181138-opus-creative-economy-outlook-2019-english-version (1).pdf

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Creative Economy

Opus OPUS CREATIVE ECONOMY OUTLOOK 2019

Outlook 2019

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OPUS CREATIVE ECONOMY OUTLOOK 2019

OPUS CREATIVE ECONOMY OUTLOOK 2019

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OPUS CREATIVE ECONOMY OUTLOOK 2019

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OPUS CREATIVE ECONOMY OUTLOOK 2019

“If we try to compete with Germany and China in ­hightech industries, we’ll lose. But in Creative Economy, the odds are in our favor!” - Joko Widodo, President of The Republic of Indonesia.

ADVISOR: Triawan Munaf Ricky Joseph Pesik

Fika Aprina Jasmine Joko Bramantio Nurhani Yatimah

DIRECTOR: Abdur Rohim Boy Berawi

CONTRIBUTORS: Iqbal Bachtiar Mauliandini N.N Sarah Gracia Keinamada Sistri Riska Andini Edwin Muhammad Fadholi Yanuar Arief Christina Sariowan Ary Afiatur Rahman Anton Suprayogi Debby Permatasari Usamah Widyatmo Adzania Wulandari Yusuf Rahmadi K. Biondi Nasution Yoannes Baptista E. W. Angelina Egawati Arief Wahyu Megatama Irfan Zayanto Rozin Fathur Rahman Dyah Nita Anisa Citra Bagus Ghufron M. Hafizh Zulfikar

PERSON IN CHARGE: Wawan Rusiawan EDITORIAL TEAM: Dian Permanasari Rizky Deco Praha Celsius Creative Lab EXECUTIVE TEAM: Dian Permanasari Rizky Deco Praha Sri Handoyo Mukti Socia Prihawanto Heri Apriyanto Hermawan Prasetya Agus Sucipto Atikah Nur Pajriyah Muhammad Sukma Mahfud Ainun Najib Masfuhurrizqi Iman Rizka Dyah Utami

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OPUS CREATIVE ECONOMY OUTLOOK 2019

Foreword

Along with Indonesia’s economic prospect which is projected to become one of the largest economies by 2030, Creative Economy in Indonesia is also poised to grow into one of the world’s creative industry powerhouses. The outlook that Indonesia’s Creative Economy will become the country’s newest economic pillar is starting to materialize, as can be evidenced from the positively rising trends of the Creative Economy’s Gross Domestic Product (GDP) contributions towards the national GDP. The Indonesian Agency for Creative Economy (BEKRAF) is the Indonesian Government’s initiative to provide breakthroughs as well as support for this burgeoning economic sector, with the aim of exploring the potential and maximizing opportunities while overcoming the challenges of the Creative Economy in Indonesia. The Indonesian Agency for Creative Economy was officially formed on January 20, 2015, based on the Presidential Regulation Number 6 of 2015 concerning the formation of The Indonesian Agency for Creative Economy. Every BEKRAF program and activity seeks to fulfill its vision of increasing the GDP, export value, and labor in the Creative Economy sector. To realize this vision, BEKRAF has a mission to build a solid and productive Creative Economy ecosystem through the publication of an outlook book containing updated data, information and reports on Creative Economy in Indonesia. Opus 2019 is one manifestation of such a mission. As an annual book, Opus is designed to be used as a guidebook or point of reference for governments and Creative Economy players to allow them greater insights on the Creative Economy sector in Indonesia and continue creating high-quality, appealing contents and works. We sincerely hope that this Opus 2019 book in your hands right now can provide you with the latest insights and information regarding the Indonesia Creative Economy along with its opportunities in the next year. On behalf of BEKRAF, I would like to extend my deepest appreciation and gratitude to the many parties who have participated in the making of this Opus 2019 book. We hope that this book can serve all Creative Economy players in Indonesia and other stakeholders.

JAKARTA, OCTOBER 2018 CHAIRMAN OF CREATIVE ECONOMY AGENCY OF REPUBLIC OF INDONESIA

TRIAWAN MUNAF

OPUS CREATIVE ECONOMY OUTLOOK 2019

7

Table

of Preamble

Insights

12 - Where We Stand Today

22 - Insight 2018

16 - Where We Are Heading

30 - Forecast 2019

18 - A Portrait of Indonesia’s Creative Economy

Content Updates On Creative Economy Sub-Sectors

BEKRAF Activities 2017 – 2018

Epilogue

34 - Architecture

78 - Deputy of Research, Education and Development

140 - Global Economic Prospects

94 - Deputy of Access to Capital

141 - Indonesia’s Economic Conditions

36 - Interior Design 38 - Visual Design 108 - Deputy of Infrastructure 40 - Product Design 118 - Deputy of Marketing 42 - Film, Animation and Video 46 - Photography

124 - Deputy of Facilitation of Intellectual Property Rights and Regulation

48 - Craft 50 - Culinary 52 - Music 54 - Fashion 58 - Application dan Game Developer 62 - Publishing 66 - Advertising 68 - Television dan Radio 70 - Performing Arts 72 - Fine Arts

130 - Deputy of Institutional and Regional Relation

142 - Indonesia’s Creative Economy Prospects

Preamble

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OPUS CREATIVE ECONOMY OUTLOOK 2019

What Is

Creative Economy?

John Howkins, the so-called “Father of the Creative Industry,” defines Creative Economy as a new economic system that deals in ideas and money. In his seminal book The Creative Economy: How People Make Money from Ideas (2001), Howkins wrote how the Creative Economy is the first kind of economy where imagination and ingenuity drives what people desire to do and produce. It is a new, novel economic paradigm which rely on ideas or creativity generated by individuals as its core product instead of hard commodities produced by machines, which nonetheless carry the potential to affect systemic changes in society.

The Creative Economy’s primary resource is creativity, which is the quality to invent and create new ways of thinking as well as unique products which offer real-world solutions to existing problems. Yet, perhaps the most important distinction between true Creative Economy and other creative ventures is the economic value that Creative Economy can generate. A creative venture, if undertaken as merely a hobby and not an economic one, does not fall under the Creative Economy umbrella.

“Creative Economy is the materialization of added values from an intellectual property born of the human creativity, based on science, culture, and technology.” Republic of Indonesia Creative Economy Bill

ADVANTAGES OF CREATIVE ECONOMY VS. TRADITIONAL ECONOMY

Low Cost: The Creative Economy sector requires little to no upfront capital, unlike traditional sectors which require heavy investments in machineries or plants

Improve Living Standards and Average Salaries: The rapid development of the Indonesian Creative Economy sector and the large potential of its market will encourage Foreign Direct Investment into the country

Environmentally friendly: The Creative Economy does not tax the environment, since the primary product is human creativity

Higher Value Economy: Creative Economy has high added value, both culturally and economically

Collaborative: The Creative Economy is collaborative and communal, bringing together various individuals from different fields and backgrounds

Promote Indonesian IP: Intellectual Property Rights are highly valuable assets not only for the individual creators, but also for the culture, nation and state of Indonesia

Low Barrier to Entry: The Creative Economy sector has a relatively lower barrier to entry compared to traditional sectors, which may require a large capital or industries certifications

Flexible: The Creative Economy is, by nature, flexible and not rigid like traditional industries, and can better adapt to a rapidly changing environment

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OPUS CREATIVE ECONOMY OUTLOOK 2019

Where We In 2015, Ernst and Young (EY) released the first-ever Creative Economy study of its kind, which revealed that the Cultural and Creative Industries (CCI), as it was termed, was worth 2.3 trillion United States dollars, or equivalent to 3 percent of the total Gross Domestic Product (GDP) globally.

Stand Today

In Indonesia, the seeds of the Creative Economy was first planted during the 2007 Indonesian Cultural Product Week. In 2009, the Indonesian Government issued Presidential Instruction Number 6 Year 2009, a pioneer legislation which sets forth the roadmap for the Development of Creative Economy and which placed the fledgling sector squarely on the national stage.

MILESTONES

2007 1st-ever Indonesian Cultural Product Week

2009 Presidential Instruction No. 6 of 2009, pioneer legislation for Creative Economy in Indonesia Change of name from “Indonesian Cultural Product Week” to “Indonesian Creative Products Week”

2011 Presidential Regulation Number 92 of 2011 established a new ministry, namely the Ministry of Tourism and Creative Economy, with its first minister, Mari Elka Pangestu

2017

2016

2015

Three Sub-sectors, namely the Culinary, Crafts, and Fashion, became the biggest contributor to Indonesia’s Creative Economy GDP at 41.69%, 18.15%, and 15.70%, respectively.

BEKRAF pushed for the creation of a series of legislation addressing the fledgling Creative Economy sector in Indonesia and insuring protection for creative players.

The Creative Economy Agency (BEKRAF) was formed under the administration of Joko Widodo through the Republic of Indonesia’s Presidential Regulation Number 6 of 2015. BEKRAF received a direct mandate from the President to advance and develop the Creative Economy sector in Indonesia.

2018 Four out of 16 Sub-sectors were identified as potential new economic drivers, namely Film, Music, Fine Arts and Games (animation). These four Sub-sectors show the most growth in 2017 and 2018.

BEKRAF began work at various regions in Indonesia to build efficient and conducive Ekraf ecosystems throughout the archipelago.

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OPUS CREATIVE ECONOMY OUTLOOK 2019

The Indonesian Creative Economy possesses tremendous earnings potential and economic value. According to the results of a joint research between Statistics Indonesia and BEKRAF conducted in 2016, the Creative Economy sector contributed 7.38% of GDP towards the total GDP of the country. Value-wise, the Creative Economy sector is projected to exceed 1,000 trillion rupiahs in 2017 and increased to 1,102 trillion rupiahs in 2018.

In addition to the GDP, Creative Economy sector also saw an increase in its labor workforce number. In 2016, 16.91 people were actively engaged within the Creative Economy sector. This was an increase of 5.95% compared to the number in 2015’s record.

CREATIVE ECONOMY CONTRIBUTION TO INDONESIAN GDP:

CREATIVE ECONOMY WORKFORCE GROWTH RATE IN INDONESIA (2014-2017)

2019 – Rp 1,211 T

Creative Economy GDP Projections 2018

2018 – Rp 1,105 T 2017 – Rp 1,009 T 2016 – Rp 922,59 T

YEAR NUMBER (IN MILLIONS PEOPLE)

GROWTH (%)

2017 17.43 2016 16.91 2015 16.06 2014 15.46

4.13% 5.95% 5.22% 2.94%

2015 – Rp 852 T

CREATIVE ECONOMY WORKFORCE GROWTH 2016*

National

Creative Economy

PEOPLE

PEOPLE

118,405,188

3.02% GROWTH RATE

16,909,690

5.95% GROWTH RATE

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OPUS CREATIVE ECONOMY OUTLOOK 2019

Sumber: foto istimewa

INDONESIA’S STARTUP UNICORNS

Go-Jek

Tokopedia

Traveloka

Bukalapak

Valuation Estimation (May 2018): US$ 5 Bn (Rp 69.4 Tn)

Valuation Estimation (May 2018): US$ 1.062 Bn (Rp 15 Tn)

Valuation Estimation (May 2018): US$ 2 Bn (Rp 28 Tn)

Valuation Estimation (May 2018): US$ 1 Bn (Rp 14 Tn)

Leading Investors: Sequoia Capital, Temasek Holdings, Google Inc, Tencent, JD.com, Meituan-Dianping, KKR, Warburg Pincus, Farallon Capital, Capital Group Markets, GDP Venture, Rakuten Ventures, Allianz, dan Astra International

Leading Investors: Alibaba, CyberAgent Ventures, SIMI (Softbank Internet and Media Inc.), Sequoia Capital, SB Pan Asia Fund

Leading Investors: Tencent, Expedia, East Ventures, JD.com

Leading Investors: Emtek, 500 Startup, dan QueensBridge Venture Partners

Funding Milestones: 2016: US$ 550 Mn (company valuation: US$ 1.3 Bn) 2017: US$ 1.2 Bn (Rp 17 Tn)

Funding Milestones: 2011: US$ 700 Mn (Rp 9.8 Tn) (Largest funding in Indonesian startup history) 2014: US$ 100 Mn (Rp 1.3 Tn) 2016: US$ 147 Mn (Rp 2 Tn) (Unicorn status achieved)

2018: US$ 150 Mn (Rp 2 Tn) 2017: US$ 1.2 Bn (Rp 15 Tn)

(Unicorn status achieved) 2017: US$ 500 Mn (Rp 7 Tn)

Funding Milestones: Not published (Unicorn status achieved) 2018

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Where Are

We Going?

From the IMF research, Indonesia’s economic position in 2016 was ranked 8th with a total GDP of US$ 3,028 billion. In line with this research, PwC predicts that Indonesia can become the world’s newest “superpower,” occupying fifth position in 2030 and fourth in 2050, capitalizing on its relatively high economic growth and demographic bonus momentum. This position will set Indonesia up as a big emerging market considering Indonesia’s position as the country with the strongest economy in Southeast Asia today. Indonesia also has other potentials within the Creative Economy sector that continues to see positive growth and development in terms of its contribution to the national economy.

The government realizes the great potential of this emerging sector and sets out several initiatives designed to promote growth, including forming BEKRAF, the specialized agency tasked with developing the Creative Economy sector. With the establishment of BEKRAF, Indonesia joins the rank of only a handful of developed economies which have focused their efforts in tapping onto the potential of the Creative Economy including Britain, South Korea and Australia. As part of its efforts to develop Creative Economy in Indonesia, BEKRAF provides facilitation and assistance to creative players in the form of funding, domestic and foreign marketing, education and workshops, as well as other facilitation and assistance.

IDEA / PRODUCT

SALES

BEKRAF Building A Cohesive Creative Economy Ecosystem MARKETING

PRODUCTION

INTELLECTUAL PROPERTY

FACILITATIONS EXTENDED TO CREATIVE ECONOMY PLAYERS BY BEKRAF: Education Free education and training programs, in various regions in Indonesia. Read more: IKKON :IKKON (Page. 87), Coding Mum (Page. 80), Capital Access Facilitates and connects local creative players with investors. Read more: DEUREUHAM (page. 99). IP Facilitation and Regulation i Facilitates submission of IPRs for creative players and providing information related to IPRs in digital applications format, forming anti-piracy task forces, and holding free IPR consultancies. Read more: (page 126)

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Source : ISMAYA GROUP

OPUS CREATIVE ECONOMY OUTLOOK 2019

INDONESIA’S GLOBAL RANKING BASED ON LARGEST ECONOMY (PROJECTIONS FROM PWC, 2018) 2016 Rank

2030 Rank

2050 Rank

8 5 4

US$ 130 Bn Projection for Indonesia’s Digital Economy in 2020 (11% of national GDP)*

*Source: Minister of Communication and Information, Rudiantara

RP 1,105 T* GDP GROWTH TARGET FOR THE CREATIVE ECONOMY SECTOR IN 2018

GOVERNMENT FACILITATION AND SUPPORT FOR THE CREATIVE ECONOMY SECTOR CONSTRUCTION OF THE PALAPA RING, WHICH WILL SERVE AS THE BACKBONE OF THE NATION’S DIGITAL ECONOMIC ECOSYSTEM BUILDING 4G NETWORK CONNECTIVITIES THROUGHOUT THE ARCHIPELAGO ISSUED THE E-COMMERCE ROAD MAP, A ROADMAP FOR ELECTRONIC-BASED NATIONAL TRADE SYSTEM ESTABLISHED BEKRAF, THE STATE-MANDATED CREATIVE ECONOMY AGENCY TASKED WITH DEVELOPING THE CREATIVE ECONOMY IN INDONESIA

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OPUS CREATIVE ECONOMY OUTLOOK 2019

A PORTRAIT OF INDONESIA’S CREATIVE ECONOMY

To better meet the Creative Economy sector’s need of accurate, updated information regarding the creative industry and its related peripheries, BEKRAF, along with Statistics Indonesia regularly conduct and release annual reports highlighting the performances of the Creative Economy Sector in the previous year. In this year’s report, the data presented herewith are taken from the combined surveys conducted by BEKRAF and Statistics Indonesia in 2017 and highlights finalized data recapitulations from 2016. Meanwhile, data for 2017 will be presented at the end of 2018.

8,203,826

TOTAL NUMBER OF BUSINESSES IN CREATIVE ECONOMY SECTOR 2016 HIGHEST GROWTH SUBSECTORS IN CREATIVE ECONOMY 2016

TV & Radio — 10.33%

Film, Animation & Video — 10.09%

Provinces With Largest Creative

Top 5 Provinces With Highest Contri-

Economy GDP Contribution 2016

bution to Creative Economy GDP 2016





Yogyakarta — 16.12% Bali — 12.57% West Java — 11.81% East Java — 9.37% North Sumatra — 4.77%

CREATIVE ECONOMY GDP SHARE, TOP 5 PROVINCES VS. 29 OTHER PROVINCES 2014-2016

5

29

48.04%

51.96%

Provinces

Performing arts

Communication Visuals

— 9.54%

— 8.98%

West Java — 31.96% East Java — 24.36% Banten — 15.23% Central Java — 14.49% DKI Jakarta — 8.97%

(Yogyakarta, Bali, West Java, East Java, North Sumatra)

Provinces

29 Other Provinces

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OPUS CREATIVE ECONOMY OUTLOOK 2019

Rp 19.98 Bn

TOP CREATIVE ECONOMY EXPORT COUNTRIES 2016 (% TOTAL EXPORT)

United States

30.24%

Swiss

0.45%

Japan

6.79%

Singapore

6.14%

Germany

4.43%

Creative Economy Export Value 2016 Vs.

Rp 19.33 Bn

Creative Economy Export Value 2015

Top 3 Creative Economy Exports 2016 (Based on Sub-Sectors)

Fahion — 54.54% Craft — 39.01 Culinary — 6.31% PROFILE OF CREATIVE ECONOMY LABOR VS. NATIONAL LABOR 2016

CREATIVE ECONOMY

NATIONAL

Male: 44.26% Female: 55.74%

Male: 61.60% Female: 38.40%

143.26 Mn Estimated Internet Users in Indonesia 2016 (52% from total population.)

1 out of 5

WORKER IN THE CREATIVE ECONOMY SECTOR IS AGED 20-24 YEARS

600 Mn

ESTIMATED TOTAL POPULATION IN SOUTHEAST ASIA

250 MN ESTIMATED TOTAL POPULATION IN INDONESIA

63.5%

Internet Users in Indonesia Who Had Transacted Online 2016 Source: Tempo.co

130 Mn Active Social Media Users (49% from total population.) Source: Digital in 2018 in Southeast Asia (www.hootsuite.com)

7 UNICORN STARTUPS IN SOUTHEAST ASIA

4 UNICORN STARTUPS FROM / IN INDONESIA

Insights

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On its second annual publication, BEKRAF, in cooperation with partner research institutions including Statistics Indonesia (BPS), PwC, The Nielsen Company (Indonesia), Snapcart, and others, attempts to present insights and analyses relevant to the Creative Economy in Indonesia along with predictions for the future. This chapter is divided into two parts, namely Insight 2018, which presents the most update data available at the time of writing, and Forecast 2019, which attempts to present a forecast of the upcoming trends in Creative Economy as a roadmap for creative players in Indonesia.

Sumber: foto istimewa

INSIGHTS 2019

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OPUS CREATIVE ECONOMY OUTLOOK 2019

SNAPCART Founded in 2015, Snapcart aims to become the most reliable offline data solutions company, working with clients in multiple sectors from market research to cloud marketing. Snapcart operates in 4 countries: Indonesia, Philippines, Singapore and Brazil. The company provides its services to over 30 companies covering more than 100 brands including L’Oreal, Nestle, P&G and Unilever. Through its receipt scanning app, point-of-sale app and proprietary machine learning, Snapcart collects billions of data points on an individual shopper and retailer level.

