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STRENGTHENING
          CREATIVE ECONOMY
                  AS PART OF
        ECONOMIC DIPLOMACY
IN INDONESIAN FOREIGN POLICY




              By : Danny Rahdiansyah




             JAKARTA – NOVEMBER 2012
EXECUTIVE SUMMARY


         The broad theme of this paper is on the relations between creative economy and
economic diplomacy in the Indonesian context. The paper believes that creative economy is
a valuable asset in Indonesian economic diplomacy, besides other more established
sectors, inter alia trade, investment, tourism, and services. The contribution of creative
economy to the economic growth of Indonesia is evident from its share to the GDP growth,
workforce absorption, and export balance. Furthermore with the establishment of the
Ministry of Tourism and Creative Economy (being the first of its kind in the world), creative
economy is also in synergy with the tourism sector in strengthening and promoting each
other.


         This paper recognized that in the venture of advancing creative economy, several
challenges exist and if not carefully managed, they will shroud and hinder the creative
economy to rise to a higher notch. Indeed there has to be a comprehensive approach to
optimize the development of creative economy; including the creative ideas, creative
technology, creative industries, and human resources. Furthermore, market penetration and
access to financing have to be expanded.


         Despite the current challenges that are still faced by the creative economy sector,
the opportunity is still promising. The potency of the external market has not been fully
utilized. In this regard, greater focus and attention for strategies to penetrate these markets,
both in the traditional markets as well other countries as the nontraditional market are
crucial. In addition to this, creative economy could play a very important role in promoting
national tourism, including local culture and wisdom to the international audience.


         On the recommendation part, this paper put forward ideas in the form of thirteen
strategies to be considered by policy makers, as well as for diplomats posted in Indonesian
Embassies/Consulate Generals abroad in doing their function in the economic and/or socio-
culture sections, by emphasizing the synergy between the Ministry of Foreign Affairs and
the Ministry of Tourism and Creative Economy.


                                          --ooOoo--
CHAPTER ONE:
                                                  INTRODUCTION


I.I. Background

       The concept of “Economic Diplomacy” is now interpreted widely. Its borders have
become more and more blurred, intertwining various fields of economic, political, strategic
studies, as well as disciplines of the international relations and foreign policy.

        In a simple definition, “Economic Diplomacy” is related to the diplomatic official
activities that are focused on increasing exports, attracting foreign investment and
participating in work of the international economic organizations, i.e., the activities
concentrated on the acknowledgement of economic interests of the country at the
international level.1

        In other words, we can also say that “Economic diplomacy“ is the process through
which countries tackle the outside world, to maximize their national gain in all the fields of
activity, including trade, investment and other forms of economically beneficial exchanges,
where they enjoy comparative advantage; it has bilateral, regional and multilateral
dimensions, each of which is important.2

       In a more scientific formulation, “Economic Diplomacy” can be defined as the specific
area of modern diplomatic activity concerned with economic issues3, connected with the
use of economic problems as object and means of struggle as well as cooperation in the
international relations. Economic diplomacy, as well as diplomacy in general, is a
component of foreign policy4, related to the international economic activity of the country.5

       As a main actor in international relations, Indonesia - as a state - also implements
economic diplomacy to pursue the economic growth and prosperity for its people; by doing
the abovementioned activities, including trade, investment and other forms of economically
beneficial exchanges in bilateral, regional and multilateral dimensions, as appropriate.
Currently there is common understanding that Indonesia has a stronger economic
foundation then before, and is performing well in the international fora.


1
  Pavol Baranay, “Modern Economic Diplomacy”, Publication of Diplomatic Economic Club, 2009, p.1
22
   Kishan S Rana, “Economic Diplomacy: the Experience of Developing Countries”, http://www.cuts-citee.org/CDS03/pdf/ CDS03-
Session1-02.pdf
3
  Raymond Saner and Lichia Yiu, “International Economic Diplomacy: Mutations in Modern Times”, Netherlands Institute of
International Relations ‘Clingendael’, 2003, p.13
4
  The foreign policy defines the objectives and purposes of economic diplomacy which represents the whole set of activities, forms,
means and the methods used for realization of foreign policy
5
  Pavol Baranay,op.cit, p.2
Figure 1.

       McKinsey Report which was
recently published in September
2012 stated that Indonesia’s
economy has enormous promise.
Currently Indonesia is already the
16th largest economy in the world,
and Indonesia has the potential to
be the 7th biggest economy in the
world by 2030.
                                                    Source : McKinsey Global Institute, September 2012


      In recent years, Indonesia has made enormous strides in its macroeconomic
management. Inflation has dropped from double into single digit, and government debt as a
share of GDP is now lower than in the vast majority of advanced economies.6

       According to the World Economic Forum’s competitiveness report, in 2012 Indonesia
ranked 25th on macroeconomic stability. It is a dramatic improvement from its 2007 ranking
of 89th place. Indonesia now ranks ahead of Brazil and India, as well as several ASEAN
neighbors including Malaysia, Thailand, and the Philippines.7

       Furthermore the report also stated that Indonesia has a young population and is
quickly urbanizing, powering growth in incomes. Between now and 2030, Indonesia will be
home to an estimated 90 million additional consumers with considerable spending power.

       This growth in Indonesia’s consuming class is stronger than in any economy of the
world apart from China and India. It is a signal to international businesses and investors of
considerable new opportunities.8

       Economic diplomacy is a broad concept. As has been briefly pointed out previously,
it covers a wide range of issues, including ,but not limited to, Trade, Investment, Tourism
and Services. These sectors when grouped together are popularly known as TTIS. As a
bridge to the subsequent parts of this paper, the following part will outline the broad policy
of Indonesia in these sectors.




6
  McKinsey Global Institute, “The Archipelago Economy: Unleashing Indonesia’s Potential”, September 2012, p.1
7
  McKinsey Global Institute, Ibid
8
  McKinsey Global Institute, Ibid
I.I.1. Trade

       Based on the document of Strategic Plan of the Ministry of Trade, 2010-2014,9 the
broad direction of Indonesian foreign trade policy is “to increase the competitiveness of
non-oil-and-gas export products, with the aim to boost the market diversification for export
destination, as well as to enhance the variety, quality and image of export products”.

       In this connection, the strategy of promoting Indonesian foreign trade policy for the
period of 2010-2014 includes the following aspects: (1) To increase high value-added
export products, (2) To promote export of creative products and services, especially
products and services produced by small and medium enterprises (SMEs), (3) To diversify
export-destination markets and to reduce dependency from certain countries (traditional
markets), (4) To maximize the utilization of various preferential trade schemes and
international trade cooperation for the benefit of national interest, (5) To promote the
development of border exports, (6) To strengthen institutions for foreign trade.

         I.I.2. Investment

        In the field of investment policy, the current directive which serves as the guidelines
of investment in Indonesia is the Presidential Regulation (Perpres) No. 16 year 2012.
According to this regulation, the policy direction for investment in Indonesia, includes: 10 (1)
Improvement of investment atmosphere, (2) Diversification of investment, (3) Particular
focus on investment in Food, Infrastructure and Energy sectors, (4) Promotion of green
investment, (5) Promotion of small and medium enterprises, and cooperatives, (6)
Facilitation and incentive for investment, and (7) Promotion of investment.

         I.I.3. Tourism and Services

        In the tourism sector, based on the document of Strategic Plan of the Ministry of
Tourism and Creative Economy (Kemenparekraf) 2012-2014, the priority of national policy
in this field includes: (1) Development of tourism industry, through enhance of investment,
(2) Development of competitive tourist destinations in global market, (3) Development of
marketing and promotion of tourism sector, and (4) Development of human resources in
tourism sector.11




9
  Strategic Plan of the Ministry of Trade, 2010-2014, p.67
10
   Presidential Regulation (Perpres) No. 16 year 2012 on General Planning for Investment, Art.2
11
   Strategic Plan of the Ministry of Tourism and Creative Economy (Kemenparekraf) 2012-2014, p. 119
I.II. Main thesis of the paper

      Besides the abovementioned sectors (i.e. Trade, Investment, Tourism, Services),
nowadays, Indonesia has also been advancing another sector as part of its economic
diplomacy at large. This sector is creative economy.

       This paper believes that the issue of creative economy is very much actual, highly
relevant, and at the vanguard on the development agenda.

      In recent years, the creative economy sector has contributed positively to the
Indonesian economic growth in general, including to its GDP as well as the absorption of
work force and balance of trade. In 2010, creative economy contributed approximately Rp.
468.1 trillion, or equivalent to 7.29% of national GDP.12 This significant contribution was
achieved through 14 subsectors of creative industry13 namely: Advertisement; Architecture;
Artwork and antiques; Handicraft; Design; Fashion (mode); Film, Video and Photography;
Interactive games; Music; Performing arts; Printing and publishing; Computer service
(information technology) and software; Radio and Television; Research and Development.
Besides these 14 subsectors, the Ministry of Tourism and Creative Economy also develops
the 15th sector of creative economy, namely Culinary.

       In the same year, creative economy also successfully absorbed approximately 8.6
million workforce, or equivalent to 7.9% from the total national amount. In comparison, the
tourism sector absorbed 7.4% million people, or 6.9% of national work force. In terms of
balance of trade, in 2010, the value of export was much higher than the value of import.
This resulted in high surplus of net trade, amounting to of Rp. 115 trillion. 14

      In this connection, this paper also believes that creative economy is also inter-
dimensional, where it is very closely linked with other various sectors of economy and need
coordination among its related stakeholders. Furthermore, there is a trend that creative
economy absorbs greater number of workforce in Indonesia. In other words, more and
more Indonesian people are becoming more dependent for their livelihoods to the creative
economy.


      Looking at the positive trend, this paper will attempt to dwell on the notion of creative
economy as a valuable asset in Indonesian Economic Diplomacy as well as means to further
advance the potential of creative economy to the betterment and wellbeing of Indonesian people.



12
   Ibid, p.xxvii
13
   Based on the Presidential Directive/Inpres No 6 year 2009 on Development of Creative Economy, 2009-2014
14
   Strategic Plan of the Ministry of Tourism and Creative Economy (Kemenparekraf) 2012-2014, op.cit
I.III. Systematization of this paper

       This paper will be structured in four chapters, namely: Chapter 1: Introduction;
Chapter 2: Theoretical Framework; Chapter 3: Analysis, and Chapter 4: Conclusion and
Policy Recommendation. The systematization of this paper is intended to provide a simple
structure and an easy-to-read message from the beginning until the end.

        Chapter 1 consists of the background, main thesis of the paper and systematization
of the paper. The background part initially describes the concept of economic diplomacy in
general, followed by the elements of economic diplomacy, in the Indonesian context. The
main thesis of the paper outlines the main argument of the paper, which will be elaborated
in the subsequent chapter. The systematization of the paper-part is self-explanatory, which
is to outline the structure of the whole paper from the beginning until the end.

      Chapter 2 consists of the theoretical framework on creative economy; including the
background of the creative economy in the global context and some definition on the
concept.

       Chapter 3 consists of the discussion of the main thesis of the paper, namely the
notion of creative economy as a valuable asset in Indonesian Economic Diplomacy as well
as means to further advance the potential of creative economy to the betterment and
wellbeing of Indonesian people.

      This chapter starts with the explanation of development of creative economy in
Indonesia. Then, the chapter continues to discuss the challenges and opportunities. Finally,
the chapter will present a set of policy recommendation for further advancing creative
economy as part of Indonesian economic diplomacy, with the emphasis of synergy between
the Ministry of Foreign Affairs and the Ministry of Tourism and Creative Economy.

       Chapter 4 consists of the conclusion and recommendation. It will reiterate the main
points of the paper as well as the suggested policy recommendation on how to further
advance the development of creative economy.

                                         --ooOoo--
CHAPTER TWO: THEORETICAL FRAMEWORK
                    CONCEPT OF CREATIVE ECONOMY


II.I. Background

       In the last decade, a novel development
paradigm is rising that links the economy and
culture. It embraces aspects of economic, cultural,
technological as well as social aspects of
development at both the macro and micro levels. A
fundamental element of this new paradigm is the fact
that creativity, knowledge and access to information
are progressively more recognized as strong
engines driving the economic growth and promoting
development in a globalizing world.15
                                                                          Source : UNCTAD 2008



       The concept of creativity is associated with originality, imagination, inspiration,
ingenuity and inventiveness. It could be found in all societies and countries – rich or poor,
large or small, advanced or developing. In this regard, every society has its stock of
intangible cultural capital articulated by people’s identity and values.16 Furthermore,
creativity is now acknowledged as fostering cultural, social as well as economic gains. 17
Creativity is also understood as the formulation of new ideas and to the use of these ideas
to produce original works of art and cultural products, functional creations, scientific
inventions and technological innovations. In this regard, there is an economic aspect to
creativity, apparent in its way to contribute to promote entrepreneurship, encourage
innovation, increase productivity, as well as promote economic growth.18



        In light of the above, the twenty-first century has seen a growing understanding of the
interface between creativity, culture and economics, the rationale behind the emerging concept of
the “creative economy”.

        The notion of “creative economy” is an evolving concept. It has been gaining ground
in the contemporary discourse on economic development. It involves a swing from the
traditional models towards a multidisciplinary model, dealing with the interface between

15
   Creative Economy Report 2008, “The Challenge of Assessing Creative Economy: toward informed policy making”, UNCTAD, 2008,
p.3
16
   Ibid
17
   European Union, “The Entreprenurial Dimension of the Cultural and Creative Industries”, December 2010, p.8
18
   Creative Economy Report 2008, op.cit
economics, culture and technology. It also centered on the predominance of services and
creative content. Recognizing its multidisciplinary nature, creative economy can offer a
practical option as part of a results-oriented development strategy for developing countries.
Creative economy also encourages a more effective cross-cutting mechanisms and
innovative inter-ministerial policy action.19

       In this connection, it is clear that creative economy has become a topical issue of the
international economic and development agenda, calling for informed policy responses in
both developed and developing countries.

II.II. Definition

      There is no single definition of “creative economy”. It is a dynamic concept that is still
being shaped. Nonetheless, there is a growing convergence in the international community
on the definition. One of the main reference with regard to the definition of creative
economy in the international community is the definition provided by the United Nations
Conference on Trade and Development (UNCTAD).

       In light of the above, UNCTAD proposed a definition for creative economy as
follows:20

             The creative economy is an evolving concept based on creative assets potentially
              generating economic growth and development;
             It can foster income generation, job creation and export earnings while
              promoting social inclusion, cultural diversity and human development;
             It embraces economic, cultural and social aspects interacting with technology,
              intellectual property and tourism objectives;
             It is a set of knowledge-based economic activities with a development dimension
              and cross-cutting linkages at macro and micro levels to the overall economy;
             It is a feasible development option calling for innovative multidisciplinary policy
              responses and inter-ministerial action;
             At the heart of the creative economy are the creative industries.


      In the academic field, the term “creative economy” first appeared in the year 2001, in
a book entitled “The Creative Economy: How People Make Money from Ideas”, by a
prominent scholar, John Howkins.21 In his book, Howkins argued that:



19
   UNCTAD Statement at the Second Meeting of the Ministers of Culture of the African, Caribbean and Pacific (ACP)
Group of States, Santo Domingo, Dominican Republic, October 2006
20
   Definition by the UNCTAD Creative Economy and Industries Programme, 2005
21
   Marta-Cristina Suciu, “The Creative Economy”, Academy of Economic Studies, Bucharest. http://lexetscientia.univnt.ro/
ufiles/17.%20Romania.pdf, diakses 15 Oktober 2012
“creativity is not new and neither is economics, but what is new is the nature and
        the extent of the relationship between them and how they combine to create
        extraordinary value and wealth”.

       However, Howkins’ use of the term “creative economy” is broad, covering fifteen
creative industries extending from arts to the wider fields of science and technology. For
Howkins, there are two kinds of creativity: the kind that relates to people’s fulfillment as
individuals and the kind that generates a product. The first one is a universal characteristic
of humanity and is found in all societies and cultures. The second is stronger in industrial
societies, which put a higher value on novelty, on science and technological innovation, and
on intellectual property rights (IPRs).


       In Indonesia, the definition of “Ekonomi Kreatif” was initially provided by the Ministry
of Trade in 2008, as follows:22

        “Era ekonomi baru yang mengintensifkan informasi dan kreativitas dengan
        mengandalkan ide dan stock of knowledge dari sumber daya manusianya sebagai
        faktor produksi utama dalam kegiatan ekonominya”

        Furthermore, after the reorganization of the Ministry of Culture and Tourism
(Kementerian Budaya dan Pariwisata) to become the Ministry of Tourism and Creative
Economy (Kementerian Pariwisata dan Ekonomi Kreatif/ Kemenparekraf) in 2011, the
definition of “Ekonomi Kreatif” was further elaborated as follows:23


        “Ekonomi Kreatif merupakan sebuah era baru ekonomi setelah ekonomi
        pertanian, ekonomi industri, dan ekonomi informasi, yang mengintensifkan
        informasi dan kreativitas dengan mengandalkan ide dan pengetahuan dari sumber
        daya manusia sebagai faktor produksi utama dalam kegiatan ekonominya.
        Ekonomi kreatif ini digerakkan oleh industri kreatif yang didefinisikan sebagai
        industri yang berasal dari pemanfaatan kreativitas, keterampilan serta bakat
        individu untuk menciptakan kesejahteraan serta lapangan pekerjaan melalui
        penciptaan dan pemanfaatan daya kreasi dan daya cipta individu.”



        Kemenparekraf’s definition on creative economy also included the concept of
“creative industries”. In this connection, “creative industries” can be defined as the cycles of
creation, production and distribution of goods and services that use creativity and
intellectual capital as primary inputs. They comprise a set of knowledge-based activities

22
   “Pengembangan Ekonomi Kreatif Indonesia 2025: Rencana Pengembangan Ekonomi Kreatif Indonesia 2009-2015” Departemen
Perdagangan Republik Indonesia, 2008, p.1
23
   Strategic Plan of the Ministry of Tourism and Creative Economy (Kemenparekraf) 2012-2014, p.5
that produce tangible goods and intangible intellectual or artistic services with creative
content, economic value and market objectives.24

       Creative industries constitute a vast and heterogeneous field dealing with the
interplay of various creative activities ranging from traditional arts and crafts, publishing,
music, and visual and performing arts to more technology-intensive and services-oriented
groups of activities such as film, television and radio broadcasting, new media and design.
The creative sector has a flexible and modular market structure that ranges from
independent artists and small-business enterprises at one extreme to some of the world’s
largest conglomerates at the other.25

       Nowadays in the most advanced countries, the creative industries are emerging as a
strategic choice for rejuvenating economic growth, employment and social cohesion. The
so-called “creative cities” are proliferating in Europe and North America, boosting the
economy of urban centers through cultural and social developments, offering attractive
jobs, particularly to young people. The turnover of the European creative industries
amounted to 654 billion Euros in 2003, growing 12.3 percent faster than the overall
economy of the European Union and employing over 5.6 million people.26

       From the explanation above, it is clear that the concept of “creative economy” has
dynamically evolved over the last decade. It has become an important means of focusing
attention on the role of creativity as a drive in contemporary economic life, exemplifying the
proposition that economic and cultural development are not separate or unrelated
phenomena. Instead, the two are part of a bigger process of sustainable development,
where economic and cultural growth and take place hand in hand and reinforce each other.

