SlideShare a Scribd company logo
1 of 7
Download to read offline
American International Journal of Business Management (AIJBM)
ISSN- 2379-106X, www.aijbm.com Volume 3, Issue 10 (October 2020), PP 80-86
*Corresponding Author: Fanny Septina www.aijbm.com 80 | Page
Indonesia's Sustainability Economy: Creative Industry
Perspective
Fanny Septina
(Faculty of Management and Business, Universitas Ciputra Surabaya, Indonesia)
ABSTRACT : This study aims to observe the development of the creative industry as one of the pillars of
economic sustainability in Indonesia. The data used are export data and creative industry workers from BeKraf;
Real Gross Domestic Product (GDP) data, inflation, the exchange rate of the rupiah against the US dollar from
the Bank of Indonesia, the observation period of 2011 to 2019. The research method, the first stage of
descriptive analysis, the second stage of the correlation test. Descriptive analysis of the research results shows
that Indonesia's growing creative industries which are captured by an increase in the value of exports of creative
industry and the number of creative industry workers each year. The correlation test illustrates the strong
relationship between real GDP, the exchange rate of the rupiah against the US dollar with the value of exports,
and the amount of creative industry workforce. The creative industry sector has the opportunity to contribute to
sustainable economic growth in Indonesia by increasing exports of unique products such as traditional crafts that
carry the unique culture of the regions in Indonesia. The depreciating value of the rupiah increases the use of
local raw materials used by the fashion and crafts sub-sectors so that rising raw material prices (inflation) do not
have a significant impact.
KEYWORDS - creative economy, export of creative industry, economic growth, sustainable economy,
sustainability development.
I. INTRODUCTION
The resilience of the Indonesian economy, which is supported by the potential of abundant natural
resources, is considered good enough to face global shocks such as the economic crisis. However, this will still
be of concern to the government because the potential for disruption of natural resources such as looting,
overexploitation can damage environmental sustainability. A focus on maintaining natural resources and
renewing energy alone is not sufficient to achieve a sustainable economy. The creative industry attracts the
government's attention to continue to be developed indefinitely because natural resources can run out (BeKraf,
2017).
Indonesia is the originator of the idea of an international resolution for 2021 towards the year of
creative economy. This idea is part of the sustainable development goals for 2030 and has been endorsed by the
United Nations. Focusing on investment, technology optimization and digital innovation, supporting the role of
micro, small and medium enterprises, the young generation, women and civil society in the development of the
creative economy. The creative economy is one of the important sectors in the industrial revolution 4.0
(Tempo.co,2020).
The problem of social welfare in relation to work is a classic problem that must be addressed
immediately. In developing countries, the amount of real wages is influenced by the growth in labor
productivity in a region. Many developing countries, including Indonesia, have low quality jobs and an
unsupportive physical environment, but on the other hand, the opportunity for new jobs to emerge as
technological developments grow rapidly (United Nations, 2020).
The government formed the Creative Economy Agency (BeKraf) through Presidential Regulation
Number 6 of 2015 which was then changed to Presidential Regulation Number 72 of 2015, to accommodate and
manage all information and activities surrounding the creative industry in Indonesia. There are 16 sub-sectors,
namely architecture, interior design, visual communication design, product design, film-video-animation,
photography, crafts, culinary, music, fashion, game developer applications, publishing, advertising, television-
radio, performing arts, fine arts. The three largest sub-sectors that account for 95% of the export value of
creative products are the culinary, crafts and fashion sub-sectors (BeKraf, 2017).
The growth of the creative economy from 2010 to 2015 has decreased, from 2015 to 2019 it has
increased in line with higher GDP, but has not been able to contribute maximally to the national economy. The
average growth in exports of creative products from 2010 to 2014 reached 7.94 percent, followed by 2015,
exports of creative products grew 6.6 percent (BeKraf, 2017). Demographically, Indonesia has the opportunity
to encourage creative economic growth because 60% of Indonesia's 237 million people are of the productive age
(15-55 years) and 27% of the young generation (16-30 years) population census data 2010. This opportunity
Indonesia's Sustainability Economy: Creative Industry Perspective
*Corresponding Author: Fanny Septina www.aijbm.com 81 | Page
must be accompanied by strategies and the right policies to achieve a creative economy towards sustainability
development (BeKraf, 2017).
One challenge for BeKraf is that the creative industry statistical data is not well structured. Data on
creative industries nationally and globally are very limited, so it is difficult for studies in the creative industry to
measure accurately, such as the measurement of creative workers, where available labor data are workers of all
sectors. UNESCO experienced the same difficulty when conducting a study of global cultural industries in 2011.
Many cross-business economic surveys produce ambiguous data because not all of the data for micro, small and
medium enterprises are in the creative industry sector. Even though the creative industry has a data linkage with
estimates of labor growth and GDP (Economics Oxford, 2019). Thus, this study aims to observe the
development of the creative industry as part of a sustainable economy in Indonesia.
II. LITERATURE REVIEW
Sustainability Development
The definition of sustainable development that is closest to the current conditions according to the
Brundtland Report 1987 (United Nations, 1987) is the ability to meet current needs without reducing the ability
of future generations to meet their own needs. There are three pillars in this concept, namely environmental
sustainability, economic sustainability and social sustainability. It says sustainability if the three pillars achieve
balance. Social and economic collaboration is called equitable, social and environmental is called bearable,
economy and environment are called viable. Environmental sustainability, where humans live side by side with
natural resources. The consumption of natural resources such as energy, water, land and other sources is ensured
at a sustainable level. Economic sustainability requires a business or a country to use resources efficiently and
responsibly so that operations run at the sustain level consistently generate operating profit. Social sustainability
is the ability of a community or social system to persistently achieve a reasonable social existence
(Circularecology, 2020).
Figure 1. The three pillars of sustainability
Source: futurelearn.com (2020)
Economic Indicators in Sustainable Development
According to SSF (2016), Gross Domestic Product (GDP) is the market value of goods or services
produced by a country in a certain period. GDP is used as a measure of a country's economy as long as it can
generate state income. Meanwhile, labor as a general indicator to measure the economic status of a country. For
most individuals, labor indicators are important to determine current conditions in developing self potential.
Creative Economy
The definition of creative economy according to Presidential Instruction Number 6 of 2009 (BeKraf,
2017) is economic activity based on creativity, skills and talents to create creations and inventions that have
economic value so that they can increase the welfare of the Indonesian people. The creative economy is a
concept that positions creativity and knowledge as the main assets driving the economy of a country so that it no
longer only relies on natural resources (Bekraf, 2017).
Potts (2009) states that there are two hypotheses why the creative industry is closely related to
economic evolution. First, the structure of the economic system is developing with the creative industry being
the most significant component of the economic order. Second, the creative industry is part of the economic
evolution through the economic order. In the Growth model of Creative Industry, Potts describes the fashion and
design sector as growing rapidly compared to other sectors due to technology, changing microeconomics,
globalization, demand for products and wealth of customers, so competing policies are appropriate.
Evolutionary Creative Industry model describes the increase in the fashion and design sector in all types of
products and services due to adaptation to the latest technology, social context, so what is appropriate is a policy
Indonesia's Sustainability Economy: Creative Industry Perspective
*Corresponding Author: Fanny Septina www.aijbm.com 82 | Page
to innovate. Factors that influence the creative industry based on investment categories and supply of input are
state subsidies, interest rates, consumer price index, unemployment rate, GDP growth.
The creative economy sector labor wage in the report published by BeKraf (2017) refers to the 2011-2016
Sakernas data, the labor wage is average wage of workers with the main job status as an employee in the
creative economic sector. Workers who work for temporary employers are classified as casual workers. The
largest number of workers in the creative sector is in the fashion, crafts and culinary sectors.
The adaptation of innovation and technological developments to local conditions can generate
tremendous potential. The high demand for environmental changes encourages the creative growth of the local
population (Ghazi & Goede, 2016). The creative industry is one of the strategies for sustainable economic
development, namely resilience to crises and has contributed to economic growth including encouraging growth
of gross domestic product, providing sectoral added value and multiplier effects to other sectors (Bilan,
Vasilyeva, Kryklii, & Shilimbetova, 2019).
III. RESEARCH METHODOLOGY
This descriptive quantitative research uses secondary data, namely real GDP data, inflation, US dollar
exchange rate, creative industry exports, non-oil and gas exports, data on creative industry workforce in the
2011-2019 period. The data was obtained from the BeKraf and Bank of Indonesia websites. The first stage of
the analysis is descriptive statistical analysis using real GDP data, exports of both creative and non-oil and gas
industries as well as data on the number of creative industry workers for the period 2011 to 2019. The second
stage is conducting a correlation test to observe the relationship between the export value of creative industries,
the number of workers creative industry work, real GDP, inflation, exchange rates for the 2011-2019 period.
IV. RESULTS AND DISCUSSION
Based on Table 1, the average export value of the creative industry is 19,491,053.69 million rupiah per
year, large enough to contribute to the value of non-oil and gas exports. The average creative industry workforce
is 15.65 million people per year. The standard deviation of creative industries (exports and labor) shows the
distribution of data on an average of 3,574,498.28 million rupiah and 1.25 million people. The kurtosis value of
all the data above is negative, meaning that the data distribution is evenly sloping. The skewness value of all
data shows a value close to zero on the normal curve, for the value of non-oil and gas exports and for labor the
curve is not symmetrical to the left because it is negative. The lowest non-oil and gas export value fell in 2016
amounting to 131,553,643.58 million rupiah, while the highest in 2018 was 163,110,799.15 million rupiah. The
total export value of the creative industry until 2019 was 175,419,483.20 million rupiah.
The export value of creative industries from 2011 to 2019 has increased every year, in contrast to non-
oil and gas exports, which generally tend to decline. Even in 2014 the export of the creative economy
experienced a jump of up to 14.77%. With the main export destination country for Indonesia's creative industry
is the United States. The export destination countries for creative industries according to BeKraf (2017) data
include 31.72% of the United States; 6.74% Japan; 4.99% Taiwan; 4.96% Swiss; 4.56% German; 3.82%
Singapore; 3.49% Chinese; 3.02% Hong Kong; 2.93% Belgian; and 2.86% UK.
Table 1. Descriptive statistic
Descriptive
statistic
GDP real (billion
rupiahs)
Non-oiled export’s
value (million
rupiahs)
Export of creative
industry’s value
(million rupiahs)
Creative
industry’s labor
(million people)
Mean 8,836,885.88 148,394,375.95 19,491,053.69 15.65
Median 8,419,584.01 149,920,000.00 19,364,077.40 15.96
Standard
deviation
1,699,790.32 11,457,966.53 3,574,498.28 1.25
Kurtosis -1.32 -0.77 -1.27 -0.88
Skewness 0.36 -0.32 0.34 -0.57
Range 4,808,278.20 31,557,155.57 9,660,418.40 3.55
Minimum 6,660,227.00 131,553,643.58 15,439,581.60 13.45
Maximum 11,468,505.20 163,110,799.15 25,100,000.00 17.00
Sum 79,531,972.91 1,335,549,383.58 175,419,483.20 140.81
Source: BeKraf (2020); prepared by author.
The contribution of the creative industry to GDP (in table 2) has increased consistently. The
contribution of the creative industry in 2019 is the result of projections based on growth in 2018 (BeKraf, 2018).
Indonesia's Sustainability Economy: Creative Industry Perspective
*Corresponding Author: Fanny Septina www.aijbm.com 83 | Page
It is projected that in 2019 the contribution of the creative industry to GDP is close to Rp1,193.4 trillion
(Syarizka, 2019).
The growth in the number of creative economy workers in Indonesia from 2011 to 2016 (table 3) shows an
average increase of 4.69% per year with three main sectors, namely fashion, culinary and crafts. The increase in
exports of creative products from both the fashion and craft sectors has the potential to boost the Indonesian
economy through increasing added value, income and employment (Sukma, Hartono, & Prihawantoro, 2018). In
2015 BeKraf was formed through Presidential Decree No. 6/2015 to accommodate the development of the
creative industry in Indonesia, creative industry business assistance programs and exhibition activities for
creative industry products and services were managed massively. The figure for the number of creative industry
workers in 2019 is the result of a projection calculation based on the target number of workforce in 2019, which
is 17 million people (BeKraf, 2017). The prediction of an increase in the number of creative industry workers
will exceed the 2019 target of 17 million people (Hariyanti, 2018).
Table 2. Creative industry’s contribution to GDP 2011-2019
Period Creative industry’s contribution to GDP
(trillion rupiahs)
Growth of creative industry’s
contribution
2011 581.54 -
2012 638.39 9.78%
2013 708.27 10.95%
2014 784.82 10.81%
2015 852.56 8.63%
2016 922.59 8.21%
2017 1,009 9.37%
2018 1,105 9.51%
2019 1,211* 9.59%
Source: BeKraf (2020); prepared by author.
Table 3. Creative industry’s labor 2011-2019
Period Creative industry’s labor (million people) Growth of creative industry’s
labor
2011 13.45 -
2012 14.49 7.73%
2013 14.73 1.66%
2014 15.17 2.99%
2015 15.96 5.21%
2016 16.91 5.95%
2017 16.40 -3.02%
2018 16.70 1.83%
2019 17.00 1.80%
Source: BeKraf (2020); prepared by author.
In the correlation test, it shows that the export value of the creative industry and the number of creative
industry workers has a strong relationship with the real Gross Domestic Product (GDP), namely 0.9 close to 1
and positive. The relationship between export value and the number of creative industry workers with inflation