A SNAPSHOT OF SHOPPING BEHAVIOR IN THE INDONESIAN E-COMMERCE MARKET 2018* *Survey was conducted in July 2018 with 3,286 respondents in Indonesia through the Snapcart application

Male: 48.9%

24.8% 25% 21.9% 28.2%

A B C1 C2 27.3% (monthly expenditure
15-24: 25-34: 35-44: 45+:

19.7% (monthly expenditure Rp 1.75 – 2.5 Mn)

Female: 51.1%

SES:

26.3% (monthly expenditure Rp 2.5 – 4 Mn

Ages:

26.6% monthly expenditure > Rp 4 Mn)

Gender:

PROVINCES WITH HIGHEST CONCENTRATION OF E-COMMERCE USERS: Greater Jakarta Area

20.4%

Dl Yogyakarta

2.7%

East Java

17.8%

Bali

2.6%

Central Java

12.7%

Riau

2.4%

West Java

9.3%

East Kalimantan

1.5%

North Sumatera

7.6%

West Kalimantan

1.5%

South Sulawesi

3.7%

Riau Islands

1.4%

South Sumatera

3.4%

Jambi

1.3%

Lampung

3.2%

South Kalimantan

1.3%

MOST USED E-COMMERCE PLATFORM IN INDONESIA: Shopee

41.2%

Tokopedia

27.4%

Lazada

13.6%

Bukalapak

12.7%

JD.id

1.9%

SOURCE OF INFORMATION REGARDING E-COMMERCE:

“Social media is the main source for e-commerce related information”

Social Media (Facebook / Instagram / Twitter,dll) TV Ads in other online websites Family / Relatives / Friends Ads in Other Apps OOH (Ads in Buildings, Offices, Hospitals etc.) Other Billboard Ads Ads in Public Transport News Ads in Streaming Music (Joox, Spotify, etc.) Booth/Event Ads in Radio

53.4% 41.7% 33.8% 29.3% 25.9% 11.3% 8.5% 8.4% 7.3% 6.2% 3.4% 3.0% 2.8%

AVERAGE MONTHLY SPENDING IN E-COMMERCE (LAST 3 MONTHS, ALL PLATFORM) Rp 101,000 -250,000

40.5%

Rp 251,000 – 500,000

27.0%

< Rp 100,000

14.7%

Rp 501,000 – 1 Mn

10.3%

Rp 1.1 Mn– 3 Mn

5.3%

> Rp 5 Mn

1.1%

Rp 3.1 Mn – 5 Mn

1.0%

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E-COMMERCE SHOPPING FREQUENCY >1x per month 1x per week 2 – 3x per month 1x per month 1x per 2 – 3 month <6x per month 1x per 4 – 6 month

11.9% 8.8% 24.2% 19.7% 17.7% 11.9% 5.8%

HIGHEST TOP-OF-MIND E-COMMERCE BRAND Shopee Tokopedia Lazada Bukalapak Blibli

38.6% 26.6% 15% 13.1% 2%

MOST PURCHASED CATEGORIES IN E-COMMERCE 34.7%

34.5% 29.2% 27.7% 26.8% 20.7% 18.9% 12.5% 12% 7.2% 5.2%

Sumber: Lulu Lutfi Labibi

Fashion & Accessories 48.2%

Gadgets & Accessories Digital Products (Data packages, mobile games voucher, social security, electricity, etc.) Personal care & cosmetics Bags Shoes Hobbies & Collections Groceries Kids & Baby Products Home Appliances Sports & Outdoor Office supplies

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PWC

TRENDING NOW: CONVERGENCE, CONNECTIONS, AND TRUST

PwC is one of the largest professional auditor services in the world today with over 236,000 employees spread throughout the world. In Indonesia, PwC Indonesia has become part of the nation’s economic success story for more than 45 years. All data is taken and sourced from a special report by PwC, titled Perspective from the Global Entertainment & Media Outlook 20182022 which can be accessed at www.pwc.com/ outlook.

Connections



Specializations and niches Relevance to target audience Technology (AI, VR) Distribution of contents

In an annual study conducted by PwC, titled Perspective from the Global Entertainment & Media Outlook 2018-2022, the global Entertainment & Media (E&M) industry is believed to be in the midst of a severe disruption. To succeed and thrive in the future, PwC inferred that creative players in each Sub-sector must identify and understand the three trends currently engulfing the E&M industry: Convergence, Connections and Trust.

RAPIDLY EVOLVING MEDIA ECOSYSTEM

Convergence 3.0

Trust

Big Data Privacy Data Security

Multiple dimensions Multiple layers Vertikal - Horizontal Horizontal - Vertikal Supercompetitors

WHAT IS CONVERGENCE 3.0? In its simplest term, Convergence 3.0 is a phenomenon where traditional borders that once separated the entertainment and media, technology and telecom industries are dissolving. Large Internet access providers and delivery platforms are integrating vertically, and online giants are expanding horizontally into content. Traditional segment distinctions are blurring – between print and digital, video games and sports, wireless and fixed access, cable and online, social and traditional media. Convergence matters because it offers a real solution to realworld problem(s).

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OPUS CREATIVE ECONOMY OUTLOOK 2019

CASE STUDY Amazon Origin: Online bookstore, founded in 1994 Convergence 3.0: Becoming the world’s largest internet retailer and e-Commerce platform offering a multitude of entertainment and media options offered in both digital, print, and video streaming; Becoming a leader in fullfilment and logistics services; Becoming a serious contender as a technology player especially in A.I.; Venturing into telecommunications with its Amazon Web Service in 2006; Venturing into the media business with its purchase of The Washington Post in 2013; Venturing into the foods business with its purchase of Whole Foods in 2017; Venturing into the motion picture business with its Amazon Studios.

Valuation in 1997: US$ 8 Mn (Series A raised just before IPO, June 1996) Valuation in 2018: US$ 1 Tn — Became the second company in history to reach a trillion dollars valuation after Apple Inc. (September 2018), or an increase of 134,000 (one hundred and thirty-four thousand) percent since IPO in May 1997. Conclusion: Today, Amazon falls squarely under the category of a supercompetitor, which will likely continue its course of converging its services to further maintain its grip in the market.

Gojek Origin: Offline motorcycle taxi service (order by phone), started in 2010 Convergence 3.0: A convergence of a range of services covering the traditional motorcycle taxi industry, courier, massage parlor, salon, food delivery, auto rental, bank (payment platform), film studio (Go-Studio); video streaming; and incubator (Go-Academy). Has its own in-house creative division to produce vertically-integrated contents which are distributed through its own platform or others. Valuation in 2010: Rp 5 Bn Valuation in 2018: Rp 69,4 Tn

Problem: Parking hassle

Problem: Traffic jams

Problem: Too lazy to move

Problem: Comfortable & affordable public transportation

Conclusion: From its humble beginnings in 2010, Go-Jek has morphed into a giant with holdings in the media, transportation, logistics, advertising, and even banking. It has been converging horizontally and vertically over the years, turning it into a supercompetitor which has started to encroach on other sectors. According to a PwC survey released on July 12, 2018, 72 percent of bankers in Indonesia sees Go-Jek as an emerging threat to their business.

Problem: Pressed for time

Problem: Alternative payment system besides debit / credit

Convergence Integrated solution

TAKE AWAY In a rapidly changing world, having access to the right technology and content, delivered cost-effectively to the right audience who trusts the brand will be keys that unlock future opportunities.

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Recipe For Success 2018-2022 Right Technology > Right Content > Right Distribution Channel > Right Audience > Brand Trust (you have successfully owned the user experience)

NIELSEN Nielsen, a leading global information and measurement company, provides market research, insights and data about what people watch, listen to and buy; providing valuable information on specific sectors on request since 1923. In Indonesia, Nielsen is represented by The Nielsen Company (Indonesia), which releases its annual ADEX (Advertising Expenditure) report on the regular. www.nielsen.com/id The data used in this report is taken from the 2017 ADEX annual report released by The Nielsen Company (Indonesia). www.nielsen.com/id

Rp 145.5 T Total Adspent TV & Print 2017 (+8% Vs. 2016) 5.25 Mn Number of Spots TV & Print 2017 (-2% Vs. 2016) Rp 115.8 T ADEX in TV 2017 (Vs. Rp 103.8 T in 2016) Rp 28.5 T ADEX in Newspaper 2017 (Vs. Rp 29.4 T in 2016) Rp 1.1 T ADEX in Magazine & Tabloid 2017 (Vs. Rp 1.6 T in 2016)

Top Products / Brands with Highest ADEX in Indonesia 2017 (in trillion rupiah, rounded decimals) Meikarta Cikarang 1,539 Traveloka 1,137 Indomie 981 VIVO Smartphone 823 Clear Anti Ketombe 795 SGM Eksplow 1 Plus 770 Kemenkes RI 702 Samsung Smartphone 640 Dove Nutrition Solutions Total Damage 610 Cap Bango 590

FMCG Sectors with Highest ADEX 2017 (in trillion rupiah) ) ADEX 2017 Personal Care 24.9 Beverage 21.6 Food 19.1 Pharmaceutical 10.4 Household 5.9

Non-FMCG Sectors with Highest ADEX 2017 (in trillion rupiah) ADEX 2017 Telco & Digital 13.3 Cigarette 5.4 Automotive 5.4 Properti 4.1 Finance 3.4

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Databott HARA Founded in 2015, HARA is a blockchain-based data exchange from Indonesia that is focused on improving the asymmetric information in the food and agriculture sector. HARA provides farmers and all other players in the agricultural sector access to reliable data and secure transactions. The data exchange ecosystem’s tested incentive mechanisms ensure continuous usage of the application. HARA’s pilot projects have already shown an encouraging impact on farmers. Through a partnership with one of the largest public banks in Indonesia, HARA has successfully enabled hundreds of farmers in remote villages to get access to microcredit loans. This year, HARA focuses its report on the blockchain technology, a database-like list of records, called blocks, which are linked and secured using cryptography. Blockchain, as one may recall, became popular thanks to bitcoin, an alternative payment system which besieged the global financial system overnight. In this report, HARA conducted a study of the Indonesian Creative Economy and presented the following ideas and insights regarding ways the creative industry can utilize this technology to distribute their content digitally, and help alleviate rampant Intellectual Property (IP) piracy in Indonesia.

92.37%

Percentage of Creative Players in Indonesia Using Own Funds

53.49%

Percentage of Creative Players in Indonesia Without Legal Entity

88.95%

Percentage of Creative Players in Indonesia Without IPR

CASE STUDY: SOUTH KOREA

2009

The South Korean government established an agency to oversee and coordinate the South Korean creative industry

2013 Any government must take an active role in developing the national Creative Economy, which begins with efforts to protect its IPs. The South Korean government is an exemplary case of how a government can successfully jump-start one of the world’s youngest, most dynamic creative economies in the world.

The South Korean President announced a national strategy towards “Creative Economy” and readied 1 billion US dollars in funds to stimulate Research and Technology and protection of IP rights for SMEs.

2016

Export of Korea’s creative culture content increased 9.7% (yearon-year) despite the slowdown in the country’s economy

2019

The South Korean government announced a roadmap to develop its domestic blockchain industry with an investment of US $ 9 million

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HILL/ Hakuhodo Established in 2014, Hakuhodo Institute of Life and Living ASEAN (HILL ASEAN) is the Hakuhodo Group’s new think tank in the ASEAN region. It is dedicated to helping companies with their marketing efforts in ASEAN countries, as well as observing the new lifestyles emerging in this dynamic region and sharing ideas about them.

A SNAPSHOT OF GENDER EQUALITY IN INDONESIA

84 INDONESIA’S WORLD RANKING ON GENDER EQUALITY 2018

4 INDONESIA’S RANKING ON GENDER EQUALITY AMONG ASEAN AND ASIA-PACIFIC NATIONS 2018

>70% Percentage of married couples in Indonesia who both work (double income household) 2018

TASK-BASED SHARING HOUSEHOLD PROFILE 2018 Wife earns more:

6%

Both earn same:

16%

Husband earns more

787%

Satisfaction level with this arrangement:

Husband: 89%



Wife: 79%

53%PERCENTAGE OF MARRIED COUPLES IN INDONESIA WITH EQUAL DIVISION OF WORK (TASK-BASED SHARING) 2018

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OPUS CREATIVE ECONOMY OUTLOOK 2019

FORECAST 2019

PROJECTED DATA CONSUMPTION BY CONTENT TYPE (CAGR) 2017-2022

Communications 28.5%

Games 27.8%

Video 25.4%

Other digital content 24.2%

Music 23.9%

Social Networking 20.7%

THE ESSENTIAL EIGHT

Internet of Things (IoT) Robots Drones 3D Printing Artificial Intelligence (AI) Blockchain Virtual Reality (VR) Augmented Reality (AR)

56.9% 92% PROJECTED PERCENTAGE OF EARNINGS IN DIGITAL SEGMENT VS. TOTAL GLOBAL REVENUE 2022

SURVEYED CONSUMERS WHO AGREED THAT COMPANIES SHOULD TAKE A PROACTIVE ROLE IN PROTECTING PERSONAL DATA* Source: PwC Global Entertainment & Media Outlook 2018-2022. www.pwc. com/outlook

Web Browsing 18.8%

Source: PwC Global Entertainment & Media Outlook 2018-2022. www.pwc.com/outlook

7* INDONESIA’S PROJECTED WORLD RANKING, BASED ON LARGEST ECONOMY, 2030 *Source: McKinsey

4 INDONESIA’S PROJECTED WORLD RANKING, BASED ON LARGEST ECONOMY, 2050 *Source: PwC

OPUS CREATIVE ECONOMY OUTLOOK 2019

BLOCKCHAIN According to research from HARA, blockchain technology can be used to protect the intellectual properties of content creators and help stimulate Creative Economy ecosystem in Indonesia. Also, according to predictions from PwC, blockchain will play an important role in the future as one of the most influential technologies in the world.

HOW CAN BLOCKCHAIN HELP THE INDONESIAN CREATIVE ECONOMY? Intellectual Property Rights (IPR) Protection Blockchain technology allows the original IP owner to be credited even if his/her work is played in other media. Blockchain technology presents more inconvenience to pirates compared to other traditional IPR technologies. Within the ASEAN regions, platforms like Six Network from Thailand and Ink Labs Foundation from Singapore are currently using blockchain to provide a transparent and secured ecosystem for stakeholders in the creative economy. Blockchain technology is starting to gain more recognition in IP legal proceedings and court cases. Micropayments Creative contents on the blockchain network can receive royalty payments automatically. Blockchain minimizes the need for third parties, eliminating unnecessary fees and costs. In the United States, Ujo Music is a popular blockchain platform that is often used by players in the Music Sub-sector and has successfully increased IP protection for its users. Re-empowering Creators Blockchain technology brings features that reduce financial barriers for content creators, such as crowdfunding. The blockchain platform is popular for crowdfunding: Fanship (for Kpop), Hubii Network (for funding films). Indonesia Blockchain Hub: The first blockchain forum in Indonesia, which is founded by KADIN (Indonesian Chamber of Commerce), BEKRAF, and startup agritech, HARA.

31

Updates

on Sub Sectors

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OPUS CREATIVE ECONOMY OUTLOOK 2019

Architecture Today, Architecture is regarded as one of mankind’s most important disciplines, not only for its real-world application for building constructions and forms and functions, but also as an expression of art based on aesthetics at its core. In this sense, architecture is not limited to only points, lines, or fields, but also a beauty of art often derived from cultural values, morals, life, history, and so on. An architectural design must, therefore, be able to communicate its very function and purpose succintly.

6.05% GDP Growth Rate in Architecture 2016

5.740 Number of Creative Businesses in Architecture 2016

(2nd highest)

Rp 21,567 Bn GDP Value of Architecture 2016 53.844

Number of Creative Workers in Architecture 2016

52.20% Percentage of Creative Businesses Utilizing the Internet 2016 (3rd highest usage)

Persentase TK Berdasarkan Gender 2016

Rp 5,331,833 / mo Average Salary in Architecture 2016 (highest average 64.04% Percentage of Creative among all Sub-sectors) Businesses Utilizing Male Female

— 92.39% — 7.61%

E-Commerce 2016 Utilizes E-Commerce in Business / Does Not Utilize E-Commerce in Business

OPUS CREATIVE ECONOMY OUTLOOK 2019

35

ANDRA MATIN Isandra Matin Ahmad, or better known as Andra Matin, is one of Indonesia’s young, most talented architects with numerous awards and recognitions from both home and abroad under his belt. His works are renowned for conveying a simple yet brilliant design philosophy: every space, every design, and every line must have its own specific function apart from its character. As a result, his designs are instantly recognizable thanks to his bold lines and minimalist-contemporary approach, while inviting second looks with his use of traditional materials such as Siyalti wood combined with rattan, or ironwood with concrete. Andra believes that function trumps form, as he describes function as a “sensitivity towards the environment” in which the design or space exists. Andra’s portfolio spans from commercial to public to residential projects, and his latest works saw him revamping the looks of the Aquatic Stadium at Gelora Bung Karno Main Stadium in Jakarta for the 2018 Asian Games, as well as building the Indonesian Pavilion at the 2018 Venice Architecture Biennale entitled “Elevation,” of which he won the “Special Mention” award from the Venice Architecture Biennale jury. www.andramatin.com

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OPUS CREATIVE ECONOMY OUTLOOK 2019

Interior Design Over the past two decades, developments in the Interior Design Sub-Sector has shown very rapid progress. More and more people are increasingly becoming aware of the importance of aesthetics or design in an interior space, as can be evidenced by the proliferation of residences, hotels, and offices that are specially designed by professional interior designers to fit a specific client needs. This is an emerging potential which can serve as a positive momentum for the rise of the Interior Design Sub-sector, and coupled along with the growth of interior design schools, studios, companies and associations, can propel this Sub-sector into the international stage. Indonesia, with its rich cultural heritage that are reflected in the country’s designs, has a real chance to shine and proudly displays its national identity.

5.92% GDP Growth Rate in Interior Design 2016 Rp 1,483.7 Bn GDP Value of Interior Design 2016 (Vs. Rp 1,354 Bn in 2015)

798 Number of Creative Businesses in Interior Design 2016 Breakdown of Creative Labor Force Based on Gender (%) 2016 Male — 77.7% Female — 22.3%

71.13%

6.6%

Labor Workforce Growth Rate in Interior Design 2016

Percentage of Creative Businesses Utilizing E-Commerce 2016

23,967 Number of Creative Workers in Interior Design 2016 36.47% Percentage of Creative Businesses Utilizing the Internet 2016 Provinces with Highest Concentration of Interior Design Businesses

West Java (17.7%) DKI Jakarta (15.3%) East Java (14.2%)

OPUS CREATIVE ECONOMY OUTLOOK 2019

37

DIANA NAZIR In 1991, Diana Nazir founded Artura Insanindo, an interior design firm which later would become one of the top leading interior consultants in Indonesia with some of the largest commercial projects under its belt; founder of Indonesian Contemporary Art and Design (ICAD), one of the archipelago’s most important art event; and which later opened its first Designershop, an interior boutique shop that sells products such as Wiron Dining Chair (2016), Jejari Hanging Lamp (2014), Tweet Tweet (2011), Wiron Sofa (2010), and many others. Diana’s illustrious career in the creative universe has also elevated her country’s name into the international stage, including at the 2018 Super Design Show, part of the Milan Design Week which was the world’s largest design event, and the Home Décor exhibition in Europe through the Ambiente 2017 event held in Frankfurt, one of the largest international exhibitions in Germany. Diana’s participation in the events, along with the other Indonesian contingents, was made possible thanks to an initiative carried out by BEKRAF to encourage export of the national craft products to overseas, via exhibitions, tours, and other promotional and marketing initiatives.