        In the context of developing countries, the notion of the creative economy attract
attention to the rich creative assets and cultural resources that exists in them. The creative
industries that use the cultural resources and creative assets could do a lot to boost their
prosperity, including by enabling countries to tell their own stories and to project their own
unique cultural identities to themselves and to the world (something commonly referred to
as national branding), providing themselves with a source of economic growth,
employment creation and increased participation in the global economy, as well as
promoting social inclusion, cultural diversity and human development.

                                                       --ooOoo—



24
   Creative Economy Report 2008, “The Challenge of Assessing Creative Economy: toward informed policy making”, UNCTAD, 2008,
p.16
25
  Creative Economy Report 2008, Ibid, p.4
26
   See Economy of Culture in Europe, study prepared for the European Commission by KEA, European Affairs, Brussels, 2006
CHAPTER THREE:
                                      ANALYSIS


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

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

       Different from tourism sector, creative economy is relatively a new sector which has
been elevated by the Government of Indonesia to be managed at a ministerial level. Prior to
the establishment of the Kemenparekraf, the creative economy sector had not been
properly coordinated in a ministerial level. Instead it was scattered in several ministries,
among others Ministry of Trade, Ministry of Industry, Ministry of Cooperatives and SMEs, as
well as Ministry of Culture and Tourism.

Figure 2.




Source :www.indonesiakreatif.net


       The elevation of creative economy to a ministerial level by the Government of
Indonesia by the establishment of the Ministry of Tourism and Creative Economy on 21
December 2011 was a significant achievement for Indonesia. Firstly, it has put Indonesia to
become the first country in the world which combined the sectors of tourism and creative
economy in one ministry. And secondly, it has put Indonesia to become the second country
in the world, only after the United Kingdom, which elevated the sector of creative economy
to a ministerial level.
The elevation could also be seen as the political commitment from the top national
leadership to develop the creative economy as a source of competitive advantage and soft
power that not only will contribute to growth, job creation and poverty alleviation, but also as
a source of national pride and national branding.27

       Furthermore, the combination of tourism and creative economy could create a
synergy which reinforce each other. Creative economy is believed to be able to increase
the quality of tourism as well as to become promotion media for tourism. On the other hand,
the advancement of tourism destination could be followed by the promotion and increase of
demands for creative products. In this connection, the elevation of creative economy to a
ministerial level was also based on the recognition that creative economy has a number of
very strategic values for Indonesia, namely:

                Contribution to economic growth GDP, employment, exports;
                Contribution to the creation of positive business atmosphere  Impact on
                 business and employment in other sectors;
                Contribution to the promotion of national identity and image Impact on tourism,
                 creation of national icons and strengthening cultural heritage and traditional
                 values;
                Contribution to the use of renewable resources  Based on knowledge and
                 ideas, sustainability approach;
                Contribution to the promotion of innovation  Creativity that creates value added;
                 and
                Contribution to the promotion of positive social impacts  Quality of life,
                 equitable development, increased social tolerance.

       To visualize this line of thinking, the following figure describes the strategic function
of creative economy for Indonesia.

                           Figure 3.




                                                                                 Source : Kemenparekraf

27
     Mari Pangestu, “Indonesia and the ‘fourth wave’ of creative economy”, Strategic Review, April-June 2012/Vol.2 No.2, p.20
Minister Mari Elka Pangestu stated in her article which was published in the Strategic
Review, that creative economy is the “fourth wave”; after agriculture economy (first wave),
industry economy (second wave), and information economy (third wave). The notion of the
fourth wave is based on the main input used in the output, contributing to economic value
added.28

       The first wave uses land and labor to produce agriculture products initially for feeding
its own population and eventually to export. The second wave uses more skilled labor,
capital, production technology and innovation to produce industrial goods. The third wave is
no longer just capital, land and labor, but also knowledge and information to produce goods
and services.

       The fourth wave on the other hand, utilizes creativity and ideas to turn that
knowledge and information to higher value added or new forms. In other words, creative
economy intensifies information and creativity, based on idea and knowledge from human
resources as the main production factor in their economic activities. Given the continued
challenges of job creation and poverty alleviation in Indonesia, as well as its rich cultural
and creative heritage, Minister Mari Pangestu believed that the fourth wave of Indonesian
economy is ready to be unleashed.29

       In advancing the creative economy sector, the Government of Indonesia, with
Kemenparekraf as its leading sector, has been developing 15 subsectors of creative
industry, as follows:30

NO                            SECTOR                           NO                  SECTOR
1.      Advertisement                                          9.    Music
2.      Architecture                                           10.   Performing arts
3.      Artwork and antiques                                   11.   Printing and publishing
4.      Handicraft                                             12.   Computer       service   (information
                                                                     technology) and software
5.      Design                                                 13.   Radio and Television
6.      Fashion (mode)                                         14.   Research and Development; and
7.      Film, Video and Photography                            15    Culinary
8.      Interactive games




28
   Mari Pangestu, Ibid, p.21
29
   Ibid
30
   Based on the Presidential Directive/Inpres No 6 year 2009
Figure 4.




Source :www.indonesiakreatif.net


       Based on the Strategic Plan of Kemenparekraf 2012-2014, the development of
creative economy in Indonesia will be geared towards strengthening the domestic market
as well as penetrating external markets, focusing on development of five sectors, namely:
(1) Development of resources and technology; (2) Development of creative industry; (3)
Increase of financing access to the practitioner of creative economy; (4) Increase of market
access to the practitioner of creative economy; and (5) Strengthening of institutions related
to creative economy.

       To support the implementation the creative economy development in Indonesia, the
Ministry of Tourism and Creative Economy has equipped itself with an organizational
structure which cover the entire area of creative economy.

                                                  Figure 5.
       Based on the current structure, there
are three departments in the Ministry, which
are closely related to the effort of advancing
the    creative   economy,       namely:    (1)
Directorate General for arts and cultural-
based creative economy; (2) Directorate
General for media, design and science-based
creative economy; and (3) Tourism and
creative economy resource development
agency.
                                                  Source : Kemenparekraf
III.I.2. Relationship between creative economy and tourism sector

        In Indonesia, as well as in many other countries, the sectors of creative economy
and tourism are very closely related. Some ideas of this matter have been put forward
briefly in the earlier part of this paper. To add to this line of thinking, this paper will elaborate
further by emphasizing three elements. First, creative economy could strengthen the quality
of tourism; second, creative economy could create new tourism attraction; and third,
creative economy and tourism could promote each other.

       In a more detailed account, the connection between the creative economy and
tourism sectors could be elaborated as follows:

       Strengthening the quality of tourism. It is generally understood that quality of tourism
is often measured by spending and duration of stay of tourist. In this connection, creative
economy is believed to be able to increase the spending of tourist as well as able to extend
the duration of stay of tourist, by the existence of creative products and services as
souvenirs and entertainment in various tourist destinations.

       Further to the above, creative products such as handicraft, fashion and artworks
could serve as handy and memorable souvenirs for tourists. On the other hand, products
and services of culinary, music, performing arts, film, video, photography, design, and
architecture could serve as means of entertainment in the tourist destinations.

       Creation of tourism attraction. Regions or districts who have unique and specific
products and services of creative economy can be developed Into viable tourist
destinations. In this line of thinking, creative traditional and contemporary events are
packaged in an attractive way to draw the attention of domestic and foreign tourists.

       Until now there have been various creative events in Indonesia that have become
tourism attraction both for domestic as well as foreign tourists, namely among others:
Jember Carnival, Solo Batik Carnival, Java Jazz, Lake Sentani Festival. For instance, the
Solo Batik Carnival is annual event, started from 2008 which attracts many tourists, both
domestic tourists as well as foreign tourists. In 2012, the Solo Batik Carnival has entered its
5th year, with the theme: Metamorphoses.31

        Promotion. Creative economy and tourism sectors could promote each other. In one
hand, products and services of creative economy could be utilized as promotion materials
for tourist destinations. On the other hand, tourism attraction could become inspiration for
practitioners to creative unique and creative products.

31
     http://solobatikcarnival.com/about-us/
As an example, a movie which took place in a certain tourist destination, could
attract more tourists to come to that place; either to see the movie set, or to experience the
similar experience.

       A recent Julia Roberts’ movie “Eat Pray and Love” in part was shot in Bali. This
movie is an example how a creative product (movie) could promote certain tourist
destination. On the other hands, contents of tourism promotion often use the creative
products and services from certain tourist destinations, such as : furniture from Jepara,
handicrafts from Tasikmalaya, songket from Palembang, et cetera.

       The following figure visualizes the close relation between creative economy and
tourism sectors.

                             Figure 6.
                              CONNECTION BETWEEN TOURISM AND CREATIVE ECONOMY


                                                          Strengthening the
                                                          quality of Tourism



                                                           Creation of

                             TOURISM
                                                           Tourism attraction
                                                                                CREATIVE
                                                                                ECONOMY
                                                           Promotion




                                                          Promotion




         III.I.3. Contribution to Indonesian economic growth

        Creative economy sector so far has contributed significantly to Indonesian economic
growth in general. This fact has been demonstrated by numbers from the last several years.
In the period of 2002-2010, the creative economy sector contributed approximately 7.74%
to the total Indonesian GDP, and contributed approximately 7.76% to the national workforce
absorption.32

       This contribution is regarded as quite high in comparison with several economies
who have developed creative economy as an important and strategic industry, namely
United States (7.75% contribution to GDP - 2001), England (7.9% - 2001), Australia (3.3% -
2000), New Zealand (3.1% - 2001), Taiwan (5.9% - 2001), and Singapore (2.8% - 2000).


32
  Elitua H. Simarmata ; Bastian Simarmata, “Bagaimana Posisi Strategis Industri Kreatif dalam Perekonomian Nasional?” 19
November 2011, http://www.indonesiakreatif.net/index.php/id/news/read/bagaimana-posisi-strategis-industri-kreatif-dalam-
perekonomian-nasional
Furthermore, in terms of workforce absorption, creative economy in the U.S
absorbed 5.9% in 2001; England 4.6% in 1998; Australia 3.8% in 2000; New Zealand 3.6%
in 2001; Taiwan 3.6% in 2001; and Singapore 3.4% in 2000. 33

       Compared to the other national economic sectors, the contribution of creative
economy to the GDP growth in Indonesia is noteworthy. Creative economy sector placed in
number 6 out of 10 economic sectors with contribution of 7,74%, below the following
sectors: (1) manufacturing industry, (2) Agriculture, animal production, forestry, and fishery,
(3) Trade, hotel and restaurant, (4) Mining and extraction, and (5) Social services.

      In connection to the above, the contribution of added value from the creative
economy is higher than the contribution of the following sectors: (1) Construction (7.71%),
(2) Finance, real estate and company service (7.04%), (3) Transportation and
communication (6.27%), and (4) Electricity, gas, and clean water (0.89%).

       In addition to this, in terms of workforce absorption, creative economy is in fifth
position out of ten national economic sectors.34

      The following graph visualizes the contribution of creative economy (in the graph is
mentioned as creative industry) to the national GDP, in the period of 2002-2010.

             Graph 1.




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




33
     Ibid
34
     Ibid
In a more detailed account, the contribution of creative economy in terms of added
value to GDP, workforce absorption, number of companies, and international trade is
shown in the following table:35

     Table.1.




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



      From other literatures, we can also see data on the development of creative
economy in the period of 2006-2010.36 This document stated that the average output
growth of creative economy in this period amounted to 3.1%. This number is relatively low,
because in 2008, the world economy was affected by the global financial crisis, and it also
impacted the growth of the creative economy sector in Indonesia.

       In the subsequent years, the creative economy sector grows more positively and
amounted to 7.28%. This achievement was higher than the growth in other sectors, such as
finance, real estate and company service (6.53%); transport and communication (6.5%);
and electricity, gas and clean water (0.85%).37

      In terms of workforce absorption, during this period, the creative economy absorbed
7.75 million out of 108 million total national work force. Furthermore, it also created new job


35
   Ibid
36
   Elitua Simarmata dan Bastian Simarmata, “Peran Ekonomi Kreatif Secara Nasional”, 05 Oktober 2011,
http://www.indonesiakreatif.net/index.php/id/news/read/peran-ekonomi-kreatif-secara-nasional
37
   Ibid
opportunities, amounted to average of 3 million companies out of total 47 million
companies. 38

        In terms of international trade, creative economy sector accounted net income of
approximately Rp. 97.3 billion, where export value amounted to Rp. 108.5 billion, in contrast
to import value which only amounted to Rp. 11.2 billion. This numbers illustrate the
significant role of creative economy in enhancing domestic revenues.

     The following table visualizes several indicators and performance of creative
economy in Indonesia, in the period of 2006-2010.

            Table.2.




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


                                                            Graph 2.
       Furthermore, from all sectors of
creative economy, during the period of
2006-2010, several subsectors are
more dominant against the other
subsectors. In this regard, the fashion
sector contributed 43.2% from the
total    contribution    of    creative
economy      to    Indonesian     GDP,
handicraft     contributed      25.12%,
followed by advertisement (7.18%),
design (6.06%), music (5.30%), and
printing and publishing (4.86%).39
                                                          Source : http://www.indonesiakreatif.net/index.php/id/news/read/
                                                                  peran-ekonomi-kreatif-secara-nasional

38
     Ibid
39
     Ibid
In the future, the creative economy sector is expected to raise its share in the
national economic growth by increasing its contribution to national GDP of 7.29% in 2012,
and further increased to 7.5% in 2014. In terms of workforce absorption, creative economy
sector is expected to increase its contribution to 8.25% and further to 8.48% of total national
workforce in 2014.

        The raise of creative economy contribution to the national GDP as well as to the
absorption of workforce is expected through the creation of more creative entrepreneurs or
practitioners of creative economy, which will be supported by among others, greater
penetration of international market and enhanced partnership with communities of creative
economy in other countries.

       Furthermore, the raise of creative economy is expected to materialize in line with the
enhancement of public’s appreciation to the practitioners as well as the products of creative
economy. The enhancement of public’s appreciation is reflected from the increase of
consumption of creative products and services by the people, as well as the creation of
public space for the society. In this regard, the Government of Indonesia through the
Kemenparekraf has targeted the increase of consumption of creative products to grow
10.89% in 2014, while the public’s appreciation is expected to rise by 5% every year from
2013 to 2014. In addition, it is expected that by 2014, 12 creative zones will be created.

       The efforts to achieve target of national development in the creative economy sector
in 2012-2014 are supported by building the capacity of the human resources and
developing the professionalism of the creative economy practitioners through various
means, including certification programmes and standard of competence for creative
economy professions, creation of innovation through relevant studies, as well as promoting
of organizational performance.

       In the long run until the year 2025, based on the National Long Term Development
Plan 2005-2025,40 the development of creative economy is expected to contribute further in
various aspects, including, but not limited to, the following:

            Contribution of creative economy is expected to reach 9-11% of the national
             GDP, provided that the national economic growth reach 9-11% annually.
            Contribution of creative economy export is expected to reach 12-13% of the total
             national export, provided that the total export growth reach 10-12% annually.
            Contribution of workforce in the creative economy is expected to reach 9-11% of
             total national workforce absorption.


40
  “Pengembangan Ekonomi Kreatif Indonesia 2025: Rencana Pengembangan Ekonomi Kreatif Indonesia 2009-2015” Departemen
Perdagangan Republik Indonesia, 2008, p.39
   The number of companies working in creative economy sectors increase three-
             fourfold compared to the number of companies in 2006.
            Increase the number of registration of patents, copyrights, brands, and industrial
             designs.
            Increase the number of creative economy zones in Indonesia.

III.II. Challenges and Opportunities

         III.II.1. Challenges

       In the implementation and development of creative economy, several challenges still
exist and need to be overcome by all related stakeholders in Indonesia.

       In various occasions, Minister Mari Elka Pangestu stated a number of challenges for
creative economy development in Indonesia. In one event, Minister Mari Elka Pangestu
stated that the main challenges for creative economy in Indonesia includes (1) the low
purchasing power parity of Indonesian society, (2) financing and capital, (3) quality of
human resources.41 In another instance, she pinpointed several challenges in the creative
economy sector, including (1) the condition of export-import, (2) protection of intellectual
property rights, (3) taxation issues, (4) public appreciation and (5) quality of human
resources.42

       In a more recent occasion, Minister Mari Elka Pangestu mentioned that there are
seven issues facing the development of creative economy in Indonesia, namely (1) policy
regulations, (2) the lack of research for technology development and creative product, (3)
human resources development, (4) infrastructure, (5) marketing, (6) institution and public
appreciation, (7) access to financing.43

       Besides the statements by Minister Mari on different occasion as cited above,
through literature research, there are other sources44 45 46 47 48 that also indicate various
challenges of the creative economy in Indonesia. Based on the above-mentioned

41
   “Tiga Masalah Ganjal Perkembangan Ekonomi Kreatif”, Neraca 7 Desember 2011, http://www.neraca.co.id/2011/12/07/tiga-
masalah-ganjal-perkembangan-ekonomi-kreatif/
42
   Ekonomi Kreatif Masih Diliputi Banyak Masalah, http://www.wartaukm.com/ekonomi-kreatif-masih-diliputi-banyak-masalah
43
   “Tujuh Sumber Masalah Ekonomi Kreatif”, Ekonomi dan Bisnis 22 Juni 2012, http://www.infobanknews.com/2012/06/nih-tujuh-
sumber-masalah-ekonomi-kreatif/
44
   Industri Kreatif di Indonesia Masih Ada Hambatan, Suara Pembaruan 30 Juli 2012,
http://www.suarapembaruan.com/ekonomidanbisnis/industri-kreatif-di-indonesia-masih-ada-hambatan/22880
45
   5 Kendala Pengembangan Ekonomi Kreatif di RI, 19 November 2011,
http://economy.okezone.com/read/2011/11/18/320/531386/5-kendala-pengembangan-ekonomi-kreatif-di-ri
46
   SDM Kendala Industri Kreatif, 31 July 2012, http://citraindonesia.com/sdm-kendala-industri-kreatif/
47
   Challenges and Opportunities in the Creative Industry, http://www.gbgindonesia.com/en/services/article/2011/
challenges_and_opportunities_in_the_creative_industry.php
48
   See Basuki Antariksa, “Konsep Ekonomi Kreatif: Peluang dan Tantangan dalam Pembangunan di Indonesia,
http://www.budpar.go.id/userfiles/file/Art_17-2-Konsep%20Ekonomi%20Kreatif.pdf
literatures, the main challenges of creative economy in Indonesia can be grouped into the
following elements:

      1. The development of the creative industry is not yet optimal. This situation is
         mainly caused by several factors, including the lack of the attractiveness of the
         creative industry; the lack of mature business model for creative industry; as well
         as the high risk perceived by some practitioners.

