The Creative Economy Amid the Pandemic

The MSMEs not only need to survive but also to grow into large, advanced and sustainable businesses. The existing ecosystem must be able to answer the fundamental challenges faced by creative economy players.

KOMPAS/TOTOK WIJAYANTO

A stand keeper tidying up local brand canvas shoes on display at the \'Local Brand Sneakers\' Shoe Exhibition at Mall of Indonesia, Kelapa Gading, Jakarta, Friday (30/4/2021). The exhibition of local brands is expected to be a strategic step in moving the creative economy sector back in the country.

With the resurgence of COVID-19 cases, the prospect of a quick recovery in the creative economy sector and the national economy as whole is again under threat.

The contraction in the creative economy, which provides a significant contribution to the country’s gross domestic product (GDP), employment and exports, is expected to continue in 2021 (kompas.id, 27/6/2021). We are forced to adapt quickly. Implementing a sustainable creative industry strategy amid the pandemic — we don’t know when it will end — is a must.

According to a survey conducted by the Asian Development Bank (ADB) in 2020, 48.6 percent of micro, small and medium enterprises (MSMEs) were forced to temporarily close due to the pandemic. With the resurgence of COVID-19 cases, the number is feared to further increase — even though the government has tried to accelerate the financial stimulus program to revive MSMEs as part of the National Economic Recovery (PEN) agenda.

Also read:

> Showcase of the Creative Economy

> Politics of MSME Development

Companies engaged in the creative economy, which are mostly MSMEs, have taken various steps to survive, ranging from efficiency measures, reducing labor and product innovation to business partnerships and finding new markets. The use of digital technology — which reduces direct human contact — in product marketing has saved many creative economy players.

But so far, its reach is still limited. According to the deputy for Digital Economy and Creative Products at the Tourism and Creative Economy Ministry, as of the end of 2020, 11.7 million MSMEs have begun to sell their products through online marketplaces. The figure may seem quite large but is still small compared to the total number of MSMEs in Indonesia, which has reached 59.2 million.

The MSMEs not only need to survive but also to grow into large, advanced and sustainable businesses. For this reason, the existing ecosystem must be able to answer the fundamental challenges faced by creative economy players. Marketing, venture capital and digitalization are just some of them.

KOMPAS/ABDULLAH FIKRI ASHRI

The Cibuntu Creative Economy Center which was inaugurated by the Minister of Tourism and Creative Economy Sandiaga Uno in Cibuntu Village, Pasawahan District, Kuningan Regency, West Java, Monday (31/5/2021). During his visit, Sandiaga encouraged villages in Indonesia to develop tourism such as Cibuntu Village. Tourist villages are considered to be able to revive the economy in the midst of the Covid-19 pandemic.

Although the potential is huge, the competitiveness of Indonesia\'s creative economy is still weak compared to other ASEAN countries and around the world. Due to the low capacity of human resources in technology transfer and creativity, the growth of this economic sector is not as fast as expected and its contribution to GDP remains stagnant at around 7 percent in the last decade.

The key to South Korea\'s success in building a creative economy that is highly respected in the world is the development of human resources and potential talents. This transformation requires a high commitment, not only from the government but also the private sector in leading the way in shifting toward an economic and social model, where creativity, innovation and entrepreneurship are at the core of all development programs.

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> Looking at the Digital Economy in 2021

> Soaring in the Creative Economy Year

The pandemic is also considered as an opportunity to improve, so that the economy can recover quickly and become stronger and more under control. We need to support the government\'s plan to open creative industrial centers in order to increase added value and promote competitiveness based on the competitive advantages and characteristics of each region.

The rise of the creative economy is a big gamble for the economy as a whole. However, like other sectors, its recovery will depend on the success of the economic stimulus package, the handling of COVID-19 and vaccination.

This article was translated by Hendarsyah Tarmizi.