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OPUS CREATIVE ECONOMY OUTLOOK 2019

Visual Design The Visual Design Sub-sector has great potential in increasing the growth of the Creative Economy. This potential is driven by the development of technology in facilitating the creation of creativity. Correspondingly, human needs for the visualization of products in everyday life continue to rise, which in turn will increase demand for Visual Design in the future. In addition, Visual Design has also been identified as one of the most interconnected Sub-sectors within the Creative Economy sphere, impacting other Sub-sectors such as Publishing, Advertising, Animation, Interactive Games, Architecture, Film, Video, Photography, Packaging Design, Crafts and Fashion

According to data compiled by BEKRAF from 2011 to 2016, the GDP growth rate of the Visual Design Sub-sector was the fourth highest in the Creative Economy sector. This shows that the Visual Design Sub-sector has tremendous potential, but is still constrained by limited ecosystems and facilities. Going forward, the government must encourage the development of the Visual Design Sub-sector so that it can grow further and GDP revenue can continue to be increased.

Rp 579.3 Bn GDP Value of Visual Design 2016 8.98% GDP Growth Rate In Visual Design 2016

73.70% Percentage of Creative Businesses Utilizing the Internet 2016

616

81.72%

Number of ­Creative Percentage Businesses in Visu- of Creative Businesses Utilizing al Design 2016 E-Commerce 2016 Breakdown of Creative Labor Force Based on Gender (%) 2016 Male — 92.05% Female — 7.95%

Provinces with Highest Concentration of Visual Design Businesses DI Yogyakarta Bandung DKI Jakarta

88.80% Percentage of Visual Design Businesses Without Legal Entity 2016

OPUS CREATIVE ECONOMY OUTLOOK 2019

39

FEAT Founded in 2009, Feat, a graphic design studio based in Jakarta, finally found nationwide recognition when it won the design competition for 2018 Asian Games’ new logo and mascot. Chairman of BEKRAF, Triawan Munaf, explained during the launch of the new logo and mascot at the Presidential Staff Office in 2016 that Feat was chosen as the winner due to the design team’s creative interpretation of the theme of the contest, dubbed “The Energy of Asia.” Inspired by the Gelora Bung Karno Main Stadium in Jakarta, the Feat team designed the logo and mascot around the symbolism of the sun which shines upon all of Asia. The designers, comprising of six individuals who were deployed on short notice and worked day and night to complete the project on time, described their design approach as exceeding mere design and attempting to create a sense of identity for one of the world’s premiere sporting events. The new logo and mascot replace the old logo and mascot, Drawa, which symbolizes the bird of paradise, with three endemic animals from Indonesia that also represent the Indonesian slogan of Bhinneka Tunggal Ika. www.featstudio.com

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OPUS CREATIVE ECONOMY OUTLOOK 2019

Product Design Product design is described as a process of combining function with form or aesthetic, creating a new product with high-added values. The Product Design Sub-sector is currently enjoying a rising recognition from the general public and marketplace, attributing to quality as the primary driving factor in their purchasing decisions. Local product designers are urged to explore and elevate Indonesian cultural wealth in their works. BEKRAF, as a representative of the government, administered several initiatives to stimulate the Product Design Sub-sector further, approaching it from upstream and downstream and collaborating with various associations to increase the use of local product designs.

Rp 2,281 Bn GDP Value of Product Design 2016

20.20% PERCENTAGE OF CREATIVE BUSINESSES UTILIZING THE INTERNET 2016

3,367 Number of Creative Businesses in Product Design 2016

Breakdown of Creative Labor Force Based on Gender (%) 2016 Male 53.96% Female 46.04%

72.21%

Percentage of Creative Businesses Utilizing E-Commerce 2016

MYCOTECH Tempeh-style furniture? That’s the impression most people get after seeing Mycotech’s product, best illustrated by its environmentally-friendly, sustainable eco-boards. The boards, which are made from agricultural wastes such as palm tree or tapioca husks and binded by all-natural Mycelium fungi, can be used as building material, furniture, or shaped into any form or shape a client may have a need for. Adi Reza Nugroho, CEO & Co-founder Mycotech, explains that using tempeh as an analogy to explain his breakthrough product to the public is fitting as most people are already familiar with the process. “Mycotech’s primary benefit is its direct contribution in the national economy and welfare of farmers across Indonesia,” he said, “agricultural wastes that were previously burned away or just fed to livestocks can be transformed into higher-value products. And, our business model has the potential to convert this country’s economic model from that of a commodity-based to a knowledge-based one.” Mycotech’s products feature boards and sheets which can be used as building blocks or formed into basic furniture or even art installations or watch cases. The boards are lightweight (0,62 kg/m3), yet fire-proof (class A) and, most importantly, toxic-free. It is also affordable to manufacture, which potentially benefits construction-building projects throughout the world. www.mycote.ch

OPUS CREATIVE ECONOMY OUTLOOK 2019

41

ALVIN T Alvin Tjitrowirjo, Creative Director & Founder alvinT & alvinT Studio, is a talented young product designer from Indonesia who started his ascend to the national design stage in 2006, when he held his first solo exhibition sponsored by Volvo, luxury watch retailer The Hour Glass, and kitchen surface manufacturer DuPont Corian. The 34-year-old Royal Melbourne Institute of Technology (RMIT) and IED European Design Labs alumni rejects the notion that local furniture products are of inferior quality and unable to compete internationally, and opted instead to create high-value, high-quality furnishing label that feature Indonesian culture or heritage and material. Consequently, his eponymous furniture label features rattan, bamboo, marble, stone, and teak to create a distinct brand of Indonesian design that is wrapped in organic lines and neutral colors. In 2010 and 2011, Alvin’s work was chosen to be displayed at the prestigious Harrods department store in London. His most recent works included the newly opened restaurant section of Soekarno-Hatta Airport and seating area at Terminal 3, as well as the Indonesian Pavilion at Milan Design Week 2017, entitled “Identities” and commissioned by BEKRAF. In the near future, he will hold an exhibition tour that will visit, among others, Frankfurt in February, Milan in April, New York in May, and Paris in September. www.alvin-t.com

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OPUS CREATIVE ECONOMY OUTLOOK 2019

Film, Animation & Video The Film, Animation & Video Sub-sector has a significant and massive impact on the economy. Data compiled from the UNESCO Institute for Statistics shows that from 2005 to 2017, the global film industry has significantly grown to reach a 64-percent increase. Furthermore, PwC predicts that by 2019, revenues from the global film industry will reach US$ 104.2 billion. In Indonesia, the GDP growth rate of the Film, Animation & Video Sub-sector has gone up, along with the increase in national film production and audience. The national film industry’s potential is heightened by the proliferation of various video streaming applications and services, thus providing various choices for people to enjoy films.

10.09%

GDP Growth Rate in Film, Animation & Video 2016 (2nd highest) 78.66% Businesses in Film, Animation & Video with Revenue +/Rp 300 Mn / Year 10.96% Businesses in Film, Animation & Video with Revenue Rp 2,5—50 Bn / Year

Top Export Countries for Film, Animation & Video 2016

Hong Kong Singapore

39,546 Number of Creative Workers in Film, Animation & Video 2016 (+5.85% vs. 2015)

42,7 Mn Number of Indonesian Cinema- 2,418 goers 2017* Number of Cre*Source: Statistics Indonesia ative Businesses in Film, Animation & Video 2016

1,681

Total Screens in Indonesia (Nationwide) 2018

OPUS CREATIVE ECONOMY OUTLOOK 2019

43

PENGABDI SETAN (2017) Pengabdi Setan, or Satan’s Slaves, is a wildly successful reboot of the 1980 Indonesian film of the same title which broke various box office records both at home and abroad when it was released in September 2017, 37 years after the original. Joko Anwar, one of Indonesia’s highly acclaimed modern-day directors, recently shared through his social media that Scott Derrickson, director of the blockbuster hit Doctor Strange (2016), had professed his admiration for Joko’s movie, which he described as a “gem” among the myriad of newly released films. Previously, Satan’s Slaves had broken the box office record at home as Indonesia’s top horror movies of all time as well as top film of 2017, along with box office records in Singapore, Malaysia, and Hong Kong, famously known as one of Asia’s biggest and most important film markets. Satan’s Slaves also occupied the top ten box office rankings in Thailand and Mexico. In June 2018, it was reported that Joko’s film had been screened at 42 countries around the world, including in Taiwan, the Netherlands, and Spain. In the same month, Satan’s Slaves also won the highest award in the most prestigious horror film festival in the United States, the Overlook Film Festival. The resounding success of Satan’s Slaves and Joko Anwar as its director proves that Indonesia does indeed harbor great cinematic talents who must be further galvanized and cultivated, so as to produce more talents in the future.

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OPUS CREATIVE ECONOMY OUTLOOK 2019

Provinces with Highest Concentration of Film, Animation & Video Businesses:

Sumatera (19.35%) DKI Jakarta (16.79%)

16 Mn Number of Indonesian 93% Cinemagoers 2015 * *Source: Triawan Munaf, Chairman of BEKRAF (27/02/2018)

4,000 Targeted New Screens in Indonesia, As Set by BEKRAF Largest Concentration of Theaters in Indonesia is in Java Island 183 theaters in Java vs. 305 theaters outside Java 988 screens vs. 1,641 screens nationwide *Source: Data from Association of Indonesian Cinema Entrepreneurs (GPBSI) (18/05/2018)

70% Concentration of theaters in Java Island 58 / 21 Cities / Regencies in Indonesia with theater facility vs. 99 / 416 Cities / Regencies in Indonesia Source: http://news.metrotvnews.com/read/2018/02/19/833684/jumlah-layar-bioskopindonesia-meningkat-pesat-dalam-lima-tahun-terakhir (19/2/2018), Katalog Film Indonesia (KFI) dalam artikel Kaleidoskop 2017

Market Share in Theater Held by Cineplex 21, CGV Cinema, and Cinemaxx

BEST SELLING INDONESIAN FILM OF ALL TIME (THROUGH JUNE 2018) Warkop DKI Reborn: Jangkrik Boss! Part 1 (2016)



6,858,616 audiences

Dilan 1990 (2018)



6,315,664 audiences

Laskar Pelangi (2008)



4,719,453 audiences

Habibie & Ainun (2012)



4,583,641 audiences

Pengabdi Setan (2017)



4,206,103 audiences

Warkop DKI Reborn: Jangkrik Boss! Part 2 (2017)



4,083,190 audiences

Ayat-ayat Cinta (2008)



3,676,135 audiences

Ada Apa Dengan Cinta? 2 (2016)

Indonesia Theater Market Share (Nationwide) 2018:



3,665,509 audiences

Company/Chain

Screen

Theater

Cineplex 21

1003

177

CGV Cinemas

275

42

Cinemaxx

203

41

Platinum

28

7

Ayat Ayat Cinta 2 (2017)

New Star

20

9

Movimax

6

2



Lainnya

46

16

My Stupid Boss (2016)



3,052,657 audiences 2,840,159 audiences

Source: filmindonesia.or.id

OPUS CREATIVE ECONOMY OUTLOOK 2019

45

KULARI KE PANTAI (2018) Mira Lesmanawati is one of Indonesia’s most prolific next-generation filmmakers with blockbuster hits such as Kuldesak (1999), Petualangan Sherina (2000), Ada Apa Dengan Cinta? (2002) and its sequel Ada Apa Dengan Cinta? 2 (2016), and Laskar Pelangi (2008). After a lengthy absence from children-themed movies, of which Mira is highly known and lauded for, she is back with another kid-friendly feature film Kulari Ke Pantai (2018), released in June 2018 to rave reviews. Kulari Ke Pantai became an instant hit, strategically released during the national school holiday and successfully capturing the imagination of hundreds of thousands of parents and children alike. Mira explained that the country is in dire need of family-friendly content, as many Indonesian kids today are consuming adult contents due to lack of choices. Earlier in the year, President Jokowi had summoned her along with the chairman of BEKRAF, Triawan Munaf, to the Merdeka Palace and pushed for them to coordinate efforts to to increase family content. To that end, Mira and BEKRAF collaborated to hold a songwriting competition to find the best five original songs to be included in the film’s soundtrack compilation. The competition, dubbed “Lomba Cipta Lagu Anak” (LCLA or Children’s Song Contest Competition), attracted over 1,000 contestants and was produced by RAN and Miles Music in cooperation with Miles Films dan International Design School (IDS), with BEKRAF serving as sponsor.

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OPUS CREATIVE ECONOMY OUTLOOK 2019

Photography The rapid development of digital technology has had a major influence on the development of photography on the global stage. Digital cameras have given rise to an entire industry of photography, which can now be made much easier, and cheaper. What’s more, the presence of smartphones with sophisticated cameras have further disrupted the traditional industry and turned anyone into a photographer. This phenomenon can be harnessed to jump-start the Photography Sub-Sector in Indonesia, and to grow the Sub-sector’s community and ecosystem.

6.89% Growth Rate in Photography 2016

40,436

Number of Creative Businesses in Photography 2016 Breakdown of Creative Labor Force Based on Gender (%) 2016: Male — 91.77% Perempuan — 8.23%

69,826 Number of Creative Workers in Photography 2016

58.78% Percentage of Creative Businesses Utilizing E-Commerce 2016

17.74% Percentage of Creative Businesses Utilizing the Internet 2016

OPUS CREATIVE ECONOMY OUTLOOK 2019

47

ANTON ISMAEL The 1975, Jakarta-born has been active in the photography world since 2000. During this period, Anton Ismael has produced works such as Tuhan dan Hantu, Ingin Dekat dengan Tuhan, Dosa, and Karma that are all widely praised; held several photo exhibitions with his students from Kelas Pagi (Morning Class), a free photography class which he opened in 2006; and developing the Third Eye Space’s business, a commercial creative studio he founded in 2005. Amazingly, as the creative director of a wildly successful photography venture with clients ranging from celebrities to international brands to other famous artists, Anton still makes the time to teach his photography school free of charge at Kelas Pagi, which he holds regularly every morning at 6 AM without fail. The morning classes, according to Anton, personify his personal belief summarized in the following sentence: “Keluar, tumbuh, liar” (Grow out, grow into, be ever-wild). Since its inception until today, Kelas Pagi has graduated 11 classes, and in 2018, Anton added a new course titled “Kelas Pagi Militan,”a platform to bridge the creative world with competent human resources in the industry. In 2017, Anton was recognized by BEKRAF, which named him as one of the inspirational figures in the creative world in Ideafest 2017; and from Rolling Stone magazine, which named it as “Editor’s Choice Award 2017.” www.thirdeyespace.com

LANS BRAHMANTYO Lans Brahmantyo, born in Surabaya in 1966, seems to personify the stereotype of the “Renaissance Man.” Born on July 7, 1966, the photographer best known for his Soul Odyssey book, a seminal fine arts photography book, obtained a Bachelor’s degree in Electrical Engineering and a Masters degree in Management Information Systems from the University of Denver, United States, in 1992. After graduation, he worked as a campus consultant at NeXT Computer Inc., Steve Jobs’ famed new startup venture during the period when the Apple visionary was shunned from his own company. His experience working with the NeXT system led him to a prolonged adventure in the graphic and visual world, and one he never left. Lans worked as creative director at the Satukata advertising agency; Co-Founder Forum Grafika Digital (FGD); Co-Founder & Creative Director Hexart Publishing; and Founder & Creative Director dari Afterhours Design, the forerunner of Afterhours Books, which released one of the greatest photography books in the world, Soul Odyssey. Released in 2005, Soul Odyssey is an epic fine arts book which went on to win several international awards including the Prix de la Photographie Paris ( PX3) and covered in depth in the prestigious Leica Fotografie Internationale (LFI) magazine in 2007. He was also the winner of PCS Sagamihara Asia Gold Winner Photography in 2008 and the International Photography Awards 2008 in New York City, USA, and in Russia in 2009. www.afterhoursbooks.com

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Crafts Indonesia possesses great potential to offer craft products which fits the modern, international lifestyle with local inspiration. Currently, the Crafts Sub-sector is one of the top three Sub-sectors within the Creative Economy sector with the highest contribution towards Indonesia’s GDP, exports and labor absorption. The Crafts Sub-sector is promising, as Indonesian craft products are known for their handmade quality, fetching higher market prices. As the government’s representative in Creative Economy, BEKRAF is responsible in managing this Sub-sector and providing various facilitations. Collaborations between designers, small and medium enterprises, and manufacturers are increasingly encouraged. BEKRAF also prioritizes the promotion of craft products at home and abroad as its core program for this Sub-sector.

15.40%

GDP Contribution in Crafts 2016 (3rd highest) Rp 142 Tn GDP Value of Crafts 2016 (3rd largest)

39.01%

Export Contribution in Crafts 2016 (2nd largest) 1,194,509 Number of Creative Businesses in Crafts 2016 (3rd largest) 15% Percentage of Creative Businesses in Crafts Vs. Total Businesses in Creative Economy Sector 2016 Breakdown of Creative Labor Force Based on Gender (%) 2016

Male — 54.03% Female — 45.97%

3.72 Mn Number of Creative Workers in Crafts 2016 (+1.99% Vs. 2015)

Switzerland is #1 Export Destination for Crafts 2016 US$ 2.06 Bn Export Value in Crafts to Switzerland 2016

21.99% Labor Workforce Growth Rate in Crafts 2016 (3rd highest)

77.93% Percentage of Creative Businesses in Crafts Founded in 1990-2014

22.03% Labor Workforce Absorption in Crafts Vs. Total Labor Workforce in Creative Economy 2016

95.19% Percentage of Creative Businesses in Crafts Without Legal Entity 2016

57.48%

1,247 Businesses in Crafts with Revenue >Rp 50 Bn / yr (highest among all Sub-sector)

Percentage of Creative Businesses Utilizing E-Commerce 2016 US$ 7,797.6 Mn Export Value in Crafts 2016 (2nd largest)

OPUS CREATIVE ECONOMY OUTLOOK 2019

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RAJA SERAYU Raja Serayu is a brand name of batik and bamboo weaving products from Cilacap, Indonesia. It is a collaborative work of Mufti Alem (www.alemplus.com) and Rajasa Mas (a Batik brand from Maos, Cilacap). The Raja Serayu brand originated out of the collaborative Designer Dispatch Service (DDS) program initiated by the Ministry of Trade and BEKRAF in 2016, with the latter responsible for branding and promotional support and expanding the brand’s exposure at Ambiente 2017, one of the largest and most influential international trade shows in Europe. Euis Rohaini dan Tonik Sudarmaji, the founders of Rajasamas Batik, now works at their production center in Nuwawungu, Cilacap, where they work day and night to meet demands from Russia, Germany, Italy and Saudi Arabia with total production of 7,000 to 10,000 products per year. Raja Serayu products boast a unique combination of hand-crafted bamboo woven and high-quality and chic batik plaits, packaged in attractive materials such as rattan, weeds (alang-alang), and even water hyacinth. Raja Serayu’s business model, which re-purposes batik wastes and turns them into high-value products derivative product is nothing short of exemplary. www.rajaserayu.com

SEPIRING INDONESIA Sepiring Indonesia was founded by two Indonesian women, Eridanie Zulviana and Jasmyne Oei, two close friends who handle totally different aspects of their business Eridanie focuses on design, while Jasmyne handles sales and marketing. Sepiring Indonesia’s success story originated from the Jakarta Souvenir Design Award (JSDA), when Eridanie first won Best Design in JSDA 2012. Since then, her whimsical and lively illustrations have captured the hearts of numerous tourists, foreign buyers, artists and, increasingly, local consumers. The name “Sepiring Indonesia” alludes to “a plateful of Indonesia,” personified by caricature Indonesians decked in a series of traditional clothing and sold as a collection dubbed “Joged Jakarta,” “Jawa Semanak,” “Legong Bali,” “Rancak Minang,” “Tatau Dayak,” and “Bugis Makanja.” Leveraging Indonesian craftsmanship, Sepiring Indonesia has brought Indonesian culture closer to an international audience at New York Now and Milan’s Salone Del Mobile. Today, Sepiring Indonesia produces a plethora of creative works from coasters, stationary sets, to leather-lined wallets which cover 32 designs in 80 different products, in addition to creating custom-made pieces for corporate clients. www.sepiringindonesia.com

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OPUS CREATIVE ECONOMY OUTLOOK 2019

Culinary The culinary industry fulfills one of humanity’s basic need which is food, hence it is no exaggeration to say that the Culinary Sub-sector, which falls under the Creative Economy Sector, will continue to grow in scale and importance for the foreseeable future. Culinary’s modern-day status in Indonesian society as both a lifestyle and leisure activity ensures that this Sub-sector will continue to lead the entire Creative Economy Sector. Already, Culinary is the main engine of growth within Indonesia’s creative industry, contributing the most in terms of GDP. At present, due to its immense growth, BEKRAF is considering to elevate the Culinary Sub-sector into a champion program. In addition, The Culinary Sub-sector also has a great potential for innovation and to expand its market size and scale in the near future.