      2. The development of creative ideas, creative technology as well as software
         content is not yet optimal. This situation is mainly caused by the lack of adequate
         internet infrastructure; the lack of standardized exhibition/ performance buildings;
         the high cost of production hardware and software; the lack of content research;
         and the lack of content archiving.

      3. The lack of market expansion and penetration for creative products and services,
         both domestically and in external markets. This situation is mainly caused by the
         lack of public appreciation on local creativity; the lack of connectivity of national
         distribution channel; the limitation of foreign markets; the high cost of promotional
         activities; and the lack of monitoring on royalty, license, and copyrights.

      4. The lack of strong creative industries. This situation is mainly caused by the
         absence of legal umbrella which guide the governance of each creative industry
         subsectors; the lack of conducive business atmosphere; low appreciation to and
         rampant piracy of creative products.

      5. The lack of financial access to the practitioners of creative economy. This
         situation is mainly caused because the characteristics of creative economy and
         the current existing financial schemes; fluctuation of cash flow; and intangible
         assets.

      6. The development of natural and human resources in creative economy is not yet
         optimal. This situation is mainly caused by the scarcity of resources, the lack of
         resources research, the gap between education and industry, and the lack of
         adequate standardization and certification.

      III.II.2. Opportunities

      Apart from the challenges in the creative economy sector, which has been
elaborated above, on the other hand, there is also an ample opportunity for the creative
economy to further blossom.
Based on Renstra Kemenparekraf, in 2008, the global market opportunity for
creative products and services amounted to US$ 588.635 million. In the same year, the
total Indonesian export of creative economy reached US$ 11.872 million. This number
signifies that Indonesia currently only controls a tiny share (2.02%) of the creative products
and creative services in the global market. In this connection, there is still a very big space
for Indonesia to expand its production and maximize the potency of the global creative
economy market.

       Furthermore, ten world biggest importers of creative products and services are not
very different from ten biggest export destinations of Indonesian creative products and
services. The United States is currently the biggest importer of creative products and
services, and at the same time it is also the biggest export destination of Indonesian
creative products and services. 49 Other main export destinations are Japan, England, and
Germany. These countries are also lucrative markets for Indonesian products.

         Table 3.




         Source : Kemenparekraf


       As an example of the potency of Indonesian creative products, local Indonesian
brands are gaining international recognition such as Bagteria, a boutique bag producer
using traditional craft and embroidery techniques. The brand reflects the potential for
international success of other Indonesian designers many of which are already making
headway in areas such as Muslim fashion and batik.50

      In the media content sub-sector, opportunities for investment and partnership
remains large. Indonesian consumers represent a large, youthful and highly adaptive
market. Currently Indonesia is Facebook’s second largest market and Twitter’s third largest
worldwide. The success of smart phones such as Blackberry which counted 3 million users

49
  Strategic Plan of the Ministry of Tourism and Creative Economy (Kemenparekraf) 2012-2014, p.63
50
  Challenges and Opportunities in the Creative Industry,
http://www.gbgindonesia.com/en/services/article/2011/challenges_and_opportunities_in_the_creative_industry.php
at the end of 2010 is giving rise to third party applications, tailored advertising solutions and
software. 51

            Furthermore, the
                   film industry in Indonesia witnesses a revival, beginning from 2005 to
2008, when there were 87 Indonesian films produced, in contrast to only 6 films produces in
the period of 2001-2002. There is potential for far more within the industry and the country
possesses many talented film makers.

      The recent opening up of the sector to foreign investment will provide the room for
greater collaboration in this promising industry and support for burgeoning producers.
Previously closed to foreign investors, foreign ownership is now permitted up to 49%.52

III.III. Policy Recommendation

       Based on the Presidential Directive (Inpres) No 6 year 2009 on the Development of
Creative Economy, the President of the Republic of Indonesia had instructed 23 Ministers,
4 Heads of Non-Ministerial Bodies (LPNK), all Governors, all Mayors and all Regents, to
support the policy of Development of Creative Economy, 2009 – 2015. This policy entails
the development of economic activities based on creativity, skills, and individual gifts, to
generate creations which have economic values and have positive impact to the welfare
and prosperity of the Indonesian people.

       Furthermore, the President also instructed the Ministers, Heads of institutions,
Governors, Mayors, and Regents to develop and implement action plan regarding
development of creative economy in their respective ministries/institutions, in line with their
duties and functions.

       To coordinate all the relevant ministries and institutions, the President established
the Coordinating Team of Development of the Creative Economy. The Coordinating
Minister for Social Welfare sits as the Chair of the team, with the Coordinating Minister for
Economic Affairs as the Vice Chair. Minister of Trade serves as the 1 st Executive Officer
(Pelaksana Harian) and Minister of Industry serves as the 2nd Executive Officer. The
members of the team consist of the other relevant Ministers, Head of institutions,
Governors, Mayors, and Regents.

       One important thing to note is that the Ministry of Foreign Affairs (Kemlu) is included
in this team. The rationale is quite obvious. The endeavor to develop national creative
economy has a strong external dimension. Creative economy of Indonesia has to be


51
     Ibid
52
     Ibid
promoted abroad, has to be able to penetrate foreign markets, as well as gain recognition
from international community. In this regard, all Indonesian missions abroad will play a very
critical role, as spearhead to promote Indonesian creative economy in their respective
accredited countries. Furthermore, it will be imperative for all Indonesian missions abroad to
conduct close collaboration with Kemlu, Kemenparekraf and other related institutions in
fostering this undertaking.

      In light of the above, and also in line with the spirit of the Presidential Directive No 6
year 2009, it is no doubt that a right mix of public policies and strategic choices are
essential for harnessing the socio-economic potential of the creative economy for
development gains.53

        This paper argues that the synergy between Kemlu and all Indonesian Missions
abroad with Kemenparekraf as well as other related institutions, should be strengthened
and further intensified to address the challenges, maximize the opportunities, as well as to
further advance the creative economy sector in Indonesia. The close cooperation between
all these stakeholders will be crucial in many dimensions.

        This paper proposes that the collaboration among these stakeholders should be geared
towards the achievement of five objectives. And to achieve these objectives, there are thirteen
strategies to be implemented. The objectives to be achieved are as follows:


            1. Creative people with creative mindset
            2. Competitive industry in domestic as well as foreign markets, with the active role
               of local entrepreneurs
            3. Enabling technology which support the development of affordable creative
               products for the Indonesian people
            4. Effective utilization of domestic resources for creative economy
            5. Increase of appreciation and consumption of local creative products by domestic
               society as well international community.

        The following part will elaborate the strategies related to the achievement of these
objectives. Furthermore, it will also present some examples/ best practices that has been
conducted in the past which support the argument of the relevance and the feasibility of the
proposed strategies. Nonetheless, to maintain brevity of this paper, the detailed account of
each example will be put in the Annex part. The following part will only touch upon the issue
in a glimpse and provide simple reference to the issue.




53
     Creative Economy Report 2010, “Creative Economy: A Feasible Development Option”, UNCTAD, 2010, p.xxiii
III.III. 1. First Objective : Creative people with creative mindset

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

           1. To provide support to talented creative economy practitioners to obtain proper
              and adequate opportunities in the international fora.

                This strategy is very relevant to Indonesian missions abroad because one of the
                main duties of economic officer or the social culture officer at an Indonesian
                Embassy is to facilitate and promote Indonesian people or companies in the
                accredited country.

           2. To develop and expand database and success story of creative products and
              practitioners of creative economy from Indonesia.

                An example of a success story of creative products and practitioners of creative
                economy from Indonesia is about the “Gold award for outstanding exhibit untuk
                Booth Indonesia pada Hong Kong Flower Show 2012. The information was
                displayed in the website of Kemlu on 11 April 2012.54 Detailed information on this
                success story appears in Annex 1 of this paper.

           3. To facilitate the growth of networks and to promote cooperation between
              practitioners of creative economy from Indonesia and their relevant counterparts
              in the accredited country.

                As has been presented in the previous section, many other countries are also
                promoting creative economy. In this regard, Indonesian missions abroad should
                engage the community of practitioners in their accredited countries and bridge
                the community with practitioners from Indonesia.

                An example of a success story of facilitation of networks and promotion of
                cooperation between practitioners of creative economy from Indonesia and their
                relevant counterparts through the event of film festival in the accredited country is
                about “Four Indonesian films partake in the first Asian Film Festival in Brazil”. The
                information was displayed in the website of Kemlu on 10 August 2012.55 Detailed
                information on this success story appears in Annex 2 of this paper.



54
     http://www.kemlu.go.id/hongkong/Pages/Embassies.aspx?IDP=40&l=id
55
     http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=77&l=en
4. To promote and facilitate practitioners of creative economy from abroad coming
            to Indonesia, to share experience and knowledge as well as to develop business
            network in creative economy sector.

              An example of a success story of a facilitation of practitioners of creative
              economy from abroad coming to Indonesia is about a photography exhibition
              entitled "Archiving the Exotic and Unfamiliar". The information on this issue was
              displayed in the website of Indonesia Kreatif on 12 September               2012,
                                        56
              www.indonesiakreatif.net. Detailed information on this success story appears in
              Annex 3 of this paper.

         III.III. 2. Second Objective : Competitive industry in domestic as well as foreign
                     markets, with the active role of local entrepreneurs

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

         1. To broaden the distribution scope of creative products, both in the domestic
            market as well as the foreign market.

              There are still many untapped potentials in accredited countries. Indonesian
              missions abroad play important role in mapping these potentials in the respective
              countries, and promote greater distribution of creative products from Indonesia.

              An example of a success story of broadening the distribution scope of creative
              products in the foreign market is about a new Indonesian Restaurant which was
              opened in Hong Kong.57 The information was displayed in the website of Kemlu
              on 12 January 2012, www.kemlu.go.id/successstories. Detailed information on
              this success story appears in Annex 4 of this paper.

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

              Indonesian missions abroad should continue to encourage practitioners of
              creative economy to participate in various prestigious events in the accredited
              countries.




56
   http://www.indonesiakreatif.net/index.php/en/news/read/archiving-the-exotic-and-unfamiliar-attempts-to-archive-the-space-
and-time
57
   http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=31&l=en
An example of a success story of the endeavor to amplify market appreciation
             towards Indonesia creative products, in this case photography, is about the
             “Three Indonesian Photographers Win International Photo Competition in
             Dubai”.58 The information was displayed in the website of Kemlu on 29 March
             2012, www.kemlu.go.id/ successstories. Detailed information on this success
             story appears in Annex 5 of this paper.

        3. To perform marketing research of creative products, both domestically as well as
           at the accredited countries.

             Marketing research is very important to identify the opportunity for Indonesian
             creative products and services to be exported to the accredited countries.

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

             An example of promotion of creative products at the accredited countries is about
             “Indonesia awarded in Asia Festival in Oklahoma”. 59 The information was
             displayed in the website of Kemlu on 21 May 2012, www.kemlu.go.id/
             successstories. Detailed information on this success story appears in Annex 6 of
             this paper.

        III.III. 3. Third Objective : Enabling technology which support the development
                    of affordable creative products for the Indonesian people

       To achieve the third objective, the strategy to be taken into account is by fostering
mutual partnership with relevant institutions in accredited countries which have advance
knowledge and technology in creative economy. This strategy is most relevant the more
developed countries where technology in the creative economy sector is more advanced.
Nonetheless it doesn’t mean that missions in developing countries could not implement this
strategy, because the creative economy grows very fast worldwide.

       An example of fostering mutual partnership with accredited countries which have
advance knowledge and technology in creative economy, in this case Japan, is about
“Wisata dan Produk Kreatif RI makin menarik bagi Jepang”. 60 The information was
displayed in the main page of the website of Kemlu at 24 September 2012,
www.kemlu.go.id/. Detailed information on this success story appears in Annex 7 of this
paper.


58
   http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=43&l=en
59
   http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=59&l=en
60
   http://www.kemlu.go.id/ptri/Pages/News.aspx?IDP=5830&l=id
III.III. 4. Fourth Objective : Effective utilization of domestic resources for
                  creative economy

      To achieve the fourth objective, the strategy to be taken into account is to foster
mutual partnership with accredited countries which have advance processing technology.

       Indonesian Embassies and Consulate Generals in accredited countries which have
developed creative economy as well as have advance processing technology, need to be
more active to provide mapping of the relevant institutions and communities, with the view
to forge mutual partnership for the benefit of practitioners of creative economy from
Indonesia.

       III.III. 5. Fifth Objective : Increase of appreciation and consumption of local
                  creative products by domestic society as well international community

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

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

          There is a necessity for all related ministries/institutions in Indonesia to sit
          together, agreeing on one vision, one direction, and one approach for promotion
          on Indonesia, including on the creative economy. This coordinated policy will
          serve as guidance for all Indonesian missions abroad in their promotion activities.

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

       3. To promote creative products with high economic value and distinctive
          Indonesian characteristics to the international market.

          This strategy is very closely related with Indonesian diplomacy in the issue of
          Intellectual Property Rights (IPR), whether it is in multilateral, regional as well as
          bilateral fora. Indonesian diplomacy in IPR is crucial to protect the practitioners of
          creative economy from piracy. In this connection, strong Indonesian diplomacy in
          IPR could further promote the appreciation from international community towards
          Indonesia’s creative products and services.



                                           --ooOoo--
CHAPTER FOUR:
                 CONCLUSION AND RECOMMENDATION


IV.I. Conclusion

       Throughout the chapters, this paper has attempted to deliberate on the notion of
creative economy as a valuable asset in Indonesian economic diplomacy.

        From the analysis, this paper reiterates it conviction that creative economy has a
significant contribution to the economic diplomacy. This can be seen by its contribution to the
national GDP, absorption of workforce as well as the contribution to the foreign trade of
Indonesia, whereby the amount of export is much higher than import.



       Furthermore it is also evident that the
creative economy sector is on the rising trend.
From many instances, including from the examples
provided, Indonesian creative economy has gained
greater recognition from international community.
Cooperation and partnership with external parties
also enhances the capacity of the practitioners of
creative economy as well as increasing the quality
of Indonesian creative products and services.

       This paper recognized that in the venture of
advancing creative economy, several challenges
exist and if not carefully managed, they will shroud
and hinder the creative economy to rise to a higher
notch. Indeed there has to be a comprehensive
approach to optimize the development of creative economy; including the creative ideas,
creative technology, creative industries, and human resources. Furthermore, market
penetration and access to financing have to be expanded.

        Despite the current challenges that are still faced by the creative economy sector,
the opportunity is still promising. The potency of the external market has not been fully
utilized. Currently Indonesia still occupy a tiny share (2.02%) of the total global market of
the creative economy. In this regard, Indonesian economic diplomacy has to give greater
focus and attention for strategies to penetrate these markets, both in the traditional markets
like the US, Japan, England, and Germany, as well other countries as the nontraditional
market for Indonesian creative products and services. In addition to this, creative economy
could play a very important role in promoting national tourism, including local culture and
wisdom to the international audience.

IV.II. Recommendation

      In its latter part, this paper has also endeavored to propose policy recommendation,
geared towards further advancing the potential of creative economy for the betterment and
prosperity of Indonesian people at large.

       In great details, this paper has put forward ideas in the form of 13 strategies to be
considered by policy makers, as well as for diplomats posted in Indonesian Embassies/Consulate
Generals abroad in doing their function in the economic and/or socio-culture sections.

       In a nutshell, those policy recommendations are structured in such a fashion to
obtain the five following objectives, namely:


       1. Creative people with creative mindset
       2. Competitive industry in domestic as well as foreign markets, with the active role
          of local entrepreneurs
       3. Enabling technology which support the development of affordable creative
          products for the Indonesian people
       4. Effective utilization of domestic resources for creative economy
       5. Increase of appreciation and consumption of local creative products by domestic
          society as well international community.

       The following matrix summarizes the policy recommendations/strategies in the
previous chapter for development of creative economy in Indonesia, by emphasizing the
synergy between the Ministry of Foreign Affairs and the Ministry of Tourism and Creative
Economy.
Matrix of Objective and Strategy
                 For Development of Creative Economy in Indonesia

       Objective                           Strategy                            Institutions

1. Creative people with       1. To provide support to talented          Ministry of Foreign Affairs
   creative mindset              creative economy practitioners to       Ministry of Tourism and
                                 obtain proper and adequate               Creative Economy
                                 opportunities in the international      Other related ministries/
                                 fora.                                    institutions

                              2. To develop and expand database          Ministry of Foreign Affairs
                                 and success story of creative           Ministry of Tourism and
                                 products and practitioners of            Creative Economy
                                 creative economy from Indonesia         Other related ministries/
                                                                          institutions
                              3. To facilitate the growth of             Ministry of Foreign Affairs
                                 networks and to promote                 Ministry of Tourism and
                                 cooperation between                      Creative Economy
                                 practitioners of creative economy       Other related ministries/
                                 from Indonesia and their relevant        institutions
                                 counterparts in the accredited
                                 country
                              4. To promote and facilitate               Ministry of Foreign Affairs
                                 practitioners of creative economy       Ministry of Tourism and
                                 from abroad coming to                    Creative Economy
                                 Indonesia, to share experience          Other related ministries/
                                 and knowledge as well as to              institutions
                                 develop business network in
                                 creative economy sector
2. Competitive industry       5. To broaden the distribution             Ministry of Foreign Affairs
   in domestic as well as        scope of creative products, both        Ministry of Tourism and
   foreign markets, with         in the domestic market as well as        Creative Economy
   the active role of local      the foreign market                      Other related ministries/
   entrepreneurs                                                          institutions

                              6. To amplify market appreciation          Ministry of Foreign Affairs
                                 (both domestic as well as               Ministry of Tourism and
                                 foreign) towards creative                Creative Economy
                                 products                                Other related ministries/
                                                                          institutions
                              7. To perform marketing research           Ministry of Foreign Affairs
                                 of creative products, both              Ministry of Tourism and
                                 domestically as well as at the           Creative Economy
                                 accredited countries                    Other related ministries/
                                                                          institutions
                              8. To conduct promotion of creative        Ministry of Foreign Affairs
                                 products at the accredited              Ministry of Tourism and
                                 countries                                Creative Economy
                                                                         Other related ministries/
                                                                          institutions
3. Enabling technology        9. Fostering mutual partnership            Ministry of Foreign Affairs
   which support the             with relevant institutions in           Ministry of Tourism and
   development of                accredited countries which have          Creative Economy
   affordable creative           advance knowledge and                   Other related ministries/
   products for the              technology in creative economy           institutions
   Indonesian people
4. Effective utilization of   10. To foster mutual partnership           Ministry of Foreign Affairs
   domestic resources for         with accredited countries which        Ministry of Tourism and
   creative economy               have advance processing                 Creative Economy
                                  technology                             Other related ministries/
                                                                          institutions
5. Increase of                11. To develop concept, strategy           Ministry of Foreign Affairs
   appreciation and               and implementation of                  Ministry of Tourism and
   consumption of local           campaign and promotion on               Creative Economy
   creative products by           Indonesia                              Other related ministries/
   domestic society as                                                    institutions
   well international         12. To develop cultural diplomacy          Ministry of Foreign Affairs
   community                      as part of the important function      Ministry of Tourism and
                                  of the Indonesian mission               Creative Economy
                                  abroad                                 Other related ministries/
                                                                          institutions
                              13. To promote creative products           Ministry of Foreign Affairs
                                  with high economic value and           Ministry of Tourism and
                                  distinctive Indonesian                  Creative Economy
                                  characteristics to the                  Other related ministries/
                                  international market                    institutions

                                            --ooOoo--
ANNEX


Annex 1.
GOLD AWARD FOR OUTSTANDING EXHIBIT UNTUK BOOTH INDONESIA PADA HONG KONG FLOWER SHOW 2012
                                                                                                            Rabu, 11 April 2012




Untuk keempat kalinya, KJRI Hong Kong telah berpartisipasi dalam Hong Kong Flower Show yang diselenggarakan pada 16-25
Maret 2012 oleh Hong Kong Leisure and Cultural Services Department (LCSD) di Victoria Park, Hong Kong, sebagai salah satu
upaya untuk mengenalkan lebih luas kekayaan flora Indonesia serta seni tradisional Indonesia.

