creative economy as

follows:20

The creative economy is an evolving concept based on creative assets potentially

generating economic growth and development;

It can foster income generation, job creation and export earnings while

promoting social inclusion, cultural diversity and human development;

It embraces economic, cultural and social aspects interacting with technology,

intellectual property and tourism objectives;

It is a set of knowledge-based economic activities with a development dimension

and cross-cutting linkages at macro and micro levels to the overall economy;

It is a feasible development option calling for innovative multidisciplinary policy

responses and inter-ministerial action;

At the heart of the creative economy are the creative industries.

In the academic field, the term “creative economy” first appeared in the year 2001, in

a book entitled “The Creative Economy: How People Make Money from Ideas”, by a

prominent scholar, John Howkins.21 In his book, Howkins argued that:

19

UNCTAD Statement at the Second Meeting of the Ministers of Culture of the African, Caribbean and Pacific (ACP) Group of States, Santo Domingo, Dominican Republic, October 2006 20

Definition by the UNCTAD Creative Economy and Industries Programme, 2005 21

Marta-Cristina Suciu, “The Creative Economy”, Academy of Economic Studies, Bucharest. http://lexetscientia.univnt.ro/ ufiles/17.%20Romania.pdf, diakses 15 Oktober 2012

Page 10: Creative economy   November 2012

“creativity is not new and neither is economics, but what is new is the nature and

the extent of the relationship between them and how they combine to create

extraordinary value and wealth”.

However, Howkins’ use of the term “creative economy” is broad, covering fifteen

creative industries extending from arts to the wider fields of science and technology. For

Howkins, there are two kinds of creativity: the kind that relates to people’s fulfillment as

individuals and the kind that generates a product. The first one is a universal characteristic

of humanity and is found in all societies and cultures. The second is stronger in industrial

societies, which put a higher value on novelty, on science and technological innovation, and

on intellectual property rights (IPRs).

In Indonesia, the definition of “Ekonomi Kreatif” was initially provided by the Ministry

of Trade in 2008, as follows:22

“Era ekonomi baru yang mengintensifkan informasi dan kreativitas dengan

mengandalkan ide dan stock of knowledge dari sumber daya manusianya sebagai

faktor produksi utama dalam kegiatan ekonominya”

Furthermore, after the reorganization of the Ministry of Culture and Tourism

(Kementerian Budaya dan Pariwisata) to become the Ministry of Tourism and Creative

Economy (Kementerian Pariwisata dan Ekonomi Kreatif/ Kemenparekraf) in 2011, the

definition of “Ekonomi Kreatif” was further elaborated as follows:23

“Ekonomi Kreatif merupakan sebuah era baru ekonomi setelah ekonomi

pertanian, ekonomi industri, dan ekonomi informasi, yang mengintensifkan

informasi dan kreativitas dengan mengandalkan ide dan pengetahuan dari sumber

daya manusia sebagai faktor produksi utama dalam kegiatan ekonominya.

Ekonomi kreatif ini digerakkan oleh industri kreatif yang didefinisikan sebagai

industri yang berasal dari pemanfaatan kreativitas, keterampilan serta bakat

individu untuk menciptakan kesejahteraan serta lapangan pekerjaan melalui

penciptaan dan pemanfaatan daya kreasi dan daya cipta individu.”

Kemenparekraf’s definition on creative economy also included the concept of

“creative industries”. In this connection, “creative industries” can be defined as the cycles of

creation, production and distribution of goods and services that use creativity and

intellectual capital as primary inputs. They comprise a set of knowledge-based activities

22

“Pengembangan Ekonomi Kreatif Indonesia 2025: Rencana Pengembangan Ekonomi Kreatif Indonesia 2009-2015” Departemen Perdagangan Republik Indonesia, 2008, p.1 23

Strategic Plan of the Ministry of Tourism and Creative Economy (Kemenparekraf) 2012-2014, p.5

Page 11: Creative economy   November 2012

that produce tangible goods and intangible intellectual or artistic services with creative

content, economic value and market objectives.24

Creative industries constitute a vast and heterogeneous field dealing with the

interplay of various creative activities ranging from traditional arts and crafts, publishing,

music, and visual and performing arts to more technology-intensive and services-oriented

groups of activities such as film, television and radio broadcasting, new media and design.

The creative sector has a flexible and modular market structure that ranges from

independent artists and small-business enterprises at one extreme to some of the world’s

largest conglomerates at the other.25

Nowadays in the most advanced countries, the creative industries are emerging as a

strategic choice for rejuvenating economic growth, employment and social cohesion. The

so-called “creative cities” are proliferating in Europe and North America, boosting the

economy of urban centers through cultural and social developments, offering attractive

jobs, particularly to young people. The turnover of the European creative industries

amounted to 654 billion Euros in 2003, growing 12.3 percent faster than the overall

economy of the European Union and employing over 5.6 million people.26

From the explanation above, it is clear that the concept of “creative economy” has

dynamically evolved over the last decade. It has become an important means of focusing

attention on the role of creativity as a drive in contemporary economic life, exemplifying the

proposition that economic and cultural development are not separate or unrelated

phenomena. Instead, the two are part of a bigger process of sustainable development,

where economic and cultural growth and take place hand in hand and reinforce each other.

In the context of developing countries, the notion of the creative economy attract

attention to the rich creative assets and cultural resources that exists in them. The creative

industries that use the cultural resources and creative assets could do a lot to boost their

prosperity, including by enabling countries to tell their own stories and to project their own

unique cultural identities to themselves and to the world (something commonly referred to

as national branding), providing themselves with a source of economic growth,

employment creation and increased participation in the global economy, as well as

promoting social inclusion, cultural diversity and human development.

--ooOoo—

24

Creative Economy Report 2008, “The Challenge of Assessing Creative Economy: toward informed policy making”, UNCTAD, 2008, p.16 25

Creative Economy Report 2008, Ibid, p.4 26

See Economy of Culture in Europe, study prepared for the European Commission by KEA, European Affairs, Brussels, 2006

Page 12: Creative economy   November 2012

CHAPTER THREE: ANALYSIS

III.I. Creative Economy as part of Economic Diplomacy in Indonesia

III.I.1. Development of creative economy sector in Indonesia

Different from tourism sector, creative economy is relatively a new sector which has

been elevated by the Government of Indonesia to be managed at a ministerial level. Prior to

the establishment of the Kemenparekraf, the creative economy sector had not been

properly coordinated in a ministerial level. Instead it was scattered in several ministries,

among others Ministry of Trade, Ministry of Industry, Ministry of Cooperatives and SMEs, as

well as Ministry of Culture and Tourism.

Figure 2.

Source :www.indonesiakreatif.net

The elevation of creative economy to a ministerial level by the Government of

Indonesia by the establishment of the Ministry of Tourism and Creative Economy on 21

December 2011 was a significant achievement for Indonesia. Firstly, it has put Indonesia to

become the first country in the world which combined the sectors of tourism and creative

economy in one ministry. And secondly, it has put Indonesia to become the second country

in the world, only after the United Kingdom, which elevated the sector of creative economy

to a ministerial level.

Page 13: Creative economy   November 2012

The elevation could also be seen as the political commitment from the top national

leadership to develop the creative economy as a source of competitive advantage and soft

power that not only will contribute to growth, job creation and poverty alleviation, but also as

a source of national pride and national branding.27

Furthermore, the combination of tourism and creative economy could create a

synergy which reinforce each other. Creative economy is believed to be able to increase

the quality of tourism as well as to become promotion media for tourism. On the other hand,

the advancement of tourism destination could be followed by the promotion and increase of

demands for creative products. In this connection, the elevation of creative economy to a

ministerial level was also based on the recognition that creative economy has a number of

very strategic values for Indonesia, namely:

Contribution to economic growth GDP, employment, exports;

Contribution to the creation of positive business atmosphere Impact on

business and employment in other sectors;

Contribution to the promotion of national identity and image Impact on tourism,

creation of national icons and strengthening cultural heritage and traditional

values;

Contribution to the use of renewable resources Based on knowledge and

ideas, sustainability approach;

Contribution to the promotion of innovation Creativity that creates value added;

and

Contribution to the promotion of positive social impacts Quality of life,

equitable development, increased social tolerance.

To visualize this line of thinking, the following figure describes the strategic function

of creative economy for Indonesia.

Figure 3.

