Understanding Creative Economy: Characteristics, Types, and Benefits for the State of Indonesia

Understanding Creative Economy Characteristics, Types, and Benefits for the State of Indonesia

Nikereact.org In today’s digital era, the word creative economy or what is usually abbreviated as ekraf may already be familiar to the ears. Various businesses are run by prioritizing creative concepts so as not only to facilitate the community, but also to intensify creativity.

Over time, the development of the economic sector eventually reached the level of the creative economy. Where creativity is the main thing in economic development, what’s more, considering the current situation in which we are still living against a pandemic, of course, creativity and new innovations must continue to grow considering that we all have to adapt to life with the circumstances.

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The creative economy has become a big part of community development. In Indonesia, the creative economy sector is known to have been developed since 2006 during the administration of President Susilo Bambang Yudhoyono. This then continues to this day in Indonesia.

To find out more about the world of the creative economy, the following is an explanation of the meaning of the creative economy along with the understanding of experts in the field, its characteristics, types, and benefits for the State of Indonesia itself.


Understanding Creative Economy Characteristics, Types, and Benefits for the State of Indonesia

The creative economy is an economic process that includes the production and distribution of goods and services in it that require creative ideas and ideas as well as intellectual abilities to build them. Creative economy is a combination of two words, each of which has its own meaning. Economics itself according to the Big Indonesian Dictionary is the science of the principles of production, distribution, and use of goods and wealth, while creativity is the ability to have creativity and the ability to create. It can be said that the creative economy is an economic process that prioritizes the value of creativity.

The creative economy was originally a new economic flow that was born at the beginning of the 21st century. This economic flow is known to prioritize intellectual value in creating money, increasing job opportunities, and providing welfare to the community.

Alvin Toffler (1980) reveals in his theory that there are three waves in economic civilization. First, is agriculture. The second is the industrial economy, and the third is the information economy. He also later predicted that there would be a fourth wave, namely the creative economy.

In the concept of the creative economy, one of the biggest things needed is creativity. This is because the creative industry is the core of the creative economy sector which is driven by creators and innovators.

Simply put, the creative economy is a form of development of the economic concept, but with the addition of creativity. However, this creativity is not only limited to production activities, but also includes how to use raw materials and the innovation of a technology in it.

In essence, the creative economy is a field that has a close relationship with creativity, ideas, and human resources which are then combined with today’s digitalization.

Understanding Creative Economy According to Experts

The creative economy has various understandings according to the views of each person. Here is the understanding of the creative economy from the experts.

According to the Institute for Development Economy and Finance, the creative economy is defined as a process of increasing added value resulting from the exploration of intellectual property in the form of creativity, expertise, and individual talent into a salable product.

According to the Ministry of Trade of the Republic of Indonesia, the creative economy is an industry that originates from the utilization of individual creativity, skills, and talents to create prosperity and employment opportunities through the creation and utilization of the individual’s creative and creative power.

According to Simatupang, the creative economy is defined as an industry that focuses on the creation and exploitation of intellectual property works such as art, film, games or fashion design, and includes inter-company creative services such as advertising.

According to Howkins, the creative economy consists of advertising, architecture, arts, crafts, design, fashion, film, music, performing arts, publishing, research and development (R and D), software, toys and games, television and radio, and games. videos.

According to the United Nations Conference on Trade and Development (UNCTAD), the creative economy is an economic concept that develops based on creative assets that have the potential to generate economic growth and development.

According to the Indonesian Ministry of Trade, the creative economy is a number of sustainable economic development efforts through various creativity with a competitive economic climate and also reserves of renewable resources.

Creative Economy Characteristics

In the creative economy field, there are several characteristics that can describe what the creative economy sector looks like. The following are the main characteristics of the creative economy.

1. Have Intellectual Creation

The first characteristic of the creative economy is to have intellectual creations. Intellectual creation in question is the need for creativity and other skills in each type of sector.

2. Easy to Replace

Easily replaceable means that a type of innovation in the creative economy sector must always be developed in accordance with economic activity, therefore the existing creations and innovations are expected to be easily replaced to suit the market and can be well received by consumers.

3. Direct and Indirect Distribution

The existence of direct and indirect distribution is one of the characteristics of a creative economy, the article is based on existing policies within the company and taking into account the needs of consumers.

4. Requires Cooperation

Cooperation is an important thing that is always present in every field of work. In the creative economy sector, for example, cooperation between entrepreneurs and the government that regulates policies is very important for the smooth running of the process.

5. Based on Idea

Ideas are the main thing that must be prepared in the creative economy. The ideas of each head must be different, therefore these ideas must be developed in order to create innovation and creativity in the creative economy.

6. Has No Limits

Having no limits in the creative economy can mean that the innovation and creativity of everyone involved in creating a product in that field does not have definite limits.

Types of Creative Economy Fields

The creative economy industry certainly includes many work sectors in it. The types of creative economy are divided into 14 industrial sectors, here are the types.