is very weak and negative. The exchange rate with the export value of the creative industry has a correlation of
0.82, while the number of creative industry workers is 0.91. This illustrates that the contribution of the creative
industry, especially the export of creative products / services in Indonesia, plays a role in increasing real GDP
and has the potential to be exposed to changes in exchange rates. On the other hand, inflation has no impact on
exports and the workforce of creative industries in Indonesia. Alexandri, et al. (2019) the contribution of art
performances contributed 0.26% to the creative economy in Indonesia. Performing arts is divided into dance,
theater and music, and traditional arts be it dance, song, musical instrument play. Traditional art performance is
one of the inherent categories of culture and social value, but in its development the production cycle continues
to decline.
The results of this study agree with Dong and Truong (2019), which states that the export of
Vietnamese creative products has a positive relationship to economies of scale and market development both in
Vietnam and in export destination countries. Export growth in developing countries is determined by external
factors, namely foreign direct investment (FDI) and real exchange rate as well as domestic factors, namely GDP,
Indonesia's Sustainability Economy: Creative Industry Perspective
*Corresponding Author: Fanny Septina www.aijbm.com 84 | Page
GDP growth rate, indirect taxes, communication facilities, savings, industrialization, labor, and business
development assistance (Majeed & Ahmad, 2006).
The foreign exchange rate of the Rupiah against the US dollar has a strong relationship with the export
value of the creative industry where the export of creative industries is part of the non-oil and gas exports.
Monetary policy plays an important role in stabilizing the economy and increasing the economic growth of a
country. Currency exchange rate stabilization policy is believed to be able to encourage the growth of a country
(Ahmad, Afzal, & Ghani, 2016).
The inflation rate has a weak relationship with the export of creative industries. Economic growth
(GDP) is influenced by the inflation rate (Ahmad, Afzal, & Ghani, 2016). In this condition, the export of
creative industries is influenced by the level of demand for creative products. Naomi (2012) found that
competitive interactions in the manufacturing industry tend to be stable compared to competitive interactions in
creative industries. Competitive interactions in creative industries are more dynamic than in manufacturing
industries. Demand increases and growth occurs as population and GDP increase. Demand characteristics have
changed and differed due to consumer's lifestyle and behavior. Consumers prefer unique products to standard
products, therefore the creative industry has the potential to develop more than the manufacturing industry. New
sources of supply are the power of the creative industry. Bilan, Vasilyeva, Kryklii & Shilimbetova (2019) found
that the development of creative industries depends on the general business climate in a country and the standard
of living of the population as the main consumers. This is what forms the basis of creative groups and increases
the demand for products in the creative industry sector.
According to Bilan, Vasilyeva, Kryklii & Shilimbetova (2019), the creative industry contributes to
economic growth such as a direct positive impact on economic standard variables such as gross value added and
gross domestic product. The impact is indirect and can be measured to the economic contribution including
multiplier effects, for workers who work in the creative sector but use their money in other sectors, or the
creative sector buys raw materials from other sectors. A study conducted by Bilan, Vasilyeva, Kryklii &
Shilimbetova (2019) shows that turnover per dollar of creative industries generates a stimulus of 3.76 times total
revenue for all industries in Australia. Direct positive impact at various levels of workers; the highest percentage
of youth employment across the economy; the best rating for independent women workers relative to other
sectors. This study shows that the creative industry has contributed to global GDP but the creative industry is
still in an intermediate position in both developing countries and developing countries. The economic
superiority of the creative industry does not appear to be as significant as the contribution of the industrial and
financial sectors.
Economic development has not only led to diversification of exports but also diversification of labor
across industries and related sectors (Bosupeng, 2017). Setiawan's research (2018) uses the Global Creativity
Index model, the competitive level of Indonesia's economy in ASEAN and the world is still weak. This weak
level of competition depends on the weak index of technology and the index of talent (creativity). The low
technology index contributes to the weak protection of intellectual property rights. The prevailing policy is
expected to be a stimulus to help the intellectual property administration process instead of being an obstacle to
innovation (White, Gunasekaran & Roy, 2012).
Ndou, Schiuma and Passiante (2019) find ways to increase human resources and creative assets to
innovate, namely by making the right collaboration between talents and technology-based companies and an
environment that supports the creation of creative ideas. The combination of talent and technology is able to
create a new product / service, method, business model.
The creative industry sector has the opportunity to contribute to economic growth in Indonesia to
achieve a sustainable economy, by increasing the export of creative products such as traditional crafts that carry
regional culture in Indonesia. In addition, the depreciating value of the rupiah could actually become an export
opportunity for several creative industry sub-sectors in Indonesia. The use of local raw materials is widely used
by the fashion and crafts sub-sector so that the increase in raw material prices (inflation) does not have a
significant impact. Technological advances have contributed to opening up new opportunities such as the sub-
sector of design, film, music, game development and others (BeKraf, 2018). Human creativity can continue to
be developed so that the number of unemployed can continue to be reduced.
V. CONCLUSION
This study uses a sample of creative industry exports, creative industry labor, real GDP, inflation, and
the US dollar exchange rate for the period 2011-2019, using descriptive statistical analysis methods and
correlation testing. Indonesia's creative industry continues to grow, indicated by the increase in the export value
of the creative industry and the number of creative industry workers every year, thus contributing to an increase
in national GDP and helping to reduce unemployment by creating new jobs with creativity. The correlation test
illustrates a strong relationship between real GDP, the rupiah exchange rate against the US dollar with the
export value and the number of creative industry workers. The exports of creative industries contribute to
Indonesia's Sustainability Economy: Creative Industry Perspective
*Corresponding Author: Fanny Septina www.aijbm.com 85 | Page
economic growth, namely real GDP, fluctuations in the value of the Rupiah against the US dollar are closely
related to the export value of the creative industry, especially since the main export destination country is the
United States. Inflation has a weak relationship with the value of exports and the number of creative industry
workers, in this case the level of demand for creative products continues to increase.
The theoretical implication is to provide a perspective on the creative sector export variables and
creative sector labor variables which have a strong relationship with the GDP variable and the US dollar
exchange rate variable, but have a weak relationship with the inflation variable. The practical implication is that
the government through the Creative Economy Agency (BeKraf) is expected to continue to strive to provide
assistance to small businesses in the creative industry so that Indonesia's sustainable economy is realized,
strengthening economic resilience amid various global threats. Conduct regular data collection on the creative
industry to gather accurate information, which can be used in administrative processes related to funding and for
research.
The limitations of research on the creative economy are the incomplete data available for the period,
the raw data is not available, making it difficult to process as a data source for an empirical study. Various
studies in the creative industry use data estimation and various research methodologies, making studies in the
cultural industry or creative industries less suitable in comparison. Future research in Indonesia is expected to
use data and official creative industry reports released by the Creative Economy Agency and refer to a globally
recognized creative index such as the GCI (Global Creativity Index).
REFERENCES
[1]. Ahmad, D., Afzal, M., & Ghani, U. (2016). Impact of Monetary Policy on Economic Growth Empirical
Evidence of Pakistan. International Journal of Applied Economic Studies Vol. 4, Issue 6, 1-9.
[2]. Alexandri, M.B., Maulina, E., Chan, A., & Sumadinata. R.W.S. (2019). Creative Industries: Existence
Of Arts Traditional Industries In Indonesia, Academy of Strategic Management Journal, Volume 18,
Issue 1.
[3]. Bank Indonesia. (2020). Data Statistik. Downloaded on January, 3rd
, 2020. Retrieved from
https://www.bi.go.id/id/statistik/seki/terkini/riil/Contents/Default.aspx.
[4]. BeKraf. (2018). Opus Creative Economy Outlook 2019. Jakarta: BeKraf.
[5]. BeKraf. (2017). Rencana Strategis Badan Ekonomi Kreatif Tahun 2015 – 2019. Jakarta: BeKraf.
[6]. Bilan, Y., Vasilyeva, T., Kryklii, O., & Shilimbetova, G. (2019). The Creative Industry as A Factor in
The Development of The Economy: Dissemination Of European Experience In The Countries With
Economies In Transition. Creativity Studies,12(1), 75– 101.
[7]. Bosupeng, M. (2017). The Export-Led Growth Hypothesis: New Evidence and Implications. Munich
Personal RePEc Archive, 1-29.
[8]. BPS & BeKraf. (2017). Upah Tenaga Kerja Ekonomi Kreatif 2011-2016. Jakarta: BeKraf.
[9]. BPS & BeKraf. (2017). Ekspor Ekonomi Kreatif 2010-2016. Jakarta: BeKraf.
[10]. BPS & BeKraf. (2017). Data Statistik dan Hasil Survei Ekonomi Kreatif, Kerjasama Badan Ekonomi
Kreatif dan Badan Pusat Statistik. Jakarta: BeKraf.
[11]. Circular Ecology. (2020). Sustainability and Sustainable Development - What is Sustainability and
What is Sustainable Development? Downloaded on April, 20th
, 2020. Retrieved from
https://circularecology.com/sustainability-and-sustainable-
development.htmlhttps://www.futurelearn.com/courses/sustainability-society-and-you/0/steps/4618.
[12]. Dong, C., & Truong, H. (2019). The determinants of creative goods exports: evidence from Vietnam.
Journal of Cultural Economics.
[13]. Economics Oxford. (2019). The Economic Impact Of The Creative Industries In The Americas.
Organization of American States; British Council; Inter-American Development Bank.
[14]. Fraser, S. (2011). Access to Finance for Creative Industry Businesses. Department of Business and
Skills. BIS and DCMS.
[15]. Ghazi, E.L., & Goede, M. (2016). Creative Economy Assessment: A Case Study Of Kish Island.
www.emeraldinsight.com/0306- 8293.htm.
[16]. Hariyanti, D. (2018). Bekraf: Penyerapan Tenaga Kerja Kreatif pada 2019 Akan Lampaui Target.
Downloaded April, 20th
, 2020. Retrieved from https://katadata.co.id/berita/2018/12/13/bekraf-
penyerapan-tenaga-kerja-kreatif-pada-2019-lampaui-targe.
[17]. Majeed, M. T., & Ahmad, E. (2006). Determinants of Exports in Developing Countries. The Pakistan
Development Review 45: 4 Part II (Winter 2006), 1265–1276.
[18]. Naomi, P. (2012). The Dynamics of Competitiveness in Creative and Manufacturing Industries in the
Indonesia Stock Exchange (IDX) of Pre and Post Crisis. Int. J. Manag. Bus. Res., 2 (1), 51-58.
[19]. Ndou, V., & Schiuma, G., & Passiante, G. (2019). Towards A Framework For Measuring Creative
Economy: Evidence From Balkan Countries. Measuring Business Excellence Vol. 23 No. 1.
Indonesia's Sustainability Economy: Creative Industry Perspective
*Corresponding Author: Fanny Septina www.aijbm.com 86 | Page
[20]. Potts, J. (2009). Why the creative industries matter to economic evolution. Economics of Innovation
and New Technology 18(7-8), 663- 673.
[21]. Setiawan, S. (2018). Prospects and Competitiveness in Creative Economy: Evidence from Indonesia.
International Journal of Research in Business and Social Science 7(2), 2018, 47-56.
[22]. Sukma, M., Hartono, D., & Prihawantoro, S. (2018). The Impacts Analysis of Creative-Products
Export on the Economy. Jurnal Ekonomi dan Kebijakan Vol 11 (1) (2018), 92-107.
[23]. SSF. (2014). Sustainable City Index SCI-2014. Downloaded on September, 3rd
, 2016. Retrieved from
http://www.ssfindex.com/ssi2016/wp-content/uploads/pdf/Summary-SCI2014.pdf.
[24]. SSF. (2016). Indicator 19-GDP. Downloaded on September, 3rd
, 2016. Retrieved from
http://www.ssfindex.com/ssi2016/wp- content/uploads/pdf/indicator19-2016.pdf
[25]. SSF. (2016). Indicator 20-Employment. Downloaded on September, 3rd
, 2016. Retrieved from
http://www.ssfindex.com/ssi2016/wp- content/uploads/pdf/indicator20-2016.pdf
[26]. Syarizka, D. (2019). Ekonomi Kreatif Tahun Ini Diproyeksi Menyentuh Rp1.193,4 Triliun.
Downloaded on April, 20th
, 2020. Retrieved from https://
ekonomi.bisnis.com/read/20190115/12/878987/ekonomi-kreatif-tahun-ini-diproyeksi-menyentuh-
rp1.1934-triliun.
[27]. Tempo.co. (2020). Gagasan Indonesia untuk Tahun Ekonomi Kreatif Disahkan PBB. Downloaded on
July, 6th
, 2020. Retrieved from https://dunia.tempo.co/read/1286093/gagasan-indonesia-untuk-
tahun-ekonomi-kreatif-disahkan-pbb/full&view=ok.
[28]. United Nations. (1987). Report of the World Commission on Environment and Development: Our
Common Future. Downloaded on September, 3rd
, 2016. Retrieved from
https://www.are.admin.ch/are/en/home/sustainable-development/international-
cooperation/2030agenda/un-_-milestones-in-sustainable-development/1987--brundtland-report.html
[29]. United Nations. (2020). World Economic Situation and Prospects 2020. Downloaded on April, 20th
,
2020. Retrieved from https://www.un.org/development/desa/dpad/document_gem/global-economic-
monitoring-unit/world-economic-situation-and- prospects-wesp-report/
[30]. White, D.S., Gunasekaran, A., & Roy, M.H. (2012). Performance Measures And Metrics For The
Creative Economy. www.emeraldinsight.com/1463-5771.htm.
Appendix 1.
Table 1. Creative industry’s export and non-oiled export 2011-2019
Period Non-oiled export value
(million rupiahs)
Creative industry
export’s value (million
rupiahs)
Contribution of creative
industry’s export to non-oiled
export’s value
Growth of creative
industry’s export
2011 162,720,858.00 15,641,397.20 9.61% -
2012 152,924,925.00 15,439,581.60 10.10% -1.29%
2013 149,920,000.00 15,870,628.40 10.59% 2.79%
2014 146,540,725.00 18,214,930.00 12.43% 14.77%
2015 131,940,835.63 19,364,077.40 14.68% 6.31%
2016 131,553,643.58 19,988,868.60 15.19% 3.23%
2017 153,309,550.22 22,100,000.00 14.42% 10.56%
2018 163,110,799.15 23,700,000.00 14.53% 7.24%
2019 143,528,047.00 25,100,000.00 17.49% 5.91%
Source: BeKraf, prepared by author (2020)
Table 2. Correlation of macroeconomic indicators and creative industry’s export and labor 2011-2019.
GDP real Inflation Exchange
rate
Creative industry’s
export
Creative
industry’s labor
GDP real 1
Inflation -0.56399494 1
Exchange rate 0.79600607 -0.2176 1
Creative industry’s
export
0.98125421 -0.5342 0.822552 1
Creative industry’s
labor
0.913692332 -0.46536 0.914194 0.88776008 1
Source: BeKraf, prepared by author (2020)
Author: Fanny Septina
(Faculty of Management and Business, Universitas Ciputra Surabaya, Indonesia)