41.40% GDP Contribution in Culinary 2016 (highest among all Sub-sector) 5.06% GDP Growth Rate in Culinary 2016 Rp 381,985.7 Bn GDP Value of Culinary 2016 (biggest among all Sub-sectors) US$ 1,260,503,586 Export Value in Culinary 2016 (3rd largest) 6.31% Export Contribution in Culinary Vs. Total Export in Creative Economy 2016 (3rd largest) 97.89% Percentage of Creative Businesses in Culinary Without Legal Entity 2016 (5,434,047 businesses)

5,550,960 Number of Creative Workers in Culinary 2016 (largest)

67.66% Percentage of Creative Businesses in Culinary Vs. Total Businesses in Creative Economy Sector 2016 (highest) 7,983,259 Number of Creative Workers in Culinary 2016 (largest)

47.21%

Labor Workforce Absorption in Culinary Vs. Total Labor Workforce in Creative Economy 2016 (highest)

Founding Year and Number of Creative Businesses in Culinary Founded in 1990-2014 Year

<1990

1990 – 2014

> 2014

Number of actors

231,922

4,069,932

1,249,106

Percentage

4.18%

73.32%

22.50%

38.86%

Percentage of Creative Businesses Utilizing E-Commerce 2016

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MATCHAMU Matchamu is the first and largest curator of processed matcha (Japanese green tea powder) and its derivative products in Indonesia, which was started in 2013. Matchamu presents a variety of loose and powdered green tea from the Kyoto Test, a region in Japan that is renowned for being the best green tea-producing region in the world. The uniqueness of the Matchamu product offering is the quality of the tea which, although in a processed powder form, still preserves the premium quality and is priced competitively to boot. Matchamu’s business model was proven to be effective, and the BEKRAF-supported startup was soon seeing sales turnover of around 9,000 sachets sold every month through 15 retail outlets, 20 B2Bs and 44 resellers. This was further elevated when BEKRAF enrolled Matchamu in the 2017 and 2018 Food Startup Indonesia (FSI) programs, one of its most popular programs that facilitates and bridges meetings between the culinary sector with prospective investors. Now, Matchamu boasts 51,000 sachets sold per month through 725 retail outlets, 97 B2Bs, 1 national distributor, and 3 export clients in Singapore, Malaysia and Japan. During FSI 2018, Matchamu also attracted five potential investors and one investor which had officially signed a contract with the food startup. www.matchamu.com

TOKO KOPI TUKU Tuku Coffee Shop is one of Indonesia’s “Third Wave Coffee” icons that was successful in capturing and harnessing the market demand for coffee products that are relevant to the lifestyle of middle-class workers in Jakarta. The owner and founder, Andanu Prasetyo, or Tyo, was keen to capture the market opportunities which he recognizes as being one of the world’s best coffee producing-countries but which surprisingly has a low level of local coffee consumption. Based on this observation, Tyo formulated a coffee product that was palatable to the general public while allowing them to consume it regularly, or in other words, affordable enough for the average consumer. Tyo’s success story culminated in the surprise visit by the President of Republic of Indonesia, Jokowi, and his entourage at his outlet in Cipete Raya, South Jakarta. In the near future, Tyo hopes to be able to fulfill his mission in increasing coffee consumption for the average Indonesian consumer, so that the Indonesian coffee ecosystem can grow unhindered. Today, Tuku Coffee Shop has locations in Cipete, Pasar Santa, Bintaro, and BSD; and employs around 70 baristas and 10 people from the management team where they work out of the office in Antasari, Jakarta. www.tuku.coffee

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Music The International Federation of the Phonographic Industry (IFPI) in one of its reports stated that music can become a driving force in the global economy, particularly in areas involving exports, labor workforce absorption, and tax revenue. In line with this report, the Music Sub-sector in Indonesia is also reported to be currently experiencing rapid GDP growth, reaching over seven percent in 2016. Due to this positive result, BEKRAF is optimistic towards the Music Sub-sector’s prospect as one of its priority programs. Facilities and programs conducted by the agency include establishing anti-piracy task force, supporting various music events, and establishing music cities ecosystem.

7.59%

GDP Growth Rate in Music 2016 Rp 4,426.4 Bn GDP Value of Music 2016

56,891

Number of Creative Workers in Music 2016

4.9% Labor Workforce Growth Rate in Music 2016

Top Export Countries for Music 2016

Breakdown of Creative Labor Force Based on Gender (%) 2016

SINGAPORE

Female — 17.15%

BELGIUM TAIWAN

Provinces with Highest Concentration of Interior Design Businesses: West Java (17.57%) East Java (16.14%) Central Java (14.7%)

34,242

Number of Creative Businesses in Music 2016

Male — 82.85%

53.35%

Percentage of Creative Businesses Utilizing E-Commerce 2016 10.37% Percentage of Creative Businesses Utilizing the Internet 2016 Rp 3,061,858 / mo Average Salary in Music 2016 (5th highest among all Sub-sectors)

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KARINDING ATTACK Since its inception in 2009, Indonesian metal band Karinding Attack, or Karat, as they prefer to be called, has taken up the world by storm. Infusing fast-paced and aggressive heavy metal and punk tunes with traditional Indonesian musical instruments, the music of Karat was an immediate success in Indonesia and was quickly discovered by global listeners who were eager for something new. Karinding Attack is currently comprised of seven personnel who have all learned to play various bamboo instruments such as flutes, xylophones, and even Karat’s own custom-made percussions, known as Karinding, while belting out System of A Down-like tunes to amusing effects. In 2011, Karat released its first album, Gerbang Kerajaan Serigala, which featured senior musician Trie Utami and which propelled the band to national and international fame. In 2017, Karat was appointed by the Indonesian government to represent the country at the Europalia Arts Festival 2017, the largest international arts and cultural festival in Europe, which began in Germany, Belgium and the Netherlands, on November 15-19, 2017. Not stopping there, Karinding Attack also toured Denmark, Italy, Belgium, the Netherlands, and Germany as part of the Karinding Attacks Europe 2017 tour, which was held with Morphine Records. In early 2018, Karat is preparing its second album which it touted as possessing a more powerful and unique music concept, and also finalizing its plans for a second tour in Europe, including at the Radio Asia Festival in Warsaw, Poland. www.karinding-attack.com

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WE THE FEST We The Fest (WTF) 2018, the groundbreaking Indonesian summer music festival featuring rising international stars such as Ellie Goulding, Sam Feldt, and Flight Facilities as well as local artists including Teza Sumendra, Rich Chigga, and Kimokal, has just completed its fifth anniversary. This year, Ismaya Live, the leading promoter and organizer of some of the most popular music festivals in Indonesia, claimed that WTF 2018 was bigger, better, and more inclusive than ever before. Featuring no less than 61 local and international artists and bands including Lorde, alt-J, The Neighborhood, Greenhouse Effect, Isyana, Albert Hammond Jr. (guitarist of The Strokes), and other famous musicians, WTF 2018 established Ismaya Live’s position as one of the leading players in the Music Sub-sector. WTF 2018’s highlight was when President Jokowi attended the festival and sat together with the Chairman of BEKRAF, Triawan Munaf, during the live performance of Indonesian bank White Shoes and The Couples Company. In the future, BEKRAF will seek to forge a stronger ecosystem within the Music Sub-sectors by facilitating creative players in the industry, including providing assistance, sponsorships of music festivals, and many others. www.wethefest.com

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Fashion The value of fashion extends far beyond mere articles of clothing that satisfy basic human need. Fashion is also related to aspects of lifestyle and appearances, as well as a reflection of one’s identity or a group. The importance of fashion is further proven through its large contribution to the added value of the Indonesian economy, as well as contributions to the national GDP and exports. The Fashion Sub-sector has become one of the leading Sub-sectors in the Creative Economy. Sustainable fashion and Muslim fashion are some important issues that must be considered in order to develop the national fashion Sub-sector.

18.01%

GDP Contribution in Fashion 2016 (2nd highest) 4.05% Laju pertumbuhan GDP Growth Rate in Fashion 2016 (+2,78 Vs. 2015) Rp 166.1 Tn GDP Value of Fashion 2016 (2nd largest)

US$ 10.9 Mn Export Value in Fashion 2016 (highest among all Sub-sector) 54.54% Export Contribution in Fashion Vs. Total Export in Creative Economy 2016

Top Export Countries for Fashion 2016 United States (US$ 4.72 M)

Breakdown of Creative Labor Force Based on Gender (%) 2016 Male — 45.75% Female — 54.25%

4,130,000 Number of Creative Workers in Fashion 2016 (+3.05% Vs. 2015) 24.42%

Labor Workforce Absorption in Fashion Vs. Total Labor Workforce in Creative Economy 2016 (2nd highest)

1,230,988

Number of Creative Businesses in Fashion 2016 (2nd highest)

15% Percentage of

Creative Businesses in Fashion Vs. Total Businesses in Creative Economy Sector 2016 (2nd highest) 77.56% Percentage of Creative Businesses in Fashion Founded in 19902014

57.10% Percentage of Creative Businesses Utilizing E-Commerce 2016 94.41% Percentage of Creative Businesses in Fashion Without Legal Entity 2016 865 Businesses in Fashion with Revenue
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DANJYO HIYOJI PT Danjyo Cipta Rega Pratama, the company behind the wildly popular Jakarta-based fashion label Danjyo Hiyoji, was officially founded in 2009 by Dana Maulana and Liza Masitha, after previously existing under the name “Danjyo” since 2001. Danjyo Hiyoji’s impressive growth can be attributed to its breakthrough designs that are at once simple yet innovative. Its trademark look is the layers of drapes that are sometimes asymmetrical, but always proportional. Its ready-to-wear collections are offered in subdued hues and neutral colors, and priced competitively. Danjyo Hiyoji has been crowned as winner of “The Most Innovative Local Brand” at Cleo Indonesia Fashion Award 2009, “Label of the Year 2010” by ELLE Indonesia Magazine, Instyle Indonesia and Men’s Health Magazine Award 2012, and Kuningan City Ikonography Awards 2016, raising its profile to become one of the revered local brands in the Jakarta fashion scene. Today, Danjyo Hiyoji’s operation is based on a 400 sqm land in south Tangerang, where its design, manufacture, marketing, and sales are horizontally integrated into one studio. www.danjyohiyoji.com

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TORAJA MELO Toraja Melo, a Social Enterprise initiative founded by two Indonesian women in 2008, sells and markets fashion and souvenir products made from woven materials created by native Toraja artisans in four regions in Indonesia, namely Toraja and Mamasa in Sulawesi; and in Adonara and Lembata in East Nusa Tenggara. Dinny Jusuf and Nina Jusuf, founders of Toraja Melo, decided to start the enterprise when they learned about disadvantaged women from these areas. Dinny, whose background is Secretary General of the National Commission on Violence Against Women, explained that Toraja Melo aims to improve the welfare of Indonesian traditional weavers, especially marginal women in the archipelago. These women, according to Dinny, often have little to no other choice but to become Indonesian laborers overseas, where they are prone to becoming victims of violence. Toraja Melo has participated in various international exhibitions and have expanded their products offering in Singapore, Japan, France, England, the United States, and Australia. Yet, the founders said, they will continue to focus their efforts towards the “Conscious Market” or the segment of buyers who makes purchasing decisions based on social considerations above all else. www. torajamelo.com

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MUSLIM FASHION FESTIVAL INDONESIA (MUFFEST) 2018 Following the success of the Indonesian Muslim Fashion Festival (MUFFEST) in 2016 and 2017, MUFFEST 2018 this year featured 200 brands and 100 designers from local and overseas in a fashion week that lasted for four consecutive days. President Joko Widodo, in the opening remarks of MUFFEST 2018 on April 19, 2018, welcomed such fashion weekend as MUFFEST to promote the development of the fashion industry and ecosystem in the country. Jokowi remarked that Indonesia, with the largest Muslim population in the world, needs to work hard to catch up with foreign brands and manufacturers which have begun to explore the global Muslim fashion market, including Indonesia. In his speech, Jokowi also hoped for Indonesia to become the leader in its own large market in relation fo Muslim fashion. Along with Indonesia’s unique strength which is culture, the biggest Muslim fashion show in Indonesia aims to realize the government’s aim to turn Indonesia into the world’s premier Muslim fashion center by 2020. MUFFEST 2018 also featured seminars and talk shows, including Trend Forecasting 2019/2020 by BEKRAF and associate designers. www.muslimfashionfestival. com

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LULU LUTFI LABIBI Lulu Lutfi Labibi, a rising young talented designer from Yogyakarta, has been active in the local fashion universe since 2006, when he started to enroll in myriad fashion competitions in the capital city and beyond. His hard work and perseverance finally paid off when he won his first award in the Lomba Perancang Mode (Fashion Design Competition) 2011. Lulu’s designs, which highlights lurik, a traditional motif cloth from Central Java, use an innovative draping techniques, where fabric can be wrapped, stacked, or combined according to the wearer’s desire and creativity; making his seasonal offerings comprising of dress, pants or jacket never boring and always fresh. Today, the Lulu Lutfi Labibi label is gaining increasing prominence both in the domestic and international stage, with regular customers visiting his Yogyakarta-based boutique and online customers ordering via his social media outlets, which Lulu revealed to comprise a good portion of his total revenue these days.

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Applications & Game Developer The growth of the global application and gaming industry has opened up a new venue of economic potential. The Applications & Game Developer Sub-sector is projected to grow further in the coming years as more and more startups have sprung up in recent years, such as Agate Studio, Altermyth Studio, Toge Production, Tinker Games, Touch Ten Games, and many others. Its positive growth has in turn attracted funding from investors, who in turn help to generate even larger transaction values within this Sub-sector. This is inseparable from the fact that mobile usage is increasing around the world. According to a report from Super Data, the average smartphone user playing mobile games plays three times a day, with an average time spent of ten minutes per game session. Games with simple, short, and easily accessible gameplay gain more following than ones with complex gameplays.

Labor Workforce Absorption The digital applications industry (apps) contributed positively towards the national absorption of labor workforce. Surveys conducted on the apps developer segment revealed data that shows that on average, one company employs around 139 people, comprising almost entirely of local labor.

8.06% GDP Growth Rate in Apps & Game Developer 2016 (5th highest)

77.24%

Rp 17,142.8 Bn GDP Value of Apps & Game Developer 2016

47.89% Percentage of Creative Businesses Utilizing the Internet 2016 (4th highest)

Breakdown of Creative Labor Force Based on Gender (%) 2016 Male— 74.65% Female — 25.35%

41,065

Number of Creative Workers in Apps & Game Developer 2016 12,441 Number of Creative Businesses in Apps & Game Developer 2016

Percentage of Creative Businesses Utilizing E-Commerce 2016

30.81% Percentage of Creative Businesses in Apps & Game Developer Founded After 2014 Rp 3,647,134 / mo Average Salary in Apps & Game Developer 2016 (3rd highest)

US$ 137.9 Bn

Valuation of the Global Games Market 2018

US$ 879.7 Mn

Valuation of the Indonesian Games Market 2017

43.7 Mn

Rp 68 Tn Total Sales Value in E-commerce in Indonesia 2017

17

35-40% Average Annual Growth Rate of E-Commerce in Indonesia (lead by fashion)

Source: Newzoo (www.newzoo.com)

Rp 252 Tn Total Transaction Value In Fintech 2017

Rp 135.364 Tn Projected Valuation of Indonesia’s Digital Economy 2020

Rp 1.7 Bn Total Funding in Indonesia’s Startup Industry 2017

Number of Gamers in Indonesia 2017 Indonesia’s World Ranking (Revenue Estimate, Games Market) 2018

Rp 1,759 Tn Projected Transaction Value in Digital Economy 2020

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GHOST PARADE Ghost Parade is a 2D side-scrolling adventure game developed by Indonesian studio Lentera Nusantara and slated for release on the PlayStation 4, Switch, and PC via Steam in 2019. Ghost Parade’s gameplay boasts a unique environment that is centered on Indonesian culture such as Bali, West Java, Dutch colonial, and other Indonesian-related locales which serve as the backdrop of the game. Players control a character named Suri, who is trying to return to her native village but must survive the journey against a myriad of ghosts and spooky creatures. To further boost awareness for this rising game developer company from Bandung, BEKRAF facilitated the participation of Lentera Nusantara at Anime Expo 2018 in Los Angeles and Game Connection America 2018, one of the most important game forums in the United States. Through this event, Lentera Nusantara secured a commitment from Aksys Game, publisher of the wildly popular Guilty Gear and Blazblue series, to release Ghost Parade worldwide on various platforms, including on Steam, the largest and most popular digital distribution platform for video games in the world. www.ghost-parade.com

SAYURBOX SayurBox is an innovative new e-commerce platform distributing fresh, organic, local produce and dry goods from local farmers and producers. The young startup was founded in 2016 by two women, Metha Trisnawati and Amanda Susanti, who took on the roles of Chief Product Officer and CEO, respectively, and Marvin Kalibonso. Within a year of its founding, SayurBox has grown to serve 3,000 customers and 22 local farmers spread across the greater Jakarta area (Jakarta, Bogor, Tangerang, Depok, Bekasi), as well as Sukabumi and Bandung. According to its founders, SayurBox’s success stems from the startup’s innovative new supply chain model: farmers sell directly to consumers living in urban cities, through its platform. The model effectively undercuts middlemen and streamlines the supply chain, enabling customers to get fresh deliveries of high-quality, pesticide-free vegetables right at their doorstep. The products are carefully curated by the startup, while partner farmers undergo strict quality control assurances. In return, farmers enjoy higher selling price and improved livelihood. The farm-to-table concept has been such a hit with the market that impact investment fund Patamar Capital has made its first direct investment in seed funding from its Women Fund program with an estimated amount between US$ 200,000 and 300,000, not including other funds investors. Going forward, SayurBox’s founders aspires to expand its services and ecosystem nationwide, enabling more farmers across the archipelago to reach more consumers directly and jump-starting a nationwide farming movement. www.sayurbox.com

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DREADOUT DreadOut is the first classic horror video game from Indonesia that feature local Indonesian characters and culture as part of its unique gameplay, incorporating elements from visual designs that illustrate the distinctiveness of Indonesian culture to the unsettling folk-based song Lengser Wengi as soundtrack. Since its first release in 2013 by the game developer studio Digital Happiness, based in Bandung, DreadOut has seen over a million downloads on various platforms including Microsoft Windows, OS X, and Linux; and spawned three sequels and spinoffs, making it one of the most successful Indonesian games in history. In 2018, Digital Happiness, a recipient of BEKRAF’s Government Incentive Assistance (BIP) program, gained international recognition when it participated at SXSW 2018 in Austin, Texas, and was nominated for “Gamer’s Voice Awards.” In 2019, the big screen film adaptation of DreadOut, titled Dreadout the Movie, is slated to be released by goodhouse.id with director Kimo Stamboel from The Mo brothers. Digital Happiness is also developing an adaptation of the DreadOut game into a comic web titled DreadOut: the Untolds which is slated to be launched this October and which can be accessed at www.ciayo.com.

