What is meant by the creative economy ? In general, the notion of creative economy is an economic concept in the new economic era which intensifies information and creativity by prioritizing ideas and knowledge from human resources as the most important production factors.
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. In other words, the concept of the creative economy puts forward creativity, ideas and human knowledge as the main assets in driving the economy.
In line with that, the Indonesian Ministry of Trade stated that the creative economy is an effort to develop the economy in a sustainable manner through creativity with an economic climate that is competitive and has reserves of renewable resources.
Also read:
- Definition of Economics
- Understanding Creative
Characteristics of the Creative Economy
Referring to the definitions mentioned above, there are several characteristics contained in the creative economy . The characteristics of the creative economy are as follows:
- There are several main elements such as creativity, expertise, and talent that have a sale value through offering intellectual creations.
- The resulting products (goods and services) have a short life cycle, high margins, variety, high competition, and are replicable.
- Consists of providing creative products directly to customers and supporting creative value creation in other sectors that are indirectly related to customers.
- It takes good cooperation between various parties who play a role in the creative industry, such as intellectuals, the business world, and the government.
- Creative economy is based on ideas or ideas.
- The development of the creative industry is unlimited and can be applied to various business fields.
- The concept of creative economy that is built is relative.
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Types of Creative Economy
Referring to the contents of the digital book entitled ” Indonesian Creative Industry Development 2025 ” published by the Ministry of Trade of the Republic of Indonesia, currently there are at least 14 creative industry sectors. The several types of creative economy are as follows:
- Advertising
- Architecture
- Art market
- Craft (handicraft)
- Culinary
- Design
- Fashion
- Film, video and photography
- Music
- Performing Arts
- Publishing and printing
- Computer services and software
- Radio and television
- Research and development
Every economic activist can create a creative industry of more than one sector, according to their respective fields and expertise. For example, a person or organization engaged in design services can also do online advertising services if they have the ability in that field.
Also read: Definition of Profession
Development of the Creative Economy in Indonesia
The process of globalization and connectivity has changed the way people exchange information, trade, consume, and various other things. The changing world which is very dynamic with all its complexity requires people to be more creative and innovative in carrying out economic activities .
Actually, the creative industry has been around for a long time in Indonesia. However, in the past it was still called the industrial economy and information economy. The use of the term creative economy became known in 2001, when John Howkins published his book on the creative industry.
In 2005 Donna Ghelfi from the World Intellectual Property Organization (WIPO) conducted an interview with John Howkins, in which he simply explained the definition of creative economy, namely;
“Economic activities in society that spend most of their time generating ideas, are not just doing routine and repetitive things. Because for this community, generating ideas is something that must be done for progress. “
“THE CREATION OF VALUE AS A RESULT OF IDEA” JOHN HOWKINS
This means that the creative industry is an industry that originates from the use of one’s creativity, skills and talents in creating welfare and employment by creating and exploiting that person’s creativity and creative power.
Creative Economy has emerged since the reign of President Susilo Bambang Yudhoyono. And during the administration of President Joko Widodo, this industry has grown further with the formation of the Bekraf (Creative Economy Agency) which functions to oversee the creative industry in Indonesia.
In addition, the emergence of the creative economy in Indonesia cannot be separated from the existence of the Asean Economic Community (MEA) which had developed several years earlier. With the MEA and the creative industry, it is hoped that it will help the Indonesian economy in various ways, such as:
- Opening up new jobs
- Reducing the unemployment rate
- Creating a creative society
- Healthier business world competition
- Increase innovation in various sectors
Also read: Understanding Globalization
This is an explanation of the meaning of the creative economy, its characteristics, types, and development in Indonesia. Hopefully this article is useful and adds to your insight.
