RESEARCH

IN CREATIVE
ECONOMY
A MODULE
CIPG 2017
 [RICE]
Research in creative economy:
A module

First Edition
2017
[RICE] Research in creative economy: A module

Published in Indonesia in 2017 by

Centre for Innovation Policy and Governance

Indonesia Sustainability Centre

Kompleks Harmoni Plaza Blok B-5, Jl. Suryopranoto No. 2,
Jakarta Pusat 10130 Indonesia
www.cipg.or.id

Cover designed by Saifulhaq; all rights reserved.

Except where otherwise noted, content on this report is licensed under

a Creative Commons Attribution-NonCommercial 4.0 International License.

Some rights reserved.

How to cite this document:

(CIPG, 2017)
Nugraha, L.K., Esti, K. 2017., Usmani, M.L., Research in creative economy: A module.
Jakarta: Centre for Innovation Policy and Governance.

CIPG (2017) i
 Acknowledgement

This document was prepared by Leonardus Kristianto Nugraha, Klara Esti, and Mona Luthfina
Usmani with contributions from Nurul Indah Widyaningrum and Pravitha Lascaria Utami on
analysis of past publications. The team is grateful for guidance received from Jimmy Tanaya and
Felencia Hutabarat as advisors, translation from Thalia Shelyndra Wendranirsa, and assistance with
the report’s layout from Mona Luthfina Usmani.
Throughout the programme, the team was privileged of the collaboration with Tanah Indie in
Makassar and C2O Library & Collabtive in Surabaya for gathering facts and data as well as for
providing comprehensive narrative.

The research activity was commissioned by British Council and undertaken by the Centre for
Innovation Policy and Governance (CIPG), Jakarta.

CIPG (2017) iii

 Foreword
Over the past fifteen years, in Europe and outside, economists, culture and tourism experts,
together with business leaders and entrepreneurs, have remarked on the relevance of creativity in
helping urban economies to grow and prosper. We are now effectively in the creative age, a time
when the generation of value in a growing number of sectors increasingly depends on the ability
of firms to embed creativity and cultural content within the goods and services they produce.
Creative businesses represent a growing part of the economies of countries across the world, and
the new wealth and jobs they create help to replace those lost from declining industries. Whether
they are fashion, craft, furniture design, interactive leisure software, publishing or architecture,
businesses share one thing — they rely on individual creativity and imagination skill and talent.
And consumers are willing to pay higher prices for products that are well designed and distinctive.
This is why the creative industries now constitute a large and steadily increasing share of
international trade and exports in many countries.
In Europe alone, the creative industries employ 11.4 million people, accounting for 5 per cent of
the EU workforce. Over the past ten years, employment in the UK’s creative industries grew three
times faster than in the EU as a whole: 6.1% per annum on average versus 1.8% per annum. As
one of the UK’s success stories, the Creative Economy makes up almost a tenth of value added,
and accounts for 2.6 million jobs, making it bigger than sectors like Advanced Manufacturing,
Financial Services and Construction.
Most of these jobs are in creative occupations, ranging from advertising professionals to computer
programmers, and from actors to video-game developers, all of whom are highly educated and
skilled, and drivers of innovation in businesses in other sectors. Creative businesses also have a
social and economic impact on localities and regions by making these more attractive to investors
and tourists alike. In addition, the cultural element embedded in some of the creative industries
helps to promote cultural diversity and understanding as well as social inclusion.
The people who work in creative occupations and industries are drawn to places that offer buzz
and a certain cultural atmosphere. These are also places that are tolerant, value freedom of cultural
expression and nurture the creative act. This is why the ability to attract, retain and support creative
people and a strong creative economy are increasingly seen as key elements of progressive
governments and of competitive cities and countries.
In the past fifteen years, the size, importance and competitive advantage identified with this sector
has prompted European local and national governments to develop targeted business development
services, investment programmes and cluster initiatives. This level of attention from governments
is based on the assumed ‘exceptionalism’ of creative businesses, and measures have been designed
to tackle challenges such as the need to balance the creative with the commercial, the independent
with the corporate, the cultural with the managerial. Governments in particular are aware of the
make up of creative businesses, which are in many cases relatively small, portfolio-driven and
project focused, and the difficulties such businesses face in scaling up their commercial potential
and attracting investment for growth.

CIPG (2017) v
This is why in countries such as the UK the question of which is the best way to provide policy
makers, civic leaders and creative practitioners with the evidence and frameworks of analysis
necessary to improving the understanding and awareness of a place’s unique creative ecology has
become central to policy making not just in culture, but also in urban and economic development
too.
As a result, the past decade has seen a flourishing of creativity indexes and toolkits designed to
deliver evidence and to measure the creative capacity of places. However, while most toolkits
developed so far take a statistical and quantitative perspective in their research, only a small number
take a qualitative approach. As well as perceptions, ideas and visions about how local creative
resources should be mobilized, consultative qualitative mapping methodologies can be useful in
providing evidence for what, where and why public investment should be made. This is the type
of information policy makers and creatives alike need to have if they want to be proactive and
responsive, and make the most of their local creative ecology.
To this end, in 2014 the British Council Indonesia, together with their UK counterpart and the
Jakarta-based Centre for Innovation Policy and Governance (CIPG), launched a research
involving six grassroots cultural organisations to map the inherent creative and cultural assets of
six cities across the country (Jakarta, Yogyakarta, Bandung, Solo, Surabaya and Makassar). Our
organization, Noema, was asked to act as mentor to the project by providing expertise in
conducting qualitative diagnostic assessments of the creative potential in two of the six cities acting
as pilots (Makassar and Surabaya). Noema’s role in the research was to devise and apply a bespoke
diagnostic framework for assessing the overall strengths and the weaknesses of the sector – and
for gathering evidence about the general socio-cultural context, the current policies, the character
of the private sector, the quality of the local arts scene and infrastructure, and the role educational
institutions have taken in enabling the creative sectors to flourish in the two pilot cities.
The diagnostic qualitative tool used for the first part of this exercise (i.e. the creative industries
mapping element) was based on a three-way cross-referenced assessment of the potential of each
sub-sector of the core cultural and creative industries. This was done by grading the local cultural
and creative infrastructure on a scale of 1 to 10, by taking each sub-sector’s value chain as a
baseline, and then performing an overall SWOT analysis. In the ranking system assigned by
Noema, level 1 means minimal activity and facilities, and level 10 is a fully integrated creative
industry structure (where strategic decision-making, communication nodal points and value-added
services are located together). The ranking system was underpinned by the creation of five
dedicated grids (one each for the audiovisual, design, music, fashion and culinary sub-sectors)
containing a series of score questions aimed at eliciting information about the status of the local
infrastructure and the potential of each sub-sector across the production chain.
The qualitative information gathered by means of this process was then used by the stakeholders
on the ground to make the argument for targeted sector support interventions and for laying the
ground for an environment in which creativity is seen as a positive contributor to local
development and to the quality of life in cities across Indonesia.
The research kicked off with a capacity-building workshop held in Yogiakarta, which focused on
learning about qualitative evidence gathering tools, group work and analysis of case studies of

CIPG (2017) vi
successful creative cities. The workshop was then followed by a period of distance (Skype)
workshops and mentoring sessions with the coordinators of the research on the ground. The
mapping exercise culminated with a review by Noema of the evidence gathered in the two cities
throughout 2015.
The results presented in this report show that in Makassar (e.g. in the district of Panakkukang and
the Central part of the city), fashion and the culinary sub-sectors are doing particularly well. The
district has grown rapidly in the past decade, with a number of facilities such as the Panakkukang
Mall becoming the focus of attraction for the fashionable crowd. Some business people call
Panakkukang Makassar’s “Dragon's head" and an indicator of the success of this part of town is
that the price of land in November 2013 reached Rp 30 million per square metre. The Government
offices of South Sulawesi Province and several representative offices of the Central Government
and the provincial level are also in the area of Panakkukang district. This critical mass of activity
has generated a growth in the demand for advertising and graphic design skills which are provided
by an increasing number of small to medium size firms who have chosen to locate there in the
past five years or so.
In Surabaya, a key trade and services hub, the picture is slightly more complicated. Surabaya has a
specific ecosystem as far as higher education for creative industries-related courses are concerned,
and in particular for the Visual Communication Design sector (a major contributor to the local
creative economy). There are eight universities that teach Visual Communication Design
programmes and two SMK (High School) institutions with these courses in the city. Most
designers who work in Surabaya obtain their education in these institutions. The issues that arise
are mainly in the gulf between academic learning and employment in the relevant industry, and the
negative impact of technology on demand for well-designed products (as well as the dominance
of the Food & Beverage businesses, which are virtually the only clients for graphic designers). At
the level of production, designers tend to be young people who work on a freelance basis, but
limited broadband reach and low download speeds; the lack of platforms for networking; a low
awareness of the value of visual communication among the public at large; coupled with a poor
level of appreciation by the local government of the importance of the creative industries; risks
endangering Surabaya’s unique potential.
These are just some of the findings that emerge from the research mapping. Generally speaking,
there is a massive untapped potential across all six Indonesian cities involved in the research for
scaling up and fully developing the creative economy across the board. This report contains a
number of recommendations, which we subscribe to. Now policy makers, politicians, civic leaders
and all the relevant stakeholders within the creative community need to take notice and keep the
momentum going.

Lia Ghilardi, Director of Noema Culture and Place Mapping

CIPG (2017) vii

 Table of Contents

Acknowledgement ......................................................................................................................................iii
Foreword .......................................................................................................................................................v
Table of Contents .......................................................................................................................................ix
Figures ..........................................................................................................................................................xi
Tables ............................................................................................................................................................xi
Chapter 1 Creative Economy in Indonesia ..............................................................................................1
1.1 Preface: Idea and Creativity as Economic Creation.....................................................................1
1.2 The Needs to Map Creative Economy Potential .........................................................................2
1.3 RICE: An Offer to Answer the Needs ..........................................................................................3
1.4 How to Read This Book ..................................................................................................................4
Chapter 2 Activity Design ..........................................................................................................................5
2.1 Designing the Research ....................................................................................................................6
2.1.1 Understanding Case Study .......................................................................................................6
2.1.2 Conducting Policy Analysis .....................................................................................................8
2.2 Activity and the Implementation ................................................................................................. 10
2.3 Conclusion ...................................................................................................................................... 11
Chapter 3 Policy Analysis ........................................................................................................................ 13
3.1 Preface ............................................................................................................................................. 13
3.2 The Growth of Creative Economy in Indonesia ...................................................................... 13
3.2.1 The Embryo of Creative Economy in Indonesia .............................................................. 13
3.2.2 Heading to Democratic Country.......................................................................................... 14
3.2.3 The Tipping Point .................................................................................................................. 15
3.3 Policy for Creative Economy ....................................................................................................... 15
3.3.1 Creative Economy Policy: The Lovechild in Indonesia’s Policy ..................................... 17
3.3.2 Creative Economy Development Plan 2015-2019 ............................................................ 17
3.3.3 Creative Economy Agency.................................................................................................... 20
3.4 Conclusion ...................................................................................................................................... 21
Chapter 4 Study Findings ........................................................................................................................ 23
4.1 Preface ............................................................................................................................................. 23
4.2 Makassar City .................................................................................................................................. 23
4.2.1 Methodology ........................................................................................................................... 24
4.2.2 Panakkukang Creative Economy ......................................................................................... 24
4.2.3 Creative Economy Timeline in Makassar ........................................................................... 26
4.2.4 Drivers and Barriers ............................................................................................................... 27
4.2.5 Conclusions ............................................................................................................................. 27
4.3 Surabaya City .................................................................................................................................. 27
4.3.1 Creative Economy in Surabaya City .................................................................................... 27
4.3.2 Visual Communication Designers in Surabaya .................................................................. 30
4.3.3 Drivers and Barriers ............................................................................................................... 31
4.3.4 Conclusion ............................................................................................................................... 32
Chapter 5 Conclusion and Agenda for Change .................................................................................... 33
5.1 Mapping Out Creative Economy Potentials: Conclusions ...................................................... 33
5.2 Looking Forward: Some Follow Up Suggestions ..................................................................... 34
Reference.................................................................................................................................................... 37
Annexes ...................................................................................................................................................... 39