 Pada tahun 2012 ini, selain bekerjasama dengan Taman Bunga Nusantara sebagai penata booth Indonesia, keikutsertaan KJRI Hong
Kong juga dimeriahkan oleh tim kesenian Indonesia dari Kementerian Pariwisata dan Ekonomi Kreatif RI yang akan tampil secara
khusus pada center stage Hong Kong Flower Show pada 25 Maret 2012 mendatang.

 Booth Indonesia juga dimeriahkan oleh Abang dan None Jakarta mengenakan baju pengantin Palembang yang sangat diminati oleh
pengunjung Flower Show. Kemeriahan booth Indonesia yang pada tahun ini menampilkan tema Sumatera Selatan kembali mendapat
apresiasi dari para pengunjung pameran serta kembali meraih penghargaan “Gold Award for Outstanding Exhibit”.

 Ini adalah penghargaan yang ketiga kali untuk booth Indonesia setelah pada tahun 2010 dan 2012 lalu yang menampilkan tema Bali
serta Jawa, Indonesia mendapat penghargaan yang sama atas keindahan penataan booth dan bunga Indonesia serta minat besar
pengunjung pada booth Indonesia. Tidak kurang dari Madam Selina Tsang, istri Chief Executive of Hong Kong, mengagumi booth
Indonesia dengan berkunjung khusus ke dalam booth yang kemudian dianugerahi kain songket Palembang oleh Konsul Jenderal RI di
Hong Kong.

 KJRI Hong Kong memanfaatkan HKFS 2012 ini sebagai salah satu kesempatan untuk mempromosikan Indonesia secara utuh
sekaligus untuk semakin menggugah minat masyarakat Hong Kong berkunjung ke Indonesia, baik untuk tujuan wisata maupun bisnis.

 Lebih jauh lagi, even ini diharapakan dapat semakin menumbuhkan animo pengusaha lokal dalam menjalin kerja sama dengan
Indonesia dalam bidang bunga dan tanaman hias. KJRI Hong Kong akan selalu mendukung seluruh even di wilayah Hong Kong SAR
dan Macau SAR yang dapat digunakan sebagai ajang untuk mempromosikan seni budaya serta kekayaan alam Indonesia. (sumber:
KJRI Hongkong)

Source : http://www.kemlu.go.id/hongkong/Pages/Embassies.aspx?IDP=40&l=id
Annex.2.
A. Success Story
FOUR INDONESIAN FILMS PARTAKE IN THE FIRST ASIAN FILM FESTIVAL IN BRAZIL
                                                                                                               Friday, 10 August 2012




Lovely Man (Director Teddy Soeriaatmadja),Mata Tertutup (The Blindfold - Director GarinNugroho), The Mirror Never
Lies (DirectorKamila Andini) and The Perfect House(Director Affandi Abdul Rachman) took part in the Traffic 1
ª Festival de Cinema e CulturaAsiatica de Sao Paulo held from 2 to 9 August2012 in Sao Paulo, Brazil.
The four Indonesian films were featured alongwith 28 other films from China, the Philippines, Hong Kong, Japan, South
Korea,Malaysia, Taiwan, and Thailand in this first large-scale Asian Film Festival in Brazil.
The organizer of the Traffic Festival invited John Badalu, a filmmaker and a film producer from Indonesia, to act as the curator of the
festival. John Badalu took such opportunity to talk about the development of cinema in Southeast Asia.
The Asian Film Festival holds significance for the world of Asian cinema and culture, including Indonesia, as it provides a bridge that
connects it to the gate of Latin America.

Source : http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=77&l=en
Annex.3.
ARCHIVING THE EXOTIC AND UNFAMILIAR: ATTEMPTS TO ARCHIVE THE SPACE AND TIME
   September 12, 2012 | Views (123)

Text & photo: Jaya Liem | Editor: Intan Larasati




From May to August 2012, Thomas Breakwell, a photography artist born in Melbourne, Australia, attended the residency program
organized by Ruang MES 56 in Yogyakarta. During his residency Thomas created a visual archive that would be exhibited at the end
of his residency period in a solo photography exhibition entitled "Archiving the Exotic and Unfamiliar". Thomas is an artist who has
an idea about man and the surrounding nature. He works with several issues on how man is connected to the surrounding environment
where he lives, such as the urban area and its entire content that's visually related with natural landscape, human portraits and every
component existing on earth.

During his residency period in Yogyakarta, Thomas adopted the archaeologic method in his works. He collected things, from
glassware, vintages, coins, stones, trunks and roots of plants, to leaves, which later were documented in photographs. Also he
documented empty and abandoned lands within the city that looks like jungles.

Yet, different from what archeologists do, Thomas does not try to further investigate and gives explanations on the things he collected
and documented. For Thomas, there are objects or artifacts that have the capacity to represent activities referring to man's daily lives.
Meanwhile, objects related to natural lives, the organic world we're living in, can indicate a reality that they exist now, or existed
then.

Thomas' understanding on the objects is following his imagination that came because of his curiosity and fascination when he saw
new things, the exotic experience of being a foreigner. Thomas related the objects with his personal imagination to create a fictional
idea. He tries to reveal what are we as human connected with these surrounding objects and what are we as human being represented
by these artifacts.

On the other hand, the objects or images of the objects are Thomas' visual experience that was gained from direct observation when
he was traveling around Yogyakarta, thus its involvement isn't merely as a memory images, but also as an imaginative narration
connected to stories behind those objects. The collected objects became some sort of documentation to refresh our memories on stories
happening within a time and space of our daily moves. Documents are tools of narration related to memory, and narration is a way to
recognize and remember documentation, which are closely interconnected.

From these two understandings Thomas then experimented with our ways of understanding this objects based on our knowledge and
experience, on how the objects are being used and represented. The objects then was made into a visual archive by adapting the
archaeologic methods that later developed freely following Thomas' imagination in entering a new dialogue, of the past and the
present. With photography as a way of seeing, the depiction of the culture of the past and historical story is not only when the photo is
taken, but also when the photo is observed in a different time, in a stratum of time.

The concept of a limited stratum of time is related to a space formed from various human experience, with objective and non-
measurable objective qualitative substance. The qualitative dimension of space is length, width and height of an existed and moving
objects. The existence of an object can be determined from the qualitative structure formed from duration to discover the process and
development, the progress of its existence in the past, present and future.

In photography an object should be able to be defined with space and time where the photograph is taken. But Thomas' imagination
developing within the visual archive of collected objects, Thomas' relation with the objects as they were found and documented,
causing the relation of space and time within his photos had different understanding later on. Therefore in the exhibition Thomas
finally no longer talks about the objects, but only presenting them and invite the audience to reflect on his found objects.

Archiving The Exotic and Unfamiliar exhibition, held from 11 to 31 August 2012, was the first program of Ruang MES 56 in their new
location, Minggiran no. 61A, Yogyakarta. I his opening speech, Anang Saptoto as Ruang MES 56 program manager stated that Ruang
MES 56 residency program is not only for foreign photography artists. All photography artists can apply for this program by
contacting MES 56 at http://mes56.com.

Source:http://www.indonesiakreatif.net/index.php/en/news/read/archiving-the-exotic-and-unfamiliar-attempts-to-archive-the-
space-and-time
Annex.4.
B. Success Story
MORE CULINARY VARIETY, A NEW INDONESIAN RESTAURANT OPENED IN HONG KONG

                                                                                                            Thursday, 12 January 2012




Another addition to the already rich variety of cuisine in Hong Kong, the ‘So Bali Bali’ a new restaurant serving uniquely Indonesian
dishes was officially open for business. The Indonesian Consulate General Teguh Wardoyo expressed his hope that So Bali Bali would
take part in promoting the rich diversity of Indonesian cuisine in Hong Kong. “Hopefully, this restaurant would also play a part in
introducing Indonesia as a whole”, added Teguh.

The Consulate General also said that the restaurant that is located at 31 Elgin Street Soho will also function as an art gallery where a
number of paintings by Indonesian artists will be put on display and offered for sale.

The region of Soho is one of the elite areas in Hong Kong and it is famous as a culinary center serving foods from various countries. It
is also a well visited tourist destination for domestic and foreign tourist alike.

The restaurant is owned by Mary So, a relative of a long time Hong Kong resident who just happen to be an Indonesian. Her love of
everything Indonesian had encouraged her to open the restaurant. “This restaurant looks different compared to other restaurants in
the area because it is decorated with unique Balinese ornaments”, explained Mary. However, the restaurant serves more than
Balinese cuisine; it also serves numerous dishes from other parts of Indonesia.

The restaurant’s official opening was celebrated with a performance of traditional dance from West Java and Bali by a dancer from
Sanggar Budaya, an art and cultural group under the auspices of the Indonesian Consulate General in Hong Kong.

A number of APPIH members, representatives of Indonesian State Owned Companies, staff from the Consulate General and ordinary
Hong Kong residents were present at the event and it was also covered by Indonesian media in Hong Kong.

According to the Consulate General’s record, currently there are several large and small Indonesian restaurants in Hong Kong
(source: Indonesian Consulate General, Hong Kong. Ed/Yo2k).

Source: http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=31&l=en
Annex.5.
SUCCESS STORY

THREE INDONESIAN PHOTOGRAPHERS WIN INTERNATIONAL PHOTO COMPETITION IN DUBAI

                                                                                                              Thursday, 29 March 2012




A total of three Indonesian photographers managed to come out as the first and second winner among the 16 winners of international
photo contest of Dubai’s Crown Prince Award, "Hamdan International Photography Award (HIPA)". Winners Categories are divided
into "Love of the Earth", "The General Pivot", and "Dubai". A total of 4046 participants from 99 countries, including 19 Arab
countries, take part in this photo contest.Trophy ceremony is done directly by Sheikh Hamdan Bin Mohammad Bin Rashid Al
Maktoum, Dubai Crown Prince, who was accompanied by Sheikh Majid Bin Mohammad Bin Rashid Al Maktoum, Chairman of "The
Dubai Culture and Arts Authority” on the Armani Hotel Dubai on March 27, 2012. Also present as guests of honor are Consul
General of Dubai, Mansyur Pangeran, as well as high officials of the Dubai government, and other invitees.

The three photographers are Zulkifli Qincay Zhu, residents of Kerinci, Jambi, which is currently a student at the Bung Hatta
University, Padang, West Sumatra, his photograph is selected as the first winner in the category of "The General Pivot"; Arfianto
Amri, a resident of Indonesia who have lived for 4 years in Dubai, becoming the first winner of the category of "Dubai"; and Armin
Day, part-time photographer who also works at an NGO in Yogyakarta, became the second winner in the category of "Love of the
Earth".The main winner (Grand Prize) for the entire category is won by the French photographer who got the trophy and cash prize of
U.S. $ 100,000, -. Meanwhile, the first winner of the category "The General Pivot" received the prize money of U.S. $ 14,000, - and the
category of "Dubai" of U.S. $ 16,000, -. While the second winner of categories of "Love of the Earth" earned U.S. $ 16,000, -. The
other winners are from Bangladesh, France, Italy, Argentina, Germany and Kuwait, in addition to the special winner of UAE citizens
for each category.

Responding to the victory of Indonesia's three photographers, Consul General Mansyur congratulated the winners directly after the
trophy ceremony, while expressing his admiration for their photographs and pride because Indonesia can be selected as the winner
from the thousands of participants from around the world who followed this photo contest.Consul General Mansyur added that the
work of Indonesia photographers chosen as the winner in this contest gave international recognition for quality and value creation of
Indonesian photographers who are not inferior to other photographers from around the world. Furthermore, the Consul General
Mansyur stated that participation in this contest and the success to be the winner have also helped promote Indonesia at the
international level. What's more the work shown describes the natural conditions and social realities of everyday life of the people of
Indonesia which are considered to be very interesting as an object of photography. Through photography which is a universal
communication medium, each image is presented to bring the message and meaning of its own, while also to be enjoyed visually.
The work of Zhu Qincay Zulkifli managed to record the expressive moment of cow race, depicting a citizen of Indonesia spurring two
cows in the middle of a muddy field. Meanwhile, Amri Arfianto work that captures the architectural object of Terminal 3 Arrivals of
Dubai International Airport, managed to capture the recesses and details of buildings and reforms it into works of stunning
photographs.

While Armin Day captures the activities of a farmer who was farming with mountains as background and a light mist which enveloped
him. The point of view makes the work of Armin Hari very mindblowing. At first the HIPA committee received about 7,000 photos from
around the world which are sent via HIPA internet site. But then they selected about 6,000 photos and after going through the judging
process for 30 days, the jury chose the 16 winners. The committee bring all the winners to Dubai. The overall cost of transportation
from home country to Dubai and accommodation for the winner in Dubai is also borne by the committee.This photography contest had
the full backing of the Dubai government and is an initiative that is integrated with the "Dubai Strategic Mission 2015" to develop
culture and art in Dubai and made the city of Dubai as a hub of culture and arts in the region and internationally. This new activity,
undertaken for the first time, will be held regularly every year. The jury of this competition are the chosen people in the field of
international art and photography.

The photographs of the winners and also the diverse work of Sheikh Hamdan Bin Mohammad Bin Rashid Al Maktoum at the Dubai
Mall is also on display for 1 week until March 31, 2012 and has been put in a book with the title "Love of the Earth", which is printed
in a language English and Arabic. (Source: Consulate General in Dubai)

Source: http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=43&l=en
Annex.6.

C.   Success Story

INDONESIA AWARDED IN ASIA FESTIVAL IN OKLAHOMA

                                                                                                             Monday, 21 May 2012




Two art performances by the Indonesian contingent, the solo violin performed by Nathaniel Parker and the Topeng Cirebonan dance
by Sarah Shutts, earn a special award during the Asian Festival 2012 which is held last Saturday (19/05) in Oklahoma City, United
States.

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

The Asian Festival, with participants from China, the Philippines, India, Iran, Japan, Vietnam, and Taiwan, is organized by the
Indonesian-American Association of Oklahoma (IAAO), the Asia Society of Oklahoma (ASO) and the Indonesian Consulate General
office (KJRI) Houston.

Indonesia’s Consulate General, Al BusyraBasnur, in his opening speech, expresses, among others, that the Asian Festival possesses a
strategic meaning in the effort to improve the relationship and friendship between Asia and the US, especially with the people in
Oklahoma.

“By performing the Asian art, culture, and exhibitions, the American people, especially from Oklahoma and its surrounding, will get
to know and understand Asia better,” Al Busyra says.”

Al Busyra also conveys his gratitude to the Asian-American community in Oklahoma who has given the opportunity for Indonesia to
organize this year’s event.

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

Several government officials and politicians from Oklahoma also attend the festival, such as US Rep. James Lankford, Sen. Al
McAfrey, Rep. Anastasia Pittman, City Councilman David Greenwell, as well as representatives from various Asian organizations in
Oklahoma from China, the Philippines, India, Indonesia, Iran, Japan, Korea, Taiwan, and Vietnam.

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

As the host of the festival, Indonesia obtains a 30-minute time allocation to perform dances from Bali, West Sumatra, and West Java,
as well as a fashion show of traditional clothes from some parts in Indonesia by Indonesians in Oklahoma.

During the event, the Houston KJRI opens a WarungKonsuler that provides services and information related to consulate for
Indonesians. (Source: KJRI Houston)

Source: http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=59&l=en
Annex. 7.
D. Berita Utama
WISATA DAN PRODUK KREATIF RI MAKIN MENARIK BAGI JEPANG
                                                                                                       Senin, 24 September 2012




Kekayaan wisata dan berbagai potensi produk kreatif Indonesia semakin menarik bagi Jepang. Hal ini diungkapkan Menteri
Pariwisata dan Ekonomi Kreatif, Mari Elka Pangestu dalam konferensi pers (21/9/2012) usai menghadiri pertemuan Japan
Assosiation Travel Agents (JATA) Travel Showcase 2012, di Tokyo. Pertemuan JATA itu dihadiri kalangan pemerintah, pengusaha,
dan masyarakat Jepang.

Saat ini terdapat peningkatan jumlah wisatawan asal Jepang ke Indonesia, yang pada tahun 2011 mencapai 400 ribu. Jumlah ini
diharapkan dapat terus meningkat, apalagi dengan semakin terbukanya daerah wisata di Indonesia, selain Bali, yang menyimpan
potensi.

“Walaupun mayoritas turis Jepang memang sudah mengenal Bali, kita terus upayakan promosi daerah lain, serta tujuan specialty
tourism, seperti untuk meeting atau convention, olahraga golf, atau diving,” tutur Mari.

Dilanjutkannya, pada tahun 2025 ada 80 daerah tujuan wisata menarik di Indonesia. Saat ini ada 16 daerah yang dikembangkan
selain Bali, diantaranya Lombok, Raja Ampat di Papua Barat, Wakatobi di Sulsel, Danau Toba.

“Sektor pariwisata Indonesia sangat menjanjikan," tutur Mari. Hal ini turut didorong dengan domestic demand yang terus
meningkat dan sejalan dengan pertumbuhan ekonomi yang ditunjukkan dengan peningkatan signifikan kelas menengah di Indonesia.

Mari juga mengutarakan bahwa dalam kunjungan ini, pihaknya menekankan selling point pariwisata Indonesia kepada para pelaku
usaha pariwisata Jepang. Dengan adanya kesempatan yang sangat besar ini, lanjutnya, maka diperlukan dukungan infrastruktur
pariwisata yang mumpuni di Indonesia.

Masalah infrastuktur tampaknya juga menjadi perhatian para pengusaha yang tergabung dalam Kadin Jepang (Keidanren). Mereka
sepakat bahwa potensi pariwisata Indonesia dapat dioptimalkan dengan pembangunan infrastruktur yang lebih banyak dan lebih
baik. Selain itu, promosi produk-produk khas lokal setiap daerah juga berperan dalam menarik wisatawan dari Jepang.

Mari memanfaatkan kunjungan tersebut untuk mengundang para investor Jepang menanamkan modalnya di Indonesia. “Saat ini
merupakan saat yang sangat kondusif,” tegasnya sambil menjelaskan data makro ekonomi yang sangat menjanjikan dan
perkembangan infrastruktur seperti bandara Soetta yang akan direnovasi.

