Jakarta's Creative Economy Poised to Become New Growth Engine, Says Bank Indonesia

The creative economy holds significant promise as a new driver of economic growth for Indonesia's capital, Jakarta. Officials at Bank Indonesia's (BI) DKI Jakarta representative office believe the sector's development can create a ripple effect, benefiting not only those directly involved in creative industries but also stimulating a wide range of other economic activities.

Bambang Arianto, Deputy Head of BI's DKI Jakarta Representative Office, explained that creative economy activities possess a unique characteristic: they can catalyze growth in sectors beyond their primary focus. He cited the example of a music concert, which generates revenue not just from ticket sales but also spurs transactions in food, beverages, apparel, and accessories.

"The creative economy can be the initial spark and accompany other developments. Its multiplier effect will spread everywhere," Bambang stated during a media briefing in Jakarta. He elaborated that a single creative event can lead to transactions across multiple sectors simultaneously. This interconnectedness highlights the sector's potential to foster broader economic engagement.

Furthermore, the growth of the creative economy does not necessarily lead to a shift towards the informal sector. BI noted that several subsectors within the creative industries are evolving into formal businesses, complete with established company structures, licensing, and tax responsibilities. For instance, event organizers often require formal business entities to manage large-scale activities, and successful content creators may transition into formal employment or establish their own registered companies.

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The creative economy can be the initial spark and accompany other developments. Its multiplier effect will spread everywhere.