CIPG (2017) ix
 Figures

Figure 1 Structure of the Book ..................................................................................................................4

Figure 2 Activity stages in this research ....................................................................................................5
Figure 3 The Example of Policy Analysis Timeline ................................................................................9
Figure 4 Creative Economy Timeline in Indonesia ............................................................................. 16
Figure 5 The Sub-sectors of Creative Economy Actors in Panakkukang Sub-district, Makassar,
South Sulawesi ........................................................................................................................................... 24
Figure 6 The Scope and focus of creative economy design development 2015-2019 .................... 29
Figure 7 The actors in the ecosystem of Surabaya’s visual communication design sub-sector..... 30

Tables

Table 1 Activity plan................................................................................................................................. 10

Table 2 The Comparison of Creative Economy Sub-Sectors within the National Creative
Economy Development Mid-Term Plan 2014-2015 and 2015-2019 Periods ................................. 18
Table 3 The Distribution of Fashion Businesses in Makassar Based on the Location .................. 25

CIPG (2017) xi
 Chapter 1
Creative Economy in Indonesia

1.1 Preface: Idea and Creativity as Economic Creation

As an economic concept that bases its sources on idea and creativity, creative economy
terminology is extended to various industry classifications, from art to science and technology
(UNESCO 2013) - as being popularised by John Howkins (2001). Within the same perspective,
New England Foundation for the Arts (NEFA) defines creative economy from the core cultural
perspective. In this point of view, NEFA (2007) says that creative economy includes the industries
and activities that focus on the production and distribution of products, services, or intellectual
property that are related to culture. A slight different point of view has been presented by
UNESCO (2013) which sees creative economy not only as cultural product and service, but also
including various games and research and development.
In the development of creative economy, there are some countries that have successfully applied
creative economy as a tool to create economic, social, cultural, or political power in the world.
Some of the countries that have been successful to enter global market through creative economy
are the United States of America (USA) with ‘American Dream’ and South Korea with ‘Korean
Wave’. Besides have succeeded in international level, the creative economy industries of these two
countries has significantly contributed to their domestic economy. WIPO (2013) notes that in 2012
USA gained 11.05% of their GDP and 8.51% of labour absorption from creative industry. While
in South Korea, creative industry contribution has reached 9.89% of their GDP and 6.24% of their
labour absorption.
Adopting UNESCO definition, Indonesia also perceives creative economy as a creation of added
value that is based on idea from the creativity of human resources (creative people) or is based on
science, including cultural heritage and technology (Ministry of Tourism and Creative Economy,
2014). Creative economy sector in Indonesia has started to receive special attention through
President Susilo Bambang Yudhoyono direction on creative industry and the launching of
Indonesia Design Power under the Ministry of Trades in 2006. The follow-up of that direction is
the Presidential Instruction (Inpres) No. 6 Year 2009 on Creative Economy Development. It is
followed by the Presidential Regulation (Perpres) No. 92 Year 2011 on the Ministry of Tourism and
Creative Economy as the new ministry that specifically manages creative economy sector. In Joko
Widodo regime, this sector has transformed into a part of economic sector strategies even though
it is no longer under a ministry, but under Creative Economy Agency1. Special attention from the
government is due to the economic contribution that has been produced, mainly on GDP and

1 Take a look at http://www.bekraf.go.id/profil. Retrieved on 14th October 2016.

CIPG (2017) 1
labour absorption. As a new industry sector category, creative economy has contributed 7.05% of
Indonesia’s GDP in 2013 (Central Bureau of Statistics, 2013). This number has improved from
2006 contribution that has contributed for 5.67% GDP. This is in line with the growth of creative
economy from year to year2. From the labour absorption side, creative economy has absorped
almost 11% of total national labours in 2013.
Considering its big potential, Indonesia launched the Creative Economy Development Plan
(Rencana Pengembangan Ekonomi Kreatif) 2025 as a design of long term creative economy sector
development. Through the blueprint of Creative Economy Mid-Term Development Plan 2015-
2019, at the moment the development of creative economy has entered the third phase; with the
aim to develop creative economy that are based on local potential. This local potential-based not
only targets the economic growth, but also the comfort and the direction to stimulate creativity of
the people. As a follow-up, a plan to develop creative industry regions has been drafted to target
the development of creative cities in Indonesia.
As a part of the Indonesia Creative Economy Development Blueprint 2009-2025, Creative
Economy Development 2015-2019 vision is “The establishment of a strong platform for creative economy
development that is globally competitive”. That vision will be reached through three main creative
economy development missions which aim to enhance human resources and raw materials
availability, creative industry growth and competitiveness, and the creation of conducive
environment to be competitive in global level (Ministry of Tourism and Creative Economy, 2014). 3
By accelerating regional development thematically through considering local potential and people
creativity condition, for the time being Indonesia has declared four cities, namely Bandung,
Yogyakarta, Solo and Pekalongan as creative cities. Besides those four cities, some cities are paving
their way to be a creative city, namely Denpasar, Malang, Bukittinggi, Singkawang, Sawahlunto,
and Palembang. The other two cities that have the potential to be developed as creative city are
Makassar and Surabaya.

1.2 The Needs to Map Creative Economy Potential

The implementation of creative city is not a new thing in Indonesia. Nevertheless, from so many
potential of creative city in Indonesia, there are only two cities that are internationally
acknowledged as creative city. Those two cities are Bandung and Pekalongan. Bandung has been
declared as one of the most creative cities in East Asia in 2007, during Creative Cities International
Meeting in Yokohama4. In 2014, Pekalongan has also been acknowledged as international creative

2 The growth of creative industry sector in 2013 reached 5.76%. This percentage raised from 4.27% in 2010. Wihin
the same period, this sector always provides trade surplus value.
3 Of the main three missions, the targets of creative economy development are determined by various indicators, there
are: The contribution to PDB (Gross Domestic Product), labour absorption, and contributions from foreign exchange
and export value. Furthermore, the improvement of numbers on creative cities is also a part of indicator of success,
including the quality of creative cities.
4In April 2014, Bandung joined the South-East creative city network along with Penang (Malaysia), Cebu (Filipina),
and Chiang Mai (Thailand).

CIPG (2017) 2
city and has entered the UNESCO creative city network. In the same year, there are three other
cities that were proposed but all of them failed to be nominated. Those three cities were Bandung,
Solo, and Yogyakarta.
Driven to develop regions thematically by considering local potential, the development of creative
city in Indonesia is imperatively local wisdom oriented but competitive globally. Based on that, a
map to monitor local potential of various cities is needed, mainly those who are claimed as creative
city champion in Indonesia. That map will have the function to develop creative economy
development strategy in micro or macro scales. Within this framework, the availability of a map
on the potentials of every creative city in 15 creative economy sub-sectors in Indonesia5, for
example, will function to be the reference of the central and local government to develop creative
city model that is based on local potential according to the Creative Economy Development vision
2025. With the same spirit, that map will also be aligned with the categories in UNESCO creative
city network such as literature, cinematography, traditional art and craft, design, multimedia art,
and gastronomy or culinary. Unfortunately, there is not any document about creative city map in
Indonesia with the orientation on local wisdom. The mapping activity that is conducted within this
corridor will be important to be done for a comprehensive guidance on the development of
regional creative potential in Indonesia.

1.3 RICE: An Offer to Answer the Needs

As a programme that is designed to diagnose potentials of each creative industry sub-sector, this
programme offers a tool for policy makers, creative practitioners, or the leaders in grass root to
elevate the understanding and awareness on creative economy unique ecology. Thereby, that
understanding will be the breath in the policy making process which not only impacts the economic
and urban growth, but also culturally.
Practically, this programme answers the concrete needs on creating potentials map of the cities in
Indonesia. Using Makassar and Surabaya case studies as two cities with the highest creative
potential based on Creative Economy RPJM 2015-2019, this programme analyses creative
economy activities based on economic potential and contribution of each city. Moreover, the
analysis within policy level is also conducted to get the picture of how and how far current policy
products can drive the development of creative sectors in related cities. Still within the same breath,
this programme offers an analysis model on the creative economy potential in a city to be replicated
in other places. The results of this analysis can be the basis of policy recommendation to transform
cities into creative city with global competitiveness.

5 During these series of events, the 15 sub-sectors of Indonesia Creative Economy , according to Bekraf (Creative
Economy Agency), are (1) architecture; (2) design; (3) film, video, and photography; (4) culinary; (5) handcraft; (6)
mode; (7) music; (8) publishing; (9) interactive games; (10) advertising; (11) research and development; (12) fine arts;
(13) performing arts; (14) information and technology; and (15) tv and radio.

CIPG (2017) 3
1.4 How to Read This Book
After elaborating the background, the second chapter of this document will elaborate the design
of Indonesia’s creative economy potential mapping activity. Thereby, in the second chapter there
will be the designs from Makassar and Surabaya case studies. Moreover, several things behind the
policy analysis implementation will be elaborated. Furthermore, the next three chapters are the
findings. In Chapter 3 and Chapter 4 respectively, the exposure on the findings from each case
will be presented. As the last chapter, Chapter 5 will provide the conclusions and inputs for the
practice of creative economy potential mapping in Indonesia.

Modul Research

Preface Case #1

Case #2
Activity
Design • Surabaya
• Makassar
Figure 1 Structure of the Book
Source: Authors

After explaining the structure of this book, the next part will analyse the basis behind the offered
activity design.

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 Chapter 2
Activity Design
Every research needs a design to systematically direct the research. A research design completely
depends on the raised research questions, so research questions are the heart of a research. This
illustration will explain the stages that have been done by the research team for Makassar or
Surabaya case studies in this programme.

Determining research Data collecting phase

approach
Research questions

Determining research
design
Data analysing and
writing

Preparing data collection

instrument

Figure 2 Activity stages in this research

Source: Authors
It should be noted that even if the stages in Figure 2 looks linear, in reality it is not. Through the
chosen approach, the researchers in Makassar and Surabaya case studies have done revisions or
re-formulation of research questions. Generally, the research questions that guide and direct these
activities in more operational level are:
1. What are the activities of creative economy sector in each city?
2. In attempt to implement creative cities, what creative economy sector related policies are
enacted ineach city?
3. What are best practices in creative economy sector for each city going? To what extent
does each sector contribute to the manifestation of creative city?
Within this programme, each case study used specific approach. However, each study utilised
qualitative approach as their characteristic. Using qualitative approach as the measuring tool for
creative economy is unusual to be done. The approach is usually more in quantitative perspective
and based on statistics. However, it turns out that the qualitative approach offers diagnostic
framework to assess strengths and weaknesses of creative economy sub-sector. It can also gather
information from socio-cultural context that is beneficial as enabling factor for another creative
sector development in related cities. This approach also can give a deeper understanding on how
the local creative resources should be mobilised. Such information is needed by policy makers and
creative workers to be active and responsive in utilising their local creative ecology.

CIPG (2017) 5
Even though prior researches had used qualitative approach in mapping the creative economy
potential of a region, it does not mean that there is not a new thing to be offered by this
programme. Through GRID as the unique analysis tool6, this programme offers a new thing in the
mapping of creative economy potential by using qualitative approach, complementing the previous
researches. Through a workshop in Yogyakarta, the people who do the mapping in every city had
been trained to identify asset and creative potential of each city by using GRID. Through this
analysis, the infrastructure related to creative city assets can be identified in details. The same
analysis also can be used to unravel Creative Economy Agency’s 16 creative economy sub-sectors.
In the next part, how each case study used that approach and how that approach implied the whole
research process will be explained.

2.1 Designing the Research

2.1.1 Understanding Case Study
In a research with case study method, a research is designed to reveal the details from participant’s
persepective by using various data sources (Tellis 1997). In some ways, case study conducts
longitudional examination – comparing the changes of research subject within a certain period –
to a condition or event that will be called as a ‘case’. It is done in systematic ways through
observation, data collection, information analysis, as well as the reporting. As the results, a deeper
understanding on ‘how things happened’ is achieved. This can be used as the base of the next
research. Case study also can be used to produce and test a hypothesis as well as to utilise
quantitative or qualitative evidence.
According to Yin (1993) there are three natures of case study, namely exploratory, explanatory and
descriptive. Exploratory most of the time is considered as the preface of social research.
Explanatory can be used to investigate the causal (cause and effect) while Descriptive cases require
theory before the research is started.
If we refer to Cresswell (2007), this activity uses Collective or Multiple Case Study and Intrinsic
Case Study.7 Each case study is elaborated this way:
1. Makassar: Collective or Multiple Case Study
Collective or Multiple Case Study is a case study research that uses more than one issue or
case in a research. This research can only be focused on one issue and utilises many cases
to explain the issue. By using location-based approach, yet involving many issues, the
nature of this research is very complex. By using this type, the research team analysed
emerging cases to be compared at the end of the assessment.