More Related Content

What's hot

4.[29 38]human capital development and economic growth in nigeria
4.[29 38]human capital development and economic growth in nigeria4.[29 38]human capital development and economic growth in nigeria
4.[29 38]human capital development and economic growth in nigeriaAlexander Decker
 
Powerpoint đông nam á 1
Powerpoint đông nam á 1Powerpoint đông nam á 1
Powerpoint đông nam á 1Trần Thùy
 
Basic Problem of an Economy
Basic Problem of an EconomyBasic Problem of an Economy
Basic Problem of an EconomyManish Purani
 
Manufacturing In India And China
Manufacturing In India And ChinaManufacturing In India And China
Manufacturing In India And ChinaBhawna Gupta
 
Economics FOR engineers
Economics FOR engineersEconomics FOR engineers
Economics FOR engineersJitesh Kaushik
 
Factors affecting employment during crisis in private businesses in Kurdistan
Factors affecting employment during crisis in private businesses in Kurdistan Factors affecting employment during crisis in private businesses in Kurdistan
Factors affecting employment during crisis in private businesses in Kurdistan IJAEMSJORNAL
 
The effect of interest rate, inflation and government expenditure on economic...
The effect of interest rate, inflation and government expenditure on economic...The effect of interest rate, inflation and government expenditure on economic...
The effect of interest rate, inflation and government expenditure on economic...Alexander Decker
 
India 2017-oecd-economic-survey ppt
India 2017-oecd-economic-survey pptIndia 2017-oecd-economic-survey ppt
India 2017-oecd-economic-survey pptKaran Puri
 
Implication of financial viability and value chain analysis of agro processin...
Implication of financial viability and value chain analysis of agro processin...Implication of financial viability and value chain analysis of agro processin...
Implication of financial viability and value chain analysis of agro processin...Alexander Decker
 
Changing nature of work: Course Future of Work
Changing nature of work: Course Future of WorkChanging nature of work: Course Future of Work
Changing nature of work: Course Future of Workrakesh singh
 
An empirical test of the relationship between private savings
An empirical test of the relationship between private savingsAn empirical test of the relationship between private savings
An empirical test of the relationship between private savingsAlexander Decker
 
Role of Finance and Organizational Climate on Entrepreneurial Development amo...
Role of Finance and Organizational Climate on Entrepreneurial Development amo...Role of Finance and Organizational Climate on Entrepreneurial Development amo...
Role of Finance and Organizational Climate on Entrepreneurial Development amo...ijtsrd
 
6 the economic implications of monetization 60-71
6 the economic implications of monetization 60-716 the economic implications of monetization 60-71
6 the economic implications of monetization 60-71Alexander Decker
 
A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE:...
A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE:...A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE:...
A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE:...IJMIT JOURNAL
 

What's hot (18)

Macroeconomics
MacroeconomicsMacroeconomics
Macroeconomics
 
4.[29 38]human capital development and economic growth in nigeria
4.[29 38]human capital development and economic growth in nigeria4.[29 38]human capital development and economic growth in nigeria
4.[29 38]human capital development and economic growth in nigeria
 
Powerpoint đông nam á 1
Powerpoint đông nam á 1Powerpoint đông nam á 1
Powerpoint đông nam á 1
 
Basic Problem of an Economy
Basic Problem of an EconomyBasic Problem of an Economy
Basic Problem of an Economy
 
Manufacturing In India And China
Manufacturing In India And ChinaManufacturing In India And China
Manufacturing In India And China
 
International economics
International economicsInternational economics
International economics
 
Economics FOR engineers
Economics FOR engineersEconomics FOR engineers
Economics FOR engineers
 
Effect of Aggregated and Disaggregated Public Spending On the Nigerian Econom...
Effect of Aggregated and Disaggregated Public Spending On the Nigerian Econom...Effect of Aggregated and Disaggregated Public Spending On the Nigerian Econom...
Effect of Aggregated and Disaggregated Public Spending On the Nigerian Econom...
 
