O
u
tlook
2
0
1
9
re
a
tiv
e
E
con
om
y
ADVISOR:
Triawan Munaf Ricky Joseph Pesik
DIRECTOR:
Abdur Rohim Boy Berawi
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
“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.
Fika Aprina Jasmine Joko Bramantio Nurhani Yatimah
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
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.
Foreword
JAKARTA, OCTOBER 2018
CHAIRMAN OF CREATIVE ECONOMY AGENCY OF REPUBLIC OF INDONESIA
Table
of
Preamble
Insights
22 - Insight 2018 30 - Forecast 2019 12 - Where We Stand Today
16 - Where We Are Heading 18 - A Portrait of Indonesia’s
Content
Updates On
Creative Economy
Sub-Sectors
BEKRAF Activities
2017 – 2018
Epilogue
78 - Deputy of Research, Education and Development 94 - Deputy of Access to Capital 108 - Deputy of Infrastructure 118 - Deputy of Marketing 124 - Deputy of Facilitation of
Intellectual Property Rights and Regulation
130 - Deputy of Institutional and Regional Relation
140 - Global Economic Prospects
141 - Indonesia’s Economic Conditions
142 - Indonesia’s Creative Economy Prospects 34 - Architecture
36 -Interior Design 38 -Visual Design 40 -Product Design
42 -Film, Animation and Video 46 - Photography
48 - Craft 50 - Culinary 52 - Music 54 - Fashion
58 -Application dan Game Developer
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.
ADVANTAGES OF CREATIVE ECONOMY VS. TRADITIONAL ECONOMY
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.
Flexible:
The Creative Economy is, by nature, flexible and not rigid like
traditional industries, and can better adapt to a rapidly changing
environment
Low Cost:
The Creative Economy sector requires little to no upfront capital,
unlike traditional sectors which require heavy investments in
ma-chineries or plants
Environmentally friendly:
The Creative Economy does not tax the environment, since the primary product is human
creativity
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
Improve Living Standards and Aver-age Salaries:
The rapid development of the In-donesian Creative Economy sector and the large potential of its market will encourage Foreign Direct
Investment into the country
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
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
“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
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.
MILESTONES
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. 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.
BEKRAF began work at various regions in Indonesia to build efficient and conducive Ekraf ecosystems throughout the archipelago.
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.
1st-ever Indonesian Cultural Product Week
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 Presidential Instruction No. 6 of
2009, pioneer legislation for Creative Economy in Indonesia
Change of name from “Indonesian Cultural Product Week” to “Indone-sian Creative Products Week”
2007
2018
2009
2011
2015
2017
2016
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 Econ-omy sector is projected to exceed 1,000 trillion rupiahs in 2017 and increased to 1,102 trillion rupiahs in 2018.
CREATIVE ECONOMY CONTRIBUTION TO INDONESIAN GDP:
2019 – Rp 1,211 T 2018 – Rp 1,105 T 2017 – Rp 1,009 T
2015 – Rp 852 T 2016 – Rp 922,59 T
CREATIVE ECONOMY WORKFORCE GROWTH RATE IN INDONESIA (2014-2017)
YEAR NUMBER (IN MILLIONS PEOPLE) GROWTH (%)
2017 17.43 4.13%
2016 16.91 5.95%
2015 16.06 5.22%
2014 15.46 2.94%
CREATIVE ECONOMY WORKFORCE GROWTH 2016*
118,405,188
PEOPLE
16,909,690
PEOPLE
3.02
%
5.95
%
GROWTH RATE GROWTH RATE
Creative Economy
National
In addition to the GDP, Creative Economy sector also saw an increase in its labor workforce num-ber. 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.
Go-Jek
Valuation Estimation (May 2018): US$ 5 Bn (Rp 69.4 Tn) Leading Investors: Sequoia Capital, Temasek Holdings, Google Inc, Tencent, JD.com, Meituan-Dianping, KKR, War-burg Pincus, Farallon Capital, Capital Group Markets, GDP Venture, Rakuten Ventures, Allianz, dan Astra International Funding Milestones:
2016: US$ 550 Mn (company valuation: US$ 1.3 Bn) 2017: US$ 1.2 Bn (Rp 17 Tn) 2018: US$ 150 Mn (Rp 2 Tn)
Bukalapak
Valuation Estimation (May 2018): US$ 1 Bn (Rp 14 Tn) Leading Investors: Emtek, 500 Startup, dan QueensBridge Venture Partners
Funding Milestones: Not published
(Unicorn status achieved) 2018
Tokopedia
Valuation Estimation (May 2018): US$ 1.062 Bn (Rp 15 Tn) Leading Investors: Alibaba, CyberAgent Ventures, SIMI (Softbank Internet and Media Inc.), Sequoia Capital, SB Pan Asia Fund
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) 2017: US$ 1.2 Bn (Rp 15 Tn)
Traveloka
Where Are
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, capitaliz-ing 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 Econo-my including Britain, South Korea and Australia. As part of its efforts to develop Creative Econ-omy in Indonesia, BEKRAF provides facilitation and assistance to creative players in the form of funding, domestic and foreign marketing, educa-tion and workshops, as well as other facilitaeduca-tion and assistance.