6GRID concept is introduced by Noema (http://www.noema.org.uk) as a way to analyse and record creative potential
of each city, per sector. GRID name refers to the plural columns as in modified table. The number of the rows is
called GRID.
7 Besides Collective or multiple Case Study and Intrinsic Case Study, Cresswell mentions the other type named Single
Instrumental Case Study. Single Instrumental Case Study is a case study research that is done by using a case to depict
an issue. In this research, the researchers take a closer look at and assess an issue, then use a case as a mean/protocol
to depicting issue in details.

CIPG (2017) 6
 2. Surabaya: Intrinsic Case Study
Underpinning on the visual communication design sector of creative economy, the
research team in Surabaya emphasised a context-specific research. Nevertheless, this
research took cases that had high peculiarity and uniqueness. The focus of this type of
research is on the case itself, whether the location, programme, event, or activity. This in-
depth case study research is similar with narrative research, but has an assessment
procedure that is more detailed on the case and its relation to the surrounding environment
that is made integrated and as the way it is.
Even though the types of case studies that were referred by Makassar and Surabaya teams had
differences, both teams had been through the same stages. The stages that were done by the teams
referred to the general stages of case study implementation. Generally, those stages are:
1. Making case study protocol
This protocol is to decide which techniques that are needed in the case study, such as: in-
depth interview technique, developing the questions and interpreting the answers from
respondents, as well as having the deep understanding on the case study itself.
2. Conducting the case study
After all protocols have been properly identified, it is the time for conducting the case
study. There are three important things in conducting case study, namely data collection
preparation, questionnaires distribution and interview. Data collection should be designed
to strengthen the internal or external construction and validation of the ongoing study.
Data can be in form of document, observation results, and interview results. The
questionnaires are distributed to see the differences on how participants perceive a thing.
Interview can be considered as the most important part of case study as in interview the
researchers not only can focus directly to the participants, but also can do observation
from the movements and behaviours of the participants.
3. Analysing case study results
After conducting the case study, the researchers can continue with analysing the gathered
data. Data analysis consists of checking the gathered data, categorising data, tabulating data,
or re-combining the gathered data and evidence to see research proposition. In data
analysis, the resarchers have to be able to identify which data they will analyse and the
purpose of data analysis. Data analysis technique can be in form of patter-matching,
explanation building and time-series analysis:
3.1. Pattern-matching
In pattern-matching analysis, the researcher compares empirical pattern with the
predicted pattern beforehand. If the patterns match, the internal research testing
should be enhanced. In this technique, the researcher has the discretion to interpret
the data.

3.2. Explanation Building

CIPG (2017) 7
 This technique is a cycle from some concecutive processes, namely: making theoritical
statement; filtering the statement; and proposition review. These three processes are
conducted repeatedly to get an accurate explanation of a case. This technique is very
useful for exploratory and explanatory case studies. But the researcher should be aware
and careful because of that repeated processes, quite often the researcher losts the
initial focus of the study.
3.3. Time Series Analysis
This technique is usually used in experimental analysis where the researcher tracks the
data based on the time series. Through this technique, researcher can predict the next
incident based on the certain stages of incidents.
Good-quality data analysis is the anaysis which shows that the relevant evidence is utilised
properly, so it can bring out significant aspects from the case study. In analysing the data,
researcher should be able to give all of their knowledge and experiences to make an
accurate and comprehensive data analysis.
4. Developing conclusion.
The last stage of case study is making a report that consists of conclusion; including
recommendation and implication from the study based on the gathered relevant evidences.
The important thing and the one that should be noted is conclusion, recommendation and
implication in this report should be easily understood by the reader. A well-structured
research would not be successful if the results cannot be comprehended. Therefore,
conclusion development should be made as clear as possible and can answer the initial
goals of the research comprehensively

2.1.2 Conducting Policy Analysis

Public policy analysis is an effort to produce information that us relevant with policy, so it can be
re-utilised to solve public policy issues (Dunn 2000). By using various methods, policy analysis can
be used to prevent the failures in problem solving through public policy. Nevertheless, policy
analysis should exist in every stage within public policy process.
Regarding the goals to understand how a related policy product influences creative economy
development, we see that interpretive qualitative approach (Denzin and Lincoln 1994) is a method
that is the most suitable. We realize that qualitative approach is very beneficial when doing a
research on complex subject. In creative economy context, this approach is very useful when
encountering research topics which need to be revealed by conceptual framework that is still
developing (Creswell 2003) or need combination from different theories (Cassell and Symon 2004).
Within this framework, our policy analysis used qualitative approach, mainly by data collection in
a form of desk study. For this research, primary data collection through in-depth interview was
not conducted due to time limitation.
Policy analysis process was done by desk study method. Sources that were used:
1. List of government policy and regulation in creative economy sector
2. News and articles in print and online media

CIPG (2017) 8
 3. Government’s official document on creative economy sector policy
We set the list of policy and regulation in a chronological order. The analysis period was
constrained between 1997 until 2015. This period was chosen with these considerations:
 1997-1998 is one of the important milestones in Indonesia’s history. Multidimensional
crisis that had happened during this period changed Inonesia’s development order. This
crisis was also one of the triggers to the rise of creative economy in Indonesia.
 2015 is also chosen because in this year there was a change in Indonesia’s leadership, from
the sixth president, Soesilo Bambang Yudhoyono to the seventh president, Joko Widodo.

Figure 3 Example of Policy Analysis Timeline

Source: Authors
To seek and choose policy and regulation, we referred to several sources, such as:
 “Creative Economy: Indonesia’s New Power towards 2025” book that is published by the
Ministry of Tourism and Creative Economy of Indonesia in 2014.
 Law Documentation and Information Network (Jaringan Dokumentasi dan Informasi Hukum,
JDIH) of government agencies related to creative economy, such as: the Ministry of
Tourism and Creative Economy8, Bappenas, etc.
The government formulates policy and regulation based on the context that is applied and the one
that is predicted will be applied. For example, multidimensional crisis in 1997-1998 had forced
Indonesian people to think creatively on new kinds of business. Furthermore, the policy and
regulation that had existed before 2007 were not ones that are specifically formulated to
accommodate creative economy. Policy and regulation post-multidimensional crisis are more to
be the follow up of that crisis.
To understand the goals and reasons of policies and regulations that are issued by the government,
an understanding on the context of policy and regulation formulation will be important in policy
analysis process. In this study, the context understanding was done by using articles in print and
online media. We used snowballing method in choosing the keywords. For example: at the first
time we used ‘1997 crisis’ as the keyword to understand the coping mechanism of Indonesian
people. From those articles, we had found new kinds of business, such as ‘Tent Café’, etc. Besides

8 During Joko Widodo era, this ministry are divided into two: Ministry of Tourism and Creative Economy Agency.

CIPG (2017) 9
snowballing, we also had chosen keywords based on the timeline in “Creative Economy:
Indonesia’s New Power towards 2025” book.
The results from context understanding and policy and regulation compilation then were
formulated into a timeline that can be seen in Figure 3. Our analysis and reflection on that timeline
can be read in Chapter 3.

2.2 Activity and the Implementation

This activity has a purpose to produce a creative economy map in Indonesia; specifically the local
potential. The implementation of this programme involves the British Council and two local
partners, C2O Library & Collabtive in Surabaya and Tanah Indie in Makassar. The other partners
are Centre for Innovation Policy Governance (CIPG) as the knowledge partner and NOEMA for
cultural planning consultation on cultural mapping. From that point, some activities are needed to
gather facts and data for providing comprehensive narrative. Those activities can also be the
foundation to provide concrete inputs for creative economy development in local level.
The series of activities started with a workshop in Yogyakarta on 6-9 October 2014 to design the
strategy and action plan that involved the meeting with stakeholders. The workshop also meant to
build the capacity and ability in research methodology. The design of case studies that would be
conducted by local partners also had been discussed and developed in this occasion. After the
workshop and before the data collection phase started, local partners had attended various
trainings to provide the research team with tools and methods that will be needed for the mapping.
In this case, CIPG and Noema act as the provider of training materials and mentoring. The data
collection had been conducted through series of discussions with the stakeholders or by
distributing surveys to gather valid data. The activity plan with the objectives that want to be
achieved per activity can be seen in this table.
Table 1 Activity plan
Activity
Objective
Instrument Details Timeline
Participants receive the Training session Conducted by CIPG and Noema 6-9 October 2014
materials on diagnostic
framework
Participants receive Mentoring phase Mentoring by CIPG and Noema 1 January – 31
mentoring throughout the December 2015
activity implementation
Policy analysis on two case Policy analysis Conducted by CIPG 28 September – 22
studies December 2015
Digging information from Survey and limited  Survey to 250 creative economy January – April 2015
local stakeholders interview in respondents in Panakkukang Sub-
Makassar District, Makassar
 Interview with creative economy
practitioners
Survey, interview  Survey to 126 respondents of ADGI October 2014 – April
and limited Surabaya Chapter. 2015
discussion in  3 FGD with designers
Makassar  Interview with 15 designers
Source: Authors

CIPG (2017) 10
By refering to the previous table, each research team had done the activities within the corridor in
each phase to reach the activity goals. Nevertheless, each change in research design can be tracked
in every phase.

2.3 Conclusion
The design of a research depends so much on research questions. There are several types of
research approaches, which then influence the research design choosing. Each design has its
methodology implication, one of them is data collection instrument choosing.

CIPG (2017) 11
 Chapter 3
Policy Analysis
3.1 Preface
Policy analysis will help us to understanding the context of an issue from government and public
policy perspectives. In this chapter, the way policy analysis in Indonesia’s creative economy sector
is conducted will be elaborated briefly. The scope of the policy analysis is in national level.
Generally, the results of the analysis are divided into:
1. Explanation of creative economy context in Indonesia (how creative economy grows and the
timeline of creative economy in Indonesia).
2. National policies in creative economy sector that have been formulated and that are still
applied until now.
Policy analysis process was done by desk study method. The sources were:
1. List of laws in creative economy sector.
2. News and articles in print and online media.
3. Government’s official documents on creative economy sector.

3.2 The Growth of Creative Economy in Indonesia

3.2.1 The Embryo of Creative Economy in Indonesia
At the first time, creative economy development in Indonesia was influenced by political and
economic situations. The embryos of creative economy had been planted since 1997-1998, right
when Indonesia suffered 1997 Financial Crisis. 9 The impacts of 1997 Financial Crisis changed the
Indonesia’s social-political-economic constellation. This crisis had forced Indonesia to make
changes for the next couple years.
The exchange rate of Indonesian Rupiah (IDR) to United States Dollar (USD) had drastically
decreased from IDR 2,500/US $1 to IDR 17,500/US $1 at its worst. The development of formal
sector had slowed down and in some point the formal sectors had to be temporarily closed. The
most affected sectors were manufacture, construction, and banking sectors. As the results, the
unemployed rate had significantly increased. Around 20 million people (or more than 20% of
labour force)10 suffered termination of employment. The per capita income had decreased from
US $1,155/capita in 1996 and US $1,088/capita in 1997, to US $610/capita in 1998. This crisis

91997 Financial Crisis (usually referred as Monetary Crisis) initially had triggered by the depreciation of Thailand’s
currency, Baht (July-September 1997) - which then spread to the depreciation of Indonesia’s currency, Rupiah and
South Korea’s currency, Won (between September 1997 and January 1998).
10 Kompas 21 December 1998 Edition Economic Sector Year-End Report: 1998 Economic Crisis, An Unforgettable Tragedy.