Factors affecting employment during crisis in private businesses in Kurdistan
Factors affecting employment during crisis in private businesses in Kurdistan Factors affecting employment during crisis in private businesses in Kurdistan
Factors affecting employment during crisis in private businesses in Kurdistan
 
The effect of interest rate, inflation and government expenditure on economic...
The effect of interest rate, inflation and government expenditure on economic...The effect of interest rate, inflation and government expenditure on economic...
The effect of interest rate, inflation and government expenditure on economic...
 
India 2017-oecd-economic-survey ppt
India 2017-oecd-economic-survey pptIndia 2017-oecd-economic-survey ppt
India 2017-oecd-economic-survey ppt
 
Implication of financial viability and value chain analysis of agro processin...
Implication of financial viability and value chain analysis of agro processin...Implication of financial viability and value chain analysis of agro processin...
Implication of financial viability and value chain analysis of agro processin...
 
Changing nature of work: Course Future of Work
Changing nature of work: Course Future of WorkChanging nature of work: Course Future of Work
Changing nature of work: Course Future of Work
 
Ijmet 10 01_185
Ijmet 10 01_185Ijmet 10 01_185
Ijmet 10 01_185
 
An empirical test of the relationship between private savings
An empirical test of the relationship between private savingsAn empirical test of the relationship between private savings
An empirical test of the relationship between private savings
 
Role of Finance and Organizational Climate on Entrepreneurial Development amo...
Role of Finance and Organizational Climate on Entrepreneurial Development amo...Role of Finance and Organizational Climate on Entrepreneurial Development amo...
Role of Finance and Organizational Climate on Entrepreneurial Development amo...
 
6 the economic implications of monetization 60-71
6 the economic implications of monetization 60-716 the economic implications of monetization 60-71
6 the economic implications of monetization 60-71
 
A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE:...
A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE:...A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE:...
A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE:...
 

Similar to Indonesia's Creative Industry and Sustainable Economy

BUSINESS MATCHING MODEL
BUSINESS MATCHING MODEL BUSINESS MATCHING MODEL
BUSINESS MATCHING MODEL ijbiss
 
M54113122.pdf
M54113122.pdfM54113122.pdf
M54113122.pdfaijbm
 
Creative industry competitiveness in indonesia
Creative industry competitiveness in indonesiaCreative industry competitiveness in indonesia
Creative industry competitiveness in indonesiaIwan Kurniawan Subagja
 
Association between Investment, Production, Export and Import: The Impact of...
	Association between Investment, Production, Export and Import: The Impact of...	Association between Investment, Production, Export and Import: The Impact of...
Association between Investment, Production, Export and Import: The Impact of...inventionjournals
 
Running head ECONOMIC DEVELOPMENT 1ECONOMIC DEVELOPMENT 8.docx
Running head ECONOMIC DEVELOPMENT 1ECONOMIC DEVELOPMENT 8.docxRunning head ECONOMIC DEVELOPMENT 1ECONOMIC DEVELOPMENT 8.docx
Running head ECONOMIC DEVELOPMENT 1ECONOMIC DEVELOPMENT 8.docxtodd271
 
Analysis Effect of Household Consumption, Private Investment and Regional Exp...
Analysis Effect of Household Consumption, Private Investment and Regional Exp...Analysis Effect of Household Consumption, Private Investment and Regional Exp...
Analysis Effect of Household Consumption, Private Investment and Regional Exp...AJHSSR Journal
 
Investment in Education Entrepreneurship and Economic Growth in Nigeria
Investment in Education Entrepreneurship and Economic Growth in NigeriaInvestment in Education Entrepreneurship and Economic Growth in Nigeria
Investment in Education Entrepreneurship and Economic Growth in Nigeriapaperpublications3
 
The Economic Development Of A Nation
The Economic Development Of A NationThe Economic Development Of A Nation
The Economic Development Of A NationKim Moore
 
Impact of Commercial Banking on Nigeria Industrial Sector
Impact of Commercial Banking on Nigeria Industrial SectorImpact of Commercial Banking on Nigeria Industrial Sector
Impact of Commercial Banking on Nigeria Industrial Sectorijtsrd
 
The Dynamic Relationship between Innovation Index and Macroeconomic Instrumen...
The Dynamic Relationship between Innovation Index and Macroeconomic Instrumen...The Dynamic Relationship between Innovation Index and Macroeconomic Instrumen...
The Dynamic Relationship between Innovation Index and Macroeconomic Instrumen...AJHSSR Journal
 
Enhancing SME Competitiveness in Indonesia through Digital Engagement-R4
Enhancing SME Competitiveness in Indonesia through Digital Engagement-R4Enhancing SME Competitiveness in Indonesia through Digital Engagement-R4
Enhancing SME Competitiveness in Indonesia through Digital Engagement-R4Nita Felia Pambudi
 
The Role Minister of Tourism and Creative Economy in Encourraging innovation.pdf
The Role Minister of Tourism and Creative Economy in Encourraging innovation.pdfThe Role Minister of Tourism and Creative Economy in Encourraging innovation.pdf
The Role Minister of Tourism and Creative Economy in Encourraging innovation.pdfState Islamic University Alauddin Makassar
 
Analysis of Public Investment Expenditure on Economic Growth in WAEMU Countries
Analysis of Public Investment Expenditure on Economic Growth in WAEMU CountriesAnalysis of Public Investment Expenditure on Economic Growth in WAEMU Countries
Analysis of Public Investment Expenditure on Economic Growth in WAEMU Countriesinventionjournals
 
Government role in influencing creative economy for community purchasing power
Government role in influencing creative economy for community purchasing powerGovernment role in influencing creative economy for community purchasing power
Government role in influencing creative economy for community purchasing powerTELKOMNIKA JOURNAL
 
The Effect of Commercial Banks Credit on Agricultural Sector’s Contribution t...
The Effect of Commercial Banks Credit on Agricultural Sector’s Contribution t...The Effect of Commercial Banks Credit on Agricultural Sector’s Contribution t...
The Effect of Commercial Banks Credit on Agricultural Sector’s Contribution t...ijtsrd
 
Fishery’s Potential in Indonesia
Fishery’s Potential in IndonesiaFishery’s Potential in Indonesia
Fishery’s Potential in Indonesiainventionjournals
 
The Influence of Facilities and Innovation in Improving Consumer Satisfaction...
The Influence of Facilities and Innovation in Improving Consumer Satisfaction...The Influence of Facilities and Innovation in Improving Consumer Satisfaction...
The Influence of Facilities and Innovation in Improving Consumer Satisfaction...AJHSSR Journal
 
Macroeconomic Variables and Manufacturing Sector Output in Nigeria
Macroeconomic Variables and Manufacturing Sector Output in NigeriaMacroeconomic Variables and Manufacturing Sector Output in Nigeria
Macroeconomic Variables and Manufacturing Sector Output in Nigeriaijtsrd
 

Similar to Indonesia's Creative Industry and Sustainable Economy (20)

BUSINESS MATCHING MODEL
BUSINESS MATCHING MODEL BUSINESS MATCHING MODEL
BUSINESS MATCHING MODEL
 
M54113122.pdf
M54113122.pdfM54113122.pdf
M54113122.pdf
 
Creative industry competitiveness in indonesia
Creative industry competitiveness in indonesiaCreative industry competitiveness in indonesia
Creative industry competitiveness in indonesia
 
Association between Investment, Production, Export and Import: The Impact of...
	Association between Investment, Production, Export and Import: The Impact of...	Association between Investment, Production, Export and Import: The Impact of...
Association between Investment, Production, Export and Import: The Impact of...
 
Running head ECONOMIC DEVELOPMENT 1ECONOMIC DEVELOPMENT 8.docx
Running head ECONOMIC DEVELOPMENT 1ECONOMIC DEVELOPMENT 8.docxRunning head ECONOMIC DEVELOPMENT 1ECONOMIC DEVELOPMENT 8.docx
Running head ECONOMIC DEVELOPMENT 1ECONOMIC DEVELOPMENT 8.docx
 
Analysis Effect of Household Consumption, Private Investment and Regional Exp...
Analysis Effect of Household Consumption, Private Investment and Regional Exp...Analysis Effect of Household Consumption, Private Investment and Regional Exp...
Analysis Effect of Household Consumption, Private Investment and Regional Exp...
 
Investment in Education Entrepreneurship and Economic Growth in Nigeria
Investment in Education Entrepreneurship and Economic Growth in NigeriaInvestment in Education Entrepreneurship and Economic Growth in Nigeria
Investment in Education Entrepreneurship and Economic Growth in Nigeria
 
The Economic Development Of A Nation
The Economic Development Of A NationThe Economic Development Of A Nation
The Economic Development Of A Nation
 
Impact of Commercial Banking on Nigeria Industrial Sector
Impact of Commercial Banking on Nigeria Industrial SectorImpact of Commercial Banking on Nigeria Industrial Sector
Impact of Commercial Banking on Nigeria Industrial Sector
 
The Dynamic Relationship between Innovation Index and Macroeconomic Instrumen...
The Dynamic Relationship between Innovation Index and Macroeconomic Instrumen...The Dynamic Relationship between Innovation Index and Macroeconomic Instrumen...
The Dynamic Relationship between Innovation Index and Macroeconomic Instrumen...
 