Source : Kemenparekraf

27

Mari Pangestu, “Indonesia and the ‘fourth wave’ of creative economy”, Strategic Review, April-June 2012/Vol.2 No.2, p.20

Page 14: Creative economy   November 2012

Minister Mari Elka Pangestu stated in her article which was published in the Strategic

Review, that creative economy is the “fourth wave”; after agriculture economy (first wave),

industry economy (second wave), and information economy (third wave). The notion of the

fourth wave is based on the main input used in the output, contributing to economic value

added.28

The first wave uses land and labor to produce agriculture products initially for feeding

its own population and eventually to export. The second wave uses more skilled labor,

capital, production technology and innovation to produce industrial goods. The third wave is

no longer just capital, land and labor, but also knowledge and information to produce goods

and services.

The fourth wave on the other hand, utilizes creativity and ideas to turn that

knowledge and information to higher value added or new forms. In other words, creative

economy intensifies information and creativity, based on idea and knowledge from human

resources as the main production factor in their economic activities. Given the continued

challenges of job creation and poverty alleviation in Indonesia, as well as its rich cultural

and creative heritage, Minister Mari Pangestu believed that the fourth wave of Indonesian

economy is ready to be unleashed.29

In advancing the creative economy sector, the Government of Indonesia, with

Kemenparekraf as its leading sector, has been developing 15 subsectors of creative

industry, as follows:30

NO SECTOR NO SECTOR

1. Advertisement 9. Music

2. Architecture 10. Performing arts

3. Artwork and antiques 11. Printing and publishing

4. Handicraft 12. Computer service (information

technology) and software

5. Design 13. Radio and Television

6. Fashion (mode) 14. Research and Development; and

7. Film, Video and Photography 15 Culinary

8. Interactive games

28

Mari Pangestu, Ibid, p.21 29

Ibid 30

Based on the Presidential Directive/Inpres No 6 year 2009

Page 15: Creative economy   November 2012

Figure 4.

Source :www.indonesiakreatif.net

Based on the Strategic Plan of Kemenparekraf 2012-2014, the development of

creative economy in Indonesia will be geared towards strengthening the domestic market

as well as penetrating external markets, focusing on development of five sectors, namely:

(1) Development of resources and technology; (2) Development of creative industry; (3)

Increase of financing access to the practitioner of creative economy; (4) Increase of market

access to the practitioner of creative economy; and (5) Strengthening of institutions related

to creative economy.

To support the implementation the creative economy development in Indonesia, the

Ministry of Tourism and Creative Economy has equipped itself with an organizational

structure which cover the entire area of creative economy.

Figure 5.

Based on the current structure, there

are three departments in the Ministry, which

are closely related to the effort of advancing

the creative economy, namely: (1)

Directorate General for arts and cultural-

based creative economy; (2) Directorate

General for media, design and science-based

creative economy; and (3) Tourism and

creative economy resource development

agency.

Source : Kemenparekraf

Page 16: Creative economy   November 2012

III.I.2. Relationship between creative economy and tourism sector

In Indonesia, as well as in many other countries, the sectors of creative economy

and tourism are very closely related. Some ideas of this matter have been put forward

briefly in the earlier part of this paper. To add to this line of thinking, this paper will elaborate

further by emphasizing three elements. First, creative economy could strengthen the quality

of tourism; second, creative economy could create new tourism attraction; and third,

creative economy and tourism could promote each other.

In a more detailed account, the connection between the creative economy and

tourism sectors could be elaborated as follows:

Strengthening the quality of tourism. It is generally understood that quality of tourism

is often measured by spending and duration of stay of tourist. In this connection, creative

economy is believed to be able to increase the spending of tourist as well as able to extend

the duration of stay of tourist, by the existence of creative products and services as

souvenirs and entertainment in various tourist destinations.

Further to the above, creative products such as handicraft, fashion and artworks

could serve as handy and memorable souvenirs for tourists. On the other hand, products

and services of culinary, music, performing arts, film, video, photography, design, and

architecture could serve as means of entertainment in the tourist destinations.

Creation of tourism attraction. Regions or districts who have unique and specific

products and services of creative economy can be developed Into viable tourist

destinations. In this line of thinking, creative traditional and contemporary events are

packaged in an attractive way to draw the attention of domestic and foreign tourists.

Until now there have been various creative events in Indonesia that have become

tourism attraction both for domestic as well as foreign tourists, namely among others:

Jember Carnival, Solo Batik Carnival, Java Jazz, Lake Sentani Festival. For instance, the

Solo Batik Carnival is annual event, started from 2008 which attracts many tourists, both

domestic tourists as well as foreign tourists. In 2012, the Solo Batik Carnival has entered its

5th year, with the theme: Metamorphoses.31

Promotion. Creative economy and tourism sectors could promote each other. In one

hand, products and services of creative economy could be utilized as promotion materials

for tourist destinations. On the other hand, tourism attraction could become inspiration for

practitioners to creative unique and creative products.

31

http://solobatikcarnival.com/about-us/

Page 17: Creative economy   November 2012

As an example, a movie which took place in a certain tourist destination, could

attract more tourists to come to that place; either to see the movie set, or to experience the

similar experience.

A recent Julia Roberts’ movie “Eat Pray and Love” in part was shot in Bali. This

movie is an example how a creative product (movie) could promote certain tourist

destination. On the other hands, contents of tourism promotion often use the creative

products and services from certain tourist destinations, such as : furniture from Jepara,

handicrafts from Tasikmalaya, songket from Palembang, et cetera.

The following figure visualizes the close relation between creative economy and

tourism sectors.

Figure 6.

CONNECTION BETWEEN TOURISM AND CREATIVE ECONOMY

CREATIVE

ECONOMY

TOURISM

Promotion

Strengthening the

quality of Tourism

Creation of

Tourism attraction

Promotion

III.I.3. Contribution to Indonesian economic growth

Creative economy sector so far has contributed significantly to Indonesian economic

growth in general. This fact has been demonstrated by numbers from the last several years.

In the period of 2002-2010, the creative economy sector contributed approximately 7.74%

to the total Indonesian GDP, and contributed approximately 7.76% to the national workforce

absorption.32

This contribution is regarded as quite high in comparison with several economies

who have developed creative economy as an important and strategic industry, namely

United States (7.75% contribution to GDP - 2001), England (7.9% - 2001), Australia (3.3% -

2000), New Zealand (3.1% - 2001), Taiwan (5.9% - 2001), and Singapore (2.8% - 2000).

32

Elitua H. Simarmata ; Bastian Simarmata, “Bagaimana Posisi Strategis Industri Kreatif dalam Perekonomian Nasional?” 19 November 2011, http://www.indonesiakreatif.net/index.php/id/news/read/bagaimana-posisi-strategis-industri-kreatif-dalam-perekonomian-nasional

Page 18: Creative economy   November 2012

Furthermore, in terms of workforce absorption, creative economy in the U.S

absorbed 5.9% in 2001; England 4.6% in 1998; Australia 3.8% in 2000; New Zealand 3.6%

in 2001; Taiwan 3.6% in 2001; and Singapore 3.4% in 2000. 33

Compared to the other national economic sectors, the contribution of creative

economy to the GDP growth in Indonesia is noteworthy. Creative economy sector placed in

number 6 out of 10 economic sectors with contribution of 7,74%, below the following

sectors: (1) manufacturing industry, (2) Agriculture, animal production, forestry, and fishery,

(3) Trade, hotel and restaurant, (4) Mining and extraction, and (5) Social services.

In connection to the above, the contribution of added value from the creative

economy is higher than the contribution of the following sectors: (1) Construction (7.71%),

(2) Finance, real estate and company service (7.04%), (3) Transportation and

communication (6.27%), and (4) Electricity, gas, and clean water (0.89%).

In addition to this, in terms of workforce absorption, creative economy is in fifth

position out of ten national economic sectors.34

The following graph visualizes the contribution of creative economy (in the graph is

mentioned as creative industry) to the national GDP, in the period of 2002-2010.

Graph 1.

Source : http://www.indonesiakreatif.net/index.php/id/news/read/bagaimana-posisi-strategis-industri-kreatif-dalam-perekonomian-

nasional

33

Ibid 34

Ibid

Page 19: Creative economy   November 2012

In a more detailed account, the contribution of creative economy in terms of added

value to GDP, workforce absorption, number of companies, and international trade is

shown in the following table:35

Table.1.

Source : http://www.indonesiakreatif.net/index.php/id/news/read/bagaimana-posisi-strategis-industri-kreatif-dalam-perekonomian-

nasional

From other literatures, we can also see data on the development of creative

economy in the period of 2006-2010.36 This document stated that the average output

growth of creative economy in this period amounted to 3.1%. This number is relatively low,

because in 2008, the world economy was affected by the global financial crisis, and it also

impacted the growth of the creative economy sector in Indonesia.

