Creative industries and regional economic development in Indonesia: Meanings, patterns and impacts

In developed countries, stimulating the emergence of a creative economy is a wide-spread and tested policy strategy to spur regional economic growth. Today, developing countries also implement such a strategy. However, it is unclear whether it can operate in the same way and deliver the same outcomes as in developed countries. This research looks into the feasibility of promoting creative industries as an instrument for regional economic development in developing economies in general, and in Indonesia in particular.

Policies on creative industries in Indonesia are strongly influenced by the prominence of traditional crafts businesses which constitute a large share of all jobs. Even though these businesses are involved in creative processes, the products tend to be ‘stagnant’ over time, as heritage values are highlighted as selling points. This contradicts the conceptual idea of creative industries, which emphasises innovation and new knowledge. ‘Real’ creative industries are still rare in Indonesia. The strongest concentrations of creative industries are found in fairly advanced urban regions, such as Java and Bali. However, even there, creative industries do not yet constitute a leading sector and are rather an indicator of regional development than a driver. Yet, given their relatively rapid growth, creative industries are likely to increasingly contribute to the regional economy. Promoting creative industries can thus be a feasible strategy for regional development in Indonesia, and potentially in other developing countries. Acknowledging the different manifestations of creative industries, however, is crucial in setting realistic policy goals that fit to the local contexts.