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Publishing In the digital age, printed books are no longer the sole medium for the publishing industry. Various alternatives have now sprung up including e-books, blogs, and social medias. Yet, the publishing industry survives the onslaught and has even continued to post increased contribution towards the Creative Economy sector. The digital realm has provided new challenges and opportunities while at the same time negates the thought that it presented significant threat to the Publishing Sub-sector. Indonesia’s large population base becomes an important drivers of growth for the Publishing Sub-sector. The population size of Indonesia presents significant opportunities only if they are coupled with increased reading interests among the populace. Other contributing factors include freedom of creation, whereupon writers are given flexibilities and freedom to create innovative works. This will make Indonesia as both the creator and consumer of books in the world.

6.32% GDP Contribution in Publishing 2016 3,6% GDP Growth Rate in Publishing 2016

Rp 58,313.2 Bn GDP Value of Publishing 2016 US$ 26,166,775 Export Value in Publishing 2016 (4th largest) Top Export Countries for Publishing 2016 HONG KONG THE PHILIPPINES MALAYSIA

464,579 Number of Creative Workers in Publishing 2016 (4th largest) 83,496 Number of Creative Workers in Publishing 2016 (4th largest) 1.02% Percentage of Creative Businesses in Publishing Vs. Total Businesses in Creative Economy Sector 2016 Provinces with Highest Concentration of Publishing Businesses: East Java (16,805 pelaku) West Java (13,669 pelaku) Central Java (13,345 pelaku)

Breakdown of Creative Labor Force Based on Gender (%) 2016 Male— 88.47% Female — 11.53% 83.36% Percentage of Creative Businesses in Publishing Without Legal Entity 2016

64.04%

Percentage of Creative Businesses Utilizing E-Commerce 2016 23.24%

Percentage of Creative Businesses Utilizing the Internet 2016

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LAKSMI PAMUNTJAK Born in 1971, Laksmi Pamuntjak has been active in the world of literature for almost two decades as a bilingual novelist, poet, columnist, culinary critic, and even as a co-founder of the Aksara bookstore in Jakarta. Her works have elevated Indonesia’s name to several international stages, including the Frankfurt Book Fair, the Berlin International Literature Festival (ILB), and also in the highly competitive United States market where her second novel was published under the title Aruna dan Lidahnya (The Birdwoman’s Palate). The national bestseller was also featured as one of the five highlights in Kusala Sastra Khatulistiwa 2015, and has been adapted into a full length feature film directed by Edwin and starred by Dian Sastrowardoyo and Nicholas Saputra. Previously, Laksmi’s debut novel which was published in 2012, Amba, successfully attracted international attention during the 2015 Frankfurt Book Fair, where Indonesia was also a guest of honor for that year. Next year, Amba, which translates to Alle Farben Rot in German, won the prestigious LiBeraturpreis 2016 literary award in Germany, the only literary award given to women writers from Asia, Africa, Latin America, the Caribbean and the Middle East. Today, Laksmi is busy promoting her film adaptation and as a speaker at a number of international literary festivals, such as the Frankfurt Book Fair 2018 (panelist for “Women Writers in Asia Pacific”), the International Literature Festival Berlin (ilb) 2018 as speaker in “The Art of Cooking and Food Writing” panel, and Keynote Speaker at Oxford University for the opening of EuroSEAS (European Southeast Asian Association), “Between Hope and Despair: On Living with Difference in Today’s Indonesia,” coinciding with the 72nd anniversary of the Republic of Indonesia. www.laksmipamuntjak.com

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LONDON BOOK FAIR 2018 After a successful run as guest of honor at the Frankfurt Book Fair 2015, Indonesia is once again at the center of attention at one of the most prominent international book exhibition events, the London Book Fair (LBF) 2018. Through BEKRAF and the Ministry of Education and Culture (Kemendikbud), and in collaboration with the National Book Committee and Association Indonesian Publisher (IKAPI), the Indonesian delegation brought no less than 300 titles for the three-day event. The delegation representatives, in addition to signing a Memorandum of Understanding with the LBF committee to become a Market Focus Country in 2019, also achieved a significant increase in copyright sales compared to last year: 14 book titles sold and 135 potential sales titles and four series to 14 countries. This was a substantial achievement and a new milestone in the history of the Indonesian literary industry, which was almost non-existent previously. As a comparison, only two books were successfully sold last year. Indonesia also earned the honor to become the first Southeast Asian country to be designated as the Market Focus country on the main stage of the LBF. To prepare for the arrival of Market Focus 2019, the Indonesian delegation also presented Indonesian films that were adaptations of popular novels and books, namely Laskar Pelangi (2008), Sang Penari (2011), or Filosofi Kopi (2015), curated by Sekar Ayu Asmara, author, film director, and producer who also serves as a reference at LBF 2018. www.londonbookfair.co.uk

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Advertising Advances in technology have driven the humanity race to adapt to an increasingly digitized world, Advertising Sub-sector included. As a Sub-sector with one of the highest spreads across the country’s economic system, the Advertising Sub-sector exerts great influence in shaping the consumption pattern, lifestyle, and mindset of the general populace. The high growth of national advertising spending each year proves that advertising is still the most efficient media to promote products and services in Indonesia.

7.07% GDP Contribution in Advertising 2016 Rp 7.5 T GDP Value of Advertising 2016 Rp 5,124,319 / mo

Average Salary in Advertising 2016 (2nd highest)

3,055

Number of Creative Businesses in Advertising 2016 Breakdown of Creative Labor Force Based on Gender (%) 2016 Male — 82.03% Female — 17.97%

40,990 Number of Creative Workers in Advertising 2016 (+4.35% Vs. 2015) 79.18% Percentage of Creative Businesses in Advertising Founded in 1990-2014

70.16%

Percentage of Creative Businesses Utilizing E-Commerce 2016 62.85% Percentage of Creative Businesses Utilizing the Internet 2016 (2nd highest)

86

Businesses in Advertising with Revenue Rp 50 Bn / yr 47.95% Percentage of Creative Businesses in Advertising As Legal Entity 2016 US$ 2.8 Bn (Rp 37.3 T) Total Ad Expenditures 2017 (Rp 37.3 T) Source: eMarketer, IAB Singapore

US$ 19.58 Bn Projection for Digital Advertising Expenditures in Indonesia 2019 Source: eMarketer

10.1% Growth Rate in Entertainment & Media Expenditure in Indonesia (highest in the APAC region) Source: PwC

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FLOCK Flock, a new, “hybrid” full-service creative agency that combines traditional advertising services with that of a startup sophistication, was founded by two J. Walter Thompson Jakarta veterans: Ivan Hadywibowo, who now serves as CEO of the fledgling agency, and Erwin Santoso, who now heads the creative department as Creative Partner. Since its inception in 2016, Flock has grown phenomenally, defying logic in a highly competitive, cutthroat industry. Part of Flock’s success today can be attributed to the initial round of seed funding secured from East Ventures, Southeast Asia’s most prominent venture capitalists, as well as Flock’s revolutionary, breakthrough business model—a unified, all-in-one advertising solution utilizing traditional marketing mix such as above the-line (ATL), below-the-line (BTL), and digital seamlessly integrated with the startup ecosystem. Ivan explained that convergence is key in today’s rapidly changing world: by converging multiple disciplines and blurring the traditional lines between ATL, BTL, and digital, Flock is able to better meet its clients’ needs in a faster, nimbler, and cost-effective way. Willson Cuaca, managing partner of East Ventures, explained that he sees Flock’s great potential to become an enabler of change for the archipelago’s burgeoning startups, who will need a marketing partner that can help them grow faster. “Most of the startups need brand awareness with a limited budget. With someone taking care of the collaboration effort, we can make it cost-effective,” Ivan said. Flock’s innovative offerings have earned the young agency national recognition over their works for Tokopedia dan Tehbotol Sosro, which went viral in 2018, as well as for its pioneering IVPL (Indonesia Virtual Pro League) championship through Cocoo (a subsidiary of the Flock network), the first Indonesian league within the wildly popular Virtual Pro League community worldwide. www.flock.company

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TV & Radio The digital era has pushed creative players within Indonesia’s Creative Economy sector to continuously innovate their offerings which are relevant to the modern lifestyle. However, advances in digital technology have also raised concerns regarding the sustainability of the print, television and radio industries. Yet, the digital era has so far not been proven to diminish the roles of TVs and radios as primary information and entertainment mediums for the Indonesian populace. In fact, the TV & Radio Sub-sector recorded one of the highest growth rates among all Sub-sectors within Creative Economy sector. TV and Radio each have their own special characteristics which relates to their respective audiences, namely fresh and innovative programming for TV, and real interactivity for radio. Digitization proves to be a boon rather than bane for the TV & Radio Sub-sector and must be developed further to attract larger audiences base.

8.27% GDP Contribution in TV & Radio 2016 10.33% GDP Growth Rate in TV dan Radio 2016 (highest) Breakdown of Creative Labor Force Based on Gender (%) 2016 Male — 41.32% Female — 58.68%

71,294

Number of Creative Workers in TV & Radio 2016

68.5% Percentage of Creative Workers in TV & Radio With Average Age of 25-40 years of age (highest among all Sub-sectors)

12,441

Number of Creative Businesses in TV & Radio 2016 73.73% Businesses in TV & Radio with Revenue +/- Rp 300 Mn / yr

58.54%

Percentage of Creative Businesses Utilizing E-Commerce 2016

47.08%

Percentage of Creative Businesses Utilizing the Internet 2016

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RADIO DAY 2017 On Monday, December 11, 2017, 37 member radios of the Jakarta National Private Broadcast Radio Association (PRSSNI) DKI Jakarta held “Radio Day 2017” as part of BEKRAF’s effort to stimulate the TV & Radio Sub-sector. Radio Day 2017 featured a series of campaigns which began with a teaser on social media one day before the launch of Radio Day 2017, and culminated in the complete shutoff of all radio activities (off-air) for 10 to 15 minutes, starting from 7:45 AM, Jakarta local time. The campaign, followed by all 37 member radio stations and carried out simultaneously during one of Jakarta’s heaviest commuting period, successfully captured the attention of mostly Jakarta-based community, the only region or city where Radio Day 2017 was held. According to data released by PRSSNI, Radio Day 2017 generated 40 million impressions on social media with #radioguemati hashtags, and 200 million impressions with #radioguegakmati hashtags. According to M. Rafiq, Chairman of PRSSNI DKI Jakarta, Radio Day 2017’s primary aim is to make people aware of the importance of radio, an audio-based mass media that is designed to be listened seriously or leisurely. Radio Day 2017 was officially ended with a recording of the President of the Republic of Indonesia, Joko Widodo, teasing listeners with the statement “Emang enak nggak ada radio? Saya Joko Widodo, pendengar radio,” (Do you like not having radio (broadcast)? My name is Joko Widodo, radio listener) and followed with the return of normal broadcast.

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NET Entering its fifth year of broadcast, NET. TV consistently broadcasts quality terrestrial television programs. In early 2018, NET. held the “Indonesian Choice Awards 5.0 NET.” which was broadcast live from Sentul, Bogor, and featured international guest star Hailee Steinfeld and timeless musician, Craig David. NET. TV’s works in the archipelago have also won it many prestigious awards, such as “Indonesia Most Creative Companies 2017” from SWA magazine, “Indonesia WOW Brand 2018,” “KPI Award 2017,” and Ideafest 2017’s “Indonesia’s Influential Person in Creative Industry.” As one of the leading actors in Creative Economy, NET. also actively participate in building the domestic ecosystems to improve the nation’s GDP, especially in terms of exports. Last year, NET. facilitated by BEKRAF, signed an agreement to produce high-quality television contents for both for terrestrial, pay and digital TV. These contents are expected to reach the kind of status that South Korean TV drama series have enjoyed for years and can be exported to more than 120 countries; giving Indonesia’s Creative Economy a new source of income. Chairman of BEKRAF, Triawan Munaf, revealed at a press conference that President Jokowi had asked him last year to advance the national television industry to match that of South Korea, and that a joint venture with South Korean television networks was one of the realizations of such initiative. www.netmedia.co.id

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Performing Arts Indonesia possesses a diverse wealth of arts and performance traditions, such as wayang (traditional Indonesian leather puppets), theater, dance, and so on. Performing arts is especially endemic to Indonesia as each region has its own version, with several regional performing arts gaining international fame. As a government institution, BEKRAF will continue to support the development of this potential Sub-sector. BEKRAF strives to provide regulatory facilitations, the establishment of performing art boards / councils, art performance festivals, and so on. BEKRAF is highly optimistic that the Performing Arts Sub-sector will continue to shine and show its full potential in the coming years.

9,54% GDP Growth Rate in Performing Arts 2016 170,994 orang Number of Creative Workers in Performing Arts 2016

19,772

Number of Creative Businesses in Performing Arts 2016 Breakdown of Creative Labor Force Based on Gender (%) 2016 Male — 76.24% Female — 23.76%

Provinces with Highest Concentration of Performing Arts Businesses West Java (22.91%) East Java (21.70%) Central Java (15.53%)

90.02% Businesses in Performing Arts with Revenue +/- Rp 300 Mn / yr

62.97% Percentage of Creative Businesses Utilizing E-Commerce 2016 15.71% Percentage of Creative Businesses Utilizing the Internet 2016

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NAN JOMBANG Indonesia’s famous choreographer, Ery Mefri, performed at the Europalia Arts Festival for the first time in 2017. Previously, the woman who founded the Nan Jombang dance studio in 1983 in Padang, West Sumatra has also brought Indonesia’s name to various world festivals and dance events, among others in Essen, Mülheim an der Ruhr, Berlin, Tokyo, Singapore and London, which began in 2004 when the Nan Jombang Dance Company began its international tour. Described as a contemporary Minang dance form that adapts many elements of traditional Minangkabau dance, Nan Jombang boasts discipline, endurance, and integrity for the choreography of the dance which has received wide acclaim and praise. In 2008, Ery Mefri was awarded the Tuah Sakato award from the Governor of West Sumatra, for her contribution in advancing the arts and culture of West Sumatra through her involvement at the Indonesian Arts Coalition, a community organization aiming to advance the national dance art, which she founded together with Angga Djamar. In the near future, Nan Jombang will re-appear at the Opening Taiwan East Coast Arts Festival, as well as the Changpu Changing International Performing Arts Festival in Seoul, 27 to 30 August 2018. www.nanjombangdance.id

ABDI KARYA Abdi Karya, a longtime theater activist, has dabbled in the performing arts world since 2004, when he began to explore the Bugis epic manuscripts from the 13th century, I La Galigo. His works since then have always tried to interpret the rich meaning and the visuals of philosophical ideas found in customs, old stories, and Bugis mythology — a rather noble initiative that is becoming very rare nowadays — through theatrical arts, performances, choreography, musical arrangements, and mixed media. The 1982-born has worked as an actor, director, stage leader, stage designer, dancer, crew, musician, cultural programmer, and casual worker and volunteer for arts and cultural projects in Indonesia and abroad. In 2017, he and dozens of other domestic and foreign artists, including Garin Nugroho, Alastair MacLennan (Northern Ireland), and Luc Tuymans (Belgium), participated in the 2017 Jakarta Biennale with his work entitled Used. Being Used, a seminal work that is based on the epic of I La Galigo and inspired by the richness of the archipelago tradition in sarongs. Today, he is involved in various theater initiatives throughout Asia, including at 5ToMidnight, the Makassar Theater Forum, the Makassar Creative Summit; British theater groups, Imitating The Dog; Caglar Kimyoncu; and Compagnie X-Press dance group with support from the British Council Indonesia and Institut Français Indonesia.

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Fine Arts Within the scope of Indonesia’s Creative Economy, Fine Art is defined as a form of pure art which is in itself is a manifestation of intellectual and creative works. The Fine Arts Sub-sector already has a pretty well-developed network both at home and abroad, as can be seen from the involvement of Indonesia, represented by BEKRAF, at various world stages including Art Fair, ArtJog, Bazaar Art Jakarta, Pasar Seni ITB, Biennale, Triennale, and many other art events at various commercial galleries. BEKRAF’s primary aim in all of these initiatives are to increase contributions from all Sub-sectors of the Creative Economy, including GDP, labor workforce absorption and exports. The Fine Arts Sub-sector has a slightly different market characteristics compared to other Sub-sectors in the Creative Economy sphere. At first glance, it may appear as if its market share is insignificant, however this is actually due to the specialized nature of the Fine Arts community and buyers. The Indonesian art market is essentially driven by the collectors community, as well as the middle- and upper-class. This is exacerbated by the small to micro community that these artisans work in. Nevertheless, data compiled from Statistics Indonesia and BEKRAF points to positive trends occuring within the Fine Arts Sub-sector, including high growth potential and a ready supply of young, talented Indonesian artists the likes of Eko Nugroho and I Nyoman Masriadi, who have garnered international acclaims and recognitions, as well as attracting international interests toward Indonesia’s Fine Arts industry. In the 2015-2019 Indonesian National Art Development Plan (Rencana Pengembangan Seni Rupa Nasional 2015-2019), developments within the Fine Arts Sub-sector is focused on areas involving the economic potential of Fine Arts industry and benchmark indicators for GDP growth, labor workforce absorption and export earnings.