1. Advertising

Advertising in the creative economy is an activity that includes all advertising services or one-way communication using various media. The advertising sector is also responsible for things such as the creation, production, and distribution of the resulting advertisements.

Advertisements can be displayed in various forms of media. Advertising in the form of print media can take the form of newspapers, magazines, pamphlets, to brochures, while in the form of electronic media it can be in the form of audio visuals displayed on television or radio.

2. Craft

The craft sector in the creative economy is an activity with various creations, production, and distribution of products from craftsmen. Most of the products marketed have a high aesthetic value. Some handicraft products from craftsmen usually come from materials made of leather, rattan, natural fibers, gemstones, glass, porcelain, wood, bamboo, clay, marble, and others.

3. Art Market

The art market sector in the creative economy includes all creative activities in the trade of unique, rare, authentic, and high aesthetic value goods. The sale of various art items is also usually through auctions, galleries, and the internet. Products traded include musical instruments, handicrafts, paintings, and documentaries.

4. Architecture

The field of architecture in the creative economy includes services, design, cost planning, construction, to construction construction supervision. This also applies to construction from the macro level such as urban planning, urban design, and landscape architecture to the micro level such as construction details, garden architecture, and interior design.

5. Design

The field of design in the creative economy includes all creative activities in terms of design, from graphics, interiors, products, industry, to designs for product marketing. In the field of design, ideas and a high value of creativity are needed.

6. Fashion

The field of fashion in the creative economy includes all the creation of the production of clothing, footwear, and various other fashion accessories. Not only producing, the field of fashion in the creative economy also includes consulting and distribution of fashion products.

7. Film, video and photography

The fields of film, video, and photography in the creative economy are quite large fields. Various processes in video or film production, photography services, including film script writing, voiceover, cinematography, and film exhibitions.

8. Interactive games

The field of interactive games in the creative economy includes the creation, production, and distribution of various video games with various themes. The creation of this video game has the main purpose as a medium of entertainment and education. Someone who plays video games has a purpose for entertainment, but can indirectly get various lessons from its contents.

9. Music industry

The field of the music industry in the creative economy includes various activities and processes in the creation, reproduction, and distribution of sound recordings and songs. The music industry itself is filled with musical figures such as singers, songwriters, to composers.

10. Dramatic arts

The field of drama in the creative economy includes various activities in the performing arts of drama. People who work in the field of dramatic arts include content developers, producers of performances such as drama, traditional music, theater, opera, and others, as well as stage, costume, and lighting designers.

11. Publishing and printing

The field of publishing and printing in the creative economy is closely related to books. Some of the processes in publishing and printing include publishing books, journals, newspapers, tabloids, news agency activities, and news seekers.

Not only in books, several sub-sectors in this field also include photo publishing, engraving, postcards, printing of paintings, banknotes, passports, to plane tickets.

12. Computer services and software (applications)

The field of computer and software services or applications in the creative economy includes various activities related to the development of information technology, such as data processing, system integration, software development, to system analysis.

13. Radio and television broadcasting

The field of radio and television broadcasting in the creative economy includes the creation and production of various television programs such as game shows, quizzes, variety shows, and infotainment. Not only includes various television program productions, this field is also included in the activities of television stations and radio stations within it.

14. Research and development (R&D)

The field of research and development (R&D) in the creative economy includes activities of discovering science and technology and their various applications with the aim of creating products and improving the quality of a product. Not only covering the field of technology, research can also be related to the humanities in the development of language and literature.

Creative Economy Benefits

1. Open new job opportunities

The presence of the creative economy does not only affect the development of innovation and creativity in the community, but also opens the way for new jobs. The more innovation and creativity of the people who open the business, the more new products will be produced, thus the more manpower is needed in the manufacturing process.

2. Encouraging people to be more creative

A person’s creativity will grow with the times. With these developments, a person will also feel required to be more creative so that they have new ideas that are unique and have not existed before. This encouragement will later shape the community into more creative individuals.

3. Increase innovation in various fields

With the emergence of new and unlimited ideas, it will also be easier for people to fulfill their needs by continuously increasing innovation in various fields. Increased innovation in various industrial fields will also indirectly increase economic equity in various fields.

4. Creating healthy business competition

The creation of healthy business competition is one of the benefits of the presence of a creative economy. This positive impact comes because with the emergence of these various innovations, people will help each other and share their tips in implementing these ideas, this is what is called a healthy business.

5. Reducing unemployment

The creative economy sector can reduce the unemployment rate because over time, the creative economic industry sectors will also continue to develop and will require more and more human resources, which will reduce the unemployment rate.


Based on the explanation above, it can be concluded that with the emergence of new ideas and innovations, it will facilitate the community, starting from meeting needs, facilitating work, to creating jobs for those in need.

From the explanations above, we can also find out more deeply how the creative economy is very influential not only for people’s lives, but also for the state. By learning a lot about the creative economy, we can also be inspired to start a business by relying on our innovation and creativity.

To start a business or business by prioritizing the value of creativity as discussed in the explanation above,  can get more complete information through books that discuss the creative economy.

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