Enhancing SME Competitiveness in Indonesia through Digital Engagement-R4
Enhancing SME Competitiveness in Indonesia through Digital Engagement-R4Enhancing SME Competitiveness in Indonesia through Digital Engagement-R4
Enhancing SME Competitiveness in Indonesia through Digital Engagement-R4
 
The Role Minister of Tourism and Creative Economy in Encourraging innovation.pdf
The Role Minister of Tourism and Creative Economy in Encourraging innovation.pdfThe Role Minister of Tourism and Creative Economy in Encourraging innovation.pdf
The Role Minister of Tourism and Creative Economy in Encourraging innovation.pdf
 
Analysis of Public Investment Expenditure on Economic Growth in WAEMU Countries
Analysis of Public Investment Expenditure on Economic Growth in WAEMU CountriesAnalysis of Public Investment Expenditure on Economic Growth in WAEMU Countries
Analysis of Public Investment Expenditure on Economic Growth in WAEMU Countries
 
Government role in influencing creative economy for community purchasing power
Government role in influencing creative economy for community purchasing powerGovernment role in influencing creative economy for community purchasing power
Government role in influencing creative economy for community purchasing power
 
How Dynamics of Tax Compliance in the New Normal Era
How Dynamics of Tax Compliance in the New Normal EraHow Dynamics of Tax Compliance in the New Normal Era
How Dynamics of Tax Compliance in the New Normal Era
 
The Effect of Commercial Banks Credit on Agricultural Sector’s Contribution t...
The Effect of Commercial Banks Credit on Agricultural Sector’s Contribution t...The Effect of Commercial Banks Credit on Agricultural Sector’s Contribution t...
The Effect of Commercial Banks Credit on Agricultural Sector’s Contribution t...
 
Fishery’s Potential in Indonesia
Fishery’s Potential in IndonesiaFishery’s Potential in Indonesia
Fishery’s Potential in Indonesia
 
The Influence of Facilities and Innovation in Improving Consumer Satisfaction...
The Influence of Facilities and Innovation in Improving Consumer Satisfaction...The Influence of Facilities and Innovation in Improving Consumer Satisfaction...
The Influence of Facilities and Innovation in Improving Consumer Satisfaction...
 
Macroeconomic Variables and Manufacturing Sector Output in Nigeria
Macroeconomic Variables and Manufacturing Sector Output in NigeriaMacroeconomic Variables and Manufacturing Sector Output in Nigeria
Macroeconomic Variables and Manufacturing Sector Output in Nigeria
 
PhD Publication 1
PhD Publication 1PhD Publication 1
PhD Publication 1
 

More from aijbm

E582740.pdf
E582740.pdfE582740.pdf
E582740.pdfaijbm
 
A580108.pdf
A580108.pdfA580108.pdf
A580108.pdfaijbm
 
F584145.pdf
F584145.pdfF584145.pdf
F584145.pdfaijbm
 
B580914.pdf
B580914.pdfB580914.pdf
B580914.pdfaijbm
 
H585357.pdf
H585357.pdfH585357.pdf
H585357.pdfaijbm
 
G584652.pdf
G584652.pdfG584652.pdf
G584652.pdfaijbm
 
D582026.pdf
D582026.pdfD582026.pdf
D582026.pdfaijbm
 
C581519.pdf
C581519.pdfC581519.pdf
C581519.pdfaijbm
 
P57130135.pdf
P57130135.pdfP57130135.pdf
P57130135.pdfaijbm
 
M5799113.pdf
M5799113.pdfM5799113.pdf
M5799113.pdfaijbm
 
O57120129.pdf
O57120129.pdfO57120129.pdf
O57120129.pdfaijbm
 
R57139145.pdf
R57139145.pdfR57139145.pdf
R57139145.pdfaijbm
 
J577177.pdf
J577177.pdfJ577177.pdf
J577177.pdfaijbm
 
Q57136138.pdf
Q57136138.pdfQ57136138.pdf
Q57136138.pdfaijbm
 
C572126.pdf
C572126.pdfC572126.pdf
C572126.pdfaijbm
 
F574050.pdf
F574050.pdfF574050.pdf
F574050.pdfaijbm
 
E573539.pdf
E573539.pdfE573539.pdf
E573539.pdfaijbm
 
I576670.pdf
I576670.pdfI576670.pdf
I576670.pdfaijbm
 
S57146154.pdf
S57146154.pdfS57146154.pdf
S57146154.pdfaijbm
 
K577886.pdf
K577886.pdfK577886.pdf
K577886.pdfaijbm
 

More from aijbm (20)

E582740.pdf
E582740.pdfE582740.pdf
E582740.pdf
 
A580108.pdf
A580108.pdfA580108.pdf
A580108.pdf
 
F584145.pdf
F584145.pdfF584145.pdf
F584145.pdf
 
B580914.pdf
B580914.pdfB580914.pdf
B580914.pdf
 
H585357.pdf
H585357.pdfH585357.pdf
H585357.pdf
 
G584652.pdf
G584652.pdfG584652.pdf
G584652.pdf
 
D582026.pdf
D582026.pdfD582026.pdf
D582026.pdf
 
C581519.pdf
C581519.pdfC581519.pdf
C581519.pdf
 
P57130135.pdf
P57130135.pdfP57130135.pdf
P57130135.pdf
 
M5799113.pdf
M5799113.pdfM5799113.pdf
M5799113.pdf
 
O57120129.pdf
O57120129.pdfO57120129.pdf
O57120129.pdf
 
R57139145.pdf
R57139145.pdfR57139145.pdf
R57139145.pdf
 
J577177.pdf
J577177.pdfJ577177.pdf
J577177.pdf
 
Q57136138.pdf
Q57136138.pdfQ57136138.pdf
Q57136138.pdf
 
C572126.pdf
C572126.pdfC572126.pdf
C572126.pdf
 
F574050.pdf
F574050.pdfF574050.pdf
F574050.pdf
 
E573539.pdf
E573539.pdfE573539.pdf
E573539.pdf
 
I576670.pdf
I576670.pdfI576670.pdf
I576670.pdf
 
S57146154.pdf
S57146154.pdfS57146154.pdf
S57146154.pdf
 
K577886.pdf
K577886.pdfK577886.pdf
K577886.pdf
 

Recently uploaded

A.I. Bot Summit 3 Opening Keynote - Perry Belcher
A.I. Bot Summit 3 Opening Keynote - Perry BelcherA.I. Bot Summit 3 Opening Keynote - Perry Belcher
A.I. Bot Summit 3 Opening Keynote - Perry BelcherPerry Belcher
 
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncr
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / NcrCall Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncr
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncrdollysharma2066
 
Call Girls In ⇛⇛Chhatarpur⇚⇚. Brings Offer Delhi Contact Us 8377877756
Call Girls In ⇛⇛Chhatarpur⇚⇚. Brings Offer Delhi Contact Us 8377877756Call Girls In ⇛⇛Chhatarpur⇚⇚. Brings Offer Delhi Contact Us 8377877756
Call Girls In ⇛⇛Chhatarpur⇚⇚. Brings Offer Delhi Contact Us 8377877756dollysharma2066
 
Banana Powder Manufacturing Plant Project Report 2024 Edition.pptx
Banana Powder Manufacturing Plant Project Report 2024 Edition.pptxBanana Powder Manufacturing Plant Project Report 2024 Edition.pptx
Banana Powder Manufacturing Plant Project Report 2024 Edition.pptxgeorgebrinton95
 
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...lizamodels9
 
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,noida100girls
 
RE Capital's Visionary Leadership under Newman Leech
RE Capital's Visionary Leadership under Newman LeechRE Capital's Visionary Leadership under Newman Leech
RE Capital's Visionary Leadership under Newman LeechNewman George Leech
 
Catalogue ONG NUOC PPR DE NHAT .pdf
Catalogue ONG NUOC PPR DE NHAT      .pdfCatalogue ONG NUOC PPR DE NHAT      .pdf
Catalogue ONG NUOC PPR DE NHAT .pdfOrient Homes
 
VIP Kolkata Call Girl Howrah 👉 8250192130 Available With Room
VIP Kolkata Call Girl Howrah 👉 8250192130  Available With RoomVIP Kolkata Call Girl Howrah 👉 8250192130  Available With Room
VIP Kolkata Call Girl Howrah 👉 8250192130 Available With Roomdivyansh0kumar0
 
Vip Dewas Call Girls #9907093804 Contact Number Escorts Service Dewas
Vip Dewas Call Girls #9907093804 Contact Number Escorts Service DewasVip Dewas Call Girls #9907093804 Contact Number Escorts Service Dewas
Vip Dewas Call Girls #9907093804 Contact Number Escorts Service Dewasmakika9823
 
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...lizamodels9
 
2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis Usage2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis UsageNeil Kimberley
 
Marketing Management Business Plan_My Sweet Creations
Marketing Management Business Plan_My Sweet CreationsMarketing Management Business Plan_My Sweet Creations
Marketing Management Business Plan_My Sweet Creationsnakalysalcedo61
 
Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...
Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...
Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...lizamodels9
 
The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024christinemoorman
 
Non Text Magic Studio Magic Design for Presentations L&P.pptx
Non Text Magic Studio Magic Design for Presentations L&P.pptxNon Text Magic Studio Magic Design for Presentations L&P.pptx
Non Text Magic Studio Magic Design for Presentations L&P.pptxAbhayThakur200703
 
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In.../:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...lizamodels9
 
Sales & Marketing Alignment: How to Synergize for Success
Sales & Marketing Alignment: How to Synergize for SuccessSales & Marketing Alignment: How to Synergize for Success
Sales & Marketing Alignment: How to Synergize for SuccessAggregage
 
Investment analysis and portfolio management
Investment analysis and portfolio managementInvestment analysis and portfolio management
Investment analysis and portfolio managementJunaidKhan750825
 
Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...
Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...
Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...lizamodels9
 

Recently uploaded (20)