CIPG (2017) 13
was originated from foreign exchange crisis and had developed into economic and social crises.
Its peak was the fall of President Soeharto after 32 years in power.
To support their family, the terminated employees then moved to informal sectors, whether by
opening their own business, working to their family, or even voluntarily working. This had been
supported by the findings from Knowles et. al. (1999) which stated that between 1997 and 1998,
informal sector had increased by 6.9% from 62.8% to 65.4% (within 1990-1996 period, the average
of yearly increase is only 0.4%).

3.2.2 Heading to Democratic Country

1998-1999 were one of the stepping stones in Indonesia’s history and Indonesia’s creative
economy development history. In 1999, two large scale creative activities were held for the first
time, Jakarta International Film Festival (JIFFEST) and Jakarta International Handicraft Trade
Fair (INACRAFT).
After the fall of President Suharto, the information flows, which used to be controlled by the
government, had been opened. The press freedom was marked by the re-publishing of some
newspapers and magazines. One of them were Tempo Magazine. The Magazine had been banned
twice by this regime, and re-published on 12 October 1998. 11 In order to keep the press freedom,
the new government issued the Press Law.12 This law regulated some issues, one of them was
about ban and censor.
Besides the Press Law, reformasi era had also produced other laws, such as: Law on the Prohibition
of Monopolistic Practices and Unfair Business Competition (Law No 5/1999), Law on Consumer
Protection (Law No. 8/1999), Law on Regional Administration (Law No. 22/1999), and Law on
Telecommunication (Law No. 36/1999). The laws that were issued by this regime were the tipping
point of Indonesia to be a democratic country. Furthermore, these regulations had created creative
economy ecosystem in Indonesia. For example, Law on Regional Administration marked the
beginning of regional autonomy era. This law allows the regional government to have a freedom
in managing their own regional development and regional budget.
President BJ Habibie replaced President Suharto and prepared the transition period of Indonesia.
One of them is the election of the new president. President Abdurrahman Wahid or Gus Dur was
elected as the first elected president in reformasi era. President Abdrrahman Wahid was only in
power for three years.13 But, during his regime President Abdurrahman Wahid had issued policies
that supports the development of creative economy climate in Indonesia. In 2000, President
Abdurrahman Wahid abrogated Presidential Instruction No. 14 Year 1967 that prohibits Chinese-
Indonesian to celebrate Chinese New Year. After that, in 2001, President Adurrahman Wahid

11Tempo Magazine had been banned twice in 1982 and 1994. See the History of Tempo Magazine.
https://korporat.tempo.co/tentang/sejarah Accessed on 25 January 2017
12 Law No. 40 Year 1999
President Abdurrahman Wahid regime was impeached by the People’s Consultative Assembly on 23 July 2001.
13

Megawati Soekarnoputri replaced President Abdurrahman Wahid as the fifth president of Indonesia.

CIPG (2017) 14
issued Presidential Decision No. 19 Year 2001 which stated that Chinese New Year was a
facultative holiday (only for those who celebrating). Khonghucu religion was also acknowledged
as official religion in Indonesia. Khonghucu acknowledgement and the inauguration of Chinese
New Year had pushed the economic and cultural activities around the celebration. This is one of
the milestones of creative economy development in Indonesia.

3.2.3 The Tipping Point

In global level, 2000s year was the time when developing countries (including Indonesia) started
to involve in digital revolution. Creative economy development was pushed strongly by the growth
of information era with internet as its main commodity. The information did not only circulate in
a small scope, but already inter-countries. Digital revolution forced developing countries to utilize
their economic potential. This era also forced Indonesia to see big and various creative economy
potentials which had not been developed.
Since its independence until reformasi era, the government did not specifically see creative economy
as a potential sector of economic development in Indonesia. Public policies in reformasi era that
have been the embryos of creative economy in Indonesia were not specifically intended for creative
economy development. Creative economy ecosystem in Indonesia initially rised as the effect of
the change in Indonesia’s social politic era.
Creative economy got special attention from the government for the first time when President
Susilo Bambang Yudhoyono (SBY) opened INACRAFT in 2005. President SBY said that craft
industry and nation’s creativity were important to be developed. That statement was the tipping
point and the starting point of government support to creative economy development in
Indonesia.

3.3 Policy for Creative Economy

Since President SBY regime, the government had started to actively grow Indonesia’s creative
economy ecosystem. Under the coordination of the Minister of Trades at that time, Mari Elka
Pangestu. The Ministry of Trades formed Indonesia Design Power in 2007. In 2008, the
government (still under the coordination of the Ministry of Trades) created Indonesia Creative
Economy Development Plan 2009-2015. After President SBY got re-elected as a president in 2009,
the government continued creative economy policies. 2009 is proclaimed as Creative Indonesia
Year. The peak, in 2011, was when President SBY reshuffled the cabinet and established the
Ministry of Tourism and Creative Economy with the appointment of Mari Elka Pangestu as the
Ministry of Tourism and Creative Economy.
President SBY’s policies on creative economy were carried on by President Jokowi. The Ministry
of Tourism and Creative Economy was split into the Ministry of Tourism. Then, in 2014, President
Jokowi formed a government agency that specifically manages the development of creative
economy, namely Creative Economy Body. This agency was headed by Triawan Munaf.

CIPG (2017) 15
 Law and Regulation
1996
Pre-1997
Law No. 12/1997 on Copyright (Communication & Information Technology, Television &
Radi o, Photography, Fine Art, Craft, Adv ert ising, Research and Dev elopment, Publishi ng,
Music) | Law No. 13/1997 on Patent (Communication and Information Technology,
Design) | Law No. 14/1997 on Trademark (Craft)
Law No. 5/1999 on the Prohibition of Monopol ist ic Practices and Unfai r Business
Competition (Television & Radi o) | Law No. 8/1999 on Consumer Protect ion (Television &
Radi o, Fashion, Adv ert ising) | Law No. 18/1999 on Const ruction Service (Architecture)
Law No. 22/1999 on Regional Administration | Law No. 36/1999 on
Telecommunication (Television & Radi o) | Law No. 39/1999 oh Human Rights (Television &
Radi o) | Law No. 40/1999 on Press (Television & Radi o, Photography, Publishi ng)
Law No. 31/2000 on Industrial Design (Design, Craft) | Presi dential Decision No. 6/
2000 on the Cancellat ion of President ial Instruction No. 14/1967
Law No. 14/2001 on Patent (Communication & Information Technology, Design)
Law No. 18/2002 on the National System of Res earch, Development and Application of Knowledge and
Techn ology (Research and Development) | Law No. 19/2002 on Copyright (Communication &
Information Technology, Television & Radio, Design , Pho tography, Fine Art, Craft, Advertising,
Research & Development, Publishing, Music) | Law No. 23/2002 on Child P rotection (Television &
Radio) | Law No. 28/2002 on Buildings (Architecture) | Law No.32/2002 on Broadcasting (Television &
Radio, Advertising, Publishing)
Law No. 13/2003 on Manpower (Adv ert ising) | Law No. 20/2003 on Nat ional Education
System (Fine Art)
Law No. 10/2004 on the Formulation of Laws and R egul ations (Television & Radi o)
Law No. 32/2004 on Regional Admi nistration (Television & Radi o)
2005!!
2005
Law No. 17/2006 on Cust oms (Fine Art)
Law No. 17/2007 on 2005-2025 RPJPN | Law No. 26/2007 on Spatial Pl anning
(Architecture) | Law No. 40/2007 on Limited Liability Company
2007
Law No. 11/2008 on Electronic Information and Transactions (Communication and Information
Technology) | Law No. 12/2008 on Region al Administration (Television & Radio) | Law No. 14/2008 on the
Open ness of P ublic Information (Publishing) | Law No. 20/2008 on Small and Med ium Enterprise
(Advertising) | Law No. 44/2008 on Pornography (Photography, Fine Art, Advertising)
Law No. 10/2009 on Tourism (Fine Art) | Law No. 28/2009 on Regional Tax and Retri buti on
(Adv ert ising) | Law No. 45/2009 on Archi ves (Fine Art) | Presidential Instruction No. 6/
2009 on Creative Economy Development
Law No. 11/2010 on Cultural Conserv ation (Fine Art)
Law No. 12/2011 on the Formulation of Laws and R egul ations (Television & Radi o)
Presidential Regulation No. 92/2011 2011
Law No. 12/2012 on Higher Education (Fine art) | Law No. 13/2012 on Foods (Culinary)
Law No. 3/2014 on Industry | Law No. 23/2014 on Regional Admi nistration (Television &
Radi o) | Law No. 28/2014 on Copyright (Communication and Information Technology,
Television & Radi o, Design, Photography, Fine Art, Craft, Adv ert ising, Research &
Dev elopment, Publishi ng, Music)
Presidential Regulation No. 72/2015 on Creative Economy Agency 2015 appointed as the first head of Creative Economy Agency
Figure 4 Creative Economy Timeline in Indonesia
ASEAN Economi c Communit y start ed (31 December 2015)
Sources: Authors. Processed from various data.
CIPG (2017)
Context and Impact
Femi na magazi ne published (1972) | Putri Indonesia Contest was held for the first
time (1992) | Visual Communication Design Studio was opened in ITB (1994) | MTV
Indonesia was launched (1995) | UNKL347, the first distro in Bandung, was opened
(1996)
Asia's Financi al Crisis >> tri ggered multi dimensional crisis in Indonesia for
1997
upcoming years | Google was start ed to be used in t he world
Reformasi era | TEMPO Magazine re-published | Det ikCom was launched
1998 Factory O ut let booming in B andung | Tent Café booming
Regional Administ ration Law was the base of Regional Autonomy era
Abdurrahman Wahid was appointed as the forth President of Indonesia | Kaskus
1999
was launched | Bhinneka.com was launched | Jak art a Int ernational Film Festi val
(JIFFEST) was hel d for the fi rst time | INACRAFT was held for the first time
2000 Indonesia acknowledged Confuci an religion | MetroTV and TV7 offically aired
Adurrahman Wahid was impeached by MPR (People's Consultative Assembly)
2001 Megawati was appointed as the fifth President of Indonesia PDN (Nat ional
Design Centre) was established TransTV and Lativi aired
Soundrenaline was held for the first time
2002 Ragnarok Online Game was launched
Jal anSutra mailing list was established | Distribution outlet (distro) booming in
2003 Bandung
Susilo Bambang Yudhoyono was elect ed as t he sixth President of Indonesia |
Mari Elka Pangestu was appointed as the Mi ni ster of Trades | Facebook started
2004 the trend of Web 2.0 |Multiply was launched | Telkom Speedy st arted to
operate | Festival Film Indonesia (FFI) was hel d after 12 years of absence
SBY stated the importance of developing craft industry and nation's
creativity (INACRAFT 2005)
Jakart a Int ernational Java Jazz Festival was held for the first time
Creati ve Economy started to be focusly developed by the establi shment of
2006 Indonesia Design Power by the Ministry of Trades | TV7 changed into Trans7
Law on Limited Li abilit y Company was the starting point of Corporat e Soci al
Responsibility (CSR) growth, one of t he examples was by community
empowerement i n creative economy sect or | iPhone and Android phone were
sold for the fi rst time (smartphone era)
Indonesia's Creative Economy Development Plan 2009-2015
2008 Global Financial Crisis | Lat ivi changed i nt o TVO ne
Jakart a Fashi on Week was held for the first time
Indonesia Creative Year | SB Y was re-elected as the President, Mari Elka
2009 Pangestu as the Minister of Trades | Batik was officially ackno wledged by
UNESCO | Ind onesia's Cultural Products Week was held
Instagram was launched | Creati ve Indonesia Pl atform was launched | Lebaran Fai r
2010 Bank Mandiri was held (the embryo of Pasar Indonesia) | Pasar Rakyat Festiv al
Bank Danamon was held | Bank BNI started Kampoeng BNI Program
The Ministry of Culture and Tourism changed into the Ministry of
Tourism and Creative Economy
Cabinet reshuffle (Presi dential Regulation No. 92/2011), Mari Elka Pangestu was
appointed as the Minister of Tourism and Creative Economy
2012
Bandung, Yogyakarta, Solo, dan Pekalongan were registered as UNESCO
2013
"Creati ve City" | Multiply was closed | NET.Televisi Masa Kini aired
Joko Wi dodo was elected as the seventh President of Indonesia (the Working
2014 Cabinet) | The Ministry of Tourism and Creati ve Economy changed into the
Ministry of Tourism
Creative Economy Agency was established, Triawan Munaf was
16
3.3.1 Creative Economy Policy: The Lovechild in Indonesia’s Policy
Economy and creative industry in Indonesia can grow was not because it was designed to grow. It
rather grew because of the excess from policies in reformasi era. Furthermore, digital revolution in
around 2000 had forced Indonesia and other developing countries to grow and follow the fast
pace of information flow. Not only Indonesia, there were so many countries that find it difficult
to face information era. Government policies and regulations that were issued at that time had a
purpose to accommodate Indonesia’s transition period in reformasi era. Even so, that policies
indirectly grew new ecosystem in the community, creative economy ecosystem. For some times,
creative economy discourse has rise and developed wildly in community level.
Generally, the policies that were issued post-reformasi and before 2005 were made to encourage the
growth of symbolic, cultural, and social products. This can be understood because 1997-1998
economic crisis was a multidimensional crisis that messed up economic, political, social, and
cultural dimensions in Indonesia. Policies were made with the purpose to re-structuring the
country after crisis. Economic growth is not seen as the priority target, but rather as a product of
that policies.
The policies for creative economy growth had been arranged properly at the first time in President
SBY regime. In 2008, the government developed Indonesia Creative Economy Development Plan
2009-2015. After that, the plan was renewed in 2014 to be Creative Economy Development Plan
2015-2019. This document was developed under the coordination of the Ministry of Tourism and
Creative Economy.