Jajaki Kerjasama Ekonomi Kreatif

Sejak tiba di Tokyo pada Kamis (20/9), Mari Pangestu telah bertemu dengan Menteri Ekonomi, Perdagangan dan Perindustrian
(METI) Yukio Edano dan Wakil Menteri Pendidikan, Sains, Olah Raga dan Teknologi (MEXT) Miho Takai untuk menjalin kerjasama
di bidang pariwisata dan ekonomi kreatif.

Mari Pangestu juga menjajaki kemungkinan pengiriman anak-anak muda Indonesia untuk belajar pengelolaan film, animasi,
pertunjukan, dan games di Jepang. “Wakil Menteri Miho Takai menanggapi rencana ini sangat mungkin karena tahun 2013 Jepang
akan meningkatkan anggaran bea siswa kepada Indonesia,” jelas Mari Pangestu. (sumber: KBRI Tokyo/Pen/jr/ed.Yo2k)

Source: http://www.kemlu.go.id/ptri/Pages/News.aspx?IDP=5830&l=id
Strengthening Creative Economy in Indonesian Economic Diplomacy
Strengthening Creative Economy in Indonesian Economic Diplomacy
Strengthening Creative Economy in Indonesian Economic Diplomacy

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Strengthening Creative Economy in Indonesian Economic Diplomacy