BIGGEST CHALLENGES AFFLICTING THE FINE ARTS SUB-SECTOR TODAY Lack of facilities and infrastructure within the Fine Arts ecosystem: exhibition spaces, museums, funding, marketing, distribution, forum, etc. Uneven pockets of development within only several big cities in Indonesia

IMPERATIVES OF THE INDONESIAN GOVERNMENT TOWARD THE CREATIVE ECONOMY Increasing the number of art festivals and events within the country and opening their access to the general population as much as possible Cultivating and building upon a collaborative ecosystem comprised of the local artisan and creative communities Increasing the number of art and cultural spaces across Indonesia Adding mandatory curriculum in the nation’s fine arts faculties across the country to better understand the Indonesian traditional heritage and culture Increasing market research and studies to keep track of world trends and provide a roadmap for domestic creative players Increasing government funding towards the development of young and talented creative players in Indonesia

17,044 Number of Creative Businesses in Fine Arts 2016 Breakdown of Creative Labor Force Based on Gender (%) 2016 Male— 76.05% Female — 23.95%

71.74%

Percentage of Creative Businesses Utilizing E-Commerce 2016

15.88% Percentage of Creative Businesses Utilizing the Internet 2016

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ART | JOG 2018 ArtJog (stylized as “ART|JOG”) 2018, one of Indonesia’s largest and most renowned contemporary art festival, this year features radical new curatorial concept compared to previous events. Held at the National Museum of Jogja (JNM) in Gampingan, Wirobrajan, Yogyakarta, from May 4 to June 4, 2018, ArtJog 2018 successfully attracted tens of thousands of local and international visitors. Heri Pemad, of Heri Pemad Art Management, this year’s Artjog organizer, explained that he tried to present a different feel and experience from last year’s show, focusing heavily on presentation format and curatorial concepts. “This year’s theme, which is ‘Enlightenment’, tries to refocus ArtJog’s visual art presentation. We showcase more than 120 works of art in various formats and mediums, from paintings to graphics, installations, sculptures, and kinetic arts and performances. We also brought in a multi-disciplinary panel of practitioners and creative actors from within and outside the country, which all helped to make this year’s event to be much more collaborative than in previous years,” Heri said, who stressed that he plans to continue the multi-disciplinary collaboration in the upcoming years. ArtJog 2018 was themed “Enlightenment: Towards Various Futures” and featured the works of 54 local and foreign artists, including featured Bandung visual artist Mulyana with his work “Sea Remembers”, Nasirun with “Hutan Dilipat” and Davy Linggar x Tulus dengan “Yang Juga Mendengar”. www.artjog.co.id

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UJI HAHAN Uji “Hahan” Handoko Eko Saputro, a rising young artist based in Yogyakarta, started to attract a following in 2003, when his works “Biennale Yogyakarta VII: Countrybution feat. Daging Tumbuh Community” and“Exploring Vacuum I feat. Daging Tumbuh Community” were first displayed at the Taman Budaya Yogyakarta and Cemeti Art House Yogyakarta. A year later, his works began to be displayed abroad, including at the Australian National University, Canberra, Australia. In 2008, Uji Hahan received his first residency at the National Art Studio, Seoul, South Korea, as well as his first international award, The 2008 Sovereign Asian Art Prize, which was awarded by The Sovereign Art Foundation, Hong Kong. In 2009, Uji Hahan graduated from the Faculty of Fine Arts, Yogyakarta Institute of Art, while simultaneously organizing and holding his first solo exhibition in Jakarta, entitled Sorry, No Canvas Today. Today, the 1983-born is a regular face at the Art Basel Hong Kong and ART|JOG, as well as a popular guest star in spaces such as the Hurley Space Gallery in Bali, and Fantasy Island at the Louis Vuitton Marina Bay Singapore, and Louis Vuitton Hong Kong. In 2017, the artist known for his sharp observations and criticisms of the sociopolitical environment featured his latest works in a solo exhibition titled “Wall Street Gymnastics” in various media and expressions through ROH Projects in Jakarta, and furthering his ongoing project, Speculative Entertainment, which focuses on building the contemporary art ecosystems with wholesome values. www.rohprojects.net

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BEKRAF Activities

2O17 2018

Deputy of Education

D-1

Research and Development

BEKRAF Activities 2017-2018

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The Deputy of Research, Education and Development is responsible for developing policies and programs related to the facilitation of research, education and development in the Creative Economy sector. The Deputy is comprised of two directorates, headed by the Director of Creative Economy Research and Development and Director of Creative Economy Education.

CODING MUM Coding Mum is a free-ofcharge training programs given to housewives and disabled women to provide them with computer training including programming and coding so that they can earn additional income as freelance programmers to improve their welfare.

ACTIVITIES & ACHIEVEMENTS OF 2017 - 2018 Since 2015, the Deputy of Research, Education and Development has developed a series of Center for Excellence in Creative Economy and ran several successful programs such as Coding Mum, IKKON, CREATE and ORBIT. Their primary aims are to strengthen the foundations of Creative Economy within the Indonesian ecosystem based on accurate research and benchmarks. The Center for Excellence in Creative Economy was established as an autonomous organization to carry out research and development on 16 Creative Economy Sub-sectors.

>6* (8.)* .3/- 70# INDONESIAN CITIES WITH CODING MUM 2016

INDONESIAN CITIES WITH CODING MUM 2017

FOREIGN COUNTRIES WITH CODING MUM 2017 (HONG KONG, SINGAPORE, MALAYSIA)

TOTAL MENTOR FOR CODING MUM 2016

160. ^70) 239. TOTAL MENTOR FOR CODING MUM 2017

TOTAL PARTICIPANT CODING MUM 2016

100,000

TOTAL PARTICIPANT CODING MUM 2017

PROJECTED MANPOWER PER 1,000 STARTUP DI INDONESIA

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CODING MUM ACTIVITY LOCATION 2016 - 2018 (DOMESTIC)

LOCATION OF MUM 2017 CODING ACTIVITIES - 2018 (OVERSEAS)

2017 Hong Kong Singapura Kuala Lumpur

2018 Singapura 2016 2017 2018 Jakarta Medan Kendari Bogor Denpasar Batam Bandung Banda Aceh Depok Malang Bekasi Manado Surabaya Belitung Samarinda Makassar Jakarta Jakarta* Tulung Agung Bandung* Yogyakarta Semarang* Surabaya*

CODING MUM TRAINING PROVIDED: HTML CSS Javascript Front-end e-Commerce

*Coding Mum Difabel

CODING MUM SUCCESS STORY With her newfound website-making skills after completing her training Coding Mum, Anggia, who is also a member of Tangan Di Atas, has helped many of her friends to build their own websites for business. www.mynutrikidz.com & www.cemilanbayi.com

“After my training at Coding Mum, I was able to earn extra income as website developer while remaining at home.” -Anggia, Jakarta, Coding Mum Alumni Class of 2017

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INDONESIA TREND FORECASTING (ITF) Trend Forecasting is a collaborative program between the Republic of Indonesia’s Creative Economy Agency (BEKRAF) with several design associations in Indonesia (Indonesia Trend Forecasting or ITF team). ITF’s primary purpose is to release trend reports (trend forecasting) concerning fashion-related material, content, design and coloring that can serve as a reference for stakeholders, especially for creative players in Indonesia.

Universities / Academies Using ITF’s “Greyzone” in Curriculum:

In 2017, ITF featured the theme “Greyzone,” while this year the featured theme is dubbed “Singularity.” This theme was inspired by the paradox between machine and technology, which are increasingly converging upon one another and raised the question whether they will eventually replace us in the future. This year’s launch of ITF’s latest theme was held on September 27, 2018. In addition to the theme launching, ITF also launched the trendforecasting.id portal which will serve as a forum for designers to interact with fellow designers, academics, or other Creative Economy players.

- Maranatha Christian University Bandung - Islamic Fashion Institute - FSRD ITB - Jakarta Institute of Arts - Malang State University - SMK 1 Buduran, Sidoarjo - Yogyakarta State University - Surabaya State University - Yogyakarta Indonesian Art Institute

- Semarang State University - Petra University Surabaya - Taman Siswa University Yogyakarta - Indonesian Institute of Arts and Culture (ISBI) Bandung - Textile University Bandung - Quinna School of Fashion Malang - Bandung College of Textile Technology

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Differing from IKKON which targets regional development, CREATE focuses on developing individual member’s skills within partnering organizations with BEKRAF.

CREATE LOCATIONS 2016 - 2017

2016

2017

Yogyakarta Lampung Bandung Pekanbaru Banda Aceh Palu Pontianak Banjarmasin Makassar Palembang Mataram Jambi Pacitan Ambon Jayapura Pekalongan Labuan Bajo

Yogyakarta Lampung Bandung Pekanbaru Banda Aceh Palu Pontianak Banjarmasin Makassar Palembang Mataram Jambi Pacitan Ambon Jayapura Pekalongan Labuan Bajo

CREATE CREATE (Creative Training & Education) is a free training program provided by BEKRAF for certain communities, professional associations, and universities to grow the capacities of its members within the Creative Economy sector.

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CREATE 2016 VS 2017

2016

2017



CITY

WORKSHOP



1.

Yogyakarta

film & management

1. Wakatobi

Packaging

2.

Lampung

writing, product design

2.

Lampung

coffee

3.

Bandung

photography, culinary

3.

Tanjung Pinang, Kepri

Packaging

4.

Pekanbaru

culinary, performing arts

4.

Pangkal Pinang, Babel

5.

Banda Aceh

fashion, writing

5. Ternate

6.

Palu

music, culinary

6. Manado

Packaging

7.

Pontianak

writing, product design

7.

Pontianak

Photography

8.

Banjarmasin

fashion, product design

8.

Manado

Photography

9.

Makassar

performing arts,

9.

Bintan, Kepri

Packaging



business management for

10. Manado



performing arts

11. Pontianak

Writerpreneur

10.

Banjarmasin

fashion, product design

12. Ambon

Radio

11.

Palembang

fashion, product design

13.

Pidie Tangekon,

12.

Mataram

fashion, product design



Banda Aceh

Packaging

13.

Jambi

fashion, product design

14.

Garut

Packaging

14.

Pacitan

interior design, product design

15. Bengkalan

Packaging

15.

Ambon

fashion, product design

16. Timika

Packaging

16.

Jayapura

CITY

WORKSHOP

Packaging Packaging

Packaging

business management,

17. Padang

Radio



performing arts

18. Manado

coffee

17.

Pekalongan

fashion, product design

19.

Gunung Kidul, DIY

Packaging

18.

Labuan Bajo

fashion, product design

20.

Lampung Tengah

Packaging

21. Singkawang

3,160

PARTICIPANTS OF CREATE 2016

Packaging

22. Balikpapan

Writerpreneur

23. Jepara

Packaging

3,600

PARTICIPANTS OF CREATE 2017

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33,900 BEKRAF FESTIVAL

TOTAL VISITORS TO BEKFEST 2017

45x 24x TOTAL WORKSHOP 2017

TOTAL BAND 2017

BEKRAF Festival is a proprietary medium to report on BEKRAF’s previous year’s performance. In 2017, BEKRAF Festival was held for three days and featured 39 flagship BEKRAF programs in various formats such as video mapping, interactive floor, film screenings, workshops, talk shows, fashion shows, art performances and music shows.

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ORBIT ORBIT is a mentorship program for young Indonesian designers whose aim is to create new talents that can be the vanguard of the future. ORBIT’s scope of activities includes architecture, interior design, visual communication design, fashion design, lighting design, product design, textile design, craft and landscape.

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IKKON program participants consist of individuals and Creative Economy players, including mentors, instructors, and designers.

IKKON LOCATIONS 2016 - 2018

2016

2017

2018

Sawahlunto, Sumatera

Banyuwangi, East Java

Belitung, Bangka Belitung

Pesawaran, Lampung

Bojonegoro, East Java

Siak, Riau

Ngada, East Nusa Tenggara

Banjarmasin, Kalimantan

Singkawang, Kalimantan

Rembang, Central Java

Belu, East Nusa Tenggara

Dompu, West Nusa Tenggara

Brebes, Central Java

Toraja Utara, South Sulawesi

Wakatobi, Sulawesi

IKKON IKKON (trans. lit. Innovation and Creativity through Nationwide Collaboration) is an empowerment program that places a group of Creative Economy actors in certain regions in Indonesia that are deemed to have the potential to be developed. IKKON instructors and extension staff, consisting of various professionals from design, business and other Creative Economy backgrounds, collaborate directly with local communities in certain areas to develop the regional handicraft products according to market demand.

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DOCS BY THE SEA Docs By The Sea is an international documentary forum that focuses on Southeast Asia documentary film funding and distribution. The forum aims to get Southeast Asian documentaries to get guidance from experienced international mentors, as well as open up opportunities to get international funding and distribution networks.

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TOP 10 FILM DOCS BY THE SEA 2017

FILM

DIRECTOR PRODUCER COUNTRY

01 A Braveman Story Yogi Asroful Fuad 02 A Good Business Hark Joon Lee 03 A Letter to Jejara Sein Lyan Tun 04 All Grown Up Wena Sanchez 05 Aswang Alyx Ayn Arumpac 06 Audio Perpetua Universe Baldoza 07 Boarding School Shalahuddin Siregar 08 Eye on the Ball Chen Yih Wen 09 Goods & Robots Anand Tharaney 10 Going Straight Kristoffer Brugada

MENTOR (INTERNASIONAL) DOCS BY THE SEA 2017 Johnny Bassett Menno Boerema Niels Pagh Andersen Sebastian Winkels Anne Fabini Don Edkins Ulla Simonen Amy Hobby Karolina Lidin Kristine Ann Skaret Peter Jaeger

Bani Nasution Talk Young-hwan Erni Iizuka Lee Do Ang Sein Lyan Tun Abigail Lazaro Armi Rae Cacanindin Silver Dan Belen Shalahuddin Siregar Chen Yih Wen Erni Nandita Solomon Ruchi Bhimani Charena Escala

PITCHING EVENT (INTERNASIONAL) DOCS BY THE SEA 2017 Docedge Kolkata, India CNEX China Documentary Forum, China Tokyo Docs, Japan Incheon Docsport, South Korea

Indonesia South Korea

Myannmar Phillippines Phillippines Phillippines Indonesia Malaysia India Phillippines

Did You Know? Docs By The Sea is the first and only international documentary forum in Southeast Asia.

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BIGGER (BISMA Goes to Get Member)

DATES PLACE

BIGGER (BISMA Goes to Get Member) is a series of events conducted by the Director of Creative Economy Research and Development to introduce the BISMA Application. BIGGER activities consist of open discussions, parallel sessions and master classes.

21 Mei 2017 10 Agustus 2017 17 Maret 2018 11 April 2018 28 April 2018 09 Mei 2018 28 Juni 2018 10 Juli 2018 9 Agustus 2018 6 September 2018

Bandung South Tangerang Cirebon Surakarta Semarang Bandung Manado Yogyakarta Makassar Medan

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BEACON Activities: Beacon Bandung: 26 Agustus 2017 900 Participants BEACON Jakarta: 1-2 September 2018 1,500 Participants

BEACON (BEKRAF Animation Conference) BEACON is an event organized by the Indonesian Agency for Creative Economy to bridge the collaboration and interaction between Creative Economy actors who play a role in the development of animation in Indonesia, including: national animation actors / IP owners, Distributors / TV, Agency, Investors, Government, and Media. WithIn BEACON, it is expected that there will be an exchange of information, experience, business transactions and means to publish the animation works of the nation which will eventually develop a comprehensive national Creative Economy, especially in the Animation Sub-sector.

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BCL (BEKRAF Creative Labs) BCL is a collaborative program between BEKRAF and national universities in Indonesia to fill the flagship Creative Economy program in each of the 16 subsectors. The main objective of BCL is to develop a Creative Economy Leading Center Cluster (PU EKraf). BCL is an ongoing program that is carried out every year where the activities are adjusted to the PU Ekraf Managing Management Roadmap prepared in 2016.

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BISMA (BEKRAF INFORMATION SYSTEM IN MOBILE APPLICATION) Digital application developed specifically by BEKRAF to collect data on the actors and become a one-stop registration portal for the perpetrators of Creative Economy in Indonesia. The benefits obtained by creative industries registered in the BEKRAF database include getting priority in activities held by BEKRAF, including Creative Industry competitions, Exhibitions, Training, Technical Guidance, IPR Registration, Marketing, Financing, Incubators and Market Place. In addition the actors will get 5BE profit, namely Be Updated, Be Marketed, Be Supported, Be Integrated and Be Engaged.

4,182 TOTAL PRODUCTS OFFERED WITHIN BISMA APP

5,044 TOTAL BUSINESSES WTIHIN BISMA APP

20,471 TOTAL REGISTERED MEMBERS (INDIVIDUALS) WITHIN BISMA APP

REGISTERED MEMBERS GROWTH IN BISMA APPS

2016 400 2017 6,600 2018 20,471

Deputy of

D-2

Access to Capital

BEKRAF Activities 2017-2018

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Based on the regulation of the Chairman of the Indonesian Agency for Creative Economy No.1 / 2015 Article 70 concerning the organizational structure and governance of BEKRAF, the Deputy of Access to Capital has been tasked with formulating, coordinating and synchronizing policies and programs related to access to Creative Economy capital.

The Deputy of Access to Capital oversees two directorates, namely Director of Access to Non-Banking Finance and the Director of Access to Banking Finance. Objective: To increase the competitiveness of Creative SMEs, help reduce poverty and expand employment opportunities and increase the added value of players in the Creative Economy Sub-sector.

Target: Fulfillment of capital and capacity building for Creative Economy players. Tasks: • Identification of Creative Economy players to be financed • Help finding market taker / guarantor • Intermediary facilities to access credit / financing to Creative Economy players to banking institutions • Mentoring on product marketing and development, financial management and IPR registration through technical guidance • Developing partnership programs • Credit / financing oversight / management

ACTIVITIES & ACHIEVEMENTS 2017 – 2018

In Indonesia, access to capital is one of the biggest hindrances for Creative Economy players in developing their businesses and also for the Creative Economy sector as a whole. The Banking Access Program, which is run under the Deputy for Access to Capital, is part of BEKRAF’s efforts to bridge Creative Economy players with conventional and Islamic-based banking.

In this program, BEKRAF’s frameworks include, among others, offering intellectual property-based financing solutions that can be in the form of brands, copyrights, and patents as collateral for accessing banking financing.

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Supply (Banking)

Business Matching

Bekraf Financial Club

Demand (CCE Players)

Capacity Building Finance Classes

Approach to the Activities of the Banking Access Directorate

BUSINESS MATCHING Business Matching is one of the banking programs conducted by BEKRAF to bring together Creative Economy players with banks or financiers and facilitates access to financing.

1,000

BUSINESS MATCHING LOCATION 2017

Participants of Business Matching 2017

Batusangkar Semarang Aceh Bandung Jakarta

1,800 Participants of Business Matching (Sharia-based) 2018

BUSINESS MATCHING LOCATION 2018

2,200 Participants of Business Matching (Conventional) 2018

Pekanbaru Aceh Bali Madura Tegal Medan Bandung Palembang Ambon Malang Yogyakarta Purbalingga Salatiga Magelang Toraja Gorontalo Pontianak Bengkulu Semarang

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BEKRAF FINANCIAL CLUB (BFC)

FINANCIAL CLASS SERIES

BEKRAF Financial Club (BFC) is a forum for Creative Economy players and national banks facilitated by the Director of Access to Banking Finance. In this event, creative actors from each Sub-sector will provide an explanation of their respective financing pattern of the Sub-sector, and may continue discussions in private to secure funding or further explore financing patterns. For creative (demand) actors, capital is one of the biggest obstacles in developing their businesses, both from the administrative and technical aspects of the field. Meanwhile, from the banking (supply) side, Creative Economy still largely represents an abstract concept and its potential are not well understood. Therefore, a bridge is needed to bring the two parties toge­ ther and forge new ecosystems for the future.

Financial class is an activity of capacity building for Creative Economy actors in terms of financial management. Through this activity, it is expected that Creative Economy actors are able to manage their business finances from planning to preparing financial statements and understanding the meaning of financial statements.