In the subsequent years, the creative economy sector grows more positively and

amounted to 7.28%. This achievement was higher than the growth in other sectors, such as

finance, real estate and company service (6.53%); transport and communication (6.5%);

and electricity, gas and clean water (0.85%).37

In terms of workforce absorption, during this period, the creative economy absorbed

7.75 million out of 108 million total national work force. Furthermore, it also created new job

35

Ibid 36

Elitua Simarmata dan Bastian Simarmata, “Peran Ekonomi Kreatif Secara Nasional”, 05 Oktober 2011, http://www.indonesiakreatif.net/index.php/id/news/read/peran-ekonomi-kreatif-secara-nasional 37

Ibid

Page 20: Creative economy   November 2012

opportunities, amounted to average of 3 million companies out of total 47 million

companies. 38

In terms of international trade, creative economy sector accounted net income of

approximately Rp. 97.3 billion, where export value amounted to Rp. 108.5 billion, in contrast

to import value which only amounted to Rp. 11.2 billion. This numbers illustrate the

significant role of creative economy in enhancing domestic revenues.

The following table visualizes several indicators and performance of creative

economy in Indonesia, in the period of 2006-2010.

Table.2.

Source : http://www.indonesiakreatif.net/index.php/id/news/read/peran-ekonomi-kreatif-secara-nasional

Graph 2.

Furthermore, from all sectors of

creative economy, during the period of

2006-2010, several subsectors are

more dominant against the other

subsectors. In this regard, the fashion

sector contributed 43.2% from the

total contribution of creative

economy to Indonesian GDP,

handicraft contributed 25.12%,

followed by advertisement (7.18%),

design (6.06%), music (5.30%), and

printing and publishing (4.86%).39 Source : http://www.indonesiakreatif.net/index.php/id/news/read/ peran-ekonomi-kreatif-secara-nasional

38

Ibid 39

Ibid

Page 21: Creative economy   November 2012

In the future, the creative economy sector is expected to raise its share in the

national economic growth by increasing its contribution to national GDP of 7.29% in 2012,

and further increased to 7.5% in 2014. In terms of workforce absorption, creative economy

sector is expected to increase its contribution to 8.25% and further to 8.48% of total national

workforce in 2014.

The raise of creative economy contribution to the national GDP as well as to the

absorption of workforce is expected through the creation of more creative entrepreneurs or

practitioners of creative economy, which will be supported by among others, greater

penetration of international market and enhanced partnership with communities of creative

economy in other countries.

Furthermore, the raise of creative economy is expected to materialize in line with the

enhancement of public’s appreciation to the practitioners as well as the products of creative

economy. The enhancement of public’s appreciation is reflected from the increase of

consumption of creative products and services by the people, as well as the creation of

public space for the society. In this regard, the Government of Indonesia through the

Kemenparekraf has targeted the increase of consumption of creative products to grow

10.89% in 2014, while the public’s appreciation is expected to rise by 5% every year from

2013 to 2014. In addition, it is expected that by 2014, 12 creative zones will be created.

The efforts to achieve target of national development in the creative economy sector

in 2012-2014 are supported by building the capacity of the human resources and

developing the professionalism of the creative economy practitioners through various

means, including certification programmes and standard of competence for creative

economy professions, creation of innovation through relevant studies, as well as promoting

of organizational performance.

In the long run until the year 2025, based on the National Long Term Development

Plan 2005-2025,40 the development of creative economy is expected to contribute further in

various aspects, including, but not limited to, the following:

Contribution of creative economy is expected to reach 9-11% of the national

GDP, provided that the national economic growth reach 9-11% annually.

Contribution of creative economy export is expected to reach 12-13% of the total

national export, provided that the total export growth reach 10-12% annually.

Contribution of workforce in the creative economy is expected to reach 9-11% of

total national workforce absorption.

40

“Pengembangan Ekonomi Kreatif Indonesia 2025: Rencana Pengembangan Ekonomi Kreatif Indonesia 2009-2015” Departemen

Perdagangan Republik Indonesia, 2008, p.39

Page 22: Creative economy   November 2012

The number of companies working in creative economy sectors increase three-

fourfold compared to the number of companies in 2006.

Increase the number of registration of patents, copyrights, brands, and industrial

designs.

Increase the number of creative economy zones in Indonesia.

III.II. Challenges and Opportunities

III.II.1. Challenges

In the implementation and development of creative economy, several challenges still

exist and need to be overcome by all related stakeholders in Indonesia.

In various occasions, Minister Mari Elka Pangestu stated a number of challenges for

creative economy development in Indonesia. In one event, Minister Mari Elka Pangestu

stated that the main challenges for creative economy in Indonesia includes (1) the low

purchasing power parity of Indonesian society, (2) financing and capital, (3) quality of

human resources.41 In another instance, she pinpointed several challenges in the creative

economy sector, including (1) the condition of export-import, (2) protection of intellectual

property rights, (3) taxation issues, (4) public appreciation and (5) quality of human

resources.42

In a more recent occasion, Minister Mari Elka Pangestu mentioned that there are

seven issues facing the development of creative economy in Indonesia, namely (1) policy

regulations, (2) the lack of research for technology development and creative product, (3)

human resources development, (4) infrastructure, (5) marketing, (6) institution and public

appreciation, (7) access to financing.43

Besides the statements by Minister Mari on different occasion as cited above,

through literature research, there are other sources44 45 46 47 48 that also indicate various

challenges of the creative economy in Indonesia. Based on the above-mentioned

41

“Tiga Masalah Ganjal Perkembangan Ekonomi Kreatif”, Neraca 7 Desember 2011, http://www.neraca.co.id/2011/12/07/tiga-masalah-ganjal-perkembangan-ekonomi-kreatif/ 42

Ekonomi Kreatif Masih Diliputi Banyak Masalah, http://www.wartaukm.com/ekonomi-kreatif-masih-diliputi-banyak-masalah 43

“Tujuh Sumber Masalah Ekonomi Kreatif”, Ekonomi dan Bisnis 22 Juni 2012, http://www.infobanknews.com/2012/06/nih-tujuh-sumber-masalah-ekonomi-kreatif/ 44

Industri Kreatif di Indonesia Masih Ada Hambatan, Suara Pembaruan 30 Juli 2012, http://www.suarapembaruan.com/ekonomidanbisnis/industri-kreatif-di-indonesia-masih-ada-hambatan/22880 45

5 Kendala Pengembangan Ekonomi Kreatif di RI, 19 November 2011, http://economy.okezone.com/read/2011/11/18/320/531386/5-kendala-pengembangan-ekonomi-kreatif-di-ri 46

SDM Kendala Industri Kreatif, 31 July 2012, http://citraindonesia.com/sdm-kendala-industri-kreatif/ 47

Challenges and Opportunities in the Creative Industry, http://www.gbgindonesia.com/en/services/article/2011/ challenges_and_opportunities_in_the_creative_industry.php 48

See Basuki Antariksa, “Konsep Ekonomi Kreatif: Peluang dan Tantangan dalam Pembangunan di Indonesia, http://www.budpar.go.id/userfiles/file/Art_17-2-Konsep%20Ekonomi%20Kreatif.pdf

Page 23: Creative economy   November 2012

literatures, the main challenges of creative economy in Indonesia can be grouped into the

following elements:

1. The development of the creative industry is not yet optimal. This situation is

mainly caused by several factors, including the lack of the attractiveness of the

creative industry; the lack of mature business model for creative industry; as well

as the high risk perceived by some practitioners.

2. The development of creative ideas, creative technology as well as software

content is not yet optimal. This situation is mainly caused by the lack of adequate

internet infrastructure; the lack of standardized exhibition/ performance buildings;

the high cost of production hardware and software; the lack of content research;

and the lack of content archiving.

3. The lack of market expansion and penetration for creative products and services,

both domestically and in external markets. This situation is mainly caused by the

lack of public appreciation on local creativity; the lack of connectivity of national

distribution channel; the limitation of foreign markets; the high cost of promotional

activities; and the lack of monitoring on royalty, license, and copyrights.

4. The lack of strong creative industries. This situation is mainly caused by the

absence of legal umbrella which guide the governance of each creative industry

subsectors; the lack of conducive business atmosphere; low appreciation to and

rampant piracy of creative products.

5. The lack of financial access to the practitioners of creative economy. This

situation is mainly caused because the characteristics of creative economy and

the current existing financial schemes; fluctuation of cash flow; and intangible

assets.

6. The development of natural and human resources in creative economy is not yet

optimal. This situation is mainly caused by the scarcity of resources, the lack of

resources research, the gap between education and industry, and the lack of

adequate standardization and certification.