  • 1. STRENGTHENING CREATIVE ECONOMY AS PART OF ECONOMIC DIPLOMACY IN INDONESIAN FOREIGN POLICY By : Danny Rahdiansyah JAKARTA – NOVEMBER 2012
  • 2. EXECUTIVE SUMMARY The broad theme of this paper is on the relations between creative economy and economic diplomacy in the Indonesian context. The paper believes that creative economy is a valuable asset in Indonesian economic diplomacy, besides other more established sectors, inter alia trade, investment, tourism, and services. The contribution of creative economy to the economic growth of Indonesia is evident from its share to the GDP growth, workforce absorption, and export balance. Furthermore with the establishment of the Ministry of Tourism and Creative Economy (being the first of its kind in the world), creative economy is also in synergy with the tourism sector in strengthening and promoting each other. This paper recognized that in the venture of advancing creative economy, several challenges exist and if not carefully managed, they will shroud and hinder the creative economy to rise to a higher notch. Indeed there has to be a comprehensive approach to optimize the development of creative economy; including the creative ideas, creative technology, creative industries, and human resources. Furthermore, market penetration and access to financing have to be expanded. Despite the current challenges that are still faced by the creative economy sector, the opportunity is still promising. The potency of the external market has not been fully utilized. In this regard, greater focus and attention for strategies to penetrate these markets, both in the traditional markets as well other countries as the nontraditional market are crucial. In addition to this, creative economy could play a very important role in promoting national tourism, including local culture and wisdom to the international audience. On the recommendation part, this paper put forward ideas in the form of thirteen strategies to be considered by policy makers, as well as for diplomats posted in Indonesian Embassies/Consulate Generals abroad in doing their function in the economic and/or socio- culture sections, by emphasizing the synergy between the Ministry of Foreign Affairs and the Ministry of Tourism and Creative Economy. --ooOoo--
  • 3. CHAPTER ONE: INTRODUCTION I.I. Background The concept of “Economic Diplomacy” is now interpreted widely. Its borders have become more and more blurred, intertwining various fields of economic, political, strategic studies, as well as disciplines of the international relations and foreign policy. In a simple definition, “Economic Diplomacy” is related to the diplomatic official activities that are focused on increasing exports, attracting foreign investment and participating in work of the international economic organizations, i.e., the activities concentrated on the acknowledgement of economic interests of the country at the international level.1 In other words, we can also say that “Economic diplomacy“ is the process through which countries tackle the outside world, to maximize their national gain in all the fields of activity, including trade, investment and other forms of economically beneficial exchanges, where they enjoy comparative advantage; it has bilateral, regional and multilateral dimensions, each of which is important.2 In a more scientific formulation, “Economic Diplomacy” can be defined as the specific area of modern diplomatic activity concerned with economic issues3, connected with the use of economic problems as object and means of struggle as well as cooperation in the international relations. Economic diplomacy, as well as diplomacy in general, is a component of foreign policy4, related to the international economic activity of the country.5 As a main actor in international relations, Indonesia - as a state - also implements economic diplomacy to pursue the economic growth and prosperity for its people; by doing the abovementioned activities, including trade, investment and other forms of economically beneficial exchanges in bilateral, regional and multilateral dimensions, as appropriate. Currently there is common understanding that Indonesia has a stronger economic foundation then before, and is performing well in the international fora. 1 Pavol Baranay, “Modern Economic Diplomacy”, Publication of Diplomatic Economic Club, 2009, p.1 22 Kishan S Rana, “Economic Diplomacy: the Experience of Developing Countries”, http://www.cuts-citee.org/CDS03/pdf/ CDS03- Session1-02.pdf 3 Raymond Saner and Lichia Yiu, “International Economic Diplomacy: Mutations in Modern Times”, Netherlands Institute of International Relations ‘Clingendael’, 2003, p.13 4 The foreign policy defines the objectives and purposes of economic diplomacy which represents the whole set of activities, forms, means and the methods used for realization of foreign policy 5 Pavol Baranay,op.cit, p.2
  • 4. Figure 1. McKinsey Report which was recently published in September 2012 stated that Indonesia’s economy has enormous promise. Currently Indonesia is already the 16th largest economy in the world, and Indonesia has the potential to be the 7th biggest economy in the world by 2030. Source : McKinsey Global Institute, September 2012 In recent years, Indonesia has made enormous strides in its macroeconomic management. Inflation has dropped from double into single digit, and government debt as a share of GDP is now lower than in the vast majority of advanced economies.6 According to the World Economic Forum’s competitiveness report, in 2012 Indonesia ranked 25th on macroeconomic stability. It is a dramatic improvement from its 2007 ranking of 89th place. Indonesia now ranks ahead of Brazil and India, as well as several ASEAN neighbors including Malaysia, Thailand, and the Philippines.7 Furthermore the report also stated that Indonesia has a young population and is quickly urbanizing, powering growth in incomes. Between now and 2030, Indonesia will be home to an estimated 90 million additional consumers with considerable spending power. This growth in Indonesia’s consuming class is stronger than in any economy of the world apart from China and India. It is a signal to international businesses and investors of considerable new opportunities.8 Economic diplomacy is a broad concept. As has been briefly pointed out previously, it covers a wide range of issues, including ,but not limited to, Trade, Investment, Tourism and Services. These sectors when grouped together are popularly known as TTIS. As a bridge to the subsequent parts of this paper, the following part will outline the broad policy of Indonesia in these sectors. 6 McKinsey Global Institute, “The Archipelago Economy: Unleashing Indonesia’s Potential”, September 2012, p.1 7 McKinsey Global Institute, Ibid 8 McKinsey Global Institute, Ibid
  • 5. I.I.1. Trade Based on the document of Strategic Plan of the Ministry of Trade, 2010-2014,9 the broad direction of Indonesian foreign trade policy is “to increase the competitiveness of non-oil-and-gas export products, with the aim to boost the market diversification for export destination, as well as to enhance the variety, quality and image of export products”. In this connection, the strategy of promoting Indonesian foreign trade policy for the period of 2010-2014 includes the following aspects: (1) To increase high value-added export products, (2) To promote export of creative products and services, especially products and services produced by small and medium enterprises (SMEs), (3) To diversify export-destination markets and to reduce dependency from certain countries (traditional markets), (4) To maximize the utilization of various preferential trade schemes and international trade cooperation for the benefit of national interest, (5) To promote the development of border exports, (6) To strengthen institutions for foreign trade. I.I.2. Investment In the field of investment policy, the current directive which serves as the guidelines of investment in Indonesia is the Presidential Regulation (Perpres) No. 16 year 2012. According to this regulation, the policy direction for investment in Indonesia, includes: 10 (1) Improvement of investment atmosphere, (2) Diversification of investment, (3) Particular focus on investment in Food, Infrastructure and Energy sectors, (4) Promotion of green investment, (5) Promotion of small and medium enterprises, and cooperatives, (6) Facilitation and incentive for investment, and (7) Promotion of investment. I.I.3. Tourism and Services In the tourism sector, based on the document of Strategic Plan of the Ministry of Tourism and Creative Economy (Kemenparekraf) 2012-2014, the priority of national policy in this field includes: (1) Development of tourism industry, through enhance of investment, (2) Development of competitive tourist destinations in global market, (3) Development of marketing and promotion of tourism sector, and (4) Development of human resources in tourism sector.11 9 Strategic Plan of the Ministry of Trade, 2010-2014, p.67 10 Presidential Regulation (Perpres) No. 16 year 2012 on General Planning for Investment, Art.2 11 Strategic Plan of the Ministry of Tourism and Creative Economy (Kemenparekraf) 2012-2014, p. 119
  • 6. I.II. Main thesis of the paper Besides the abovementioned sectors (i.e. Trade, Investment, Tourism, Services), nowadays, Indonesia has also been advancing another sector as part of its economic diplomacy at large. This sector is creative economy. This paper believes that the issue of creative economy is very much actual, highly relevant, and at the vanguard on the development agenda. In recent years, the creative economy sector has contributed positively to the Indonesian economic growth in general, including to its GDP as well as the absorption of work force and balance of trade. In 2010, creative economy contributed approximately Rp. 468.1 trillion, or equivalent to 7.29% of national GDP.12 This significant contribution was achieved through 14 subsectors of creative industry13 namely: Advertisement; Architecture; Artwork and antiques; Handicraft; Design; Fashion (mode); Film, Video and Photography; Interactive games; Music; Performing arts; Printing and publishing; Computer service (information technology) and software; Radio and Television; Research and Development. Besides these 14 subsectors, the Ministry of Tourism and Creative Economy also develops the 15th sector of creative economy, namely Culinary. In the same year, creative economy also successfully absorbed approximately 8.6 million workforce, or equivalent to 7.9% from the total national amount. In comparison, the tourism sector absorbed 7.4% million people, or 6.9% of national work force. In terms of balance of trade, in 2010, the value of export was much higher than the value of import. This resulted in high surplus of net trade, amounting to of Rp. 115 trillion. 14 In this connection, this paper also believes that creative economy is also inter- dimensional, where it is very closely linked with other various sectors of economy and need coordination among its related stakeholders. Furthermore, there is a trend that creative economy absorbs greater number of workforce in Indonesia. In other words, more and more Indonesian people are becoming more dependent for their livelihoods to the creative economy. Looking at the positive trend, this paper will attempt to dwell on the notion of creative economy as a valuable asset in Indonesian Economic Diplomacy as well as means to further advance the potential of creative economy to the betterment and wellbeing of Indonesian people. 12 Ibid, p.xxvii 13 Based on the Presidential Directive/Inpres No 6 year 2009 on Development of Creative Economy, 2009-2014 14 Strategic Plan of the Ministry of Tourism and Creative Economy (Kemenparekraf) 2012-2014, op.cit
  • 7. I.III. Systematization of this paper This paper will be structured in four chapters, namely: Chapter 1: Introduction; Chapter 2: Theoretical Framework; Chapter 3: Analysis, and Chapter 4: Conclusion and Policy Recommendation. The systematization of this paper is intended to provide a simple structure and an easy-to-read message from the beginning until the end. Chapter 1 consists of the background, main thesis of the paper and systematization of the paper. The background part initially describes the concept of economic diplomacy in general, followed by the elements of economic diplomacy, in the Indonesian context. The main thesis of the paper outlines the main argument of the paper, which will be elaborated in the subsequent chapter. The systematization of the paper-part is self-explanatory, which is to outline the structure of the whole paper from the beginning until the end. Chapter 2 consists of the theoretical framework on creative economy; including the background of the creative economy in the global context and some definition on the concept. Chapter 3 consists of the discussion of the main thesis of the paper, namely the notion of creative economy as a valuable asset in Indonesian Economic Diplomacy as well as means to further advance the potential of creative economy to the betterment and wellbeing of Indonesian people. This chapter starts with the explanation of development of creative economy in Indonesia. Then, the chapter continues to discuss the challenges and opportunities. Finally, the chapter will present a set of policy recommendation for further advancing creative economy as part of Indonesian economic diplomacy, with the emphasis of synergy between the Ministry of Foreign Affairs and the Ministry of Tourism and Creative Economy. Chapter 4 consists of the conclusion and recommendation. It will reiterate the main points of the paper as well as the suggested policy recommendation on how to further advance the development of creative economy. --ooOoo--
  • 8. CHAPTER TWO: THEORETICAL FRAMEWORK CONCEPT OF CREATIVE ECONOMY II.I. Background In the last decade, a novel development paradigm is rising that links the economy and culture. It embraces aspects of economic, cultural, technological as well as social aspects of development at both the macro and micro levels. A fundamental element of this new paradigm is the fact that creativity, knowledge and access to information are progressively more recognized as strong engines driving the economic growth and promoting development in a globalizing world.15 Source : UNCTAD 2008 The concept of creativity is associated with originality, imagination, inspiration, ingenuity and inventiveness. It could be found in all societies and countries – rich or poor, large or small, advanced or developing. In this regard, every society has its stock of intangible cultural capital articulated by people’s identity and values.16 Furthermore, creativity is now acknowledged as fostering cultural, social as well as economic gains. 17 Creativity is also understood as the formulation of new ideas and to the use of these ideas to produce original works of art and cultural products, functional creations, scientific inventions and technological innovations. In this regard, there is an economic aspect to creativity, apparent in its way to contribute to promote entrepreneurship, encourage innovation, increase productivity, as well as promote economic growth.18 In light of the above, the twenty-first century has seen a growing understanding of the interface between creativity, culture and economics, the rationale behind the emerging concept of the “creative economy”. The notion of “creative economy” is an evolving concept. It has been gaining ground in the contemporary discourse on economic development. It involves a swing from the traditional models towards a multidisciplinary model, dealing with the interface between 15 Creative Economy Report 2008, “The Challenge of Assessing Creative Economy: toward informed policy making”, UNCTAD, 2008, p.3 16 Ibid 17 European Union, “The Entreprenurial Dimension of the Cultural and Creative Industries”, December 2010, p.8 18 Creative Economy Report 2008, op.cit
  • 9. economics, culture and technology. It also centered on the predominance of services and creative content. Recognizing its multidisciplinary nature, creative economy can offer a practical option as part of a results-oriented development strategy for developing countries. Creative economy also encourages a more effective cross-cutting mechanisms and innovative inter-ministerial policy action.19 In this connection, it is clear that creative economy has become a topical issue of the international economic and development agenda, calling for informed policy responses in both developed and developing countries. II.II. Definition There is no single definition of “creative economy”. It is a dynamic concept that is still being shaped. Nonetheless, there is a growing convergence in the international community on the definition. One of the main reference with regard to the definition of creative economy in the international community is the definition provided by the United Nations Conference on Trade and Development (UNCTAD). In light of the above, UNCTAD proposed a definition for creative economy as follows:20  The creative economy is an evolving concept based on creative assets potentially generating economic growth and development;  It can foster income generation, job creation and export earnings while promoting social inclusion, cultural diversity and human development;  It embraces economic, cultural and social aspects interacting with technology, intellectual property and tourism objectives;  It is a set of knowledge-based economic activities with a development dimension and cross-cutting linkages at macro and micro levels to the overall economy;  It is a feasible development option calling for innovative multidisciplinary policy responses and inter-ministerial action;  At the heart of the creative economy are the creative industries. In the academic field, the term “creative economy” first appeared in the year 2001, in a book entitled “The Creative Economy: How People Make Money from Ideas”, by a prominent scholar, John Howkins.21 In his book, Howkins argued that: 19 UNCTAD Statement at the Second Meeting of the Ministers of Culture of the African, Caribbean and Pacific (ACP) Group of States, Santo Domingo, Dominican Republic, October 2006 20 Definition by the UNCTAD Creative Economy and Industries Programme, 2005 21 Marta-Cristina Suciu, “The Creative Economy”, Academy of Economic Studies, Bucharest. http://lexetscientia.univnt.ro/ ufiles/17.%20Romania.pdf, diakses 15 Oktober 2012
  • 10. “creativity is not new and neither is economics, but what is new is the nature and the extent of the relationship between them and how they combine to create extraordinary value and wealth”. However, Howkins’ use of the term “creative economy” is broad, covering fifteen creative industries extending from arts to the wider fields of science and technology. For Howkins, there are two kinds of creativity: the kind that relates to people’s fulfillment as individuals and the kind that generates a product. The first one is a universal characteristic of humanity and is found in all societies and cultures. The second is stronger in industrial societies, which put a higher value on novelty, on science and technological innovation, and on intellectual property rights (IPRs). In Indonesia, the definition of “Ekonomi Kreatif” was initially provided by the Ministry of Trade in 2008, as follows:22 “Era ekonomi baru yang mengintensifkan informasi dan kreativitas dengan mengandalkan ide dan stock of knowledge dari sumber daya manusianya sebagai faktor produksi utama dalam kegiatan ekonominya” Furthermore, after the reorganization of the Ministry of Culture and Tourism (Kementerian Budaya dan Pariwisata) to become the Ministry of Tourism and Creative Economy (Kementerian Pariwisata dan Ekonomi Kreatif/ Kemenparekraf) in 2011, the definition of “Ekonomi Kreatif” was further elaborated as follows:23 “Ekonomi Kreatif merupakan sebuah era baru ekonomi setelah ekonomi pertanian, ekonomi industri, dan ekonomi informasi, yang mengintensifkan informasi dan kreativitas dengan mengandalkan ide dan pengetahuan dari sumber daya manusia sebagai faktor produksi utama dalam kegiatan ekonominya. Ekonomi kreatif ini digerakkan oleh industri kreatif yang didefinisikan sebagai industri yang berasal dari pemanfaatan kreativitas, keterampilan serta bakat individu untuk menciptakan kesejahteraan serta lapangan pekerjaan melalui penciptaan dan pemanfaatan daya kreasi dan daya cipta individu.” Kemenparekraf’s definition on creative economy also included the concept of “creative industries”. In this connection, “creative industries” can be defined as the cycles of creation, production and distribution of goods and services that use creativity and intellectual capital as primary inputs. They comprise a set of knowledge-based activities 22 “Pengembangan Ekonomi Kreatif Indonesia 2025: Rencana Pengembangan Ekonomi Kreatif Indonesia 2009-2015” Departemen Perdagangan Republik Indonesia, 2008, p.1 23 Strategic Plan of the Ministry of Tourism and Creative Economy (Kemenparekraf) 2012-2014, p.5
  • 11. that produce tangible goods and intangible intellectual or artistic services with creative content, economic value and market objectives.24 Creative industries constitute a vast and heterogeneous field dealing with the interplay of various creative activities ranging from traditional arts and crafts, publishing, music, and visual and performing arts to more technology-intensive and services-oriented groups of activities such as film, television and radio broadcasting, new media and design. The creative sector has a flexible and modular market structure that ranges from independent artists and small-business enterprises at one extreme to some of the world’s largest conglomerates at the other.25 Nowadays in the most advanced countries, the creative industries are emerging as a strategic choice for rejuvenating economic growth, employment and social cohesion. The so-called “creative cities” are proliferating in Europe and North America, boosting the economy of urban centers through cultural and social developments, offering attractive jobs, particularly to young people. The turnover of the European creative industries amounted to 654 billion Euros in 2003, growing 12.3 percent faster than the overall economy of the European Union and employing over 5.6 million people.26 From the explanation above, it is clear that the concept of “creative economy” has dynamically evolved over the last decade. It has become an important means of focusing attention on the role of creativity as a drive in contemporary economic life, exemplifying the proposition that economic and cultural development are not separate or unrelated phenomena. Instead, the two are part of a bigger process of sustainable development, where economic and cultural growth and take place hand in hand and reinforce each other. In the context of developing countries, the notion of the creative economy attract attention to the rich creative assets and cultural resources that exists in them. The creative industries that use the cultural resources and creative assets could do a lot to boost their prosperity, including by enabling countries to tell their own stories and to project their own unique cultural identities to themselves and to the world (something commonly referred to as national branding), providing themselves with a source of economic growth, employment creation and increased participation in the global economy, as well as promoting social inclusion, cultural diversity and human development. --ooOoo— 24 Creative Economy Report 2008, “The Challenge of Assessing Creative Economy: toward informed policy making”, UNCTAD, 2008, p.16 25 Creative Economy Report 2008, Ibid, p.4 26 See Economy of Culture in Europe, study prepared for the European Commission by KEA, European Affairs, Brussels, 2006
  • 12. CHAPTER THREE: ANALYSIS III.I. Creative Economy as part of Economic Diplomacy in Indonesia III.I.1. Development of creative economy sector in Indonesia Different from tourism sector, creative economy is relatively a new sector which has been elevated by the Government of Indonesia to be managed at a ministerial level. Prior to the establishment of the Kemenparekraf, the creative economy sector had not been properly coordinated in a ministerial level. Instead it was scattered in several ministries, among others Ministry of Trade, Ministry of Industry, Ministry of Cooperatives and SMEs, as well as Ministry of Culture and Tourism. Figure 2. Source :www.indonesiakreatif.net The elevation of creative economy to a ministerial level by the Government of Indonesia by the establishment of the Ministry of Tourism and Creative Economy on 21 December 2011 was a significant achievement for Indonesia. Firstly, it has put Indonesia to become the first country in the world which combined the sectors of tourism and creative economy in one ministry. And secondly, it has put Indonesia to become the second country in the world, only after the United Kingdom, which elevated the sector of creative economy to a ministerial level.
  • 13. The elevation could also be seen as the political commitment from the top national leadership to develop the creative economy as a source of competitive advantage and soft power that not only will contribute to growth, job creation and poverty alleviation, but also as a source of national pride and national branding.27 Furthermore, the combination of tourism and creative economy could create a synergy which reinforce each other. Creative economy is believed to be able to increase the quality of tourism as well as to become promotion media for tourism. On the other hand, the advancement of tourism destination could be followed by the promotion and increase of demands for creative products. In this connection, the elevation of creative economy to a ministerial level was also based on the recognition that creative economy has a number of very strategic values for Indonesia, namely:  Contribution to economic growth GDP, employment, exports;  Contribution to the creation of positive business atmosphere  Impact on business and employment in other sectors;  Contribution to the promotion of national identity and image Impact on tourism, creation of national icons and strengthening cultural heritage and traditional values;  Contribution to the use of renewable resources  Based on knowledge and ideas, sustainability approach;  Contribution to the promotion of innovation  Creativity that creates value added; and  Contribution to the promotion of positive social impacts  Quality of life, equitable development, increased social tolerance. To visualize this line of thinking, the following figure describes the strategic function of creative economy for Indonesia. Figure 3. Source : Kemenparekraf 27 Mari Pangestu, “Indonesia and the ‘fourth wave’ of creative economy”, Strategic Review, April-June 2012/Vol.2 No.2, p.20
  • 14. Minister Mari Elka Pangestu stated in her article which was published in the Strategic Review, that creative economy is the “fourth wave”; after agriculture economy (first wave), industry economy (second wave), and information economy (third wave). The notion of the fourth wave is based on the main input used in the output, contributing to economic value added.28 The first wave uses land and labor to produce agriculture products initially for feeding its own population and eventually to export. The second wave uses more skilled labor, capital, production technology and innovation to produce industrial goods. The third wave is no longer just capital, land and labor, but also knowledge and information to produce goods and services. The fourth wave on the other hand, utilizes creativity and ideas to turn that knowledge and information to higher value added or new forms. In other words, creative economy intensifies information and creativity, based on idea and knowledge from human resources as the main production factor in their economic activities. Given the continued challenges of job creation and poverty alleviation in Indonesia, as well as its rich cultural and creative heritage, Minister Mari Pangestu believed that the fourth wave of Indonesian economy is ready to be unleashed.29 In advancing the creative economy sector, the Government of Indonesia, with Kemenparekraf as its leading sector, has been developing 15 subsectors of creative industry, as follows:30 NO SECTOR NO SECTOR 1. Advertisement 9. Music 2. Architecture 10. Performing arts 3. Artwork and antiques 11. Printing and publishing 4. Handicraft 12. Computer service (information technology) and software 5. Design 13. Radio and Television 6. Fashion (mode) 14. Research and Development; and 7. Film, Video and Photography 15 Culinary 8. Interactive games 28 Mari Pangestu, Ibid, p.21 29 Ibid 30 Based on the Presidential Directive/Inpres No 6 year 2009
  • 15. Figure 4. Source :www.indonesiakreatif.net Based on the Strategic Plan of Kemenparekraf 2012-2014, the development of creative economy in Indonesia will be geared towards strengthening the domestic market as well as penetrating external markets, focusing on development of five sectors, namely: (1) Development of resources and technology; (2) Development of creative industry; (3) Increase of financing access to the practitioner of creative economy; (4) Increase of market access to the practitioner of creative economy; and (5) Strengthening of institutions related to creative economy. To support the implementation the creative economy development in Indonesia, the Ministry of Tourism and Creative Economy has equipped itself with an organizational structure which cover the entire area of creative economy. Figure 5. Based on the current structure, there are three departments in the Ministry, which are closely related to the effort of advancing the creative economy, namely: (1) Directorate General for arts and cultural- based creative economy; (2) Directorate General for media, design and science-based creative economy; and (3) Tourism and creative economy resource development agency. Source : Kemenparekraf