A.I. Bot Summit 3 Opening Keynote - Perry Belcher
A.I. Bot Summit 3 Opening Keynote - Perry BelcherA.I. Bot Summit 3 Opening Keynote - Perry Belcher
A.I. Bot Summit 3 Opening Keynote - Perry Belcher
 
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncr
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / NcrCall Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncr
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncr
 
Call Girls In ⇛⇛Chhatarpur⇚⇚. Brings Offer Delhi Contact Us 8377877756
Call Girls In ⇛⇛Chhatarpur⇚⇚. Brings Offer Delhi Contact Us 8377877756Call Girls In ⇛⇛Chhatarpur⇚⇚. Brings Offer Delhi Contact Us 8377877756
Call Girls In ⇛⇛Chhatarpur⇚⇚. Brings Offer Delhi Contact Us 8377877756
 
Banana Powder Manufacturing Plant Project Report 2024 Edition.pptx
Banana Powder Manufacturing Plant Project Report 2024 Edition.pptxBanana Powder Manufacturing Plant Project Report 2024 Edition.pptx
Banana Powder Manufacturing Plant Project Report 2024 Edition.pptx
 
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
 
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
 
RE Capital's Visionary Leadership under Newman Leech
RE Capital's Visionary Leadership under Newman LeechRE Capital's Visionary Leadership under Newman Leech
RE Capital's Visionary Leadership under Newman Leech
 
Catalogue ONG NUOC PPR DE NHAT .pdf
Catalogue ONG NUOC PPR DE NHAT      .pdfCatalogue ONG NUOC PPR DE NHAT      .pdf
Catalogue ONG NUOC PPR DE NHAT .pdf
 
VIP Kolkata Call Girl Howrah 👉 8250192130 Available With Room
VIP Kolkata Call Girl Howrah 👉 8250192130  Available With RoomVIP Kolkata Call Girl Howrah 👉 8250192130  Available With Room
VIP Kolkata Call Girl Howrah 👉 8250192130 Available With Room
 
Vip Dewas Call Girls #9907093804 Contact Number Escorts Service Dewas
Vip Dewas Call Girls #9907093804 Contact Number Escorts Service DewasVip Dewas Call Girls #9907093804 Contact Number Escorts Service Dewas
Vip Dewas Call Girls #9907093804 Contact Number Escorts Service Dewas
 
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...
 
2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis Usage2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis Usage
 
Marketing Management Business Plan_My Sweet Creations
Marketing Management Business Plan_My Sweet CreationsMarketing Management Business Plan_My Sweet Creations
Marketing Management Business Plan_My Sweet Creations
 
Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...
Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...
Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...
 
The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024
 
Non Text Magic Studio Magic Design for Presentations L&P.pptx
Non Text Magic Studio Magic Design for Presentations L&P.pptxNon Text Magic Studio Magic Design for Presentations L&P.pptx
Non Text Magic Studio Magic Design for Presentations L&P.pptx
 
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In.../:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
 
Sales & Marketing Alignment: How to Synergize for Success
Sales & Marketing Alignment: How to Synergize for SuccessSales & Marketing Alignment: How to Synergize for Success
Sales & Marketing Alignment: How to Synergize for Success
 
Investment analysis and portfolio management
Investment analysis and portfolio managementInvestment analysis and portfolio management
Investment analysis and portfolio management
 
Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...
Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...
Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...
 