III.II.2. Opportunities

Apart from the challenges in the creative economy sector, which has been

elaborated above, on the other hand, there is also an ample opportunity for the creative

economy to further blossom.

Page 24: Creative economy   November 2012

Based on Renstra Kemenparekraf, in 2008, the global market opportunity for

creative products and services amounted to US$ 588.635 million. In the same year, the

total Indonesian export of creative economy reached US$ 11.872 million. This number

signifies that Indonesia currently only controls a tiny share (2.02%) of the creative products

and creative services in the global market. In this connection, there is still a very big space

for Indonesia to expand its production and maximize the potency of the global creative

economy market.

Furthermore, ten world biggest importers of creative products and services are not

very different from ten biggest export destinations of Indonesian creative products and

services. The United States is currently the biggest importer of creative products and

services, and at the same time it is also the biggest export destination of Indonesian

creative products and services.49 Other main export destinations are Japan, England, and

Germany. These countries are also lucrative markets for Indonesian products.

Table 3.

Source : Kemenparekraf

As an example of the potency of Indonesian creative products, local Indonesian

brands are gaining international recognition such as Bagteria, a boutique bag producer

using traditional craft and embroidery techniques. The brand reflects the potential for

international success of other Indonesian designers many of which are already making

headway in areas such as Muslim fashion and batik.50

In the media content sub-sector, opportunities for investment and partnership

remains large. Indonesian consumers represent a large, youthful and highly adaptive

market. Currently Indonesia is Facebook’s second largest market and Twitter’s third largest

worldwide. The success of smart phones such as Blackberry which counted 3 million users

49

Strategic Plan of the Ministry of Tourism and Creative Economy (Kemenparekraf) 2012-2014, p.63 50

Challenges and Opportunities in the Creative Industry, http://www.gbgindonesia.com/en/services/article/2011/challenges_and_opportunities_in_the_creative_industry.php

Page 25: Creative economy   November 2012

at the end of 2010 is giving rise to third party applications, tailored advertising solutions and

software. 51

Furthermore, the film industry in Indonesia witnesses a revival, beginning from 2005 to

2008, when there were 87 Indonesian films produced, in contrast to only 6 films produces in

the period of 2001-2002. There is potential for far more within the industry and the country

possesses many talented film makers.

The recent opening up of the sector to foreign investment will provide the room for

greater collaboration in this promising industry and support for burgeoning producers.

Previously closed to foreign investors, foreign ownership is now permitted up to 49%.52

III.III. Policy Recommendation

Based on the Presidential Directive (Inpres) No 6 year 2009 on the Development of

Creative Economy, the President of the Republic of Indonesia had instructed 23 Ministers,

4 Heads of Non-Ministerial Bodies (LPNK), all Governors, all Mayors and all Regents, to

support the policy of Development of Creative Economy, 2009 – 2015. This policy entails

the development of economic activities based on creativity, skills, and individual gifts, to

generate creations which have economic values and have positive impact to the welfare

and prosperity of the Indonesian people.

Furthermore, the President also instructed the Ministers, Heads of institutions,

Governors, Mayors, and Regents to develop and implement action plan regarding

development of creative economy in their respective ministries/institutions, in line with their

duties and functions.

To coordinate all the relevant ministries and institutions, the President established

the Coordinating Team of Development of the Creative Economy. The Coordinating

Minister for Social Welfare sits as the Chair of the team, with the Coordinating Minister for

Economic Affairs as the Vice Chair. Minister of Trade serves as the 1st Executive Officer

(Pelaksana Harian) and Minister of Industry serves as the 2nd Executive Officer. The

members of the team consist of the other relevant Ministers, Head of institutions,

Governors, Mayors, and Regents.

One important thing to note is that the Ministry of Foreign Affairs (Kemlu) is included

in this team. The rationale is quite obvious. The endeavor to develop national creative

economy has a strong external dimension. Creative economy of Indonesia has to be

51

Ibid 52

Ibid

Page 26: Creative economy   November 2012

promoted abroad, has to be able to penetrate foreign markets, as well as gain recognition

from international community. In this regard, all Indonesian missions abroad will play a very

critical role, as spearhead to promote Indonesian creative economy in their respective

accredited countries. Furthermore, it will be imperative for all Indonesian missions abroad to

conduct close collaboration with Kemlu, Kemenparekraf and other related institutions in

fostering this undertaking.

In light of the above, and also in line with the spirit of the Presidential Directive No 6

year 2009, it is no doubt that a right mix of public policies and strategic choices are

essential for harnessing the socio-economic potential of the creative economy for

development gains.53

This paper argues that the synergy between Kemlu and all Indonesian Missions

abroad with Kemenparekraf as well as other related institutions, should be strengthened

and further intensified to address the challenges, maximize the opportunities, as well as to

further advance the creative economy sector in Indonesia. The close cooperation between

all these stakeholders will be crucial in many dimensions.

This paper proposes that the collaboration among these stakeholders should be geared

towards the achievement of five objectives. And to achieve these objectives, there are thirteen

strategies to be implemented. The objectives to be achieved are as follows:

1. Creative people with creative mindset

2. Competitive industry in domestic as well as foreign markets, with the active role

of local entrepreneurs

3. Enabling technology which support the development of affordable creative

products for the Indonesian people

4. Effective utilization of domestic resources for creative economy

5. Increase of appreciation and consumption of local creative products by domestic

society as well international community.

The following part will elaborate the strategies related to the achievement of these

objectives. Furthermore, it will also present some examples/ best practices that has been

conducted in the past which support the argument of the relevance and the feasibility of the

proposed strategies. Nonetheless, to maintain brevity of this paper, the detailed account of

each example will be put in the Annex part. The following part will only touch upon the issue

in a glimpse and provide simple reference to the issue.

53

Creative Economy Report 2010, “Creative Economy: A Feasible Development Option”, UNCTAD, 2010, p.xxiii

Page 27: Creative economy   November 2012

III.III. 1. First Objective : Creative people with creative mindset

To achieve the first objective, there are four strategies to be taken into account,

namely:

1. To provide support to talented creative economy practitioners to obtain proper

and adequate opportunities in the international fora.

This strategy is very relevant to Indonesian missions abroad because one of the

main duties of economic officer or the social culture officer at an Indonesian

Embassy is to facilitate and promote Indonesian people or companies in the

accredited country.

2. To develop and expand database and success story of creative products and

practitioners of creative economy from Indonesia.

An example of a success story of creative products and practitioners of creative

economy from Indonesia is about the “Gold award for outstanding exhibit untuk

Booth Indonesia pada Hong Kong Flower Show 2012. The information was

displayed in the website of Kemlu on 11 April 2012.54 Detailed information on this

success story appears in Annex 1 of this paper.

3. To facilitate the growth of networks and to promote cooperation between

practitioners of creative economy from Indonesia and their relevant counterparts

in the accredited country.

As has been presented in the previous section, many other countries are also

promoting creative economy. In this regard, Indonesian missions abroad should

engage the community of practitioners in their accredited countries and bridge

the community with practitioners from Indonesia.

An example of a success story of facilitation of networks and promotion of

cooperation between practitioners of creative economy from Indonesia and their

relevant counterparts through the event of film festival in the accredited country is

about “Four Indonesian films partake in the first Asian Film Festival in Brazil”. The

information was displayed in the website of Kemlu on 10 August 2012.55 Detailed

information on this success story appears in Annex 2 of this paper.

54

http://www.kemlu.go.id/hongkong/Pages/Embassies.aspx?IDP=40&l=id 55

http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=77&l=en

Page 28: Creative economy   November 2012

4. To promote and facilitate practitioners of creative economy from abroad coming

to Indonesia, to share experience and knowledge as well as to develop business

network in creative economy sector.

An example of a success story of a facilitation of practitioners of creative

economy from abroad coming to Indonesia is about a photography exhibition

entitled "Archiving the Exotic and Unfamiliar". The information on this issue was

displayed in the website of Indonesia Kreatif on 12 September 2012,

www.indonesiakreatif.net.56 Detailed information on this success story appears in

Annex 3 of this paper.

III.III. 2. Second Objective : Competitive industry in domestic as well as foreign

markets, with the active role of local entrepreneurs

To achieve the second objective, there are four strategies to be taken into account,

as follows.

1. To broaden the distribution scope of creative products, both in the domestic

market as well as the foreign market.

There are still many untapped potentials in accredited countries. Indonesian

missions abroad play important role in mapping these potentials in the respective

countries, and promote greater distribution of creative products from Indonesia.