3.3.2 Creative Economy Development Plan 2015-2019

Issued in 2014, “Creative Economy: Indonesia’s New Power towards 2025’ document is the
second mid-term development plan of Creative Economy Development Master Plan 2009-2025.
This document noted the creative economy contribution to national economy. Within 2010-2013,
the GDP based on Existing Price14 from creative economy was around IDR 555 trillion with 7.1%
average contribution to national Gross Domestic Product. Five creative economy sub-sectors with
the biggest contribution to creative economy added value within 2010-2013 period were culinary
(32.44%), fashion (27.93%), craft (14.88%), publishing (8.3%), and design (3.97%). 15
Creative economy in average has grown 5% per year. In 2013, creative economy even grew 5.76%,
a bit higher than the national economic growth. Creative economy also has contributed quite
significantly to gross domestic product, with the average around 7.1% of total GDP. Besides from
that, creative economy has absorbed 11.7 million labours or around 10.65% of national total
labours. The amount of creative business units in 2013 was predicted to be around 5.4 million
units. Creative product exports have reached US $3.23 billion in 2013, with 3% growth from the
previous year.

14 Gross Domestic Product based on Existing Price.

15 Data and Information Centre of the Ministry of Tourism and Creative Economy, 2014.

CIPG (2017) 17
It is not the same with 2009-2014 mid-term creative economy development plan that divides
creative economy into 15 sub-sectors, in this “Creative Economy: Indonesia’s New Power toward
2025, 2015-2019 Mid-term Action Plan” document, there are 18 sub-sectors that are directed to
be creative industries. Here is the comparison of creative economy sub-sectors that be the focus
of development plan in 2009-2014 period and 2015-2019 period.
Table 2 Comparison of Creative Economy Sub-Sectors within the National Creative Economy
Development Mid-Term Plan 2014-2015 and 2015-2019 Periods
Creative economy sub-sector Creative economy sub-sector
No. No.
2009-2014 2015-2019
1 Film, video, and photography 1 Animation
2 Photography
3 Film business
4 Video
2 Architecture 5 Architecture
3 Design 6 Design
4 Music 7 Music
5 Craft 8 Craft
6 Culinary 9 Culinary
7 Fashion 10 Fashion
8 Research and Development 11 Research and Development
9 Publishing 12 Publishing
10 Advertising 13 Advertising
11 Interactive games 14 Interactive games
12 Performing arts 15 Performing arts
13 Fine arts 16 Fine arts
14 Information and technology 17 Information and technology
15 Television and radio 18 Television and radio
Sources: Authors, from 2009-2014 and 2015-2019 Mid-Term Creative Economy Action Plans
The vision of 2015-2019 creative economy mid-term development plan is for the establishment of
a strong platform for creative economy development that is globally competitive. Creative
economy itself intersecting with other issues, such natural resources and local culture management,
education, to the protection of intellectual property right. Because of that, creative economy
development along 2015-2019 targets some things, from creative education to creative product
appreciation.
Generally, this creative industry development action plan involves various parties. For example,
the attempts to achieve targets number 12, 13, 14, 15, 16, and 1716 requires the involvement of
several ministries/agencies that focus on education, culture, research and technology, law, social
welfare, tourism, creative economy, communication and information, cooperation and micro
business, industry, trades, public work, labour, and regional government in every level. Researches
are needed to understand the potential and condition of each region. Policies harmonisation are
encouraged to enhance the quality of creative economy development climate includes various
aspects from upstream (raw materials, creative people capacity, access to supporting infrastructure)
to downstream (marketing of the products/creative products). Active participation from various

16 Table of Targets, Strategy, and 2015-2019 Creative Economy Development Action Plan can be seen in the annexes.

CIPG (2017) 18
actors is important due to in praxis level, creative economy development strategy is done by
regional approach.
Creative industry development strategy is delivered through regional approach and is targeted to
seven regional groups, namely Sumatra, Java-Bali, Kalimantan, Sulawesi, Nusa Tenggara, Maluku,
and Papua. Development strategy in Sumatra is by continuing the development of Medan, Batam,
Pekanbaru, and Palembang as the processing industry centres that serve creative industries.Then,
creative industries and tourism destinations are synergszed to become a marketing tool for creative
industry products.
Creative industry development strategy in Java-Bali is by strengthening the competitiveness of
small and medium industries, especially craft, performing arts, computer service and software, as
well as research and development in Yogyakarta, Bandung, Denpasar, Pekalongan, Solo, Jakarta,
and other strategic regions. It includes the improvement of access to creative industry education
and the enhancement of innovation capacity in order to increase a sustainable creative industry
competitiveness.
The direction of creative industry in Kalimantan is targeted to the growth of new creative industry
clusters that develop special product of each region. The activation of creative industry business
incubation is hoped to encourage research and development on natural resources in Kalimantan
to be processed to creative product. Meanwhile, the creative industry development in Sulawesi is
directed to develop new flagship industry clusters, by continuing the development of Manado-
Bitung as the centre of sea product processing industry, and also developing Gorontalo, Palu,
Kendari and Mamuju as the centre of food crops and horticulture processing industry. The rise of
Makassar as the centre of economy in Eastern Indonesia has also opened the chance to develop
this city as one of the creative cities in Indonesia.17
For Nusa Tenggara, creative industry policy is directed to develop Mataram and Kupang as the
centre of processing industry for flagship commodities, especially culinary and weaving. The Nusa
Tenggara development strategy is by enhancing the innovation and capacity of creative industry
science, digging creative product that can be used as regional icon, as well as the capacity building
of creative resources and the synergy of creative industries with tourism.
Maluku is directed to develop the diversification of convenience fish products for internal and
overseas markets, develop marine industries with Ambon as the centre of processing industry, as
well as the diversification of coconut processing products. Maluku’s richness in terms of art and
culture, especially in music sub-sector will also be developed along with creative rooms for
discussions and dialogues. While in Papua, with its cultural richness and unique nature, creative
industry development strategy is directed to enhance the capacity to innovate and the quality of
creative resources, as well as an increase in the use of technology in local product-based creative
industries.
In 2015, there were five cities that had the potential to be proposed to be creative cities, namely:

17“Makassar Has the Potential to be UNESCO Creative City” can be seen on this link:
http://www.tempo.co/read/news/2014/07/05/090590527/Makassar-Potensial-Jadi-Kota-Kreatif-Unesco

CIPG (2017) 19
 1. Malang (East Java)
Famous for its cool nature and horticulture products, Malang is considered to be able to
increase the added value of horticulture product by making it as dried food or new
processing product.
2. Bukittinggi (West Sumatra)
Bukittinggi was the capital of Indonesia’s Emergency Government within December 1948
to June 1949. Apart from its hand crafts that are already developed, Bukittinggi has cultural
and historical tourism potentials.
3. Singkawang (West Kalimantan)
Known for the assimilation of local and Chinese cultures, Singkawang is rich with its
tourism places, such as panjang beach, Teratai Indah Lake, Sinka Island Park, and
agritourism locations. Singkawang is also the centre of decorative stone and Sekok ceramic.
4. Sawahlunto (West Sumatra)
Sawahlunto is also considered to be able to change the image of mining location to be
tourism destination location. Its tourism potential is developed with old city tourism
concept, by walking down the mining traces in that city. Cultural tourism potential in
Sawahlunto is Silungkang weaving.
5. Palembang (South Sumatra)
Famous for its Ampera bridge that crosses Musi River, Palembang plans to develop itself
to be an international level metropolitan city by arranging tourism location on Musi
riverside.
The other cities that have the potential to be developed as creative cities are Makassar (South
Sulawesi), Denpasar (Bali), and Surabaya (East Java). Makassar has drastically developed as one
of the main knots of Eastern Indonesia. Cultural richness of Makassar can be the platform of this
city’s development. Denpasar (Generally Bali) has been known as an artistic tourism destination,
where cultural elements integrate with regional development. The potential of its art product is
abundant, such as dancing performance, blaganjur gamelan, ogoh-ogoh, endek weaving, penjor, kite, and
hand fan. The creative human resource is also adequate. Meanwhile, Surabaya is seen as a city
that successfully creates a public space through parks and green open spaces. This city offers
interaction and creation rooms for its people.

3.3.3 Creative Economy Agency

Indonesia's policies on creative economy in President Jokowi era is marked by establishing a special
agency to manage creative economy, named Creative Economy Agency.
Creative Economy Agency divides creative economy into new sub-sectors, namely:
1. Application and games development
2. Architecture
3. Interior design
4. Visual communication design
5. Product design
6. Fashion

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 7. Film, animation, and video
8. Photography
9. Kriya
10. Culinary
11. Music
12. Publishing
13. Advertising
14. Performing art
15. Fine art
16. Television and radio
Creative economy focus in Jokowi-JK era is facilitating creative people along creative economy
value chain, from creation stage, production, distribution, to conservation. 18 Creative Economy
Agency has the task to build creative economy ecosystem that is efficient and conducive. Thus,
the actor can be more productive and creative economy can increasingly contribute to national
GDP.19

3.4 Conclusion
Public policy analysis that is done by historical pint of view will help us to understand the context
on how the government sees an issue. In creative economy context, the government’s policies on
creative economy are not specifically formulated for creative economy growth. Creative economy
rises and develops as the effect of policies that are aimed to face multidimensional crisis and the
change in socio-political, economic and cultural constellations in Indonesia.
The embryo of creative economy in Indonesia started from the 1997-1998 multidimensional crisis.
Public policies at that time and during reformasi era did not aim for economic growth, but rather to
re-arrange the country after crisis. Policies on creative economy sector were formulated at the first
time during President SBY regime and were carried on to President Jokowi regime.

18 See http://www.bekraf.go.id/berita/page/9/tugas-bekraf-dalam-mendorong-kemajuan-pelaku-ekonomi-kreatif.
Accessed on 25 January 2017.
19 See http://www.bekraf.go.id/profil/tugas. Accessed on 25 January 2017.

CIPG (2017) 21
 Chapter 4
Study Findings
4.1 Preface
This chapter elaborates the findings from two case studies, Surabaya and Makassar, as one of the
attempts to see creative potential in urban community - mainly in Indonesia’s second tier cities.
(British Council 2014)
The designs of those two case studies were made by involving some parties, such as C2O Library
& Collabtive Surabaya, Tanah Indie Makassar, NOEMA, Centre for Innovation Policy and
Governance, and British Council. Three days workshop, from 6 until 9 October 2014, was held to
build the capacity and ability on research methodology (Bobisse 2014) as well as designing the
strategy and action plan that would involve stakeholders. The stakeholders consist of
entrepreneurs, academics, and policy makers in creative economy.
The research focus in both case studies was related to (i) Current situation of creative economy
through sub-sector proxy in each city; (ii) Barriers and driving factors that enable creative economy;
and (iii) Follow up to optimise related sub-sectors. Those three focuses were the elaboration of
the targeted outputs. After that, those questions were explored in research area and data collection
instrument by the researchers in each city. By using qualitative approach, both case studies intend
to review the creative economy phenomenon completely, deeply and detailed. This would be
reached through digging qualitative data in forms of perspectives, opinions, and secondary data
from various publications that are available. Data collection instruments such as in-depth
interview, Focus Group Discussion, group interview, and literature review were done to enrich the
gathered data.
The findings from Makassar City will be elaborated first before the findings from Surabaya City
complement and close this chapter.