Location of 2017 Financial Management Classes

420 TOTAL PARTICIPANTS OF BFC 2018 (70 PARTICIPANTS IN 6 CITIES)

Manado Pontianak Tasikmalaya Medan Garut Ambon Riau Yogyakarta Kupang

Pelabuhan Ratu

Location of 2017 Islamic

1,000 Total number of 2017 Financial Management Class participants (10 Cities)

Financial Classes

1,000 Total number of participants in 2017 Islamic Financial Classes (10 Cities)

Makassar

Malang Semarang Bengkulu Sukabumi Bondowoso Samarinda

Tanjung Pinang

Ternate Aceh Financial Class Management 2018 Jambi

700 TOTAL NUMBER OF PARTICIPANTS IN MANAGEMENT FINANCIAL CLASS 2018 (7 CITIES) 700 Total number of participants in 2018 Islamic Financial Classes (7 cities)

Jayapura

Jawa Timur



Jawa Tengah



Sumatera Utara



Sulawesi Selatan

Maluku 2018 Islamic Financial Class

Papua Barat



Jawa Timur



Jawa Barat



Jawa Tengah



Sumatera Barat

Surabaya

Sulawesi Selatan

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DERAP EKRAFPRENEUR HASANAH MULIA (DEUREUHAM) 2018 DEUREUHAM or Derap Ekrafpreneur Hasanah Mulia is a collaboration program between the Deputy for Access to Capital (funneled through the Director of Access to Banking Finance) and BNI Syariah to provide facilitations for Creative Economy players from 16 Sub-sectors to gain access to capital sources or owners. The DEUREUHAM 2018 program focuses on a series of programs that aim to encourage sharia-based Creative Economy players to get financial support from Islamic banks.

600 TOTAL PARTICIPANTS OF ROADSHOW DEUREUHAM 2018 250 TOTAL WORKSHOP PARTICIPANTS (FROM 5 CITIES) 6 TOTAL WINNER FOR DEUREUHAM 2018 COMPETITION (GENERAL CATEGORY & TECHNOLOGY CATEGORY)

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1st Place (General Category): Sipetek Crispy (Culinary Sub-sector) - Jakarta (Aang Permana)

1st Place (Technology Category): Muslim Life (Application and Game Sub-sector) - Palembang (Tri Wahyudi)

Aang Permana, an entrepreneur from Jakarta who previously won the 2017 Young Hero Kick Andy, produces processed food products made from crispy fish and high in calcium, and empowers the community and utilizes local resources.

Muslim Life is a digital application that serves the needs of education and worship for Muslims. Created by Tri Wahyudi, from Palembang, this innovative application is a true solution for users with complete service quality and features, integrated with index-based curriculum, and easy to use with beneficial features. Tri himself has won various awards, including the National Award for the Kemenpora Entrepreneurship Field (2014) and the Second Champion of the Student Entrepreneurial Category Student (2009).

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In addition to the above activities, the Director of Access to Banking Finance also actively cooperates with several banks and regulators. In the beginning of 2018, an MoU was signed between BEKRAF and BNI Syariah, Maybank and Bank Indonesia. This collaboration aims to support the development of capital access from banks for the Creative Economy sector in Indonesia.

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GOVERNMENT INCENTIVE ASSISTANCE (BIP) BEKRAF, through the Deputy of Access to Capital, distributes funds assistance or additional working capital and/or fixed asset investment to Creative Economy players.

2017

2018

34

56

People / Business Recipients of BIP

APPLICATION & GAME DEVELOPER

CULINARY

People / Business Recipients of BIP

Rp 200 Mn Maximum Amount Of Funds Disbursed Per Recipient*

APPLICATION & GAME DEVELOPER

*Set by the Commitment Officer by considering the curator’s recommendation

CULINARY

Rp 6 Bn

13 July - 24 July 2017 Program Registration Period BIP 2017 FASHION

CRAFT

April 30 - May 20 2018 2018 BIP Program Registration Period

Total Funding To Be Distributed 2018

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FOOD STARTUP INDONESIA (FSI) A forum for Creative Economy players, especially in food or culinary engaged both online and offline. BEKRAF’s main functions in the FSI, in addition to partnering with FoodlabIndonesia. com, is to bring together creative players and investors together. BEKRAF also facilitates mentorship programs, acceleration and other support.

Online Platform FSI can be accessed online at www.foodstartupindonesia.com.

FSI ACTIVITIES TIMELINE 2018

26 Januari 2018

Jakarta

KickStart FoodStartup Indonesia 2018

Intended For: Prospective new culinary entrepreneurs (no products, not registered in the BEKRAF system, and not connected to the online ecosystem).

13 Februari 2018

Medan

Roadshow FSI 2018

20 Februari 2018

Bandung

Roadshow FSI 2018

23 Februari 2018

Makassar

Roadshow FSI 2018

01 Maret 2018

Semarang

Roadshow FSI 2018

06 Maret 2018

Banjarmasin

Roadshow FSI 2018

09 Maret 2018

Malang

Roadshow FSI 2018

Offline Platform Known as Demoday, offline activities include roadshows to major cities in Indonesia, mentorship programs, and funding facilitation.

13 Maret 2018

Yogyakarta

Roadshow FSI 2018

20 Maret 2018

Surabaya

Roadshow FSI 2018

23 Maret 2018

Mataram

Roadshow FSI 2018

27 Maret 2018

Belitung

Roadshow FSI 2018

Intended For: Prospective culinary entrepreneurs who already have real products and business traction.

Tanggal Kota Aktivitas

28 Juni 2018

Proses Kurasi Ditutup (Nasional)

28-30 Juni 2018

Surabaya

Curation Stage Ended (National)

27-29 Juli 2018

Surabaya

Expo & Demoday FSI Surabaya

30 - 31 Juli 2018

Mentoringship program (30 Mentor)

1 Agustus 2018

Final FSI

Surabaya

104

AKATARA INDONESIAN FILM FINANCING FORUM AKATARA is a national forum or medium for filmmakers and other players in the film industry and investors both from local and overseas to meet and collaborate. AKATARA’s primary aim is to widen access to funding and financing for Indonesian film projects through pitching and matchmaking process, as well as hold awarding nights sponsored by BEKRAF and the Indonesian Film Board (BPI).

OPUS CREATIVE ECONOMY OUTLOOK 2019

AKATARA SCHEDULE OF ACTIVITIES 2018 Date City Activites End of May 2018

Call for Entry

End of Juni 2018

Opening Submission

End of Juli 2018

Closing Submission

19 April 2018

Makassar

Roadshow

2 Mei 2018

Malang

Roadshow

5 Juni 2018

Jakarta

Pressconfrence,



Investor Gathering, Vidsee event,



Akatara X (Short Film Financing)

3 Juli 2018

Roadshow

Bandung

18 Sept 2018

Live presentation 20 shortlisted

19 Sept 2018

One-on-one meeting



(filmmaker with investor)

18-20 Sept 2018

IFDC Awards: Awarding of the

Jakarta



best 5 directors selected by the



Indonesian Film Director



Association; Giving gift Grant



Proposal to fund Script Writing.

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GO STARTUP INDONESIA

GO STARTUP INDONESIA Go Startup Indonesia is a BEKRAF program aimed at building and strengthening Indonesia’s startup ecosystem. The main objective of this program is to improve the status of startups from the Development stage to Scaling Up, which is achieved through integrative collaboration in the realm of the Indonesian startup ecosystem.

Indonesia’s Go Startup activities include competitions at the regional and national levels and seeking new talent, to select potential startups, and continue with facilitation to the international level for selected finalists (sponsorship, ambassadorship, mentoring etc.).

Emerging TALENT DEVELOPMENT

NETWORKING WITH CORPORATE PARTNERS HUBS-TO-HUBS (OVERSEAS RESIDENSIES)

Development

STARTUP INDONESIA (PORTAL SATU PINTU STARTUP)

Scalling Up

TALENT DEVELOPMENT THROUGH ECOSYSTEM (BEKUP, FSI, BIP) CONTENT DEVELOPMENT

PITCHING (JAKARTA CAPITAL WEEK) INVESTOR RELATION

GO INTERNATIONAL

SECOND BOARD (CREAX)

GO STARTUP CHAMPIONSHIP (GSC) GoStartupIndonesia’s Startup Championship (GSC) is the nation’s preeminent competition startup. GSC features 15 to 30 top early stage startups pitching top judges in front of a vast live audience, present in person and online. The winners of the Startup Championship, which will be determined during the Grand Finale on the Jakarta Capital Week, will also represent Indonesia at various international startup competitions and conferences such as Techcrunch Disrupt, SXSW, Get In The Ring and Startup World Cup.

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GET FUNDED Get Funded is a workshop program that provides practical guidance on aspects of the startup business, especially related to funding.

Date

City Activities

1,000 Participants of Get Funded At Present

8 FebruarY 2018 1 March 2018 12 March 2018 22 March 2018 3 April 2018 22 May 2018 25 May 2018

Jakarta Batam Yogyakarta Bali Padang Surabaya Bandung

7 Locations of the Get Funded Workshop

GET FUNDED SCHEDULED 2018

Workshop Workshop Workshop Workshop Workshop Workshop Workshop

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Rp 5,2 Tn TOTAL REALIZATION OF FUND DISBURSEMENT 2017* * Funneled by conventional and Islamic banks

778 PEOPLE FOOD STARTUP INDONESIA 2017 LOCATION: MEDAN, MATARAM, MAKASSAR, SURABAYA, JAKARTA, BALI, BANDUNG, YOGYAKARTA

230 PEOPLE AKATARA INDONESIAN FILM FINANCING FORUM 2017 CITY: SURABAYA, MAKASSAR, JAKARTA (NON-BANKING ACCESS)

118% REALIZATION OF FUND DISTRIBUTION VS. 2017 FUND DISTRIBUTION TARGET

RP 4,4 Tn

TARGET OF CAPITAL FUND DISTRIBUTION TO CREATIVE ECONOMY PLAYERS 2017

2,180 PEOPLE REALIZATION OF MENTORSHIP IN 2017* *Including Business Management Financial Classes and Sharia Financial Classes

108% REALIZATION OF MENTORSHIP VS. TARGET OF MENTORSHIP FOR CREATIVE ECONOMY PLAYERS 2017

2,010 PEOPLE

TARGET OF MENTORSHIP FOR CREATIVE ECONOMY PLAYERS 2017

7º

Deputy

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71

D-3

of

Infrastructure

BEKRAF Activities 2017-2018

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The growth and development of the Creative Economy sector in Indonesia is still constrained by several factors, both internal and external. The internal factor that is often complained by creative actors is the lack of a potential cultural landscape and the limited availability of buildings as creative spaces and creative space facilities. The main task of the Deputy of Infrastructure is to facilitate physical and ICT Infrastructure, namely by providing space and means to develop the Creative Economy subsector potential in an area.

ACTIVITIES & ACHIEVEMENTS 2017-2018 One of the Deputy’s main programs is Banper (Government Assistance) in the form of Facilitation of Revitalizing Physical Infrastructure of Creative Space, Creative Space Facilities, and Information and Communication Technology (ICT) and building creative city networks that enable creative businesses to interact and collaborate with ease.

GOVERNMENT ASSISTANCE PROCESS Current Year Technical Updates

Socialization

Media Publication

BIP is categorized into three categories: Determine Supervisory Consultants

Revitalizing Physical Infrastructure of Creative Spaces Creative Space Facilities Information and Communication Technology (ICT)

Determination of Beneficiaries

Administration & Verification Selection

Kick Off

Monitoring & Evaluation

Handover

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BOTTOM-UP STRATEGY

EXECUTED

BEKRAF’s series of activities are also intended to serve the needs of creative players actors as outlined in the facilitation proposal and the support proposed by both the Local Government and the Community.

SUPPORTED

ASSESSED (CURATION TEAM)

Proposal from Local Government / Community

Government Assistance for Creative Space Facilities 2017 Rp 19 Bn 38 Locations 7,000 Goods / Equipment

Government Assistance for ICT Facilities 2017 >Rp 2,5 Bn 6 Locations 166 Goods / Equipment 1 Website

Government Assistance for Creative Space Revitalization 2017 > IDR 26 Bn 24 Locations 7,000 Goods / Equipment

48

Government Assistance Recipients 2017

Rp 45,5 Bn Total Budget Allocated by Government

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ACHIEVEMENT OF GOVERNMENT ASSISTANCE PROGRAMS FOR REVITALIZATION, DEPUTY OF INFRASTRUCTURE, SEMESTER I, FISCAL YEAR 2018

KUB Rifaiyah, Kabupaten Batang

Transformasi Teater garasi, Kabupaten Bantul

Rp 8.7 Bn Total Government Assistance Disbursed 7 Revitalization Recipients (5 Cities)

Dinas Pariwisata dan Kebudayaan Kota Sabang

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ACHIEVEMENT OF GOVERNMENT ASSISTANCE PROGRAMS FOR FACILITIES, DEPUTY OF INFRASTRUCTURE, SEMESTER I, FISCAL YEAR 2018

Rp 11.1 Bn Total Government Assistance Disbursed 18 Revitalization Recipients (15 Cities) 335 Submitted Proposals for Government Assistance Through May 2018 Jogja Creative Society, Kabupaten Sleman

Lembaga Binaan Nani House, Kabupaten Sikka

Gedung Aisyah Sulaiman, Kota Tanjungpinang, Riau

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INDEPENDENT ASSESSMENT OF INDONESIAN REGENCY / CREATIVE CITY (PMK3I) Indonesia’s Independent Regency / Creative City Assessment Program (PMK3I) is one of the programs of the Deputy of Infrastructure which aims to identify the potential of a city / district in becoming a center of excellence in a new Creative Economy. The PMK3I program uses online tools and applications as a communication infrastructure that can be used independently by Indonesian creative actors wherever they are.

2016

2017

2018

DISTRICT / CITY TESTED

DISTRICT / CITY TESTED

DISTRICT / CITY TESTED

Visit: www.kotakreatif.id

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CREATIVE VILLAGE / DISTRICT / CITY ECOSYSTEM FORMATION 2017

ESTABLISHMENT OF CREATIVE VILLAGES / DISTRICTS / CITIES 2017

Nias, North Sumatra • Period: February 17 - September 3, 2017 • Subsector: Craft (wood) • Participants: +/- 94 people

West Manggarai, East Nusa Tenggara • Period: February 20 - October 13, 2017 • Subsector: Craft (Weaving) • Participants: +/- 25 people

Samosir, North Sumatra • Period: February 17 - October 5, 2017 • Subsector: Kriya (Tenun Ulos) • Participants: +/- 143 people

Konawe Selatan, Southeast Sulawesi • Period: 24 February - 14 August 2017 • Subsector: Craft (Wood) • Participants: +/- 49 people

Batang, Central Java • Period: February 16 - September 14, 2017 • Subsector: Craft (Batik) • Participants: +/- 50 people

Ternate, North Maluku • Period: February 23 - October 26, 2017 • Subsector: Crafts (Woven) • Participants: +/- 43 people

Pemalang, Central Java • Period: February 16 - September 10 2017 • Subsector: Craft (Batik) • Participants: +/- 52 people Central Lombok, West Nusa Tenggara • Period: February 17 - August 26 2017 • Subsector: Craft (Weaving) • Participants: +/- 95 people Komodo Island, Nusa Tenggara • Period: 20 February - 14 October 2017 • Subsector: Craft (Wood) • Participants: +/- 30 people Maumere, East Nusa Tenggara • Period: February 20 - September 22 2017 • Subsector: Craft (Weaving) • Participants: +/- 34 people

116

BEKRAF FOR PRE-START UP (BEKUP) BEKUP is one of the Deputy of Infrastructure programs specifically designed to finalize the integration of startup ecosystems from upstream to downstream, namely the maturation of candidates for Human Resources who will build startups in the country.

MEDIS ONLINE INDONESIA MOI (Indonesian Online Medical) is a BEKUP 2017 startup alumni from Medan, North Sumatra. MOI is an on-demand digital application for professional nurses and midwives who have been trained in the Indonesian Online Medical Training Center for home care services. MOI serves users who need healthcare services with an easy-to-use application system and fast service. MOI services include: - Preparation for pregnancy - Services for pregnant women - Preparations for childbirth and postpartum - Health services for babies, children, adolescents - Pain treatment to Palliative services MOI is the winner of the 2018 Samsung Global Startup Acceleration Program and will represent Indonesia in competitions with startups from South Africa, Malaysia and India.

OPUS CREATIVE ECONOMY OUTLOOK 2019

72 15 CITIES FACILITATED PRE-STARTUPS 2017

LOCATION OF BEKUP 2017 ACTIVITIES

200 TARGETED PRE-STARTUP TO BE FOSTERED BY BEKUP 2018

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BEKRAF DEVELOPER DAY (BDD) BDD is one of the Deputy of Infrastructure’s programs in the development of digital economy ecosystems in the field of application and game development, especially in improving the capacity and competence of Indonesian ICT developers.

BEKRAF DEVELOPER DAY 2017

BEKRAF DEVELOPER DAY 2018

8 6 CITY

7,500 TOTAL PARTICIPANTS

CITY

4,397 TOTAL PARTICIPANTS

BEKRAF FOR PRE-STRAT UP 2017

BEKRAF FOR PRE-STRAT UP 2018

CITY

CITY

72 PRE-STARTUP TOTAL

200 PRE-STARTUP TOTAL

15 10

7º

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Deputy

of

OPUS CREATIVE ECONOMY OUTLOOK 2019

71

D-4

Marketing

BEKRAF Activities 2017-2018

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The Deputy of Marketing is responsible for expanding the market for Indonesia’s creative products and services so that they are competitive in the global market. The strategy undertaken by the Deputy included exhibitions, promotion and branding of Indonesia’s creative products and services, and building a comprehensive and consistent national product image both in Indonesia and abroad. The Deputy of Marketing is comprised of two directorates which are headed by the Director of Domestic Market Development and the Director of International Market Development.

ACTIVITIES & ACHIEVEMENTS 2017-2018 DOMESTIC ACTIVITIES 2017-2018

ICINC METRO TV KREATORIAL is a regular rubric in leading national newspapers which presents updated information on the development of Creative Economy sector in Indonesia and other related information of Creative Economy. KREATORIAL is a form of support from BEKRAF to encourage Creative Economy through media publications, both print and visual.

16 KREATORIAL Editions 2017 26 August 2017 KREATORIAL premiere edition 2017

With a total of 18 segments, ICINC BEKRAF’s video appears among the Metro TV program changes. TV viewers can find out directly the information of creative actors and the various activities that BEKRAF has done in encouraging the growth of the Creative Economy.

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KREATIFOOD Kreatifood 2018 features a a different concept from previous years, whereupon the creative products sold in Kreatifood 2018 comprise of products that have passed the Indonesian Food Startup curation. Activities include sales transactions, networking, business negotiations, product sampling and tasting, knowledge-sharing across startup businesses in the culinary field, to cross product sales between startups in Food Startup Indonesia

ACTIVITIES TIMELINE KREATIFOOD 2018 No Venue

City

Date

1

Ciputra World

Surabaya

27-29 Juli 2018

2

Manhattan Times Square Mall

Medan

10-12 Agustus 2018

3

Opi Mall

Palembang

24-26 Agustus 2018

4

Hartono Mall

Jogjakarta

7-9 September 2018

5

Gandaria City

Jakarta

21-23 September 2018

6

Festival Citylink Mall

Bandung

5-7 Oktober 2018

7

Malang Town Square

Malang

19-21 Oktober 2018

8

Big Mall Samarinda

Samarinda

22-28 Oktober 2018

9

Ratu Indah

Makasar

9-11 November 2018

10

Mall Bali Galeria

Bali

17-19 November 2018

10 CITIES WITH KREATIFOOD 2018

93 – Total Number of Creative Players in Culinary Facilitated in Marketing at Kreatifood 2018

100 Business Leads in Kreatifood 2018 (in Surabaya, Medan, Palembang, and Yogyakarta

Rp 552 Mn – Total Transaction Value During Kreatifood 2018 (Surabaya, Medan, Palembang, Yogyakarta)

>Rp 600 Mn Projected Value Created During Kreatifood 2018

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OVERSEAS ACTIVITIES 2017-2018 SXSW (South by Southwest) An annual film, music and interactive media festival, SXSW is one of the largest music festivals in the world with 2,500 artists, performers and bands playing in more than 100 places.