An example of a success story of broadening the distribution scope of creative

products in the foreign market is about a new Indonesian Restaurant which was

opened in Hong Kong.57 The information was displayed in the website of Kemlu

on 12 January 2012, www.kemlu.go.id/successstories. Detailed information on

this success story appears in Annex 4 of this paper.

2. To amplify market appreciation (both domestic as well as foreign) towards

creative products.

Indonesian missions abroad should continue to encourage practitioners of

creative economy to participate in various prestigious events in the accredited

countries.

56

http://www.indonesiakreatif.net/index.php/en/news/read/archiving-the-exotic-and-unfamiliar-attempts-to-archive-the-space-and-time 57

http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=31&l=en

Page 29: Creative economy   November 2012

An example of a success story of the endeavor to amplify market appreciation

towards Indonesia creative products, in this case photography, is about the

“Three Indonesian Photographers Win International Photo Competition in

Dubai”.58 The information was displayed in the website of Kemlu on 29 March

2012, www.kemlu.go.id/ successstories. Detailed information on this success

story appears in Annex 5 of this paper.

3. To perform marketing research of creative products, both domestically as well as

at the accredited countries.

Marketing research is very important to identify the opportunity for Indonesian

creative products and services to be exported to the accredited countries.

4. To conduct promotion of creative products at the accredited countries.

An example of promotion of creative products at the accredited countries is about

“Indonesia awarded in Asia Festival in Oklahoma”.59 The information was

displayed in the website of Kemlu on 21 May 2012, www.kemlu.go.id/

successstories. Detailed information on this success story appears in Annex 6 of

this paper.

III.III. 3. Third Objective : Enabling technology which support the development

of affordable creative products for the Indonesian people

To achieve the third objective, the strategy to be taken into account is by fostering

mutual partnership with relevant institutions in accredited countries which have advance

knowledge and technology in creative economy. This strategy is most relevant the more

developed countries where technology in the creative economy sector is more advanced.

Nonetheless it doesn’t mean that missions in developing countries could not implement this

strategy, because the creative economy grows very fast worldwide.

An example of fostering mutual partnership with accredited countries which have

advance knowledge and technology in creative economy, in this case Japan, is about

“Wisata dan Produk Kreatif RI makin menarik bagi Jepang”.60 The information was

displayed in the main page of the website of Kemlu at 24 September 2012,

www.kemlu.go.id/. Detailed information on this success story appears in Annex 7 of this

paper.

58

http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=43&l=en 59

http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=59&l=en 60

http://www.kemlu.go.id/ptri/Pages/News.aspx?IDP=5830&l=id

Page 30: Creative economy   November 2012

III.III. 4. Fourth Objective : Effective utilization of domestic resources for

creative economy

To achieve the fourth objective, the strategy to be taken into account is to foster

mutual partnership with accredited countries which have advance processing technology.

Indonesian Embassies and Consulate Generals in accredited countries which have

developed creative economy as well as have advance processing technology, need to be

more active to provide mapping of the relevant institutions and communities, with the view

to forge mutual partnership for the benefit of practitioners of creative economy from

Indonesia.

III.III. 5. Fifth Objective : Increase of appreciation and consumption of local

creative products by domestic society as well international community

Last but not least, to achieve the fifth objective, there are three strategies to be taken

into account, namely:

1. To develop concept, strategy and implementation of campaign and promotion on

Indonesia.

There is a necessity for all related ministries/institutions in Indonesia to sit

together, agreeing on one vision, one direction, and one approach for promotion

on Indonesia, including on the creative economy. This coordinated policy will

serve as guidance for all Indonesian missions abroad in their promotion activities.

2. To develop cultural diplomacy as part of the important function of the Indonesian

mission abroad.

3. To promote creative products with high economic value and distinctive

Indonesian characteristics to the international market.

This strategy is very closely related with Indonesian diplomacy in the issue of

Intellectual Property Rights (IPR), whether it is in multilateral, regional as well as

bilateral fora. Indonesian diplomacy in IPR is crucial to protect the practitioners of

creative economy from piracy. In this connection, strong Indonesian diplomacy in

IPR could further promote the appreciation from international community towards

Indonesia’s creative products and services.

--ooOoo--

Page 31: Creative economy   November 2012

CHAPTER FOUR: CONCLUSION AND RECOMMENDATION

IV.I. Conclusion

Throughout the chapters, this paper has attempted to deliberate on the notion of

creative economy as a valuable asset in Indonesian economic diplomacy.

From the analysis, this paper reiterates it conviction that creative economy has a

significant contribution to the economic diplomacy. This can be seen by its contribution to the

national GDP, absorption of workforce as well as the contribution to the foreign trade of

Indonesia, whereby the amount of export is much higher than import.

Furthermore it is also evident that the

creative economy sector is on the rising trend.

From many instances, including from the examples

provided, Indonesian creative economy has gained

greater recognition from international community.

Cooperation and partnership with external parties

also enhances the capacity of the practitioners of

creative economy as well as increasing the quality

of Indonesian creative products and services.

This paper recognized that in the venture of

advancing creative economy, several challenges

exist and if not carefully managed, they will shroud

and hinder the creative economy to rise to a higher

notch. Indeed there has to be a comprehensive

approach to optimize the development of creative economy; including the creative ideas,

creative technology, creative industries, and human resources. Furthermore, market

penetration and access to financing have to be expanded.

Despite the current challenges that are still faced by the creative economy sector,

the opportunity is still promising. The potency of the external market has not been fully

utilized. Currently Indonesia still occupy a tiny share (2.02%) of the total global market of

the creative economy. In this regard, Indonesian economic diplomacy has to give greater

focus and attention for strategies to penetrate these markets, both in the traditional markets

like the US, Japan, England, and Germany, as well other countries as the nontraditional

market for Indonesian creative products and services. In addition to this, creative economy

Page 32: Creative economy   November 2012

could play a very important role in promoting national tourism, including local culture and

wisdom to the international audience.

IV.II. Recommendation

In its latter part, this paper has also endeavored to propose policy recommendation,

geared towards further advancing the potential of creative economy for the betterment and

prosperity of Indonesian people at large.

In great details, this paper has put forward ideas in the form of 13 strategies to be

considered by policy makers, as well as for diplomats posted in Indonesian Embassies/Consulate

Generals abroad in doing their function in the economic and/or socio-culture sections.

In a nutshell, those policy recommendations are structured in such a fashion to

obtain the five following objectives, namely:

1. Creative people with creative mindset

2. Competitive industry in domestic as well as foreign markets, with the active role

of local entrepreneurs

3. Enabling technology which support the development of affordable creative

products for the Indonesian people

4. Effective utilization of domestic resources for creative economy

5. Increase of appreciation and consumption of local creative products by domestic

society as well international community.

The following matrix summarizes the policy recommendations/strategies in the

previous chapter for development of creative economy in Indonesia, by emphasizing the

synergy between the Ministry of Foreign Affairs and the Ministry of Tourism and Creative

Economy.

Page 33: Creative economy   November 2012

Matrix of Objective and Strategy For Development of Creative Economy in Indonesia

Objective

Strategy Institutions

1. Creative people with

creative mindset

1. To provide support to talented

creative economy practitioners to

obtain proper and adequate

opportunities in the international

fora.