4.2 Makassar City

In 2015, Tanah Indie from Makssar conducted a research named “2015 Makassar Creative
Economy Mapping Research”. This research was conducted to map the creative economy
potentials in Makassar City. Before it was done, there was not any research that focused on creative
economy mapping in Makassar City. The purpose of this research was to understand the potential
of Makassar as a creative city.
1. Panakkukang (especially Panakkukang Mas region, Boulevard Road) is the benchmark of
Makassar City in terms of fashion.
2. Geographical: Panakkukang Sub-district is located in relatively the centre of Makassar City
compared to the other 13 sub-districts.
3. Technical/practical: Tanah Indie location is also located in this sub-district.

CIPG (2017) 23
4.2.1 Methodology
1. This research used space approach (Panakkukang Sub-district) through observation and
registering the business types with the name of the businesses, and actor approach through
snowball technique. The data was collected by questionnaires and interviews within January-
April 2015. Respondents: 250.
2. This research did not use one specific theory, but ‘Mapping the Creative Industries’ toolkit
from British Council.

4.2.2 Panakkukang Creative Economy

Geographically, Panakkukang Sub-district is adjacent to Tallo Sub-district in the north, Tamalanrea
Sub-district in the east, Rappocini Sub-district in the south, and Makassar Sub-district in the west.
The total population of Panakkukang Sub-district is 145,132 people (2014).
Within January-April 2015, Tanah Indie did surveys to 250 businessmen in Panakkukang Sub-
district. From 250 respondents, 53% of them work in culinary sub-sector (see figure below).

T H E S U B - S E C TO R S O F C R E AT I V E E C O N O M Y
AC TO R S I N PA N A K K U K A N G S U B- D I S T R I C T
0.8% 1.6% 0.4% 0.4% 0.4% 0.4%

3.2% 0.8% Kuliner

Mode (fashion)
Advertising
Kerajinan
24.4% Radio dan TV
Arsitektur
52.8%
Desain
Penerbitan
Riset dan Pengembangan
14.8%
Perangkat Lunak
Rekaman dan Distribusi Musik

Figure 5 The Sub-sectors of Creative Economy Actors in Panakkukang Sub-district,

Makassar, South Sulawesi
Source: Tanah Indie, 2015
In Tanah Indie research, creative economy analysis was done based on two categories, namely:
community and individual/non-community. From its development, creative economy in Makassar
is heavily influenced by the existence of communities. At least there are 75 communities in

CIPG (2017) 24
Makassar City20. The interaction and cooperation between the members of these communities
produce many creative businesses in Makassar.
If we see the timeline, the tipping point of creative economy in Makassar - especially in
Panakkukang Sub-district - is in 2010 when internet and social media started to be popular. This
was because the creative economy actors in Makassar were young generation (15-39 years old) that
were lay with social media. Nine respondents stated that they had started the business before the
internet and social media booming in 2010-2011.
From nine respondents, 67% of them did not use internet as their main advertising idea, and 33%
now use internet to spread the info of their businesses. For them, offline activities are the main
means to keep the business alive. Their businesses develop from the recommendations between
friends and customers. Offline activities are mostly done in coffee shop/café.
1. Based on the data from Makassar City Office of Tourism and Creative Economy (2015), there
are 75 communities in Makassar.
2. Fashion:
a. The distribution of fashion businesses based on the location (name of the street)
Table 3 The Distribution of Fashion Businesses in Makassar Based on the Location

No Name of the Street Total %

1 Boulevard 17 46
2 Bougenville 2 6
3 Pengayoman 6 16
4 Abdesir (Abdullah Daeng Sirua) 9 24
5 Pettarani 2 5
6 Adhyaksa Baru 1 3
Total 37
Source: Tanah Indie, 2015
b. Famous distro brands in Makassar, such as Immortal, /RSCH, Chambers, Triple R
Junior, Invisible, Issue Shop, God City, Throve Distro, Vivolums, all of them are in
Panakkukang.
c. There is a Trans Mall in Tanjung Bunga for middle-upper segment. But, this Trans
Mall is standalone, there is not any other businesses, so it is not representative enough
to be a fashion district.
3. Café/Coffee Shop
a. There are 21 coffee shops/Cafés in Boulevard. Coffee shop/Café businesses have
grown since mid 2000.
b. Makassar City Government selects Losari and Datu Museng Street as the culinary
districts that are integrated tourism zones with Losari Beach.
4. Advertising and Printing
a. Advertising and Printing district is located in Abdesir Street (Abdullah Daeng Sirua)
with 61 businessmen.

20 Makassar City Office of Tourism and Creative Economy (2015)

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5. Research and Development
a. Tanah Indie research and development is located in Abdesir Street, integrated with
Kampung Buku library and Ininnawa publisher.

4.2.3 Creative Economy Timeline in Makassar

There were two triggering factors for the growth of creative economy in Makassar, internal country
dynamic (1998 Reformasi) and the development of information and communication technology
(internet and social media). There was decentralization (regional autonomy) after 1998 Reformasi.
Thus each region had more space to manage their own business. Meanwhile the growth of
information and communication technology triggered the establishments of various communities.
1. Before 1998
a. Individual creative economy actors (non-community) had emerged. Business
development depended on ‘word of mouth’
b. Crafting business shone in mid 1990s. Dimmed since 1997 crisis. The spectacles that
were faced by crafting businessmen in general were the same with small and medium
enterprises: capital, market, tools, and transportation.
c. 1990s until early 2000: music groups in Makassar were cup-oriented, skill-based.
2. 1999-2009/2010 Period
a. Early 2000: the orientation of playing music changed to album-oriented, creative-based
direction. The show that used to be big and luxurious, changed into more variative,
collective, and networked. Café also provided more spaces for playing music.
b. Initiative to make community emerged from universities. In 1999 Ininnawa and Tanah
Indie established a network with Performa (Makassar Photographer Union) and
Anging Mammiri Makassar Blogger Community.
c. The growth of communities in Makassar also triggered by the availability of literatures
on the city where they (the community) had grown. Initially, the distribution of books
in Makassar was controlled by Gramedia. Ininnawa opened a library within 1999-2000,
then supported the establishment of Biblioholic in 2003. Both libraries covered the
rental of academic books, literatures, until comics. There were some other libraries
appeared, but did not last (management failure: library had to preserve its employees,
not volunteers anymore).
d. In 2004 Ininnawa became Ininnawa Publisher.
e. In 2005 “Makassar Zero Kilometer” book was published and received good
receptions. Various communities conducted local review, such as review on lontara (a
notes on surrounding environment and personal experience, such as sailing, farming,
medication, house making, until marriage life, that is recorded on lontar leaf in Bugis-
Makassar font).
f. Kampung Buku was established in 2008. Rumah Baca Philosophia was founded in
2009.
3. After 2010 (lih. 2015a, h. 29-31)
a. Kedai Buku Jenny (library) was opened in 2011. Kata Kerja (library) was opened in
2014.
b. 2011: Makassar Berkebun (gardening community), initiated by a mention in Twitter
from the member of Jakarta Berkebun
c. 2012: Sushibizkid (sushi kiosk on the street), utilized Twitter to spread the info and
networking with other communities.

CIPG (2017) 26
 d. 2014: Makassar StartUp Community, gathered those who owned or wanted to open
startup.
e. 2014: Phinisi Dev, community that produced Jappa-Jappa application which contained
the info about historical places in Makassar.
f. 2011: Makassar Art Gallery, painters community in Losari Beach. Other painters
communities: Kasumba, Makassar Sket, Celebassi.
g. 2011: FM3 (Photographers, Models, and Moslem Community in Makassar), Hijabers
Makassar were founded through Facebook.
h. 2013: Kepo (Kedai Pojok) Adhyaksa was established, added the meeting and networking
spaces.

4.2.4 Drivers and Barriers

The drivers of creative economy: as an integrated trading area, Panakkukang also has the potential
to be developed in creative economy sector compared to other regions that tend to be only leading
in one sector- make it more independent. The role of people through communities growth as well
as the growth of internet and social media also become their advantages.
Other advantage (e.g. Social and cultural): gender emancipation. It can be seen from the progress
of businesses that involve woman from production to marketing in creative economy sector.
Barriers: The integrated area is not optimal yet. Unfortunately, this report has not elaborated more
why the Panakkukang integrated area is not optimal yet. Further analysis can be done by seeing
how government supports in the development of area and mainstreaming creative economy.
Furthermore, how the creative workers in Makassar influence the development of Panakkukang
integrated area can also be analysed.

4.2.5 Conclusions
Panakkukang area is creative economy locus in Makassar. In this area fashion business is rapidly
developed, apart from culinary and printing and advertising. These three sub-sectors make
Panakkukang becomes leisure area.
While from the workshop it can be said that historically, Makassar is more suitable to be an area
that focuses on literature sector, an additional notes should be inserted. At the moment, the more
developed sector is culinary sector. Unfortunately this part is not well-explained in the research
report.

4.3 Surabaya City

4.3.1 Creative Economy in Surabaya City
Surabaya is the capital of East Java Province and the second biggest metropolitan city in Indonesia.
Surabaya is known as Heroes City because of its important role in maintaining Indonesia’s
independence from the colonist. From the demographic side, for the time being Surabaya has
more than 3,1 million population (Surabaya City Government, 2015). Based on that number,
72.11% of the total population is projected to be residents within productive age (Statistics

CIPG (2017) 27
Indonesia - Surabaya Office, 2014). With large amount of human resurces within productive age,
this really helps Surabaya City’s vision as a service and trading city.
Looking at Surabaya City’s history, there is a slight change in the industry dynamic of Surabaya
City. At the end of 19th century, Surabaya was a city that depended on sugar production. In its
growth, the dynamic of this city is coloured by industries that are based on steel, cement,
automotive, machinery and shipping, and other heavy industries. The establishment of Surabaya
Industrial Estate Rungkut (SIER) in 1974 marked the industrialisation era in this city. But since
1997, the trend moved from heavy industries to service industries. At this point, the embryos of
creative industry started to emerge in Surabaya. The rise of these embryos was supported by the
local government that is now actively support creative industry. Some cooperation have been done
to enhance this sector. One of the famous ones is the cooperation between Surabaya City
government, Kibar (Google Business Group, based in Jakarta), Spazio (property that is managed
by Intiland), Suara Surabaya, and Enciety that make Start Surabaya (startsurabaya.com) since
November 2014. It is an incubator that facilitates Forward Factory21 (Hidayat 2014).
This kind of cooperation is in line with 2011-2015 Surabaya’s vision that aspires to be a “Service
and trading city which smart, humane, dignified, and environmentally sound.” However, the
efforts that have been done to promote creative industry sector have not been maximum yet. Lack
of plans and long-term policy direction to ensure this sector works sustainably give some effects
to the cooperation mechanism that is sporadic and limited to certain networks.
According to Bank Indonesia East Java Region, at the moment in Surabaya, the industry power
related to creative economy is in food/beverage sub-sector (culinary) as well as skin and wood
processing (craft) (Herdiawan 2014). These three sectors have worked quite stable with or without
the support from creative economy policies implementation. However, Surabaya case study tries
to promote the strategic values of design sub-sector, especially visual communication design.
At least there are two reasons behind this selection. First, the strategic values of this sub-sector
compared to creative economy sub-sector or other industries. Conceptually, the working area of
visual communication design intersects with other sub-sectors in creative industry or other
economy sectors in Indonesia. Design is considered as creative industry sub-sector that can drive
and support the sustainability of other industries. This can be seen from the role of design in giving
added value to a product, for example for processing and packaging. Second, the analysis to this
strategic sub-sector is considered can be the gate to highlight the factors that influence the creative
economy development of a region. By seeing the design conceptualisation since being proclaimed
by Gert Dumbar, the analysis on this sub-sector will provide the enabling/hindering factors of the
implementation of creative economy in a region, including the characteristic of the people and the
government policies implementation.