New York Now An annual exhibition and marketplace for household and lifestyle products attended by more than 2,800 companies, New York Now is a form of support by BEKRAF in collaboration with the Indonesian Consulate General in New York to facilitate land leasing, booth design and construction, cargo and promotions for eight Indonesian brands in the United States. In 2017, the B2B event was held on August 19-23, 2017 at the Jacob K. Javits Convention Center, New York, United States.

US$ 71,117*

Total Sales by Indonesian Delegates During New York Now 2017 (Rp 974,842,800)

*Hasil penjualan langsung atau dari kontrak dan janji pembelian yang terealisasikan pasca event

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Salone Del Mobile Salone Del Mobile is one of the most prestigious product and craft design exhibitions held annually in Milan, Italy. In 2017, Indonesia broke the milestone by participating for the first time at this world exhibition.

Venice Art Biennale Venice Biennale Arte, also known as La Biennale di Venezia, is the world’s oldest and most prestigious bi-annual art exhibition. At the 2017 Venice Art Biennale, which took place from 10 May to 26 November 2017, the Indonesian Pavilion at Arsenale forged a new history after Indonesian artist Tintin Wulia built her stage in two different cities, Jakarta and Venice, simultaneously with the help of internet.

124 7º

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Deputy of Intellectual and Regulations

OPUS CREATIVE ECONOMY OUTLOOK 2019

125 71

D-5

of Facilitation Property Rights

Bekraf Activities 2017-2018

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The Deputy of Facilitation of Intellectual Property Rights and Regulations is responsible for building the awareness and ecosystem of national intellectual property rights (IPR). The programs of Deputy of Intellectual Property Rights and Regulation include providing information on IPRs in the form of applications, establishing anti-piracy Task Force, presenting IPR consultants to provide one-to-one consultations for free, and providing facilitation for IPR registration for Creative Economy players. In addition, the Deputy of Facilitation of Intellectual Property Rights and Regulations also provides facilities for professional certification for Creative Economy players, helps the formation of regional regulations related to the development of Creative Economy and also helps to establish a legal entity for Creative Economy businesses. The Deputy of Facilitation of Intellectual Property Rights and Regulations oversees two directorates, headed by the Director of Facilitation of Intellectual Property Rights and Regulation, and the Director of Harmonization of Regulation and Standardization. ACTIVITIES & ACHIEVEMENTS 2017-2018

1,000 5,571 557,1

1,650* 1801 109,15

Targeted Creative Economy Players Receiving IPR 2017 / Realization of Creative Economy players Receiving IPR 2017 / Percentage of 2017 target realization

Targeted Number of Registration for Creative Products 2017 / Realization / Percentage of achievements

Source: Data on Administration Sub-Section on IPR Facilitation Directorate (December 2017)

*Originally 2,000, lowered to 1,650 due to budget cuts

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SOCIALIZATIONS FROM ANTI PIRACY TASK FORCE The Creative Economy Anti-Piracy Task Force Team is tasked with monitoring, responding to and handling complaints of piracy cases of Indonesia’s creative products.

1,000 TOTAL PARTICIPANTS DURING SOCIALIZATIONS FROM ANTI PIRACY TASK FORCE 2017 IPR SOCIALIZATION: CREATIVE DIGITAL X LINE The IPR socialization to Creative Economy players in the creative digital field was carried out in collaboration with Line Indonesia, a digital application company.

590 TOTAL NUMBER OF PARTICIPANTS 2017

10

REGIONS IN INDONESIA WITH SOCIALIZATIONS FROM ANTI PIRACY TASK FORCE 2017 (JAYAPURA, AMBON, SOLO, SOREANG, LEMBANG, ACEH, BANDUNG, PADALARANG, JAMBI, AND ACEH BESAR)

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30 KOTA*

SOCIALIZATION, CONSULTATION AND FACILITATION OF REGISTRATION OF INTELLECTUAL PROPERTY RIGHTS (IPR)

In 2017, the IPR Socialization, Facilitation and Registration Activities were carried out under the supervision of the IPR Management Sub-Directorate and in collaboration with two state universities, UPN Yogyakarta and UNS Solo, from 12 July 2017 to 8 November 2017.

2.009 / 660 NUMBER OF PARTICIPANTS OF IPR SOCIALIZATION ACTIVITIES / NUMBER OF CONSULTATION AND FACILITATION PARTICIPANTS FOR IPR 2017

1,507 TOTAL NUMBER OF IPR REGISTERED THROUGH 2017 ACTIVITIES

31

CITIES WITH IPR SOCIALIZATION, CONSULTATION AND FACILITATION ACTIVITIES 2017

DIRECTORATE OF REGULATION AND

LOCATION OF SOCIALIZATION ACTIVITIES AND REGISTRATION OF PRODUCTS / SERVICES CREATIVE ECONOMY 2018

2.250* Total Number of Participants In IPR 2018 Socializations 1.875*

TARGETED (BRAND / PRODUCT) IPR REGISTRATIONS 2018

4 CITIES* WITH IPR MENTORING FOR CREATIVE ECONOMY PLAYERS *National Priority Program Activities Plan (PPN) 2018

LMK & LMKN SOCIALIZATION

STANDARDIZATION HARMONIZATION

Facilitation for the Establishment of Creative Economy Regulations This program is designed to form new regulations that support the development and enhancement of the Indonesian Creative Economy.

The Socialization of Collective Management Institutions (LMK) and the National Collective Management Institute (LKMN) was conducted in 8 cities in Indonesia in collaboration with UNS Solo and UPN Yogyakarta.

PERIOD: 4 APRIL 2017 - 28 AUGUST 2017

540 TOTAL NUMBER OF PARTICIPANTS IN LMK & LMKN SOCIALIZATIONS 2017

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FACILITATION FOR THE ESTABLISHMENT OF LEGAL

FACILITATION OF ESTABLISHMENT OF LEGAL ENTITY FOR CREATIVE

ENTITIES FOR CREATIVE ECONOMY BUSINESSES

ECONOMY BUSINESSES IN 2017

This facilitation program is carried out to support Creative Economy players, especially in the MSME segment, to secure legal business ownerships which will in turn stimulate the local economy. This program is a collaborative program between the Indonesian Notary Association (INI) and various Indonesian Creative Economy communities, such as the UMKM Community.

City

Date



17 July 2017 31 July 2017 15 August 2017 22-23 September 2017 5-6 October 2017 13-14 October 2017 19-20 October 2017 7-8 November 2017 21-22 November 2017 28-29 November 2017

3,460 / 28 NUMBER OF PARTICIPANTS (CREATIVE ECONOMY PLAYERS) IN PROFESSIONAL CERTIFICATION FACILITATION PROGRAM 2017 / REGENCY / CITY

1,644 / 20 NUMBER OF PARTICIPANTS (CREATIVE ECONOMY PLAYERS) IN PROFESSIONAL CERTIFICATION FACILITATION PROGRAM THROUGH MAY 2018 / REGENCY / CITY

Solo Jakarta Jember Jakarta Kab. Agam Kediri Jakarta Palembang Batam Makassar

18

Business Establishment Handbook Published by BEKRAF and Sebelas Maret State University 2017

161NUMBER OF PARTICIPANTS (CREATIVE ECONOMY PLAYERS) IN ASSESSORS’ CERTIFICATION FACILITATION PROGRAM 2017

130 7º

Deputy

OPUS CREATIVE ECONOMY OUTLOOK 2019

and Regional

OPUS CREATIVE ECONOMY OUTLOOK 2019

131 71

D-6

of Institutional Relation

BEKRAF Activities 2017-2018

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The Deputy of Institutional and Regional Relation is tasked with formulating, establishing, coordinating and synchronizing policies and relations programs between institutions and regions both at home and abroad. The role of the Deputy of Institutional and Regional Relations is to build a comprehensive Creative Economy ecosystem in Indonesia that involves the academics, communities, media, business, and government both from within and outside the country. In an effort to map out and develop the regional potential, the Deputy of Institutional and Regional Relations applies the principle of “3C: Connect - Collaborate – Commerce” towards all stakeholders, both within regional and national scale, and involving Pentahelix elements, namely Academician, Businesses, Community, Government, and Media (Pentahelix). The first stage of “3C,” namely “Connect” means to hold an activity in the form of a Memorandum of Understanding. The next stage is Collaboration and Commercialization, carried out by conducting the Pentahelix Integrated Group Discussions. The Deputy oversees the Director of Domestic Relations and the Director of International Relations.

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ACTIVITIES & ACHIEVEMENTS 2017-2018

KOPIKKON Established in 2017, KOPIKKON is a cooperative program with the aim to accommodate Creative Economy players, especially participants from the IKKON program, to be able to more easily market their products.

5

22 Proposals received in 2016

24

75 Proposals received in 2017

PROPOSALS RECEIVED THROUGH JUNE 2018

KOPIKKON LOCATIONS IN INDONESIA THROUGH MAY 2018 (BREBES, NGADA, PESAWARAN, REMBANG, AND SAWAHLUNTO)

SATU PINTU The Satu Pintu (One Door) Program was started in 2017 and is targeted to become a mechanism designed to facilitate public access to BEKRAF. The forms of support that BEKRAF can provide include operational assistance, facilities and infrastructure assistance, rehabilitation assistance, building, building construction, awarding, and so on.

FLOWCHART OF PROPOSAL SUBMISSION THROUGH SATU PINTU:

Submit proposals through online and offline (at booths at BEKRAF events)

Submitted proposals are selected administratively

Internal curation and selection process

Announcement of selection results and preparation for follow-up

Implementation of approved activities

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FACILITATION OF ESTABLISHMENT OF REGIONAL FILM COMMISSIONS The Regional Film Commission (KFD) is an institution formed by BEKRAF in collaboration with the Indonesian Film Agency (BPI) to facilitate and encourage local governments to initiate the formation of their respective KFDs in their regions. Forms of Facilitation: 5 REGIONAL PILOT PROJECT LOCATIONS 2018 Licensing management including incentives in the local shooting area Integrated services that are directly or indirectly related to the technical needs of film production Actively market the area as a location for shooting films.

Hasil Capaian Tahun 2017 :

Province / City / Regency

Institutions

Bandung Privat Swasta Bojonegoro BLU / UPT Banyuwangi In accordance with the Regent’s direction D.I. Yogyakarta cooperation between the government and the private sector Siak UPT

Buku Pedoman Pembentukan Komisi Film Daerah

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135

WORLD CONFERENCE ON CREATIVE ECONOMY 2018

The World Conference on Creative Economy 2018 is the first international-scale Creative Economy conference in the world. The creative industry has shown its excellent potential as one of the primary drivers of growth during the recent global financial and economic crisis. With technological growth and increasing income from developing countries, it is projected that the Creative Economy sector will be the future of the global economy. This conference will bring together representatives from government, business, think tanks, communities, international organizations, media and experts in the creative economy, who will all congregate at this year’s theme: “Inclusively Creative.”

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TRAVEL GRANT One of the leading work programs to facilitate Creative Economy players in order to develop the Creative Economy in Indonesia is the Travel Grant. Creative Economy players, as the spearhead of the Creative Economy sector, need to be supported for capacity building in 3 things, namely: First > Expand Creative Economy players’ horizon regarding the development of creative industries abroad; Second > Improve the competitiveness of Creative Economy players so they can compete in the international market; Third > Expand and strengthen international networks and investment cooperation opportunities. The program is supported through the One-Stop Integrated Service (www.satupintu.bekraf.go.id) BEKRAF in curating proposals in various overseas activities.

TRAVEL GRANT SUPPORT FOR CREATIVE ECONOMIC PLAYERS: CEPA and WCCE I-EU Meeting in Brussels, Belgium Ambiente 2018 in Frankfurt, Germany Berlinale 2018 in Berlin, Germany

London Book Fair 2018 in London, England Brussels Short Film Festival 2018 in Brussels, Belgium The 16th Venice in the Musica Choir Festival and Competition in Venice, Italy

London Fashion Week 2018 in London, England SOTOY - Thailand Toy Expo in Thailand Amazon Tokyo Fashion Week in Tokyo, Japan ACBS Working Group Meeting & Asia Film Forward in Hong Kong and Macau

Contemporary Dance Show in Moscow, Russia Get in The 2018 Global Ring Portugal (Homade) in Portugal

Daun Muda Awards, Citra Pariwara 2017 BG Awards in Bangkok, Thailand

International Tokyo Pantomime Festival 2018 in Japan

Nusantara to Europe Islamic Roadshow with Ki Ageng Ganjur in the Netherlands and Germany

Japan International Ensemble Guitar Festival in Japan

The 8th International Mission in Art and Culture in the 54th Montreux Choral Festival (PSM IPB) in Switzerland.

Managing New Displacements From Geography Seminar in Chile

Thailand SEAPAVAA 2018 Conference and 2018 Czech FIAF in Thailand and Czech

IANTA (Brother None Goes to Broadway) in New York, United States

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Epilogue

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GLOBAL ECONOMIC PROSPECT The 3.1 percent global economic growth seen during 2017 was stronger value than previously estimated. According to the World Bank, this strengthening was caused by a significant recovery in the investment, manufacturing and trade sectors. The increase in commodity prices at that time also carried a considerable impact as the profits gained by developing countries also increased rapidly. However, the World Bank also said that the increase in 2017 could be seen as short-term progress due to the full use of labor and capital. In 2018, the World Bank projects that global economic growth will be the same as last year, which is 3.1 percent. The World Bank’s prediction also states that developed countries will experience a decline in economic growth to 2.2 percent while developing countries will see an increase to 4.5 percent in 2018 due to increased commodity export activities. The IMF noted that in the first quarter of 2018 there was a recorded global economic growth of 3.9 percent. Meanwhile, economic growth in developing countries (emerging markets) was 4.9 percent, while developed countries showed

growth rate of 2.5 percent. In general, economic growth in the first quarter far exceeded the projections predicted by the World Bank and IMF. However, the positive growth that occurred in the first quarter of 2018 is predicted to not last until the end of the year. As had happened in the second quarter of 2018, the global economy began to show a slowdown in economic activities. Trade tensions such as the increase in world oil prices and the strengthening of the US dollar are considered to be the biggest catalysts for the decline in the economic performances of several countries. Therefore, prospects for crude oil exporting countries are likely to be bright, while for oil importers the opposite might be quite true. In 2019, the World Bank predicts that there will be a slowdown in global economic growth to only 3 percent. This global economic slowdown follows the trends of the economies of developed countries, Asia Pacific countries, and European countries which are all predicted to experience a significant slowdown. The cause of the slowdown will be similar, which are protectionist trends, political and trade tensions, and declining global economic integration.

Global Economic Growth Rate

2017 2018 2019 3.1% 3.1% 3.0% Source: World Bank

Economic Growth Projections According to Economic Classification 2018 Developed Nations World Bank IMF

Developing Nations

2019

2.2% 4.5% 3.0% 2.5% 4.9%

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INDONESIA’S ECONOMIC CONDITIONS Based on data from Statistics Indonesia, Indonesia’s economic growth in 2017 was recorded at 5.07 percent. While this number is lower than the target set by the government, it is still the highest growth seen since 2014. Entering the first quarter of 2018, Indonesia’s economic growth was recorded at 5.06 percent. Trade balance deficit, where import increased while exports weakened, was blamed as the culprit which set back the government’s target of 5.2 percent. The increase in imports in the first quarter was generally influenced by the strengthening of investment in fixed assets due to the increase in global commodity prices. Meanwhile, in the second quarter of 2018, Indonesia’s economy showed better performance with economic growth of 5.27 percent. This increase was influenced by an increase in several economic components such as other services, corporate services, transportation and warehousing, and household consumption. Positive trends in the first half of 2018 seem to provide a positive outlook on the overall economy of Indonesia in 2018. Indonesia’s economic growth, which was originally predicted by Bank Indonesia to hover around 5.1 to 5.4 percent, was tested by the weakening rupiah phenomenon which occurred simultaneously at that period of time. The trade balance deficit and the dominance of the consumer sector further exacerbate the weakening of the rupiah and the currency is not expected to recover until the end of 2018, diminishing the targeted economic growth. Increased investment, controlling imports, and encouraging exports are reasonable and sustainable keys that can unlock economic growth for the second half of 2018 and the year as a whole.

5.06% Indonesian Economic Growth Level Q1 2018 5.27% Indonesian Economic Growth Level Q2 2018 Key To Maintaining Strong Economic Growth 2018:

Increased investment Import control Export support

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Indonesia’s economic growth in 2019 is expected to reach 5.3 percent (Asian Development Bank, Focus Economy). The predicted increase in economic growth in 2019 will be achieved by encouraging various factors such as increased personal consumption stimulated by the 2019 presidential elections, high infrastructure investment, improvements in the transportation and connectivity sectors such as MRT which will affect investment and export performance.

INDONESIA’S CREATIVE ECONOMY The rapid development of digital technology can no longer be ignored or denied, as it has had a significant influence on the world of creativity. Digital media can act as a medium for the distribution of creative ideas that are born of the human mind. The use of digital technology seems to have spread in all Creative Economy Sub-sectors, including Design, Film, Music, Fine Arts, and so on. The convenience offered by digital technology has also increased creative outputs in the world economy. The Creative Economy sector in Indonesia is not far behind when it comes to digital technology advancements among the world’s nations. The rising sector, which has increasingly becoming the focus of the Indonesian government, con­ ti­­­nues to grow rapidly over the past five years. Statistics Indonesia noted that the Creative Economy contributed 922 trillion, or around 7.44% of the national economy in 2016. This figure is expected to continue to rise significantly until 2019. Last year, the Creative Economy’s GDP was estimated to have reached more than one thousand trillion rupiahs. This figure will continue to rise to over 1.2 thousand trillion in 2019. The Fashion, Craft and Culinary Sub-sec­ tor will continue to lead the creative industry, especially since these Sub-sectors are also rela­tively more resistant against global economic shocks. At the same time, the weakening rupiah value may become a boon for some Creative Economy Sub-sectors in Indonesia. Creative products which use a lot of local raw materials such as Fashion and Craft will become more attractive in the global market. Creative services will also be increasingly sought out by foreign investors or buyers. The latest Statistics Indonesia data states that exports of creative products reached 19.99 billion United States dollars or comprising around 13.77 percent of total national exports. Exports of these creative products are also

OPUS CREATIVE ECONOMY OUTLOOK 2019

expected to continue to increase with growth above three percent on average per year until 2019. Creative Economy posseses great potential and can serve to alleviate the problems of unemployment in various parts of the world. Nearly 17 million workers were absorbed in the Creative Economy sector in Indonesia in 2016. This figure is believed to continue to increase to above 19 million workers in 2019. BIGGEST CHALLENGES IN THE INDONESIAN CREATIVE ECONOMY SECTOR 2019:

Unequal developments within the entire sub-sector Finance and capital access Market penetration to overseas market for local creative products Relatively lax enforcement for IPRs for creative players Relatively low level of education

5.3% Prediction of Indonesian Economic Growth Rate 2019* Source: Asian Development Bank, Focus Economy

7.44% Creative Economy Contribution to the National Economy 2016 Rp 1,009 Tn GDP Value of Creative Economy 2017 Rp 1,106 Tn GDP Value of Creative Economy 2018 Rp 1,211 Tn GDP Value Projection for Creative Economy 2019

Source: Nan Jombang

Source: Anton Ismael

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