Ministry of Foreign Affairs

Ministry of Tourism and

Creative Economy

Other related ministries/

institutions

2. To develop and expand database

and success story of creative

products and practitioners of

creative economy from Indonesia

Ministry of Foreign Affairs

Ministry of Tourism and

Creative Economy

Other related ministries/

institutions

3. To facilitate the growth of

networks and to promote

cooperation between

practitioners of creative economy

from Indonesia and their relevant

counterparts in the accredited

country

Ministry of Foreign Affairs

Ministry of Tourism and

Creative Economy

Other related ministries/

institutions

4. To promote and facilitate

practitioners of creative economy

from abroad coming to

Indonesia, to share experience

and knowledge as well as to

develop business network in

creative economy sector

Ministry of Foreign Affairs

Ministry of Tourism and

Creative Economy

Other related ministries/

institutions

2. Competitive industry

in domestic as well as

foreign markets, with

the active role of local

entrepreneurs

5. To broaden the distribution

scope of creative products, both

in the domestic market as well as

the foreign market

Ministry of Foreign Affairs

Ministry of Tourism and

Creative Economy

Other related ministries/

institutions

6. To amplify market appreciation

(both domestic as well as

foreign) towards creative

products

Ministry of Foreign Affairs

Ministry of Tourism and

Creative Economy

Other related ministries/

institutions

7. To perform marketing research

of creative products, both

domestically as well as at the

accredited countries

Ministry of Foreign Affairs

Ministry of Tourism and

Creative Economy

Other related ministries/

institutions

8. To conduct promotion of creative

products at the accredited

countries

Ministry of Foreign Affairs

Ministry of Tourism and

Creative Economy

Other related ministries/

institutions

Page 34: Creative economy   November 2012

3. Enabling technology

which support the

development of

affordable creative

products for the

Indonesian people

9. Fostering mutual partnership

with relevant institutions in

accredited countries which have

advance knowledge and

technology in creative economy

Ministry of Foreign Affairs

Ministry of Tourism and

Creative Economy

Other related ministries/

institutions

4. Effective utilization of

domestic resources for

creative economy

10. To foster mutual partnership

with accredited countries which

have advance processing

technology

Ministry of Foreign Affairs

Ministry of Tourism and

Creative Economy

Other related ministries/

institutions

5. Increase of

appreciation and

consumption of local

creative products by

domestic society as

well international

community

11. To develop concept, strategy

and implementation of

campaign and promotion on

Indonesia

Ministry of Foreign Affairs

Ministry of Tourism and

Creative Economy

Other related ministries/

institutions

12. To develop cultural diplomacy

as part of the important function

of the Indonesian mission

abroad

Ministry of Foreign Affairs

Ministry of Tourism and

Creative Economy

Other related ministries/

institutions

13. To promote creative products

with high economic value and

distinctive Indonesian

characteristics to the

international market

Ministry of Foreign Affairs

Ministry of Tourism and

Creative Economy

Other related ministries/

institutions

--ooOoo--

Page 35: Creative economy   November 2012

ANNEX

Annex 1. GOLD AWARD FOR OUTSTANDING EXHIBIT UNTUK BOOTH INDONESIA PADA HONG KONG FLOWER SHOW 2012

Rabu, 11 April 2012

Untuk keempat kalinya, KJRI Hong Kong telah berpartisipasi dalam Hong Kong Flower Show yang diselenggarakan pada 16-25

Maret 2012 oleh Hong Kong Leisure and Cultural Services Department (LCSD) di Victoria Park, Hong Kong, sebagai salah satu

upaya untuk mengenalkan lebih luas kekayaan flora Indonesia serta seni tradisional Indonesia.

Pada tahun 2012 ini, selain bekerjasama dengan Taman Bunga Nusantara sebagai penata booth Indonesia, keikutsertaan KJRI Hong

Kong juga dimeriahkan oleh tim kesenian Indonesia dari Kementerian Pariwisata dan Ekonomi Kreatif RI yang akan tampil secara

khusus pada center stage Hong Kong Flower Show pada 25 Maret 2012 mendatang.

Booth Indonesia juga dimeriahkan oleh Abang dan None Jakarta mengenakan baju pengantin Palembang yang sangat diminati oleh

pengunjung Flower Show. Kemeriahan booth Indonesia yang pada tahun ini menampilkan tema Sumatera Selatan kembali mendapat

apresiasi dari para pengunjung pameran serta kembali meraih penghargaan “Gold Award for Outstanding Exhibit”.

Ini adalah penghargaan yang ketiga kali untuk booth Indonesia setelah pada tahun 2010 dan 2012 lalu yang menampilkan tema Bali

serta Jawa, Indonesia mendapat penghargaan yang sama atas keindahan penataan booth dan bunga Indonesia serta minat besar

pengunjung pada booth Indonesia. Tidak kurang dari Madam Selina Tsang, istri Chief Executive of Hong Kong, mengagumi booth

Indonesia dengan berkunjung khusus ke dalam booth yang kemudian dianugerahi kain songket Palembang oleh Konsul Jenderal RI di

Hong Kong.

KJRI Hong Kong memanfaatkan HKFS 2012 ini sebagai salah satu kesempatan untuk mempromosikan Indonesia secara utuh

sekaligus untuk semakin menggugah minat masyarakat Hong Kong berkunjung ke Indonesia, baik untuk tujuan wisata maupun bisnis.

Lebih jauh lagi, even ini diharapakan dapat semakin menumbuhkan animo pengusaha lokal dalam menjalin kerja sama dengan

Indonesia dalam bidang bunga dan tanaman hias. KJRI Hong Kong akan selalu mendukung seluruh even di wilayah Hong Kong SAR

dan Macau SAR yang dapat digunakan sebagai ajang untuk mempromosikan seni budaya serta kekayaan alam Indonesia. (sumber:

KJRI Hongkong)

Source : http://www.kemlu.go.id/hongkong/Pages/Embassies.aspx?IDP=40&l=id

Page 36: Creative economy   November 2012

Annex.2. A. Success Story

FOUR INDONESIAN FILMS PARTAKE IN THE FIRST ASIAN FILM FESTIVAL IN BRAZIL

Friday, 10 August 2012

Lovely Man (Director Teddy Soeriaatmadja),Mata Tertutup (The Blindfold - Director GarinNugroho), The Mirror Never

Lies (DirectorKamila Andini) and The Perfect House(Director Affandi Abdul Rachman) took part in the Traffic 1

ª Festival de Cinema e CulturaAsiatica de Sao Paulo held from 2 to 9 August2012 in Sao Paulo, Brazil.

The four Indonesian films were featured alongwith 28 other films from China, the Philippines, Hong Kong, Japan, South

Korea,Malaysia, Taiwan, and Thailand in this first large-scale Asian Film Festival in Brazil.

The organizer of the Traffic Festival invited John Badalu, a filmmaker and a film producer from Indonesia, to act as the curator of the

festival. John Badalu took such opportunity to talk about the development of cinema in Southeast Asia.

The Asian Film Festival holds significance for the world of Asian cinema and culture, including Indonesia, as it provides a bridge that

connects it to the gate of Latin America.

Source : http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=77&l=en

Page 37: Creative economy   November 2012

Annex.3.

ARCHIVING THE EXOTIC AND UNFAMILIAR: ATTEMPTS TO ARCHIVE THE SPACE AND TIME

September 12, 2012 | Views (123)

Text & photo: Jaya Liem | Editor: Intan Larasati

From May to August 2012, Thomas Breakwell, a photography artist born in Melbourne, Australia, attended the residency program

organized by Ruang MES 56 in Yogyakarta. During his residency Thomas created a visual archive that would be exhibited at the end

of his residency period in a solo photography exhibition entitled "Archiving the Exotic and Unfamiliar". Thomas is an artist who has

an idea about man and the surrounding nature. He works with several issues on how man is connected to the surrounding environment

where he lives, such as the urban area and its entire content that's visually related with natural landscape, human portraits and every

component existing on earth.

During his residency period in Yogyakarta, Thomas adopted the archaeologic method in his works. He collected things, from

glassware, vintages, coins, stones, trunks and roots of plants, to leaves, which later were documented in photographs. Also he

documented empty and abandoned lands within the city that looks like jungles.

Yet, different from what archeologists do, Thomas does not try to further investigate and gives explanations on the things he collected

and documented. For Thomas, there are objects or artifacts that have the capacity to represent activities referring to man's daily lives.

Meanwhile, objects related to natural lives, the organic world we're living in, can indicate a reality that they exist now, or existed

then.

Thomas' understanding on the objects is following his imagination that came because of his curiosity and fascination when he saw

new things, the exotic experience of being a foreigner. Thomas related the objects with his personal imagination to create a fictional

idea. He tries to reveal what are we as human connected with these surrounding objects and what are we as human being represented

by these artifacts.

On the other hand, the objects or images of the objects are Thomas' visual experience that was gained from direct observation when

he was traveling around Yogyakarta, thus its involvement isn't merely as a memory images, but also as an imaginative narration

connected to stories behind those objects. The collected objects became some sort of documentation to refresh our memories on stories

happening within a time and space of our daily moves. Documents are tools of narration related to memory, and narration is a way to

recognize and remember documentation, which are closely interconnected.

From these two understandings Thomas then experimented with our ways of understanding this objects based on our knowledge and

experience, on how the objects are being used and represented. The objects then was made into a visual archive by adapting the

archaeologic methods that later developed freely following Thomas' imagination in entering a new dialogue, of the past and the

present. With photography as a way of seeing, the depiction of the culture of the past and historical story is not only when the photo is

taken, but also when the photo is observed in a different time, in a stratum of time.

The concept of a limited stratum of time is related to a space formed from various human experience, with objective and non-

measurable objective qualitative substance. The qualitative dimension of space is length, width and height of an existed and moving

objects. The existence of an object can be determined from the qualitative structure formed from duration to discover the process and

development, the progress of its existence in the past, present and future.