  • 16. III.I.2. Relationship between creative economy and tourism sector In Indonesia, as well as in many other countries, the sectors of creative economy and tourism are very closely related. Some ideas of this matter have been put forward briefly in the earlier part of this paper. To add to this line of thinking, this paper will elaborate further by emphasizing three elements. First, creative economy could strengthen the quality of tourism; second, creative economy could create new tourism attraction; and third, creative economy and tourism could promote each other. In a more detailed account, the connection between the creative economy and tourism sectors could be elaborated as follows: Strengthening the quality of tourism. It is generally understood that quality of tourism is often measured by spending and duration of stay of tourist. In this connection, creative economy is believed to be able to increase the spending of tourist as well as able to extend the duration of stay of tourist, by the existence of creative products and services as souvenirs and entertainment in various tourist destinations. Further to the above, creative products such as handicraft, fashion and artworks could serve as handy and memorable souvenirs for tourists. On the other hand, products and services of culinary, music, performing arts, film, video, photography, design, and architecture could serve as means of entertainment in the tourist destinations. Creation of tourism attraction. Regions or districts who have unique and specific products and services of creative economy can be developed Into viable tourist destinations. In this line of thinking, creative traditional and contemporary events are packaged in an attractive way to draw the attention of domestic and foreign tourists. Until now there have been various creative events in Indonesia that have become tourism attraction both for domestic as well as foreign tourists, namely among others: Jember Carnival, Solo Batik Carnival, Java Jazz, Lake Sentani Festival. For instance, the Solo Batik Carnival is annual event, started from 2008 which attracts many tourists, both domestic tourists as well as foreign tourists. In 2012, the Solo Batik Carnival has entered its 5th year, with the theme: Metamorphoses.31 Promotion. Creative economy and tourism sectors could promote each other. In one hand, products and services of creative economy could be utilized as promotion materials for tourist destinations. On the other hand, tourism attraction could become inspiration for practitioners to creative unique and creative products. 31 http://solobatikcarnival.com/about-us/
  • 17. As an example, a movie which took place in a certain tourist destination, could attract more tourists to come to that place; either to see the movie set, or to experience the similar experience. A recent Julia Roberts’ movie “Eat Pray and Love” in part was shot in Bali. This movie is an example how a creative product (movie) could promote certain tourist destination. On the other hands, contents of tourism promotion often use the creative products and services from certain tourist destinations, such as : furniture from Jepara, handicrafts from Tasikmalaya, songket from Palembang, et cetera. The following figure visualizes the close relation between creative economy and tourism sectors. Figure 6. CONNECTION BETWEEN TOURISM AND CREATIVE ECONOMY Strengthening the quality of Tourism Creation of TOURISM Tourism attraction CREATIVE ECONOMY Promotion Promotion III.I.3. Contribution to Indonesian economic growth Creative economy sector so far has contributed significantly to Indonesian economic growth in general. This fact has been demonstrated by numbers from the last several years. In the period of 2002-2010, the creative economy sector contributed approximately 7.74% to the total Indonesian GDP, and contributed approximately 7.76% to the national workforce absorption.32 This contribution is regarded as quite high in comparison with several economies who have developed creative economy as an important and strategic industry, namely United States (7.75% contribution to GDP - 2001), England (7.9% - 2001), Australia (3.3% - 2000), New Zealand (3.1% - 2001), Taiwan (5.9% - 2001), and Singapore (2.8% - 2000). 32 Elitua H. Simarmata ; Bastian Simarmata, “Bagaimana Posisi Strategis Industri Kreatif dalam Perekonomian Nasional?” 19 November 2011, http://www.indonesiakreatif.net/index.php/id/news/read/bagaimana-posisi-strategis-industri-kreatif-dalam- perekonomian-nasional
  • 18. Furthermore, in terms of workforce absorption, creative economy in the U.S absorbed 5.9% in 2001; England 4.6% in 1998; Australia 3.8% in 2000; New Zealand 3.6% in 2001; Taiwan 3.6% in 2001; and Singapore 3.4% in 2000. 33 Compared to the other national economic sectors, the contribution of creative economy to the GDP growth in Indonesia is noteworthy. Creative economy sector placed in number 6 out of 10 economic sectors with contribution of 7,74%, below the following sectors: (1) manufacturing industry, (2) Agriculture, animal production, forestry, and fishery, (3) Trade, hotel and restaurant, (4) Mining and extraction, and (5) Social services. In connection to the above, the contribution of added value from the creative economy is higher than the contribution of the following sectors: (1) Construction (7.71%), (2) Finance, real estate and company service (7.04%), (3) Transportation and communication (6.27%), and (4) Electricity, gas, and clean water (0.89%). In addition to this, in terms of workforce absorption, creative economy is in fifth position out of ten national economic sectors.34 The following graph visualizes the contribution of creative economy (in the graph is mentioned as creative industry) to the national GDP, in the period of 2002-2010. Graph 1. Source : http://www.indonesiakreatif.net/index.php/id/news/read/bagaimana-posisi-strategis-industri-kreatif-dalam-perekonomian- nasional 33 Ibid 34 Ibid
  • 19. In a more detailed account, the contribution of creative economy in terms of added value to GDP, workforce absorption, number of companies, and international trade is shown in the following table:35 Table.1. Source : http://www.indonesiakreatif.net/index.php/id/news/read/bagaimana-posisi-strategis-industri-kreatif-dalam-perekonomian- nasional From other literatures, we can also see data on the development of creative economy in the period of 2006-2010.36 This document stated that the average output growth of creative economy in this period amounted to 3.1%. This number is relatively low, because in 2008, the world economy was affected by the global financial crisis, and it also impacted the growth of the creative economy sector in Indonesia. In the subsequent years, the creative economy sector grows more positively and amounted to 7.28%. This achievement was higher than the growth in other sectors, such as finance, real estate and company service (6.53%); transport and communication (6.5%); and electricity, gas and clean water (0.85%).37 In terms of workforce absorption, during this period, the creative economy absorbed 7.75 million out of 108 million total national work force. Furthermore, it also created new job 35 Ibid 36 Elitua Simarmata dan Bastian Simarmata, “Peran Ekonomi Kreatif Secara Nasional”, 05 Oktober 2011, http://www.indonesiakreatif.net/index.php/id/news/read/peran-ekonomi-kreatif-secara-nasional 37 Ibid
  • 20. opportunities, amounted to average of 3 million companies out of total 47 million companies. 38 In terms of international trade, creative economy sector accounted net income of approximately Rp. 97.3 billion, where export value amounted to Rp. 108.5 billion, in contrast to import value which only amounted to Rp. 11.2 billion. This numbers illustrate the significant role of creative economy in enhancing domestic revenues. The following table visualizes several indicators and performance of creative economy in Indonesia, in the period of 2006-2010. Table.2. Source : http://www.indonesiakreatif.net/index.php/id/news/read/peran-ekonomi-kreatif-secara-nasional Graph 2. Furthermore, from all sectors of creative economy, during the period of 2006-2010, several subsectors are more dominant against the other subsectors. In this regard, the fashion sector contributed 43.2% from the total contribution of creative economy to Indonesian GDP, handicraft contributed 25.12%, followed by advertisement (7.18%), design (6.06%), music (5.30%), and printing and publishing (4.86%).39 Source : http://www.indonesiakreatif.net/index.php/id/news/read/ peran-ekonomi-kreatif-secara-nasional 38 Ibid 39 Ibid
  • 21. In the future, the creative economy sector is expected to raise its share in the national economic growth by increasing its contribution to national GDP of 7.29% in 2012, and further increased to 7.5% in 2014. In terms of workforce absorption, creative economy sector is expected to increase its contribution to 8.25% and further to 8.48% of total national workforce in 2014. The raise of creative economy contribution to the national GDP as well as to the absorption of workforce is expected through the creation of more creative entrepreneurs or practitioners of creative economy, which will be supported by among others, greater penetration of international market and enhanced partnership with communities of creative economy in other countries. Furthermore, the raise of creative economy is expected to materialize in line with the enhancement of public’s appreciation to the practitioners as well as the products of creative economy. The enhancement of public’s appreciation is reflected from the increase of consumption of creative products and services by the people, as well as the creation of public space for the society. In this regard, the Government of Indonesia through the Kemenparekraf has targeted the increase of consumption of creative products to grow 10.89% in 2014, while the public’s appreciation is expected to rise by 5% every year from 2013 to 2014. In addition, it is expected that by 2014, 12 creative zones will be created. The efforts to achieve target of national development in the creative economy sector in 2012-2014 are supported by building the capacity of the human resources and developing the professionalism of the creative economy practitioners through various means, including certification programmes and standard of competence for creative economy professions, creation of innovation through relevant studies, as well as promoting of organizational performance. In the long run until the year 2025, based on the National Long Term Development Plan 2005-2025,40 the development of creative economy is expected to contribute further in various aspects, including, but not limited to, the following:  Contribution of creative economy is expected to reach 9-11% of the national GDP, provided that the national economic growth reach 9-11% annually.  Contribution of creative economy export is expected to reach 12-13% of the total national export, provided that the total export growth reach 10-12% annually.  Contribution of workforce in the creative economy is expected to reach 9-11% of total national workforce absorption. 40 “Pengembangan Ekonomi Kreatif Indonesia 2025: Rencana Pengembangan Ekonomi Kreatif Indonesia 2009-2015” Departemen Perdagangan Republik Indonesia, 2008, p.39
  • 22. The number of companies working in creative economy sectors increase three- fourfold compared to the number of companies in 2006.  Increase the number of registration of patents, copyrights, brands, and industrial designs.  Increase the number of creative economy zones in Indonesia. III.II. Challenges and Opportunities III.II.1. Challenges In the implementation and development of creative economy, several challenges still exist and need to be overcome by all related stakeholders in Indonesia. In various occasions, Minister Mari Elka Pangestu stated a number of challenges for creative economy development in Indonesia. In one event, Minister Mari Elka Pangestu stated that the main challenges for creative economy in Indonesia includes (1) the low purchasing power parity of Indonesian society, (2) financing and capital, (3) quality of human resources.41 In another instance, she pinpointed several challenges in the creative economy sector, including (1) the condition of export-import, (2) protection of intellectual property rights, (3) taxation issues, (4) public appreciation and (5) quality of human resources.42 In a more recent occasion, Minister Mari Elka Pangestu mentioned that there are seven issues facing the development of creative economy in Indonesia, namely (1) policy regulations, (2) the lack of research for technology development and creative product, (3) human resources development, (4) infrastructure, (5) marketing, (6) institution and public appreciation, (7) access to financing.43 Besides the statements by Minister Mari on different occasion as cited above, through literature research, there are other sources44 45 46 47 48 that also indicate various challenges of the creative economy in Indonesia. Based on the above-mentioned 41 “Tiga Masalah Ganjal Perkembangan Ekonomi Kreatif”, Neraca 7 Desember 2011, http://www.neraca.co.id/2011/12/07/tiga- masalah-ganjal-perkembangan-ekonomi-kreatif/ 42 Ekonomi Kreatif Masih Diliputi Banyak Masalah, http://www.wartaukm.com/ekonomi-kreatif-masih-diliputi-banyak-masalah 43 “Tujuh Sumber Masalah Ekonomi Kreatif”, Ekonomi dan Bisnis 22 Juni 2012, http://www.infobanknews.com/2012/06/nih-tujuh- sumber-masalah-ekonomi-kreatif/ 44 Industri Kreatif di Indonesia Masih Ada Hambatan, Suara Pembaruan 30 Juli 2012, http://www.suarapembaruan.com/ekonomidanbisnis/industri-kreatif-di-indonesia-masih-ada-hambatan/22880 45 5 Kendala Pengembangan Ekonomi Kreatif di RI, 19 November 2011, http://economy.okezone.com/read/2011/11/18/320/531386/5-kendala-pengembangan-ekonomi-kreatif-di-ri 46 SDM Kendala Industri Kreatif, 31 July 2012, http://citraindonesia.com/sdm-kendala-industri-kreatif/ 47 Challenges and Opportunities in the Creative Industry, http://www.gbgindonesia.com/en/services/article/2011/ challenges_and_opportunities_in_the_creative_industry.php 48 See Basuki Antariksa, “Konsep Ekonomi Kreatif: Peluang dan Tantangan dalam Pembangunan di Indonesia, http://www.budpar.go.id/userfiles/file/Art_17-2-Konsep%20Ekonomi%20Kreatif.pdf
  • 23. literatures, the main challenges of creative economy in Indonesia can be grouped into the following elements: 1. The development of the creative industry is not yet optimal. This situation is mainly caused by several factors, including the lack of the attractiveness of the creative industry; the lack of mature business model for creative industry; as well as the high risk perceived by some practitioners. 2. The development of creative ideas, creative technology as well as software content is not yet optimal. This situation is mainly caused by the lack of adequate internet infrastructure; the lack of standardized exhibition/ performance buildings; the high cost of production hardware and software; the lack of content research; and the lack of content archiving. 3. The lack of market expansion and penetration for creative products and services, both domestically and in external markets. This situation is mainly caused by the lack of public appreciation on local creativity; the lack of connectivity of national distribution channel; the limitation of foreign markets; the high cost of promotional activities; and the lack of monitoring on royalty, license, and copyrights. 4. The lack of strong creative industries. This situation is mainly caused by the absence of legal umbrella which guide the governance of each creative industry subsectors; the lack of conducive business atmosphere; low appreciation to and rampant piracy of creative products. 5. The lack of financial access to the practitioners of creative economy. This situation is mainly caused because the characteristics of creative economy and the current existing financial schemes; fluctuation of cash flow; and intangible assets. 6. The development of natural and human resources in creative economy is not yet optimal. This situation is mainly caused by the scarcity of resources, the lack of resources research, the gap between education and industry, and the lack of adequate standardization and certification. III.II.2. Opportunities Apart from the challenges in the creative economy sector, which has been elaborated above, on the other hand, there is also an ample opportunity for the creative economy to further blossom.
  • 24. Based on Renstra Kemenparekraf, in 2008, the global market opportunity for creative products and services amounted to US$ 588.635 million. In the same year, the total Indonesian export of creative economy reached US$ 11.872 million. This number signifies that Indonesia currently only controls a tiny share (2.02%) of the creative products and creative services in the global market. In this connection, there is still a very big space for Indonesia to expand its production and maximize the potency of the global creative economy market. Furthermore, ten world biggest importers of creative products and services are not very different from ten biggest export destinations of Indonesian creative products and services. The United States is currently the biggest importer of creative products and services, and at the same time it is also the biggest export destination of Indonesian creative products and services. 49 Other main export destinations are Japan, England, and Germany. These countries are also lucrative markets for Indonesian products. Table 3. Source : Kemenparekraf As an example of the potency of Indonesian creative products, local Indonesian brands are gaining international recognition such as Bagteria, a boutique bag producer using traditional craft and embroidery techniques. The brand reflects the potential for international success of other Indonesian designers many of which are already making headway in areas such as Muslim fashion and batik.50 In the media content sub-sector, opportunities for investment and partnership remains large. Indonesian consumers represent a large, youthful and highly adaptive market. Currently Indonesia is Facebook’s second largest market and Twitter’s third largest worldwide. The success of smart phones such as Blackberry which counted 3 million users 49 Strategic Plan of the Ministry of Tourism and Creative Economy (Kemenparekraf) 2012-2014, p.63 50 Challenges and Opportunities in the Creative Industry, http://www.gbgindonesia.com/en/services/article/2011/challenges_and_opportunities_in_the_creative_industry.php
  • 25. at the end of 2010 is giving rise to third party applications, tailored advertising solutions and software. 51 Furthermore, the film industry in Indonesia witnesses a revival, beginning from 2005 to 2008, when there were 87 Indonesian films produced, in contrast to only 6 films produces in the period of 2001-2002. There is potential for far more within the industry and the country possesses many talented film makers. The recent opening up of the sector to foreign investment will provide the room for greater collaboration in this promising industry and support for burgeoning producers. Previously closed to foreign investors, foreign ownership is now permitted up to 49%.52 III.III. Policy Recommendation Based on the Presidential Directive (Inpres) No 6 year 2009 on the Development of Creative Economy, the President of the Republic of Indonesia had instructed 23 Ministers, 4 Heads of Non-Ministerial Bodies (LPNK), all Governors, all Mayors and all Regents, to support the policy of Development of Creative Economy, 2009 – 2015. This policy entails the development of economic activities based on creativity, skills, and individual gifts, to generate creations which have economic values and have positive impact to the welfare and prosperity of the Indonesian people. Furthermore, the President also instructed the Ministers, Heads of institutions, Governors, Mayors, and Regents to develop and implement action plan regarding development of creative economy in their respective ministries/institutions, in line with their duties and functions. To coordinate all the relevant ministries and institutions, the President established the Coordinating Team of Development of the Creative Economy. The Coordinating Minister for Social Welfare sits as the Chair of the team, with the Coordinating Minister for Economic Affairs as the Vice Chair. Minister of Trade serves as the 1 st Executive Officer (Pelaksana Harian) and Minister of Industry serves as the 2nd Executive Officer. The members of the team consist of the other relevant Ministers, Head of institutions, Governors, Mayors, and Regents. One important thing to note is that the Ministry of Foreign Affairs (Kemlu) is included in this team. The rationale is quite obvious. The endeavor to develop national creative economy has a strong external dimension. Creative economy of Indonesia has to be 51 Ibid 52 Ibid
  • 26. promoted abroad, has to be able to penetrate foreign markets, as well as gain recognition from international community. In this regard, all Indonesian missions abroad will play a very critical role, as spearhead to promote Indonesian creative economy in their respective accredited countries. Furthermore, it will be imperative for all Indonesian missions abroad to conduct close collaboration with Kemlu, Kemenparekraf and other related institutions in fostering this undertaking. In light of the above, and also in line with the spirit of the Presidential Directive No 6 year 2009, it is no doubt that a right mix of public policies and strategic choices are essential for harnessing the socio-economic potential of the creative economy for development gains.53 This paper argues that the synergy between Kemlu and all Indonesian Missions abroad with Kemenparekraf as well as other related institutions, should be strengthened and further intensified to address the challenges, maximize the opportunities, as well as to further advance the creative economy sector in Indonesia. The close cooperation between all these stakeholders will be crucial in many dimensions. This paper proposes that the collaboration among these stakeholders should be geared towards the achievement of five objectives. And to achieve these objectives, there are thirteen strategies to be implemented. The objectives to be achieved are as follows: 1. Creative people with creative mindset 2. Competitive industry in domestic as well as foreign markets, with the active role of local entrepreneurs 3. Enabling technology which support the development of affordable creative products for the Indonesian people 4. Effective utilization of domestic resources for creative economy 5. Increase of appreciation and consumption of local creative products by domestic society as well international community. The following part will elaborate the strategies related to the achievement of these objectives. Furthermore, it will also present some examples/ best practices that has been conducted in the past which support the argument of the relevance and the feasibility of the proposed strategies. Nonetheless, to maintain brevity of this paper, the detailed account of each example will be put in the Annex part. The following part will only touch upon the issue in a glimpse and provide simple reference to the issue. 53 Creative Economy Report 2010, “Creative Economy: A Feasible Development Option”, UNCTAD, 2010, p.xxiii
  • 27. III.III. 1. First Objective : Creative people with creative mindset To achieve the first objective, there are four strategies to be taken into account, namely: 1. To provide support to talented creative economy practitioners to obtain proper and adequate opportunities in the international fora. This strategy is very relevant to Indonesian missions abroad because one of the main duties of economic officer or the social culture officer at an Indonesian Embassy is to facilitate and promote Indonesian people or companies in the accredited country. 2. To develop and expand database and success story of creative products and practitioners of creative economy from Indonesia. An example of a success story of creative products and practitioners of creative economy from Indonesia is about the “Gold award for outstanding exhibit untuk Booth Indonesia pada Hong Kong Flower Show 2012. The information was displayed in the website of Kemlu on 11 April 2012.54 Detailed information on this success story appears in Annex 1 of this paper. 3. To facilitate the growth of networks and to promote cooperation between practitioners of creative economy from Indonesia and their relevant counterparts in the accredited country. As has been presented in the previous section, many other countries are also promoting creative economy. In this regard, Indonesian missions abroad should engage the community of practitioners in their accredited countries and bridge the community with practitioners from Indonesia. An example of a success story of facilitation of networks and promotion of cooperation between practitioners of creative economy from Indonesia and their relevant counterparts through the event of film festival in the accredited country is about “Four Indonesian films partake in the first Asian Film Festival in Brazil”. The information was displayed in the website of Kemlu on 10 August 2012.55 Detailed information on this success story appears in Annex 2 of this paper. 54 http://www.kemlu.go.id/hongkong/Pages/Embassies.aspx?IDP=40&l=id 55 http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=77&l=en
  • 28. 4. To promote and facilitate practitioners of creative economy from abroad coming to Indonesia, to share experience and knowledge as well as to develop business network in creative economy sector. An example of a success story of a facilitation of practitioners of creative economy from abroad coming to Indonesia is about a photography exhibition entitled "Archiving the Exotic and Unfamiliar". The information on this issue was displayed in the website of Indonesia Kreatif on 12 September 2012, 56 www.indonesiakreatif.net. Detailed information on this success story appears in Annex 3 of this paper. III.III. 2. Second Objective : Competitive industry in domestic as well as foreign markets, with the active role of local entrepreneurs To achieve the second objective, there are four strategies to be taken into account, as follows. 1. To broaden the distribution scope of creative products, both in the domestic market as well as the foreign market. There are still many untapped potentials in accredited countries. Indonesian missions abroad play important role in mapping these potentials in the respective countries, and promote greater distribution of creative products from Indonesia. An example of a success story of broadening the distribution scope of creative products in the foreign market is about a new Indonesian Restaurant which was opened in Hong Kong.57 The information was displayed in the website of Kemlu on 12 January 2012, www.kemlu.go.id/successstories. Detailed information on this success story appears in Annex 4 of this paper. 2. To amplify market appreciation (both domestic as well as foreign) towards creative products. Indonesian missions abroad should continue to encourage practitioners of creative economy to participate in various prestigious events in the accredited countries. 56 http://www.indonesiakreatif.net/index.php/en/news/read/archiving-the-exotic-and-unfamiliar-attempts-to-archive-the-space- and-time 57 http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=31&l=en
  • 29. An example of a success story of the endeavor to amplify market appreciation towards Indonesia creative products, in this case photography, is about the “Three Indonesian Photographers Win International Photo Competition in Dubai”.58 The information was displayed in the website of Kemlu on 29 March 2012, www.kemlu.go.id/ successstories. Detailed information on this success story appears in Annex 5 of this paper. 3. To perform marketing research of creative products, both domestically as well as at the accredited countries. Marketing research is very important to identify the opportunity for Indonesian creative products and services to be exported to the accredited countries. 4. To conduct promotion of creative products at the accredited countries. An example of promotion of creative products at the accredited countries is about “Indonesia awarded in Asia Festival in Oklahoma”. 59 The information was displayed in the website of Kemlu on 21 May 2012, www.kemlu.go.id/ successstories. Detailed information on this success story appears in Annex 6 of this paper. III.III. 3. Third Objective : Enabling technology which support the development of affordable creative products for the Indonesian people To achieve the third objective, the strategy to be taken into account is by fostering mutual partnership with relevant institutions in accredited countries which have advance knowledge and technology in creative economy. This strategy is most relevant the more developed countries where technology in the creative economy sector is more advanced. Nonetheless it doesn’t mean that missions in developing countries could not implement this strategy, because the creative economy grows very fast worldwide. An example of fostering mutual partnership with accredited countries which have advance knowledge and technology in creative economy, in this case Japan, is about “Wisata dan Produk Kreatif RI makin menarik bagi Jepang”. 60 The information was displayed in the main page of the website of Kemlu at 24 September 2012, www.kemlu.go.id/. Detailed information on this success story appears in Annex 7 of this paper. 58 http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=43&l=en 59 http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=59&l=en 60 http://www.kemlu.go.id/ptri/Pages/News.aspx?IDP=5830&l=id