Indonesia's Creative Industry and Sustainable Economy

  • 1. American International Journal of Business Management (AIJBM) ISSN- 2379-106X, www.aijbm.com Volume 3, Issue 10 (October 2020), PP 80-86 *Corresponding Author: Fanny Septina www.aijbm.com 80 | Page Indonesia's Sustainability Economy: Creative Industry Perspective Fanny Septina (Faculty of Management and Business, Universitas Ciputra Surabaya, Indonesia) ABSTRACT : This study aims to observe the development of the creative industry as one of the pillars of economic sustainability in Indonesia. The data used are export data and creative industry workers from BeKraf; Real Gross Domestic Product (GDP) data, inflation, the exchange rate of the rupiah against the US dollar from the Bank of Indonesia, the observation period of 2011 to 2019. The research method, the first stage of descriptive analysis, the second stage of the correlation test. Descriptive analysis of the research results shows that Indonesia's growing creative industries which are captured by an increase in the value of exports of creative industry and the number of creative industry workers each year. The correlation test illustrates the strong relationship between real GDP, the exchange rate of the rupiah against the US dollar with the value of exports, and the amount of creative industry workforce. The creative industry sector has the opportunity to contribute to sustainable economic growth in Indonesia by increasing exports of unique products such as traditional crafts that carry the unique culture of the regions in Indonesia. The depreciating value of the rupiah increases the use of local raw materials used by the fashion and crafts sub-sectors so that rising raw material prices (inflation) do not have a significant impact. KEYWORDS - creative economy, export of creative industry, economic growth, sustainable economy, sustainability development. I. INTRODUCTION The resilience of the Indonesian economy, which is supported by the potential of abundant natural resources, is considered good enough to face global shocks such as the economic crisis. However, this will still be of concern to the government because the potential for disruption of natural resources such as looting, overexploitation can damage environmental sustainability. A focus on maintaining natural resources and renewing energy alone is not sufficient to achieve a sustainable economy. The creative industry attracts the government's attention to continue to be developed indefinitely because natural resources can run out (BeKraf, 2017). Indonesia is the originator of the idea of an international resolution for 2021 towards the year of creative economy. This idea is part of the sustainable development goals for 2030 and has been endorsed by the United Nations. Focusing on investment, technology optimization and digital innovation, supporting the role of micro, small and medium enterprises, the young generation, women and civil society in the development of the creative economy. The creative economy is one of the important sectors in the industrial revolution 4.0 (Tempo.co,2020). The problem of social welfare in relation to work is a classic problem that must be addressed immediately. In developing countries, the amount of real wages is influenced by the growth in labor productivity in a region. Many developing countries, including Indonesia, have low quality jobs and an unsupportive physical environment, but on the other hand, the opportunity for new jobs to emerge as technological developments grow rapidly (United Nations, 2020). The government formed the Creative Economy Agency (BeKraf) through Presidential Regulation Number 6 of 2015 which was then changed to Presidential Regulation Number 72 of 2015, to accommodate and manage all information and activities surrounding the creative industry in Indonesia. There are 16 sub-sectors, namely architecture, interior design, visual communication design, product design, film-video-animation, photography, crafts, culinary, music, fashion, game developer applications, publishing, advertising, television- radio, performing arts, fine arts. The three largest sub-sectors that account for 95% of the export value of creative products are the culinary, crafts and fashion sub-sectors (BeKraf, 2017). The growth of the creative economy from 2010 to 2015 has decreased, from 2015 to 2019 it has increased in line with higher GDP, but has not been able to contribute maximally to the national economy. The average growth in exports of creative products from 2010 to 2014 reached 7.94 percent, followed by 2015, exports of creative products grew 6.6 percent (BeKraf, 2017). Demographically, Indonesia has the opportunity to encourage creative economic growth because 60% of Indonesia's 237 million people are of the productive age (15-55 years) and 27% of the young generation (16-30 years) population census data 2010. This opportunity
  • 2. Indonesia's Sustainability Economy: Creative Industry Perspective *Corresponding Author: Fanny Septina www.aijbm.com 81 | Page must be accompanied by strategies and the right policies to achieve a creative economy towards sustainability development (BeKraf, 2017). One challenge for BeKraf is that the creative industry statistical data is not well structured. Data on creative industries nationally and globally are very limited, so it is difficult for studies in the creative industry to measure accurately, such as the measurement of creative workers, where available labor data are workers of all sectors. UNESCO experienced the same difficulty when conducting a study of global cultural industries in 2011. Many cross-business economic surveys produce ambiguous data because not all of the data for micro, small and medium enterprises are in the creative industry sector. Even though the creative industry has a data linkage with estimates of labor growth and GDP (Economics Oxford, 2019). Thus, this study aims to observe the development of the creative industry as part of a sustainable economy in Indonesia. II. LITERATURE REVIEW Sustainability Development The definition of sustainable development that is closest to the current conditions according to the Brundtland Report 1987 (United Nations, 1987) is the ability to meet current needs without reducing the ability of future generations to meet their own needs. There are three pillars in this concept, namely environmental sustainability, economic sustainability and social sustainability. It says sustainability if the three pillars achieve balance. Social and economic collaboration is called equitable, social and environmental is called bearable, economy and environment are called viable. Environmental sustainability, where humans live side by side with natural resources. The consumption of natural resources such as energy, water, land and other sources is ensured at a sustainable level. Economic sustainability requires a business or a country to use resources efficiently and responsibly so that operations run at the sustain level consistently generate operating profit. Social sustainability is the ability of a community or social system to persistently achieve a reasonable social existence (Circularecology, 2020). Figure 1. The three pillars of sustainability Source: futurelearn.com (2020) Economic Indicators in Sustainable Development According to SSF (2016), Gross Domestic Product (GDP) is the market value of goods or services produced by a country in a certain period. GDP is used as a measure of a country's economy as long as it can generate state income. Meanwhile, labor as a general indicator to measure the economic status of a country. For most individuals, labor indicators are important to determine current conditions in developing self potential. Creative Economy The definition of creative economy according to Presidential Instruction Number 6 of 2009 (BeKraf, 2017) is economic activity based on creativity, skills and talents to create creations and inventions that have economic value so that they can increase the welfare of the Indonesian people. The creative economy is a concept that positions creativity and knowledge as the main assets driving the economy of a country so that it no longer only relies on natural resources (Bekraf, 2017). Potts (2009) states that there are two hypotheses why the creative industry is closely related to economic evolution. First, the structure of the economic system is developing with the creative industry being the most significant component of the economic order. Second, the creative industry is part of the economic evolution through the economic order. In the Growth model of Creative Industry, Potts describes the fashion and design sector as growing rapidly compared to other sectors due to technology, changing microeconomics, globalization, demand for products and wealth of customers, so competing policies are appropriate. Evolutionary Creative Industry model describes the increase in the fashion and design sector in all types of products and services due to adaptation to the latest technology, social context, so what is appropriate is a policy
  • 3. Indonesia's Sustainability Economy: Creative Industry Perspective *Corresponding Author: Fanny Septina www.aijbm.com 82 | Page to innovate. Factors that influence the creative industry based on investment categories and supply of input are state subsidies, interest rates, consumer price index, unemployment rate, GDP growth. The creative economy sector labor wage in the report published by BeKraf (2017) refers to the 2011-2016 Sakernas data, the labor wage is average wage of workers with the main job status as an employee in the creative economic sector. Workers who work for temporary employers are classified as casual workers. The largest number of workers in the creative sector is in the fashion, crafts and culinary sectors. The adaptation of innovation and technological developments to local conditions can generate tremendous potential. The high demand for environmental changes encourages the creative growth of the local population (Ghazi & Goede, 2016). The creative industry is one of the strategies for sustainable economic development, namely resilience to crises and has contributed to economic growth including encouraging growth of gross domestic product, providing sectoral added value and multiplier effects to other sectors (Bilan, Vasilyeva, Kryklii, & Shilimbetova, 2019). III. RESEARCH METHODOLOGY This descriptive quantitative research uses secondary data, namely real GDP data, inflation, US dollar exchange rate, creative industry exports, non-oil and gas exports, data on creative industry workforce in the 2011-2019 period. The data was obtained from the BeKraf and Bank of Indonesia websites. The first stage of the analysis is descriptive statistical analysis using real GDP data, exports of both creative and non-oil and gas industries as well as data on the number of creative industry workers for the period 2011 to 2019. The second stage is conducting a correlation test to observe the relationship between the export value of creative industries, the number of workers creative industry work, real GDP, inflation, exchange rates for the 2011-2019 period. IV. RESULTS AND DISCUSSION Based on Table 1, the average export value of the creative industry is 19,491,053.69 million rupiah per year, large enough to contribute to the value of non-oil and gas exports. The average creative industry workforce is 15.65 million people per year. The standard deviation of creative industries (exports and labor) shows the distribution of data on an average of 3,574,498.28 million rupiah and 1.25 million people. The kurtosis value of all the data above is negative, meaning that the data distribution is evenly sloping. The skewness value of all data shows a value close to zero on the normal curve, for the value of non-oil and gas exports and for labor the curve is not symmetrical to the left because it is negative. The lowest non-oil and gas export value fell in 2016 amounting to 131,553,643.58 million rupiah, while the highest in 2018 was 163,110,799.15 million rupiah. The total export value of the creative industry until 2019 was 175,419,483.20 million rupiah. The export value of creative industries from 2011 to 2019 has increased every year, in contrast to non- oil and gas exports, which generally tend to decline. Even in 2014 the export of the creative economy experienced a jump of up to 14.77%. With the main export destination country for Indonesia's creative industry is the United States. The export destination countries for creative industries according to BeKraf (2017) data include 31.72% of the United States; 6.74% Japan; 4.99% Taiwan; 4.96% Swiss; 4.56% German; 3.82% Singapore; 3.49% Chinese; 3.02% Hong Kong; 2.93% Belgian; and 2.86% UK. Table 1. Descriptive statistic Descriptive statistic GDP real (billion rupiahs) Non-oiled export’s value (million rupiahs) Export of creative industry’s value (million rupiahs) Creative industry’s labor (million people) Mean 8,836,885.88 148,394,375.95 19,491,053.69 15.65 Median 8,419,584.01 149,920,000.00 19,364,077.40 15.96 Standard deviation 1,699,790.32 11,457,966.53 3,574,498.28 1.25 Kurtosis -1.32 -0.77 -1.27 -0.88 Skewness 0.36 -0.32 0.34 -0.57 Range 4,808,278.20 31,557,155.57 9,660,418.40 3.55 Minimum 6,660,227.00 131,553,643.58 15,439,581.60 13.45 Maximum 11,468,505.20 163,110,799.15 25,100,000.00 17.00 Sum 79,531,972.91 1,335,549,383.58 175,419,483.20 140.81 Source: BeKraf (2020); prepared by author. The contribution of the creative industry to GDP (in table 2) has increased consistently. The contribution of the creative industry in 2019 is the result of projections based on growth in 2018 (BeKraf, 2018).
  • 4. Indonesia's Sustainability Economy: Creative Industry Perspective *Corresponding Author: Fanny Septina www.aijbm.com 83 | Page It is projected that in 2019 the contribution of the creative industry to GDP is close to Rp1,193.4 trillion (Syarizka, 2019). The growth in the number of creative economy workers in Indonesia from 2011 to 2016 (table 3) shows an average increase of 4.69% per year with three main sectors, namely fashion, culinary and crafts. The increase in exports of creative products from both the fashion and craft sectors has the potential to boost the Indonesian economy through increasing added value, income and employment (Sukma, Hartono, & Prihawantoro, 2018). In 2015 BeKraf was formed through Presidential Decree No. 6/2015 to accommodate the development of the creative industry in Indonesia, creative industry business assistance programs and exhibition activities for creative industry products and services were managed massively. The figure for the number of creative industry workers in 2019 is the result of a projection calculation based on the target number of workforce in 2019, which is 17 million people (BeKraf, 2017). The prediction of an increase in the number of creative industry workers will exceed the 2019 target of 17 million people (Hariyanti, 2018). Table 2. Creative industry’s contribution to GDP 2011-2019 Period Creative industry’s contribution to GDP (trillion rupiahs) Growth of creative industry’s contribution 2011 581.54 - 2012 638.39 9.78% 2013 708.27 10.95% 2014 784.82 10.81% 2015 852.56 8.63% 2016 922.59 8.21% 2017 1,009 9.37% 2018 1,105 9.51% 2019 1,211* 9.59% Source: BeKraf (2020); prepared by author. Table 3. Creative industry’s labor 2011-2019 Period Creative industry’s labor (million people) Growth of creative industry’s labor 2011 13.45 - 2012 14.49 7.73% 2013 14.73 1.66% 2014 15.17 2.99% 2015 15.96 5.21% 2016 16.91 5.95% 2017 16.40 -3.02% 2018 16.70 1.83% 2019 17.00 1.80% Source: BeKraf (2020); prepared by author. In the correlation test, it shows that the export value of the creative industry and the number of creative industry workers has a strong relationship with the real Gross Domestic Product (GDP), namely 0.9 close to 1 and positive. The relationship between export value and the number of creative industry workers with inflation is very weak and negative. The exchange rate with the export value of the creative industry has a correlation of 0.82, while the number of creative industry workers is 0.91. This illustrates that the contribution of the creative industry, especially the export of creative products / services in Indonesia, plays a role in increasing real GDP and has the potential to be exposed to changes in exchange rates. On the other hand, inflation has no impact on exports and the workforce of creative industries in Indonesia. Alexandri, et al. (2019) the contribution of art performances contributed 0.26% to the creative economy in Indonesia. Performing arts is divided into dance, theater and music, and traditional arts be it dance, song, musical instrument play. Traditional art performance is one of the inherent categories of culture and social value, but in its development the production cycle continues to decline. The results of this study agree with Dong and Truong (2019), which states that the export of Vietnamese creative products has a positive relationship to economies of scale and market development both in Vietnam and in export destination countries. Export growth in developing countries is determined by external factors, namely foreign direct investment (FDI) and real exchange rate as well as domestic factors, namely GDP,