21 It is an accelerating program which targets Surabaya citizen within 18-25 years old and starts a technology-based
startup. See Hidayat, 2014.

CIPG (2017) 28
By considering the strategic values of creative industry in Surabaya, the development of visual
communication design22 is needed to support service and trading sector in Surabaya. Design is
seen as one of the ‘roots’ of the whole creative industry, considering design is a creative sub-sector
with broad working coverage and can support the sub-sector in the categorization of creative
industry or other economy sectors. This view is included in 2015-2019 National Design
Development Plan. Specifically, design is very related to the fields that are supported by design or
new fields that are made by design, such as film, video, photography, publishing, advertising,
animation, and interactive games (See Figure 6).

Figure 6 The Scope and focus of creative economy design development 2015-2019
Sources: The Ministry of Tourism and Creative Economy, 2014
The linkage between creative industry sector and design as shown in the above figure also can be
seen from the high linkage rate in Surabaya. Design has linkage value as the supplier with 2,2
backward linkage (third rank) or as the absorber with 1,2 forward linkage (sixth rank) from 15 sub-
sectors (The Ministry of Tourism and Creative Economy 2014:53). As the comparison, publishing
as the sub-sector with higher BL and FL is in weaker position in Surabaya.
Visual communication design is a service that is related to other industries. The biggest cake that
gives livelihoods for Surabaya graphic designer comes from food and beverage sector with 38%.
Food and beverage is followed by governance (17%), property (9%), and Meeting Incentive
Conference Exhibition (MICE) with 8%. While the rest are from banking, personal client, cigarette
industry, health, and education as seen in this diagram.

22In2015-2019 Mid-Term Action Plan (The Ministry of Tourism and Creative Economy 2014), visual communication
design is one of the design sub-sectors besides product design and interior design.

CIPG (2017) 29
4.3.2 Visual Communication Designers in Surabaya
To understand design sub-sector in Surabaya means that we should understand this sub-sector
ecosystem as the prototype of the ideal condition for industry that depicting activities in each
creative step. In design, prototyping that is done to map this ecosystem consists of four
components, namely: (i) Creative value chain; (ii) Market-audience; (iii) Development environment
and; (iv) Archiving.
By considering the components within aforementioned sub-sector ecosystem, the illustration on
the linkage between visual communication designers in Surabaya can be shown in the following
chart:

Figure 7 The actors in the ecosystem of Surabaya’s visual communication design sub-sector
Sources: C2O Library & Collabtive 2015
As being demonstrated in the above picture, Creative Value Chain is the main component that
happens in each creative industry sub-sector. In this phase, there is a creation process as the initial
of output production in creative industry. This will be shown to or absorbed by the market. In the
second component, it is depicted from the market, public, and consumer in each creative industry
sub-sector. On the other side, development environment as the third component is needed to
support creative chain process.
Development environment consists of two main activities, namely appreciation and education. In
this case, appreciation activity has the purpose to give acknowledgement to the industry actors. It
also can give the understanding on that sub-sector. This includes awards, incentive, and
appreciation to Intellectual Property Right. Besides appreciation, education is the main tool to
produce creative individual. This education activity can be done through formal, non-formal, and
informal educations. The last component is archiving that means to be the media which can be
accessed by public to gather the information and data related to creative industry. Generally the
archiving process is done through collection, restoration, storage, and preservation stages.

CIPG (2017) 30
With that elaboration, basically the profiles of the actors related to visual communication design
sub-sector are not limited to the designers, but also the parties within related sub-sector
ecosystems. This illustration underlines how strong the linkage between one party to another
parties in development environment, appreciation, production, and archiving fields.

4.3.3 Drivers and Barriers

The analysis on various potentials, challenges, or problems in visual communication design sub-
sector in Surabaya cannot be separated from the existing ecosystem. In other words, the
elaboration on the potentials and challenges for the development of this sub-sector should be seen
within ecosystem point of view as the ideal prototype of this industry ideal condition: whether in
the field of development, appreciation, market, production, and archiving.
By referring to the current ecosystem, at least there are two encouraging factors in this sub-sector,
namely:
 Government involvement
 Government is present as the consumer of visual communication design as well as
the decision maker.
 The designers’ initiatives to introduce/popularize visual communication design
 Emerged from the activities such as Design It Yourself, Ayorek!, Tata Rupa, or
various festivals.
Apart from the encouraging factors of this sub-sector, there are also two main barriers that can
influence this sub-sector in the future. First, Surabaya’s position is not the centre of policies for
most of the national big industries. It can be seen clearly if it is compared to Jakarta and Bandung.
This factor affects the differences on money circulation and working field that need visual
communication design service. Meanwhile, considering the existence of various education agency
in form of universities that have visual communication design subject, Surabaya seems like a city
with specialization in education and specific market that cannot be likened to other regions. This
is related to the second barrier, even if there are so many education agencies that offer visual
communication design and the specific visual communication design market, the current visual
communication design curriculum is not suitable with the needs of the industries. Profession
certification to student, for example, can cause the overlapping of profession certification. It is
because visual communication design is a major with various specific skills in profession field. This
condition is also worried to add the branching of competence without deeper skills because
students do not have enough understanding in accordance to the targeted profession orientation.
In this case, the need of a system that enables the coherence between academic and profession
worlds is crucial.
Apart from those barriers, there are some important issues, whether local or national, that
influences the ecosystem of visual communication design sub-sector. Some issues that emerge are
market environment which depends on social relation, imbalance of internet speed as working
media, the blockage of information channels until the unevenly distribution of appreciation to

CIPG (2017) 31
visual communication design on every layer of the community. The concreteness of cooperation
model between designers with the government that has not been clear also adds more problems.
Even there are some barriers to develop visual communication design sub-sector in Surabaya,
some existing potentials can be utilized and deepen to respond to that barriers. In C2O Library
and Collabtive’s perspective, weak communication between designers can be overcome by utilizing
the existence of association, socialisation, or directory. All of these three are the locus of sharing
values and media information exchange for graphic designers in Surabaya. Not only these that can
enable the linkage between designers or between clients and designers, but also will strengthen the
appreciation to design. This includes various dialogues and design discourses to open new
possibilities on graphic design practice in Surabaya.
Besides the design discourses inside or outside of this sub-sector, the attempts to archive or
research on visual communication design sub-sector condition in Surabaya should be done
periodically to support the availability of data and actual images on the business situation in
Surabaya. This includes comprehensive mapping of city potentials related to visual communication
design sub-sector, either directly or indirectly. The attempts to raise the appreciation through
media and activities like Ayorek!, Grand Story Magazine, Design It Yourself, and Tata Rupa as
well as mapping initiative from ADGI SUB at Surabaya local level should be enhanced for the
development of this sector. The stakeholders should coordinate, evaluate, and utilize the existing
channels to optimize the role of design to respond the needs and to raise economic added value
of Surabaya City.

4.3.4 Conclusion
Nowadays, creative industry and economy are believed to be one of economic growth sources.
Indonesia is not an exception, within the last decade the discourses on creative industry have
influenced some strategic economy planning policies. In national level, 2014 Indonesia's Creative
Economy Long Term Development Plan can be the reference on creative economy development
in national level.
Change from triple-helix (government, business, academic) model to quad-helix (government,
business, academic, communities) model.
 Within Surabaya context, the existence of development agency (education agency) that
teaches visual communication design. This includes the linkage between education
agencies and industries (regarding the standardisation of labours).
 The size of the market, especially the one with service in creative economy sector.
 The existence of communities with cultural-emotional relation that “maintain” the creative
values. Not only physical building like Makassar case through various libraries, but first
thing first the locus for the creative agents to gather.
 Information technology development enables new opportunities for creative economy, as
well as making the actors “depended” on utilizing its potentials to develop creative
economy.

CIPG (2017) 32
 Chapter 5
Conclusion and Agenda for Change
Designing a programme with the purpose to diagnose sub-sector potentials of creative industry in
a city qualitatively is not common in Indonesia. While statistical and quantitative measurements
are more common to be done, qualitative approach offers new knowledge that can help the
creative economy stakeholders to be more proactive and responsive in optimizing creative ecology
of their regions.
Practically, this programme has offered an analysis on creative economy activities from the
perspective of selected sub-sectors and according to the potentials and economic contribution in
each city. Nevertheless, there are some challenges that need to be overcome in order to perceive
deeper understanding and comprehensive knowledge in the future.

5.1 Mapping Out Creative Economy Potentials: Conclusions

There are some conclusions that can be drawn from this programme.
First, this programme finds that 1998 Reformasi is not only an important milestone for the journey
of Indonesia, but also for the development of creative economy. 1998 Post-Reformasi era produced
decentralization. It made regions had more space to manage their own. This directly encouraged
the growth of communities as the womb of cultural and creative idea development.
Second, this research strengthens the findings on Communication and Information Technology as
the important means for development. One of the examples is in Makassar case study which we
found that Communication and Information Technology has been the triggering factor for the
growth of creative economy. Fast growth of communication and information technology,
especially post-2010, has triggered the emergence of various communities that support the growth
of creative economy in Makassar. Initiatives like Makassar Berkebun (2011), FM3 (2011), and
Sushibizkid (2012) utilized Twitter and Facebook to spread info and do networking with other
communities. While in 2014, Makassar StartUp Community emerged as the platform for those
who wanted to open a start up business. Within the same year, Phinisi Dev was also established as
the creator of Jappa-Jappa application containing the info of historical places in Makassar.
Third, in Makassar, mainly in Panakkukang and city centre, culinary and fashion are the leading
sub-sectors. This area has grown so fast within the last decade. It makes them called the ‘Head of
the Dragon’ area of South Sulawesi Province. Several business activities have developed rapidly.
These encouraged the needs of advertising and graphic design skills that can be an opportunity for
small and medium enterprises to grow. At least, for the last five years the growth rate of various
small and medium enterprises that support this sub-sector has increased significantly.
Forth, as one of the main trading cities in Indonesia, Surabaya needs to create a helpful creative
industry ecosystem. But, the gap between academic world and profession world hampers that goal.
This problem can bee seen in visual communication design sub-sector. The gap is very clear on

CIPG (2017) 33
how visual communication design students are demanded to learn various skills, but that skills do
not really fit with the chosen profession orientation. After the formal education, media and
networking platforms for the designers are very limited. Less attention from local government also
limits the capacity of design sub-sector in Surabaya. The lack of direction or long-term (sustainable)
policies also cause more problems. Whereas this sub-sector can support the growth of other
sectors like trades, hotel, and restaurant that contribute the biggest number of regional GDP in
Surabaya.
Fifth, initially, public policy did not intend to increase the growth of creative economy. Creative
economy ecosystem had formed by the effects of public policies during Reformasi era. The aim of
public policies during Reformasi era was to re-structure the country after 1997-1998
multidimensional crisis. The new government specifically issued policies on the development of
creative economy during president SBY regime.
Various findings in this research will be useful to complement previous researches on creative
economy, especially the one that highlighted the vital role of grass root communities in mapping
the cultural assets as well as utilizing those assets.