In photography an object should be able to be defined with space and time where the photograph is taken. But Thomas' imagination

developing within the visual archive of collected objects, Thomas' relation with the objects as they were found and documented,

causing the relation of space and time within his photos had different understanding later on. Therefore in the exhibition Thomas

finally no longer talks about the objects, but only presenting them and invite the audience to reflect on his found objects.

Archiving The Exotic and Unfamiliar exhibition, held from 11 to 31 August 2012, was the first program of Ruang MES 56 in their new

location, Minggiran no. 61A, Yogyakarta. I his opening speech, Anang Saptoto as Ruang MES 56 program manager stated that Ruang

MES 56 residency program is not only for foreign photography artists. All photography artists can apply for this program by

contacting MES 56 at http://mes56.com.

Source:http://www.indonesiakreatif.net/index.php/en/news/read/archiving-the-exotic-and-unfamiliar-attempts-to-archive-the-space-and-time

Page 38: Creative economy   November 2012

Annex.4. B. Success Story

MORE CULINARY VARIETY, A NEW INDONESIAN RESTAURANT OPENED IN HONG KONG

Thursday, 12 January 2012

Another addition to the already rich variety of cuisine in Hong Kong, the ‘So Bali Bali’ a new restaurant serving uniquely Indonesian

dishes was officially open for business. The Indonesian Consulate General Teguh Wardoyo expressed his hope that So Bali Bali would

take part in promoting the rich diversity of Indonesian cuisine in Hong Kong. “Hopefully, this restaurant would also play a part in

introducing Indonesia as a whole”, added Teguh.

The Consulate General also said that the restaurant that is located at 31 Elgin Street Soho will also function as an art gallery where a

number of paintings by Indonesian artists will be put on display and offered for sale.

The region of Soho is one of the elite areas in Hong Kong and it is famous as a culinary center serving foods from various countries. It

is also a well visited tourist destination for domestic and foreign tourist alike.

The restaurant is owned by Mary So, a relative of a long time Hong Kong resident who just happen to be an Indonesian. Her love of

everything Indonesian had encouraged her to open the restaurant. “This restaurant looks different compared to other restaurants in

the area because it is decorated with unique Balinese ornaments”, explained Mary. However, the restaurant serves more than

Balinese cuisine; it also serves numerous dishes from other parts of Indonesia.

The restaurant’s official opening was celebrated with a performance of traditional dance from West Java and Bali by a dancer from

Sanggar Budaya, an art and cultural group under the auspices of the Indonesian Consulate General in Hong Kong.

A number of APPIH members, representatives of Indonesian State Owned Companies, staff from the Consulate General and ordinary

Hong Kong residents were present at the event and it was also covered by Indonesian media in Hong Kong.

According to the Consulate General’s record, currently there are several large and small Indonesian restaurants in Hong Kong

(source: Indonesian Consulate General, Hong Kong. Ed/Yo2k).

Source: http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=31&l=en

Page 39: Creative economy   November 2012

Annex.5. SUCCESS STORY

THREE INDONESIAN PHOTOGRAPHERS WIN INTERNATIONAL PHOTO COMPETITION IN DUBAI

Thursday, 29 March 2012

A total of three Indonesian photographers managed to come out as the first and second winner among the 16 winners of international

photo contest of Dubai’s Crown Prince Award, "Hamdan International Photography Award (HIPA)". Winners Categories are divided

into "Love of the Earth", "The General Pivot", and "Dubai". A total of 4046 participants from 99 countries, including 19 Arab

countries, take part in this photo contest.Trophy ceremony is done directly by Sheikh Hamdan Bin Mohammad Bin Rashid Al

Maktoum, Dubai Crown Prince, who was accompanied by Sheikh Majid Bin Mohammad Bin Rashid Al Maktoum, Chairman of "The

Dubai Culture and Arts Authority” on the Armani Hotel Dubai on March 27, 2012. Also present as guests of honor are Consul

General of Dubai, Mansyur Pangeran, as well as high officials of the Dubai government, and other invitees.

The three photographers are Zulkifli Qincay Zhu, residents of Kerinci, Jambi, which is currently a student at the Bung Hatta

University, Padang, West Sumatra, his photograph is selected as the first winner in the category of "The General Pivot"; Arfianto

Amri, a resident of Indonesia who have lived for 4 years in Dubai, becoming the first winner of the category of "Dubai"; and Armin

Day, part-time photographer who also works at an NGO in Yogyakarta, became the second winner in the category of "Love of the

Earth".The main winner (Grand Prize) for the entire category is won by the French photographer who got the trophy and cash prize of

U.S. $ 100,000, -. Meanwhile, the first winner of the category "The General Pivot" received the prize money of U.S. $ 14,000, - and the

category of "Dubai" of U.S. $ 16,000, -. While the second winner of categories of "Love of the Earth" earned U.S. $ 16,000, -. The

other winners are from Bangladesh, France, Italy, Argentina, Germany and Kuwait, in addition to the special winner of UAE citizens

for each category.

Responding to the victory of Indonesia's three photographers, Consul General Mansyur congratulated the winners directly after the

trophy ceremony, while expressing his admiration for their photographs and pride because Indonesia can be selected as the winner

from the thousands of participants from around the world who followed this photo contest.Consul General Mansyur added that the

work of Indonesia photographers chosen as the winner in this contest gave international recognition for quality and value creation of

Indonesian photographers who are not inferior to other photographers from around the world. Furthermore, the Consul General

Mansyur stated that participation in this contest and the success to be the winner have also helped promote Indonesia at the

international level. What's more the work shown describes the natural conditions and social realities of everyday life of the people of

Indonesia which are considered to be very interesting as an object of photography. Through photography which is a universal

communication medium, each image is presented to bring the message and meaning of its own, while also to be enjoyed visually.

The work of Zhu Qincay Zulkifli managed to record the expressive moment of cow race, depicting a citizen of Indonesia spurring two

cows in the middle of a muddy field. Meanwhile, Amri Arfianto work that captures the architectural object of Terminal 3 Arrivals of

Dubai International Airport, managed to capture the recesses and details of buildings and reforms it into works of stunning

photographs.

While Armin Day captures the activities of a farmer who was farming with mountains as background and a light mist which enveloped

him. The point of view makes the work of Armin Hari very mindblowing. At first the HIPA committee received about 7,000 photos from

around the world which are sent via HIPA internet site. But then they selected about 6,000 photos and after going through the judging

process for 30 days, the jury chose the 16 winners. The committee bring all the winners to Dubai. The overall cost of transportation

from home country to Dubai and accommodation for the winner in Dubai is also borne by the committee.This photography contest had

the full backing of the Dubai government and is an initiative that is integrated with the "Dubai Strategic Mission 2015" to develop

culture and art in Dubai and made the city of Dubai as a hub of culture and arts in the region and internationally. This new activity,

undertaken for the first time, will be held regularly every year. The jury of this competition are the chosen people in the field of

international art and photography.

The photographs of the winners and also the diverse work of Sheikh Hamdan Bin Mohammad Bin Rashid Al Maktoum at the Dubai

Mall is also on display for 1 week until March 31, 2012 and has been put in a book with the title "Love of the Earth", which is printed

in a language English and Arabic. (Source: Consulate General in Dubai)

Source: http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=43&l=en

Page 40: Creative economy   November 2012

Annex.6.

C. Success Story

INDONESIA AWARDED IN ASIA FESTIVAL IN OKLAHOMA

Monday, 21 May 2012

Two art performances by the Indonesian contingent, the solo violin performed by Nathaniel Parker and the Topeng Cirebonan dance

by Sarah Shutts, earn a special award during the Asian Festival 2012 which is held last Saturday (19/05) in Oklahoma City, United

States.

Nathaniel performed a classical number from West Java titled PanonHideung. Both performances are deemed highly-rated and

impressive by the audience.

The Asian Festival, with participants from China, the Philippines, India, Iran, Japan, Vietnam, and Taiwan, is organized by the

Indonesian-American Association of Oklahoma (IAAO), the Asia Society of Oklahoma (ASO) and the Indonesian Consulate General

office (KJRI) Houston.

Indonesia’s Consulate General, Al BusyraBasnur, in his opening speech, expresses, among others, that the Asian Festival possesses a

strategic meaning in the effort to improve the relationship and friendship between Asia and the US, especially with the people in

Oklahoma.

“By performing the Asian art, culture, and exhibitions, the American people, especially from Oklahoma and its surrounding, will get

to know and understand Asia better,” Al Busyra says.”