  • 5. Indonesia's Sustainability Economy: Creative Industry Perspective *Corresponding Author: Fanny Septina www.aijbm.com 84 | Page GDP growth rate, indirect taxes, communication facilities, savings, industrialization, labor, and business development assistance (Majeed & Ahmad, 2006). The foreign exchange rate of the Rupiah against the US dollar has a strong relationship with the export value of the creative industry where the export of creative industries is part of the non-oil and gas exports. Monetary policy plays an important role in stabilizing the economy and increasing the economic growth of a country. Currency exchange rate stabilization policy is believed to be able to encourage the growth of a country (Ahmad, Afzal, & Ghani, 2016). The inflation rate has a weak relationship with the export of creative industries. Economic growth (GDP) is influenced by the inflation rate (Ahmad, Afzal, & Ghani, 2016). In this condition, the export of creative industries is influenced by the level of demand for creative products. Naomi (2012) found that competitive interactions in the manufacturing industry tend to be stable compared to competitive interactions in creative industries. Competitive interactions in creative industries are more dynamic than in manufacturing industries. Demand increases and growth occurs as population and GDP increase. Demand characteristics have changed and differed due to consumer's lifestyle and behavior. Consumers prefer unique products to standard products, therefore the creative industry has the potential to develop more than the manufacturing industry. New sources of supply are the power of the creative industry. Bilan, Vasilyeva, Kryklii & Shilimbetova (2019) found that the development of creative industries depends on the general business climate in a country and the standard of living of the population as the main consumers. This is what forms the basis of creative groups and increases the demand for products in the creative industry sector. According to Bilan, Vasilyeva, Kryklii & Shilimbetova (2019), the creative industry contributes to economic growth such as a direct positive impact on economic standard variables such as gross value added and gross domestic product. The impact is indirect and can be measured to the economic contribution including multiplier effects, for workers who work in the creative sector but use their money in other sectors, or the creative sector buys raw materials from other sectors. A study conducted by Bilan, Vasilyeva, Kryklii & Shilimbetova (2019) shows that turnover per dollar of creative industries generates a stimulus of 3.76 times total revenue for all industries in Australia. Direct positive impact at various levels of workers; the highest percentage of youth employment across the economy; the best rating for independent women workers relative to other sectors. This study shows that the creative industry has contributed to global GDP but the creative industry is still in an intermediate position in both developing countries and developing countries. The economic superiority of the creative industry does not appear to be as significant as the contribution of the industrial and financial sectors. Economic development has not only led to diversification of exports but also diversification of labor across industries and related sectors (Bosupeng, 2017). Setiawan's research (2018) uses the Global Creativity Index model, the competitive level of Indonesia's economy in ASEAN and the world is still weak. This weak level of competition depends on the weak index of technology and the index of talent (creativity). The low technology index contributes to the weak protection of intellectual property rights. The prevailing policy is expected to be a stimulus to help the intellectual property administration process instead of being an obstacle to innovation (White, Gunasekaran & Roy, 2012). Ndou, Schiuma and Passiante (2019) find ways to increase human resources and creative assets to innovate, namely by making the right collaboration between talents and technology-based companies and an environment that supports the creation of creative ideas. The combination of talent and technology is able to create a new product / service, method, business model. The creative industry sector has the opportunity to contribute to economic growth in Indonesia to achieve a sustainable economy, by increasing the export of creative products such as traditional crafts that carry regional culture in Indonesia. In addition, the depreciating value of the rupiah could actually become an export opportunity for several creative industry sub-sectors in Indonesia. The use of local raw materials is widely used by the fashion and crafts sub-sector so that the increase in raw material prices (inflation) does not have a significant impact. Technological advances have contributed to opening up new opportunities such as the sub- sector of design, film, music, game development and others (BeKraf, 2018). Human creativity can continue to be developed so that the number of unemployed can continue to be reduced. V. CONCLUSION This study uses a sample of creative industry exports, creative industry labor, real GDP, inflation, and the US dollar exchange rate for the period 2011-2019, using descriptive statistical analysis methods and correlation testing. Indonesia's creative industry continues to grow, indicated by the increase in the export value of the creative industry and the number of creative industry workers every year, thus contributing to an increase in national GDP and helping to reduce unemployment by creating new jobs with creativity. The correlation test illustrates a strong relationship between real GDP, the rupiah exchange rate against the US dollar with the export value and the number of creative industry workers. The exports of creative industries contribute to
  • 6. Indonesia's Sustainability Economy: Creative Industry Perspective *Corresponding Author: Fanny Septina www.aijbm.com 85 | Page economic growth, namely real GDP, fluctuations in the value of the Rupiah against the US dollar are closely related to the export value of the creative industry, especially since the main export destination country is the United States. Inflation has a weak relationship with the value of exports and the number of creative industry workers, in this case the level of demand for creative products continues to increase. The theoretical implication is to provide a perspective on the creative sector export variables and creative sector labor variables which have a strong relationship with the GDP variable and the US dollar exchange rate variable, but have a weak relationship with the inflation variable. The practical implication is that the government through the Creative Economy Agency (BeKraf) is expected to continue to strive to provide assistance to small businesses in the creative industry so that Indonesia's sustainable economy is realized, strengthening economic resilience amid various global threats. Conduct regular data collection on the creative industry to gather accurate information, which can be used in administrative processes related to funding and for research. The limitations of research on the creative economy are the incomplete data available for the period, the raw data is not available, making it difficult to process as a data source for an empirical study. Various studies in the creative industry use data estimation and various research methodologies, making studies in the cultural industry or creative industries less suitable in comparison. Future research in Indonesia is expected to use data and official creative industry reports released by the Creative Economy Agency and refer to a globally recognized creative index such as the GCI (Global Creativity Index). REFERENCES [1]. Ahmad, D., Afzal, M., & Ghani, U. (2016). Impact of Monetary Policy on Economic Growth Empirical Evidence of Pakistan. International Journal of Applied Economic Studies Vol. 4, Issue 6, 1-9. [2]. Alexandri, M.B., Maulina, E., Chan, A., & Sumadinata. R.W.S. (2019). Creative Industries: Existence Of Arts Traditional Industries In Indonesia, Academy of Strategic Management Journal, Volume 18, Issue 1. [3]. Bank Indonesia. (2020). Data Statistik. Downloaded on January, 3rd , 2020. Retrieved from https://www.bi.go.id/id/statistik/seki/terkini/riil/Contents/Default.aspx. [4]. BeKraf. (2018). Opus Creative Economy Outlook 2019. Jakarta: BeKraf. [5]. BeKraf. (2017). Rencana Strategis Badan Ekonomi Kreatif Tahun 2015 – 2019. Jakarta: BeKraf. [6]. Bilan, Y., Vasilyeva, T., Kryklii, O., & Shilimbetova, G. (2019). The Creative Industry as A Factor in The Development of The Economy: Dissemination Of European Experience In The Countries With Economies In Transition. Creativity Studies,12(1), 75– 101. [7]. Bosupeng, M. (2017). The Export-Led Growth Hypothesis: New Evidence and Implications. Munich Personal RePEc Archive, 1-29. [8]. BPS & BeKraf. (2017). Upah Tenaga Kerja Ekonomi Kreatif 2011-2016. Jakarta: BeKraf. [9]. BPS & BeKraf. (2017). Ekspor Ekonomi Kreatif 2010-2016. Jakarta: BeKraf. [10]. BPS & BeKraf. (2017). Data Statistik dan Hasil Survei Ekonomi Kreatif, Kerjasama Badan Ekonomi Kreatif dan Badan Pusat Statistik. Jakarta: BeKraf. [11]. Circular Ecology. (2020). Sustainability and Sustainable Development - What is Sustainability and What is Sustainable Development? Downloaded on April, 20th , 2020. Retrieved from https://circularecology.com/sustainability-and-sustainable- development.htmlhttps://www.futurelearn.com/courses/sustainability-society-and-you/0/steps/4618. [12]. Dong, C., & Truong, H. (2019). The determinants of creative goods exports: evidence from Vietnam. Journal of Cultural Economics. [13]. Economics Oxford. (2019). The Economic Impact Of The Creative Industries In The Americas. Organization of American States; British Council; Inter-American Development Bank. [14]. Fraser, S. (2011). Access to Finance for Creative Industry Businesses. Department of Business and Skills. BIS and DCMS. [15]. Ghazi, E.L., & Goede, M. (2016). Creative Economy Assessment: A Case Study Of Kish Island. www.emeraldinsight.com/0306- 8293.htm. [16]. Hariyanti, D. (2018). Bekraf: Penyerapan Tenaga Kerja Kreatif pada 2019 Akan Lampaui Target. Downloaded April, 20th , 2020. Retrieved from https://katadata.co.id/berita/2018/12/13/bekraf- penyerapan-tenaga-kerja-kreatif-pada-2019-lampaui-targe. [17]. Majeed, M. T., & Ahmad, E. (2006). Determinants of Exports in Developing Countries. The Pakistan Development Review 45: 4 Part II (Winter 2006), 1265–1276. [18]. Naomi, P. (2012). The Dynamics of Competitiveness in Creative and Manufacturing Industries in the Indonesia Stock Exchange (IDX) of Pre and Post Crisis. Int. J. Manag. Bus. Res., 2 (1), 51-58. [19]. Ndou, V., & Schiuma, G., & Passiante, G. (2019). Towards A Framework For Measuring Creative Economy: Evidence From Balkan Countries. Measuring Business Excellence Vol. 23 No. 1.
  • 7. Indonesia's Sustainability Economy: Creative Industry Perspective *Corresponding Author: Fanny Septina www.aijbm.com 86 | Page [20]. Potts, J. (2009). Why the creative industries matter to economic evolution. Economics of Innovation and New Technology 18(7-8), 663- 673. [21]. Setiawan, S. (2018). Prospects and Competitiveness in Creative Economy: Evidence from Indonesia. International Journal of Research in Business and Social Science 7(2), 2018, 47-56. [22]. Sukma, M., Hartono, D., & Prihawantoro, S. (2018). The Impacts Analysis of Creative-Products Export on the Economy. Jurnal Ekonomi dan Kebijakan Vol 11 (1) (2018), 92-107. [23]. SSF. (2014). Sustainable City Index SCI-2014. Downloaded on September, 3rd , 2016. Retrieved from http://www.ssfindex.com/ssi2016/wp-content/uploads/pdf/Summary-SCI2014.pdf. [24]. SSF. (2016). Indicator 19-GDP. Downloaded on September, 3rd , 2016. Retrieved from http://www.ssfindex.com/ssi2016/wp- content/uploads/pdf/indicator19-2016.pdf [25]. SSF. (2016). Indicator 20-Employment. Downloaded on September, 3rd , 2016. Retrieved from http://www.ssfindex.com/ssi2016/wp- content/uploads/pdf/indicator20-2016.pdf [26]. Syarizka, D. (2019). Ekonomi Kreatif Tahun Ini Diproyeksi Menyentuh Rp1.193,4 Triliun. Downloaded on April, 20th , 2020. Retrieved from https:// ekonomi.bisnis.com/read/20190115/12/878987/ekonomi-kreatif-tahun-ini-diproyeksi-menyentuh- rp1.1934-triliun. [27]. Tempo.co. (2020). Gagasan Indonesia untuk Tahun Ekonomi Kreatif Disahkan PBB. Downloaded on July, 6th , 2020. Retrieved from https://dunia.tempo.co/read/1286093/gagasan-indonesia-untuk- tahun-ekonomi-kreatif-disahkan-pbb/full&view=ok. [28]. United Nations. (1987). Report of the World Commission on Environment and Development: Our Common Future. Downloaded on September, 3rd , 2016. Retrieved from https://www.are.admin.ch/are/en/home/sustainable-development/international- cooperation/2030agenda/un-_-milestones-in-sustainable-development/1987--brundtland-report.html [29]. United Nations. (2020). World Economic Situation and Prospects 2020. Downloaded on April, 20th , 2020. Retrieved from https://www.un.org/development/desa/dpad/document_gem/global-economic- monitoring-unit/world-economic-situation-and- prospects-wesp-report/ [30]. White, D.S., Gunasekaran, A., & Roy, M.H. (2012). Performance Measures And Metrics For The Creative Economy. www.emeraldinsight.com/1463-5771.htm. Appendix 1. Table 1. Creative industry’s export and non-oiled export 2011-2019 Period Non-oiled export value (million rupiahs) Creative industry export’s value (million rupiahs) Contribution of creative industry’s export to non-oiled export’s value Growth of creative industry’s export 2011 162,720,858.00 15,641,397.20 9.61% - 2012 152,924,925.00 15,439,581.60 10.10% -1.29% 2013 149,920,000.00 15,870,628.40 10.59% 2.79% 2014 146,540,725.00 18,214,930.00 12.43% 14.77% 2015 131,940,835.63 19,364,077.40 14.68% 6.31% 2016 131,553,643.58 19,988,868.60 15.19% 3.23% 2017 153,309,550.22 22,100,000.00 14.42% 10.56% 2018 163,110,799.15 23,700,000.00 14.53% 7.24% 2019 143,528,047.00 25,100,000.00 17.49% 5.91% Source: BeKraf, prepared by author (2020) Table 2. Correlation of macroeconomic indicators and creative industry’s export and labor 2011-2019. GDP real Inflation Exchange rate Creative industry’s export Creative industry’s labor GDP real 1 Inflation -0.56399494 1 Exchange rate 0.79600607 -0.2176 1 Creative industry’s export 0.98125421 -0.5342 0.822552 1 Creative industry’s labor 0.913692332 -0.46536 0.914194 0.88776008 1 Source: BeKraf, prepared by author (2020) Author: Fanny Septina (Faculty of Management and Business, Universitas Ciputra Surabaya, Indonesia)