5.2 Looking Forward: Some Follow Up Suggestions

According to Cresswell (2007), both Makassar and Surabaya case studies used Collective or
Multiple Case Study and Intrinsic Case Study. Makassar case study used location approach, but
involved more issues or attentions. By the very complex nature of the research, Makassar research
team generalised the emerged cases to be compared by the end of the study. In Surabaya case
study, by basing it on visual communication design sub-sector, the research team had high
attachment to the context. So, this research took cases that had high peculiarity and uniqueness.
The focus of this research was on the case itself, whether the location, programme, event, or
activities.
Unique characteristic of the design of each case study had been an added value for the effort to
map creative economy potentials of related city. By utilizing qualitative information that had been
gathered in the whole process of this programme, the relevant policy makers and stakeholders can
make a basis to build an adequate ecosystem for the growth of creativity as the contributor in
development or quality of life improvement in related cities.
However, some notes need to be mentioned here.
First, the documentation of the process needs to have more attention in order to get a deeper
knowledge on the case study. In Makassar case study, there are some missing explanations in the
process such as the workshop, mentoring, and case study writing. In the workshop, research team
said that historically, Makassar was more suitable to be an area that focused on literature sector.
But, for the time being the more developed sub-sector is culinary. This change was not elaborated
in case study, so it seemed like some contexts were missing. Whereas, one of the most important
things to be considered in mapping creative economy potential by location perspective (like
Makassar case study) is how the historical context influences the development of related city.
Second, the role of communities as the actor cum researchers can give insider insights for the
research. This can be an advantage as well as a consideration for the next research on the mapping

CIPG (2017) 34
of creative economy potential. Not only provides an easier access to data and network, but also
the point of view is more precise. Even so, caution should be taken. Time availability is also a
challenge because they need to separate the role as the actor and the researcher. Moreover, the
involvement as an actor should not sacrifice the high rigor and robustness of the research.
Third, a deeper policy analysis is needed to help the researchers understand the context of an issue
or sector from the perspectives of the government and public policy. This point of view is
important as the government creates ecosystem through the public policies. In analysing policies,
the understanding on history, background, and goals of each policy formulation should be done.
This is important to see how relation and relevancy of a policy to the issue that is being discussed.
The findings from this programme show that there is a potential to reach the full capacity of
creative economy in current cities. This report also contains some lessons learned to do creative
economy potential mapping from the perspective of communities. It indicates some
recommendations to the relevant policy makers and stakeholders to keep this momentum.

CIPG (2017) 35
 Reference
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2015b. Pemetaan Ekonomi Makassar Kota Surabaya 2015. Surabaya: C2O Library & Collabtive.
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CIPG (2017) 37

Table of Targets, Strategies, and Action Plans of Creative Economy
Development 2015-2019
Source: The Ministry of Tourism and Creative Economy, 2014
No Targets
Strategies
1. Increasing quantity and quality of
creative education in the country
2. Increasing quantity and quality of
creative people
3 The availability of raw materials
from natural resources with local
characteristic, sustainable and
eco-friendly
4 Increasing quality of sustainable
natural resources management
5 Increasing competitiveness of
creative entrepreneurship in
national and global level
6 Increasing competitiveness of
local creative business in national
and global level
7. The establishment of Indonesia’s
creative products and services
that can be national and
international icons.
8. The availability of funding that is
suitable and easy to access
9. Increasing diversity of segments
and the penetration of creative
products in local and global
market
10. Increasing availability of
infrastructures that encourage the
CIPG (2017)
Annexes
Total
Total
Action Notes
Plans
11 25 Including the facilitation of cooperation between
education agencies with private sector, improvement of
the quality of the educators and curriculum, and the
access to scholarships.
4 14 Including the determination of competition standard
and globally acknowledged creative labour
certification, facilitation on creative labours market,
and working protection system for creative labours
inside and outside the country.
4 11 Including the facilitation on research and development
of Indonesia’s natural resources with its information
system, to the increase of production scale and the
competitiveness of local raw materials.
3 7 Including the development of Indonesia’s cultural
heritage, the packaging of local culture to be a
product with modern value.
3 6 Including the improvement in entrepreneurship skills, to
the facilitation on networking and creative
entrepreneurs collaboration.
6 16 Including the ease to start a business in creative
industry (from permits to mentoring), facilitation on
access to raw materials, culture, and local creative
labours, to the certification of creative industry.
4 10 Including the facilitation on creative industry applied
research, facilitation on the development of product
design, content, and packaging for local creative
products, standardisation and certification of creative
product.
4 11 Including the facilitation on financial institution for
creative industry that based on technology, content, art
and culture, to the facilitation on alternative funding
models for creative industry.
7 13 Including the increasing quality of creative products
marketing, product market information system, creative
products and services, facilitation on one door service
for exported and imported creative products, to the
increasing entrepreneurship capacity to sell the
products.
3 6 Including the improvement on internet access,
revitalisation of show/performance buildings, and the
development of integrated e-commerce platform.
39

No Targets
Strategies
production, distribution and
promotion of creative products
11. Increasing availability of
intermediate technology and
easy to access
12. The establishment of regulation
that supports the conducive
environment for creative economy
development
13. Increasing active participation of
stakeholders in the development
of creative economy
14. The establishment of creativity as
the development paradigm and
within people’s daily lives.
15. The increase of Indonesia’s
position, contributions,
independence, and leadership in
international forums.
16. Increasing appreciation to the
local creative actors, products,
entrepreneurship, and businesses
inside and outside the country.
17. Increasing appreciation on local
natural and cultural resources
CIPG (2017)
Total
Total
Action Notes
Plans
6 12 Including the access facilitation on hardware and
software that are legal and affordable, the
development of technology incubator to support
creative industry, revitalisation of government research
agencies to develop a technology that supports the
development of creative industry.
12 41 Harmonisation of regulations: 1) Increasing quality of
education to grow children’s creativity, 2) Creative
economy literacy and creativity, 3) Trade system for
local natural resources as the creative industry’s raw
materials, 4) Preservation of local natural and cultural
resources, 5) Creative industry structuring, 6) Taxation,
customs, CSR, and retribution for creative industry, 7)
Creative industry financing, 8) Foreign investment in
creative economy sector, 9) Market expansion for
creative products and services, 10) Consumer
protection, 11) Intellectual property rights as the
security, 12) Creative people employment in the
industry.
7 18 Including collaboration and synergy of cross-sectoral
and cross-regional programmes, communication forum
and partnerships, facilitation on the development of
creative communities, to the increase of state
apparatuses’ capacity in developing creative economy.
5 11 Including the increasing supports for creative industry
development in RPJMN (National Mid-Term
Development Plan), strategic plan of related
ministries/agencies, and RPJMD (Regional Mid-Term
Development Plan), to the facilitation on developing
and activating public spaces.
3 6 Including strategic partnership with the countries with
advance creative value chain and with potentials to be
a market for creative products, and facilitation on
Indonesia’s participation in prestigious international
creative events.
9 15 Including facilitation on creative activities that can dig
and promote local creative actors, products,
entrepreneurship, and businesses, facilitation on the
active communication to use local products, to
increasing information, protection, and enforcement of
intellectual property rights.
2 2 Including the facilitation on access and distribution of
information on natural and cultural resources to
community, as well as education to community about
eco-friendly products.
40
Table of Researches on Creative Cities

No City/District Year Title Researcher Research Goals Summary

1 Bandung 2014 Grounding mobile Dan Cohen This paper explores the The research suggests
policies: Ad hoc ad hoc networks that that the concept of policy
networks and the form to move policies to motilities would be
creative city in new sites by examining enriched by a closer
Bandung, Indonesia the process through which attention to the way
the city of Bandung, power is used to construct
Indonesia adopted a networks that promote
creative city policy. specific policies and
places as sites of ‘best
practice’.

2 Bandung 2015 Analysis of C0- Ratih The purpose of this study Co - creation experience
Creation Experience HURRIYATI was to investigate the gives positive influence
Towards a Creative and effect of co-creation on creative city as a
City as a Dara Myrna experience on a creative tourism destination. A
Tourism Destination Pusparani city as a tourism creative city -
and its Implementation SOFWAN destination, as well as its as a tourism destination
on Revisit Intention impacts on travelers‟ contributes positively on
intention to revisit the city the attitude of the
of Bandung. tourists. Co - creation
experience has a
positive influence on
revisit intention of an
individual.
3 Bandung 2015 Identification of the Iwan The objective of the This paper discusses
Creative Capacity of Kustiwan, paper is the the concept of creative
Kampong's Community Ibrahim identification of Kampong as an
towards Sustainable Ukrin, Astri community’s capacity alternative for
Kampong (Case Aulia toward creative establishing kampong as
Studies: Cicadas and kampong that promotes defensible living space
Pasundan Kampong, sustainability. The and
Bandung): A identification is for enhancing the
Preliminary Study undertaken by observing community’s capacity to
kampong in the city improve physical
center of Bandung and condition of the
interviewing the kampong.
stakeholders: creative
community, community
leaders,
and government official
4 Bandung 2015 Enhancement of Rina This research may Bandung City has been
Creative Industries In Hermawati become a reference appointed as a pilot
Bandung City Through and Nunung for regional governments project of
Cultural, Community, Runiawati intending to create creative cities in East
And Public Policy creative and innovative Asia due to the role
Approaches cities to improve the of creative industries
business of creative which swiftly develop in
industries and to the city. There are
optimise the three factors that
genuine local revenue influence the
improvement of creative
industries in Bandung
5 Bandung 2012 The City of Bandung: Adiwan In context of The paper found that
Unfolding the process Aritenang decentralisation, this path dependency as
of a Creative City study aims to understand historically centre of
the role of both bath creative class has
dependence and process accelerate the city's new
of developing a creative economic activities
city.

CIPG (2017) 41
 No City/District Year Title Researcher Research Goals Summary

6 Indonesia 2015 Creative economy Fikri Zul To illustrates that there This paper investigates
policy in developing Fahmi, Philip are possibilities for a how the creative
countries: The case of McCann, developing country such economy discourse is
Indonesia Sierdjan as Indonesia to adopt the interpreted and
Koster vision of a creative implemented in the
economy by reshaping context of Indonesia as a
local institutions to developing country. Our
support successful main conclusion is that the
experimentation with this discourse is interpreted
new idea. differently across
localities.
7 Yogyakarta 2015 Green IT Muafi This study aims at The research
Empowerment, Social analysing the role of concluded that the
Capital, Creativity empowerment of empowerment of
and Innovation: Green Information Green IT provides a
A Case Study of Technology (IT) in Small significant
Creative City, Bantul, Medium Entreprises role in creativity and
Yogyakarta, (SMEs) and social innovation as well as
Indonesia capital of the social capital, and at the
creativity and same time it also supplies
innovation of creative a
SMEs in Bantul, significant role in
Yogyakarta, Indonesia. innovation.
8 Jayapura 2016 A Study of Indigenous Westim The research aims to Both indigenous
Community-Based Ratang, Jhon discover the potential of communities have their
Economy at the Blesia, local natural resources in local
Regency of Jayapura Andika improving the wisdoms that are
Rante, economic life by utilizing believed to have rewards
Andreas the indigenous if they obey and
Kuddy communities’ local wisdom sanctions or punishments
at the regency of if disobeyed. Some local
Jayapura. government’s strategies
are recommended to be
done in order to help
both communities to
improve better quality of
life.
9 Bogor KJKS BMT Creative Nur Azizah, to shows how agrotourism Eplaining how an
Economy: A Proposed Galishia is expected to be a agrotourim based on
Model Putry, strong sector in the community development
of Islamic Abdullah economy, provide (in this case A Model of
Cooperation for Syafi’ie employment, contribute KJKS BMT for Community
Agrotourism significantly to the Based Agrotourism) can
Development Based nominal GDP, reduce support agro tourism
on Community unemployment, and give business grows in
welfare for the citizens in Indonesia
the future.
10 Yogyakarta 2013 Creative Cluster or Asmorowati The main research The researcher believes
Creative Class? : A objective is to understand that by understanding
Case Study of why Nitiprayan kampong why creative people
Nitiprayan Artist has emerged and tends to live in certain
Kampong, grown as a creative place and create a
Yogyakarta economy. This include creative center and
why artists settle in revealing the key factors
Nitiprayan and why the underlying the success of
creative economy has creative class due to
grown clustering will give a
great contribution to
urban management
studies,
especially in the local
context of Yogyakarta
city.

CIPG (2017) 42
RESEARCH IN CREATIVE ECONOMY

This document offers a tool for policy makers, cre-

ative practitioners, or the leaders in grass root to ele-
vate the understanding and awareness on creative
economy unique ecology. Using Makassar and Sura-
baya as case studies, the module is designed to diag-
nose creative economy activities based on economic
potential and contribution of each city.

Centre for Innovation Policy and Governance,

Indonesia Sustainability Centre Harmoni Plaza Blok B-5,
Jl. Suryopranoto No. 2, Jakarta Pusat 10130 Indonesia
Phone +62-21-63861921, Web: cipg.or.id
@icipg | Centre for Innovation Policy and Governance (CIPG)