  • 30. III.III. 4. Fourth Objective : Effective utilization of domestic resources for creative economy To achieve the fourth objective, the strategy to be taken into account is to foster mutual partnership with accredited countries which have advance processing technology. Indonesian Embassies and Consulate Generals in accredited countries which have developed creative economy as well as have advance processing technology, need to be more active to provide mapping of the relevant institutions and communities, with the view to forge mutual partnership for the benefit of practitioners of creative economy from Indonesia. III.III. 5. Fifth Objective : Increase of appreciation and consumption of local creative products by domestic society as well international community Last but not least, to achieve the fifth objective, there are three strategies to be taken into account, namely: 1. To develop concept, strategy and implementation of campaign and promotion on Indonesia. There is a necessity for all related ministries/institutions in Indonesia to sit together, agreeing on one vision, one direction, and one approach for promotion on Indonesia, including on the creative economy. This coordinated policy will serve as guidance for all Indonesian missions abroad in their promotion activities. 2. To develop cultural diplomacy as part of the important function of the Indonesian mission abroad. 3. To promote creative products with high economic value and distinctive Indonesian characteristics to the international market. This strategy is very closely related with Indonesian diplomacy in the issue of Intellectual Property Rights (IPR), whether it is in multilateral, regional as well as bilateral fora. Indonesian diplomacy in IPR is crucial to protect the practitioners of creative economy from piracy. In this connection, strong Indonesian diplomacy in IPR could further promote the appreciation from international community towards Indonesia’s creative products and services. --ooOoo--
  • 31. CHAPTER FOUR: CONCLUSION AND RECOMMENDATION IV.I. Conclusion Throughout the chapters, this paper has attempted to deliberate on the notion of creative economy as a valuable asset in Indonesian economic diplomacy. From the analysis, this paper reiterates it conviction that creative economy has a significant contribution to the economic diplomacy. This can be seen by its contribution to the national GDP, absorption of workforce as well as the contribution to the foreign trade of Indonesia, whereby the amount of export is much higher than import. Furthermore it is also evident that the creative economy sector is on the rising trend. From many instances, including from the examples provided, Indonesian creative economy has gained greater recognition from international community. Cooperation and partnership with external parties also enhances the capacity of the practitioners of creative economy as well as increasing the quality of Indonesian creative products and services. This paper recognized that in the venture of advancing creative economy, several challenges exist and if not carefully managed, they will shroud and hinder the creative economy to rise to a higher notch. Indeed there has to be a comprehensive approach to optimize the development of creative economy; including the creative ideas, creative technology, creative industries, and human resources. Furthermore, market penetration and access to financing have to be expanded. Despite the current challenges that are still faced by the creative economy sector, the opportunity is still promising. The potency of the external market has not been fully utilized. Currently Indonesia still occupy a tiny share (2.02%) of the total global market of the creative economy. In this regard, Indonesian economic diplomacy has to give greater focus and attention for strategies to penetrate these markets, both in the traditional markets like the US, Japan, England, and Germany, as well other countries as the nontraditional market for Indonesian creative products and services. In addition to this, creative economy
  • 32. could play a very important role in promoting national tourism, including local culture and wisdom to the international audience. IV.II. Recommendation In its latter part, this paper has also endeavored to propose policy recommendation, geared towards further advancing the potential of creative economy for the betterment and prosperity of Indonesian people at large. In great details, this paper has put forward ideas in the form of 13 strategies to be considered by policy makers, as well as for diplomats posted in Indonesian Embassies/Consulate Generals abroad in doing their function in the economic and/or socio-culture sections. In a nutshell, those policy recommendations are structured in such a fashion to obtain the five following objectives, namely: 1. Creative people with creative mindset 2. Competitive industry in domestic as well as foreign markets, with the active role of local entrepreneurs 3. Enabling technology which support the development of affordable creative products for the Indonesian people 4. Effective utilization of domestic resources for creative economy 5. Increase of appreciation and consumption of local creative products by domestic society as well international community. The following matrix summarizes the policy recommendations/strategies in the previous chapter for development of creative economy in Indonesia, by emphasizing the synergy between the Ministry of Foreign Affairs and the Ministry of Tourism and Creative Economy.
  • 33. Matrix of Objective and Strategy For Development of Creative Economy in Indonesia Objective Strategy Institutions 1. Creative people with 1. To provide support to talented  Ministry of Foreign Affairs creative mindset creative economy practitioners to  Ministry of Tourism and obtain proper and adequate Creative Economy opportunities in the international  Other related ministries/ fora. institutions 2. To develop and expand database  Ministry of Foreign Affairs and success story of creative  Ministry of Tourism and products and practitioners of Creative Economy creative economy from Indonesia  Other related ministries/ institutions 3. To facilitate the growth of  Ministry of Foreign Affairs networks and to promote  Ministry of Tourism and cooperation between Creative Economy practitioners of creative economy  Other related ministries/ from Indonesia and their relevant institutions counterparts in the accredited country 4. To promote and facilitate  Ministry of Foreign Affairs practitioners of creative economy  Ministry of Tourism and from abroad coming to Creative Economy Indonesia, to share experience  Other related ministries/ and knowledge as well as to institutions develop business network in creative economy sector 2. Competitive industry 5. To broaden the distribution  Ministry of Foreign Affairs in domestic as well as scope of creative products, both  Ministry of Tourism and foreign markets, with in the domestic market as well as Creative Economy the active role of local the foreign market  Other related ministries/ entrepreneurs institutions 6. To amplify market appreciation  Ministry of Foreign Affairs (both domestic as well as  Ministry of Tourism and foreign) towards creative Creative Economy products  Other related ministries/ institutions 7. To perform marketing research  Ministry of Foreign Affairs of creative products, both  Ministry of Tourism and domestically as well as at the Creative Economy accredited countries  Other related ministries/ institutions 8. To conduct promotion of creative  Ministry of Foreign Affairs products at the accredited  Ministry of Tourism and countries Creative Economy  Other related ministries/ institutions
  • 34. 3. Enabling technology 9. Fostering mutual partnership  Ministry of Foreign Affairs which support the with relevant institutions in  Ministry of Tourism and development of accredited countries which have Creative Economy affordable creative advance knowledge and  Other related ministries/ products for the technology in creative economy institutions Indonesian people 4. Effective utilization of 10. To foster mutual partnership  Ministry of Foreign Affairs domestic resources for with accredited countries which  Ministry of Tourism and creative economy have advance processing Creative Economy technology  Other related ministries/ institutions 5. Increase of 11. To develop concept, strategy  Ministry of Foreign Affairs appreciation and and implementation of  Ministry of Tourism and consumption of local campaign and promotion on Creative Economy creative products by Indonesia  Other related ministries/ domestic society as institutions well international 12. To develop cultural diplomacy  Ministry of Foreign Affairs community as part of the important function  Ministry of Tourism and of the Indonesian mission Creative Economy abroad  Other related ministries/ institutions 13. To promote creative products  Ministry of Foreign Affairs with high economic value and  Ministry of Tourism and distinctive Indonesian Creative Economy characteristics to the  Other related ministries/ international market institutions --ooOoo--
  • 35. ANNEX Annex 1. GOLD AWARD FOR OUTSTANDING EXHIBIT UNTUK BOOTH INDONESIA PADA HONG KONG FLOWER SHOW 2012 Rabu, 11 April 2012 Untuk keempat kalinya, KJRI Hong Kong telah berpartisipasi dalam Hong Kong Flower Show yang diselenggarakan pada 16-25 Maret 2012 oleh Hong Kong Leisure and Cultural Services Department (LCSD) di Victoria Park, Hong Kong, sebagai salah satu upaya untuk mengenalkan lebih luas kekayaan flora Indonesia serta seni tradisional Indonesia. Pada tahun 2012 ini, selain bekerjasama dengan Taman Bunga Nusantara sebagai penata booth Indonesia, keikutsertaan KJRI Hong Kong juga dimeriahkan oleh tim kesenian Indonesia dari Kementerian Pariwisata dan Ekonomi Kreatif RI yang akan tampil secara khusus pada center stage Hong Kong Flower Show pada 25 Maret 2012 mendatang. Booth Indonesia juga dimeriahkan oleh Abang dan None Jakarta mengenakan baju pengantin Palembang yang sangat diminati oleh pengunjung Flower Show. Kemeriahan booth Indonesia yang pada tahun ini menampilkan tema Sumatera Selatan kembali mendapat apresiasi dari para pengunjung pameran serta kembali meraih penghargaan “Gold Award for Outstanding Exhibit”. Ini adalah penghargaan yang ketiga kali untuk booth Indonesia setelah pada tahun 2010 dan 2012 lalu yang menampilkan tema Bali serta Jawa, Indonesia mendapat penghargaan yang sama atas keindahan penataan booth dan bunga Indonesia serta minat besar pengunjung pada booth Indonesia. Tidak kurang dari Madam Selina Tsang, istri Chief Executive of Hong Kong, mengagumi booth Indonesia dengan berkunjung khusus ke dalam booth yang kemudian dianugerahi kain songket Palembang oleh Konsul Jenderal RI di Hong Kong. KJRI Hong Kong memanfaatkan HKFS 2012 ini sebagai salah satu kesempatan untuk mempromosikan Indonesia secara utuh sekaligus untuk semakin menggugah minat masyarakat Hong Kong berkunjung ke Indonesia, baik untuk tujuan wisata maupun bisnis. Lebih jauh lagi, even ini diharapakan dapat semakin menumbuhkan animo pengusaha lokal dalam menjalin kerja sama dengan Indonesia dalam bidang bunga dan tanaman hias. KJRI Hong Kong akan selalu mendukung seluruh even di wilayah Hong Kong SAR dan Macau SAR yang dapat digunakan sebagai ajang untuk mempromosikan seni budaya serta kekayaan alam Indonesia. (sumber: KJRI Hongkong) Source : http://www.kemlu.go.id/hongkong/Pages/Embassies.aspx?IDP=40&l=id
  • 36. Annex.2. A. Success Story FOUR INDONESIAN FILMS PARTAKE IN THE FIRST ASIAN FILM FESTIVAL IN BRAZIL Friday, 10 August 2012 Lovely Man (Director Teddy Soeriaatmadja),Mata Tertutup (The Blindfold - Director GarinNugroho), The Mirror Never Lies (DirectorKamila Andini) and The Perfect House(Director Affandi Abdul Rachman) took part in the Traffic 1 ª Festival de Cinema e CulturaAsiatica de Sao Paulo held from 2 to 9 August2012 in Sao Paulo, Brazil. The four Indonesian films were featured alongwith 28 other films from China, the Philippines, Hong Kong, Japan, South Korea,Malaysia, Taiwan, and Thailand in this first large-scale Asian Film Festival in Brazil. The organizer of the Traffic Festival invited John Badalu, a filmmaker and a film producer from Indonesia, to act as the curator of the festival. John Badalu took such opportunity to talk about the development of cinema in Southeast Asia. The Asian Film Festival holds significance for the world of Asian cinema and culture, including Indonesia, as it provides a bridge that connects it to the gate of Latin America. Source : http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=77&l=en
  • 37. Annex.3. ARCHIVING THE EXOTIC AND UNFAMILIAR: ATTEMPTS TO ARCHIVE THE SPACE AND TIME September 12, 2012 | Views (123) Text & photo: Jaya Liem | Editor: Intan Larasati From May to August 2012, Thomas Breakwell, a photography artist born in Melbourne, Australia, attended the residency program organized by Ruang MES 56 in Yogyakarta. During his residency Thomas created a visual archive that would be exhibited at the end of his residency period in a solo photography exhibition entitled "Archiving the Exotic and Unfamiliar". Thomas is an artist who has an idea about man and the surrounding nature. He works with several issues on how man is connected to the surrounding environment where he lives, such as the urban area and its entire content that's visually related with natural landscape, human portraits and every component existing on earth. During his residency period in Yogyakarta, Thomas adopted the archaeologic method in his works. He collected things, from glassware, vintages, coins, stones, trunks and roots of plants, to leaves, which later were documented in photographs. Also he documented empty and abandoned lands within the city that looks like jungles. Yet, different from what archeologists do, Thomas does not try to further investigate and gives explanations on the things he collected and documented. For Thomas, there are objects or artifacts that have the capacity to represent activities referring to man's daily lives. Meanwhile, objects related to natural lives, the organic world we're living in, can indicate a reality that they exist now, or existed then. Thomas' understanding on the objects is following his imagination that came because of his curiosity and fascination when he saw new things, the exotic experience of being a foreigner. Thomas related the objects with his personal imagination to create a fictional idea. He tries to reveal what are we as human connected with these surrounding objects and what are we as human being represented by these artifacts. On the other hand, the objects or images of the objects are Thomas' visual experience that was gained from direct observation when he was traveling around Yogyakarta, thus its involvement isn't merely as a memory images, but also as an imaginative narration connected to stories behind those objects. The collected objects became some sort of documentation to refresh our memories on stories happening within a time and space of our daily moves. Documents are tools of narration related to memory, and narration is a way to recognize and remember documentation, which are closely interconnected. From these two understandings Thomas then experimented with our ways of understanding this objects based on our knowledge and experience, on how the objects are being used and represented. The objects then was made into a visual archive by adapting the archaeologic methods that later developed freely following Thomas' imagination in entering a new dialogue, of the past and the present. With photography as a way of seeing, the depiction of the culture of the past and historical story is not only when the photo is taken, but also when the photo is observed in a different time, in a stratum of time. The concept of a limited stratum of time is related to a space formed from various human experience, with objective and non- measurable objective qualitative substance. The qualitative dimension of space is length, width and height of an existed and moving objects. The existence of an object can be determined from the qualitative structure formed from duration to discover the process and development, the progress of its existence in the past, present and future. In photography an object should be able to be defined with space and time where the photograph is taken. But Thomas' imagination developing within the visual archive of collected objects, Thomas' relation with the objects as they were found and documented, causing the relation of space and time within his photos had different understanding later on. Therefore in the exhibition Thomas finally no longer talks about the objects, but only presenting them and invite the audience to reflect on his found objects. Archiving The Exotic and Unfamiliar exhibition, held from 11 to 31 August 2012, was the first program of Ruang MES 56 in their new location, Minggiran no. 61A, Yogyakarta. I his opening speech, Anang Saptoto as Ruang MES 56 program manager stated that Ruang MES 56 residency program is not only for foreign photography artists. All photography artists can apply for this program by contacting MES 56 at http://mes56.com. Source:http://www.indonesiakreatif.net/index.php/en/news/read/archiving-the-exotic-and-unfamiliar-attempts-to-archive-the- space-and-time
  • 38. Annex.4. B. Success Story MORE CULINARY VARIETY, A NEW INDONESIAN RESTAURANT OPENED IN HONG KONG Thursday, 12 January 2012 Another addition to the already rich variety of cuisine in Hong Kong, the ‘So Bali Bali’ a new restaurant serving uniquely Indonesian dishes was officially open for business. The Indonesian Consulate General Teguh Wardoyo expressed his hope that So Bali Bali would take part in promoting the rich diversity of Indonesian cuisine in Hong Kong. “Hopefully, this restaurant would also play a part in introducing Indonesia as a whole”, added Teguh. The Consulate General also said that the restaurant that is located at 31 Elgin Street Soho will also function as an art gallery where a number of paintings by Indonesian artists will be put on display and offered for sale. The region of Soho is one of the elite areas in Hong Kong and it is famous as a culinary center serving foods from various countries. It is also a well visited tourist destination for domestic and foreign tourist alike. The restaurant is owned by Mary So, a relative of a long time Hong Kong resident who just happen to be an Indonesian. Her love of everything Indonesian had encouraged her to open the restaurant. “This restaurant looks different compared to other restaurants in the area because it is decorated with unique Balinese ornaments”, explained Mary. However, the restaurant serves more than Balinese cuisine; it also serves numerous dishes from other parts of Indonesia. The restaurant’s official opening was celebrated with a performance of traditional dance from West Java and Bali by a dancer from Sanggar Budaya, an art and cultural group under the auspices of the Indonesian Consulate General in Hong Kong. A number of APPIH members, representatives of Indonesian State Owned Companies, staff from the Consulate General and ordinary Hong Kong residents were present at the event and it was also covered by Indonesian media in Hong Kong. According to the Consulate General’s record, currently there are several large and small Indonesian restaurants in Hong Kong (source: Indonesian Consulate General, Hong Kong. Ed/Yo2k). Source: http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=31&l=en
  • 39. Annex.5. SUCCESS STORY THREE INDONESIAN PHOTOGRAPHERS WIN INTERNATIONAL PHOTO COMPETITION IN DUBAI Thursday, 29 March 2012 A total of three Indonesian photographers managed to come out as the first and second winner among the 16 winners of international photo contest of Dubai’s Crown Prince Award, "Hamdan International Photography Award (HIPA)". Winners Categories are divided into "Love of the Earth", "The General Pivot", and "Dubai". A total of 4046 participants from 99 countries, including 19 Arab countries, take part in this photo contest.Trophy ceremony is done directly by Sheikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Dubai Crown Prince, who was accompanied by Sheikh Majid Bin Mohammad Bin Rashid Al Maktoum, Chairman of "The Dubai Culture and Arts Authority” on the Armani Hotel Dubai on March 27, 2012. Also present as guests of honor are Consul General of Dubai, Mansyur Pangeran, as well as high officials of the Dubai government, and other invitees. The three photographers are Zulkifli Qincay Zhu, residents of Kerinci, Jambi, which is currently a student at the Bung Hatta University, Padang, West Sumatra, his photograph is selected as the first winner in the category of "The General Pivot"; Arfianto Amri, a resident of Indonesia who have lived for 4 years in Dubai, becoming the first winner of the category of "Dubai"; and Armin Day, part-time photographer who also works at an NGO in Yogyakarta, became the second winner in the category of "Love of the Earth".The main winner (Grand Prize) for the entire category is won by the French photographer who got the trophy and cash prize of U.S. $ 100,000, -. Meanwhile, the first winner of the category "The General Pivot" received the prize money of U.S. $ 14,000, - and the category of "Dubai" of U.S. $ 16,000, -. While the second winner of categories of "Love of the Earth" earned U.S. $ 16,000, -. The other winners are from Bangladesh, France, Italy, Argentina, Germany and Kuwait, in addition to the special winner of UAE citizens for each category. Responding to the victory of Indonesia's three photographers, Consul General Mansyur congratulated the winners directly after the trophy ceremony, while expressing his admiration for their photographs and pride because Indonesia can be selected as the winner from the thousands of participants from around the world who followed this photo contest.Consul General Mansyur added that the work of Indonesia photographers chosen as the winner in this contest gave international recognition for quality and value creation of Indonesian photographers who are not inferior to other photographers from around the world. Furthermore, the Consul General Mansyur stated that participation in this contest and the success to be the winner have also helped promote Indonesia at the international level. What's more the work shown describes the natural conditions and social realities of everyday life of the people of Indonesia which are considered to be very interesting as an object of photography. Through photography which is a universal communication medium, each image is presented to bring the message and meaning of its own, while also to be enjoyed visually. The work of Zhu Qincay Zulkifli managed to record the expressive moment of cow race, depicting a citizen of Indonesia spurring two cows in the middle of a muddy field. Meanwhile, Amri Arfianto work that captures the architectural object of Terminal 3 Arrivals of Dubai International Airport, managed to capture the recesses and details of buildings and reforms it into works of stunning photographs. While Armin Day captures the activities of a farmer who was farming with mountains as background and a light mist which enveloped him. The point of view makes the work of Armin Hari very mindblowing. At first the HIPA committee received about 7,000 photos from around the world which are sent via HIPA internet site. But then they selected about 6,000 photos and after going through the judging process for 30 days, the jury chose the 16 winners. The committee bring all the winners to Dubai. The overall cost of transportation from home country to Dubai and accommodation for the winner in Dubai is also borne by the committee.This photography contest had the full backing of the Dubai government and is an initiative that is integrated with the "Dubai Strategic Mission 2015" to develop culture and art in Dubai and made the city of Dubai as a hub of culture and arts in the region and internationally. This new activity, undertaken for the first time, will be held regularly every year. The jury of this competition are the chosen people in the field of international art and photography. The photographs of the winners and also the diverse work of Sheikh Hamdan Bin Mohammad Bin Rashid Al Maktoum at the Dubai Mall is also on display for 1 week until March 31, 2012 and has been put in a book with the title "Love of the Earth", which is printed in a language English and Arabic. (Source: Consulate General in Dubai) Source: http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=43&l=en
  • 40. Annex.6. C. Success Story INDONESIA AWARDED IN ASIA FESTIVAL IN OKLAHOMA Monday, 21 May 2012 Two art performances by the Indonesian contingent, the solo violin performed by Nathaniel Parker and the Topeng Cirebonan dance by Sarah Shutts, earn a special award during the Asian Festival 2012 which is held last Saturday (19/05) in Oklahoma City, United States. Nathaniel performed a classical number from West Java titled PanonHideung. Both performances are deemed highly-rated and impressive by the audience. The Asian Festival, with participants from China, the Philippines, India, Iran, Japan, Vietnam, and Taiwan, is organized by the Indonesian-American Association of Oklahoma (IAAO), the Asia Society of Oklahoma (ASO) and the Indonesian Consulate General office (KJRI) Houston. Indonesia’s Consulate General, Al BusyraBasnur, in his opening speech, expresses, among others, that the Asian Festival possesses a strategic meaning in the effort to improve the relationship and friendship between Asia and the US, especially with the people in Oklahoma. “By performing the Asian art, culture, and exhibitions, the American people, especially from Oklahoma and its surrounding, will get to know and understand Asia better,” Al Busyra says.” Al Busyra also conveys his gratitude to the Asian-American community in Oklahoma who has given the opportunity for Indonesia to organize this year’s event. “Organizing the Asian Festival is an opportunity and achievement for Indonesia,” tells Al Busyra. Several government officials and politicians from Oklahoma also attend the festival, such as US Rep. James Lankford, Sen. Al McAfrey, Rep. Anastasia Pittman, City Councilman David Greenwell, as well as representatives from various Asian organizations in Oklahoma from China, the Philippines, India, Indonesia, Iran, Japan, Korea, Taiwan, and Vietnam. Beside art performances, a music competition and a Miss Asia pageant, with contestants from 9 countries, are also held during the festival. As the host of the festival, Indonesia obtains a 30-minute time allocation to perform dances from Bali, West Sumatra, and West Java, as well as a fashion show of traditional clothes from some parts in Indonesia by Indonesians in Oklahoma. During the event, the Houston KJRI opens a WarungKonsuler that provides services and information related to consulate for Indonesians. (Source: KJRI Houston) Source: http://www.kemlu.go.id/Pages/Achievement.aspx?IDP=59&l=en
  • 41. Annex. 7. D. Berita Utama WISATA DAN PRODUK KREATIF RI MAKIN MENARIK BAGI JEPANG Senin, 24 September 2012 Kekayaan wisata dan berbagai potensi produk kreatif Indonesia semakin menarik bagi Jepang. Hal ini diungkapkan Menteri Pariwisata dan Ekonomi Kreatif, Mari Elka Pangestu dalam konferensi pers (21/9/2012) usai menghadiri pertemuan Japan Assosiation Travel Agents (JATA) Travel Showcase 2012, di Tokyo. Pertemuan JATA itu dihadiri kalangan pemerintah, pengusaha, dan masyarakat Jepang. Saat ini terdapat peningkatan jumlah wisatawan asal Jepang ke Indonesia, yang pada tahun 2011 mencapai 400 ribu. Jumlah ini diharapkan dapat terus meningkat, apalagi dengan semakin terbukanya daerah wisata di Indonesia, selain Bali, yang menyimpan potensi. “Walaupun mayoritas turis Jepang memang sudah mengenal Bali, kita terus upayakan promosi daerah lain, serta tujuan specialty tourism, seperti untuk meeting atau convention, olahraga golf, atau diving,” tutur Mari. Dilanjutkannya, pada tahun 2025 ada 80 daerah tujuan wisata menarik di Indonesia. Saat ini ada 16 daerah yang dikembangkan selain Bali, diantaranya Lombok, Raja Ampat di Papua Barat, Wakatobi di Sulsel, Danau Toba. “Sektor pariwisata Indonesia sangat menjanjikan," tutur Mari. Hal ini turut didorong dengan domestic demand yang terus meningkat dan sejalan dengan pertumbuhan ekonomi yang ditunjukkan dengan peningkatan signifikan kelas menengah di Indonesia. Mari juga mengutarakan bahwa dalam kunjungan ini, pihaknya menekankan selling point pariwisata Indonesia kepada para pelaku usaha pariwisata Jepang. Dengan adanya kesempatan yang sangat besar ini, lanjutnya, maka diperlukan dukungan infrastruktur pariwisata yang mumpuni di Indonesia. Masalah infrastuktur tampaknya juga menjadi perhatian para pengusaha yang tergabung dalam Kadin Jepang (Keidanren). Mereka sepakat bahwa potensi pariwisata Indonesia dapat dioptimalkan dengan pembangunan infrastruktur yang lebih banyak dan lebih baik. Selain itu, promosi produk-produk khas lokal setiap daerah juga berperan dalam menarik wisatawan dari Jepang. Mari memanfaatkan kunjungan tersebut untuk mengundang para investor Jepang menanamkan modalnya di Indonesia. “Saat ini merupakan saat yang sangat kondusif,” tegasnya sambil menjelaskan data makro ekonomi yang sangat menjanjikan dan perkembangan infrastruktur seperti bandara Soetta yang akan direnovasi. Jajaki Kerjasama Ekonomi Kreatif Sejak tiba di Tokyo pada Kamis (20/9), Mari Pangestu telah bertemu dengan Menteri Ekonomi, Perdagangan dan Perindustrian (METI) Yukio Edano dan Wakil Menteri Pendidikan, Sains, Olah Raga dan Teknologi (MEXT) Miho Takai untuk menjalin kerjasama di bidang pariwisata dan ekonomi kreatif. Mari Pangestu juga menjajaki kemungkinan pengiriman anak-anak muda Indonesia untuk belajar pengelolaan film, animasi, pertunjukan, dan games di Jepang. “Wakil Menteri Miho Takai menanggapi rencana ini sangat mungkin karena tahun 2013 Jepang akan meningkatkan anggaran bea siswa kepada Indonesia,” jelas Mari Pangestu. (sumber: KBRI Tokyo/Pen/jr/ed.Yo2k) Source: http://www.kemlu.go.id/ptri/Pages/News.aspx?IDP=5830&l=id