Al Busyra also conveys his gratitude to the Asian-American community in Oklahoma who has given the opportunity for Indonesia to

organize this year’s event.

“Organizing the Asian Festival is an opportunity and achievement for Indonesia,” tells Al Busyra.

Several government officials and politicians from Oklahoma also attend the festival, such as US Rep. James Lankford, Sen. Al

McAfrey, Rep. Anastasia Pittman, City Councilman David Greenwell, as well as representatives from various Asian organizations in

Oklahoma from China, the Philippines, India, Indonesia, Iran, Japan, Korea, Taiwan, and Vietnam.

Beside art performances, a music competition and a Miss Asia pageant, with contestants from 9 countries, are also held during the

festival.

As the host of the festival, Indonesia obtains a 30-minute time allocation to perform dances from Bali, West Sumatra, and West Java,

as well as a fashion show of traditional clothes from some parts in Indonesia by Indonesians in Oklahoma.

During the event, the Houston KJRI opens a WarungKonsuler that provides services and information related to consulate for

Indonesians. (Source: KJRI Houston)

Source: http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=59&l=en

Page 41: Creative economy   November 2012

Annex. 7. D. Berita Utama

WISATA DAN PRODUK KREATIF RI MAKIN MENARIK BAGI JEPANG

Senin, 24 September 2012

Kekayaan wisata dan berbagai potensi produk kreatif Indonesia semakin menarik bagi Jepang. Hal ini diungkapkan Menteri

Pariwisata dan Ekonomi Kreatif, Mari Elka Pangestu dalam konferensi pers (21/9/2012) usai menghadiri pertemuan Japan

Assosiation Travel Agents (JATA) Travel Showcase 2012, di Tokyo. Pertemuan JATA itu dihadiri kalangan pemerintah, pengusaha,

dan masyarakat Jepang.

Saat ini terdapat peningkatan jumlah wisatawan asal Jepang ke Indonesia, yang pada tahun 2011 mencapai 400 ribu. Jumlah ini

diharapkan dapat terus meningkat, apalagi dengan semakin terbukanya daerah wisata di Indonesia, selain Bali, yang menyimpan

potensi.

“Walaupun mayoritas turis Jepang memang sudah mengenal Bali, kita terus upayakan promosi daerah lain, serta tujuan specialty

tourism, seperti untuk meeting atau convention, olahraga golf, atau diving,” tutur Mari.

Dilanjutkannya, pada tahun 2025 ada 80 daerah tujuan wisata menarik di Indonesia. Saat ini ada 16 daerah yang dikembangkan

selain Bali, diantaranya Lombok, Raja Ampat di Papua Barat, Wakatobi di Sulsel, Danau Toba.

“Sektor pariwisata Indonesia sangat menjanjikan," tutur Mari. Hal ini turut didorong dengan domestic demand yang terus

meningkat dan sejalan dengan pertumbuhan ekonomi yang ditunjukkan dengan peningkatan signifikan kelas menengah di Indonesia.

Mari juga mengutarakan bahwa dalam kunjungan ini, pihaknya menekankan selling point pariwisata Indonesia kepada para pelaku

usaha pariwisata Jepang. Dengan adanya kesempatan yang sangat besar ini, lanjutnya, maka diperlukan dukungan infrastruktur

pariwisata yang mumpuni di Indonesia.

Masalah infrastuktur tampaknya juga menjadi perhatian para pengusaha yang tergabung dalam Kadin Jepang (Keidanren). Mereka

sepakat bahwa potensi pariwisata Indonesia dapat dioptimalkan dengan pembangunan infrastruktur yang lebih banyak dan lebih

baik. Selain itu, promosi produk-produk khas lokal setiap daerah juga berperan dalam menarik wisatawan dari Jepang.

Mari memanfaatkan kunjungan tersebut untuk mengundang para investor Jepang menanamkan modalnya di Indonesia. “Saat ini

merupakan saat yang sangat kondusif,” tegasnya sambil menjelaskan data makro ekonomi yang sangat menjanjikan dan

perkembangan infrastruktur seperti bandara Soetta yang akan direnovasi.

Jajaki Kerjasama Ekonomi Kreatif

Sejak tiba di Tokyo pada Kamis (20/9), Mari Pangestu telah bertemu dengan Menteri Ekonomi, Perdagangan dan Perindustrian

(METI) Yukio Edano dan Wakil Menteri Pendidikan, Sains, Olah Raga dan Teknologi (MEXT) Miho Takai untuk menjalin kerjasama

di bidang pariwisata dan ekonomi kreatif.

Mari Pangestu juga menjajaki kemungkinan pengiriman anak-anak muda Indonesia untuk belajar pengelolaan film, animasi,

pertunjukan, dan games di Jepang. “Wakil Menteri Miho Takai menanggapi rencana ini sangat mungkin karena tahun 2013 Jepang

akan meningkatkan anggaran bea siswa kepada Indonesia,” jelas Mari Pangestu. (sumber: KBRI Tokyo/Pen/jr/ed.Yo2k)

Source: http://www.kemlu.go.id/ptri/Pages/News.aspx?IDP=5830&l=id

Page 42: Creative economy   November 2012

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attempts-to-archive-the-space-and-time

Page 44: Creative economy   November 2012

DANNY RAHDIANSYAH Danny Rahdiansyah currently works in the Directorate of Dialogue Partners

and Inter-Regional Cooperation – ASEAN. His assignment started from

August 2011, when he was tasked as the Desk Officer responsible for handling

the East Asia Summit (EAS)-related issues. Since November 2011, he was

officially assigned as Head of Section for East Asia Summit Cooperation. In

his work, he also involves in various ASEAN and EAS-related meetings. In

this connection, he was seconded to Indonesian Embassy in Phnom Penh in

Cambodia, to support the Indonesian delegation to the 20th ASEAN Summit.

Prior to this assignment, he served as Third Secretary, then promoted to

Second Secretary, at the Indonesian Embassy in Rome (December 2007 – July

2011). During his tenure in Rome, his responsibility covered, among others,

the bilateral political affairs as well multilateral affairs, including issues

related to Food and Agriculture Organization of the United Nations (FAO) and

International Fund for Agricultural Fund (IFAD). One of his flagship activities in the political section was the

preparation of establishing the ASEAN Committee in Rome in early 2011. In the multilateral fora, he

participated actively in various meetings and conferences on Agriculture and Food Security issues. He was

elected a member of Committee for World Food Security (CFS) Drafting Committee, representing Indonesia

(2010). In the same year, he was also elected as a member of IFAD’s Staff Pension Committee, representing

Governing Body members. He was seconded to IFAD from November 2008 – February 2010, working as a

member of Loan and Grants Team in the Financial Service Division. He was later transferred to the Office of

the Assistant President, Finance and Administration Department, serving as Interim Adviser to the Assistant

President, responsible for among others, as focal point for Country Presence initiative. During his secondment

in IFAD, he experienced first-hand working in an international surrounding within the UN System.

From 2004-2007, he was tasked as Desk Officer for several key ASEAN Dialogue Partners, namely European

Union, Russia, United States of America, and Canada, in the same division he is currently working

(Directorate of Dialogue Partners and Inter-Regional Cooperation – ASEAN). During this period, he was also

trusted to become part of Indonesian delegation to various ASEAN meetings.

In the beginning of his career in the Ministry of Foreign Affairs, he was assigned as Diplomatic Intern at the

Indonesian Embassy in Vienna, Austria (2004), and as Intern at the Center for Research and Policy

Development for International Organization, Ministry of Foreign Affairs, Republic of Indonesia (2003-2004).

Also in 2004, he participated in the 1st Junior Diplomatic Course in the Clingendael Institute, as the

implementation of the cooperation agreement between Government of Indonesia and Government of

Netherlands.

Before joining the Ministry of Foreign Affairs as a Diplomat, he worked as Assistant Lecturer in his

Almamater (Universitas Indonesia) (2000-2002). Subsequently, he entered the journalism world, working as a

Reporter for a national weekly magazine, FORUM Keadilan (2002).

He obtained his Master of Public Policy Degree from University of Sydney in 2006. Previously, he received

his Bachelor Degree in International Relations, from Universitas Indonesia in 2002.

Since 2009, he began writing in national mass media. His articles were mainly about Indonesian Foreign

Policy and international issues. His articles were published in the Jakarta Post daily, and several other

national weekly magazines, namely FORUM Keadilan, GATRA, and FIGUR. His articles can be viewed from

this link: www.slideshare.net/dannyrahdiansyah.

He has a keen interest for science-fiction literatures. He is married and blessed with a daughter.

Jakarta, November 2012