SALES IDEA / PRODUCT
MARKETING
BEKRAF Building A Cohesive
Creative Economy Ecosystem
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)
INDONESIA’S GLOBAL RANKING BASED ON LARGEST ECONOMY (PROJECTIONS FROM PWC, 2018)
Projection for
Indo-nesia’s Digital
Econ-omy 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 ECO-NOMIC ECOSYSTEM
BUILDING 4G NETWORK CON-NECTIVITIES THROUGHOUT THE ARCHIPELAGO
ISSUED THE E-COMMERCE ROAD MAP, A ROADMAP FOR ELECTRONIC-BASED NATION-AL TRADE SYSTEM
need of accurate, updated information
regard-ing the creative industry and its related
periph-eries, 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
ECONO-MY SECTOR 2016
A PORTRAIT OF
INDONESIA’S
CREATIVE ECONOMY
HIGHEST GROWTH
SUB-SECTORS IN CREATIVE
ECONOMY 2016
Animation & VideoTop 5 Provinces With Highest Contri-bution to Creative Economy GDP 2016
West Java — 31.96% East Java — 24.36% Banten — 15.23% Central Java — 14.49% DKI Jakarta — 8.97%
Provinces With Largest Creative Economy GDP Contribution 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
Provinces
5
29
Provinces
(Yogyakarta, Bali, West Java, East Java, North Sumatra)
48.04%
51.96%
COUNTRIES 2016 (% TOTAL EXPORT)
United States
30.24%
Swiss
0.45%
Japan
6.79%
Singapore
6.14%
Germany
4.43%
Rp 19.98 Bn
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%
1 out of 5
WORKER IN
THE CREATIVE
ECONOMY
SECTOR IS
AGED 20-24
YEARS
PROFILE OF CREATIVE ECONOMY LABOR
VS. NATIONAL LABOR 2016
CREATIVE ECONOMY
NATIONAL
Male: 44.26%
Female: 55.74%
Male: 61.60%
Female: 38.40%
600 Mn
ESTIMATED TOTAL
POPULATION IN
SOUTHEAST ASIA
250 MN
ESTIMATED
TOTAL POPULATION
IN INDONESIA
143.26 Mn
Estimated Internet
Users in Indonesia
2016 (52% from
total population.)
63.5%
Internet Users in
Indonesia Who
Had Transacted
Online 2016
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
On its second annual publication, BEKRAF, in
cooperation with partner research institutions
in-cluding Statistics Indonesia (BPS), PwC, The
Niel-sen 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,
name-ly 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
road-map for creative players in Indonesia.
INSIGHTS 2019
S
u
m
b
e
r:
fo
to
i
st
im
e
w
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 oper-ates 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 propri-etary 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
Gender:
Female:
51.1%
Male:
48.9%
PROVINCES WITH HIGHEST CONCEN-TRATION OF E-COMMERCE USERS:
Greater Jakarta Area 20.4%
East Java 17.8%
Central Java 12.7%
West Java 9.3%
North Sumatera 7.6%
South Sulawesi 3.7%
South Sumatera 3.4%
Lampung 3.2%
Dl Yogyakarta 2.7%
Bali 2.6%
Riau 2.4%
East Kalimantan 1.5%
West Kalimantan 1.5%
Riau Islands 1.4%
Jambi 1.3%
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 (Facebook / Instagram / Twitter,dll) 53.4%
TV 41.7%
Ads in other online websites 33.8% Family / Relatives / Friends 29.3%
Ads in Other Apps 25.9%
OOH (Ads in Buildings, Offices, Hospitals etc.) 11.3%
Other 8.5%
Billboard Ads 8.4%
Ads in Public Transport 7.3%
News 6.2%
Ads in Streaming Music (Joox, Spotify, etc.) 3.4%
Booth/Event 3.0%
Ads in Radio 2.8%
Rp 101,000 -250,000 40.5%
Rp 251,000 – 500,000 27.0%
AVERAGE MONTHLY SPENDING IN E-COMMERCE (LAST 3 MONTHS, ALL PLATFORM)
Gadgets & Accessories 34.7%
Digital Products (Data packages, mobile games voucher,
social security, electricity, etc.) 34.5%
Personal care & cosmetics 29.2%
Bags 27.7%
Shoes 26.8%
Hobbies & Collections 20.7%
Groceries 18.9%
Kids & Baby Products 12.5%
Home Appliances 12%
Sports & Outdoor 7.2%
Office supplies 5.2%
E-COMMERCE SHOPPING FREQUENCY
>1x per month 11.9%
1x per week 8.8%
2 – 3x per month 24.2%
1x per month 19.7%
1x per 2 – 3 month 17.7%
<6x per month 11.9%
1x per 4 – 6 month 5.8%
HIGHEST TOP-OF-MIND E-COMMERCE BRAND
Shopee 38.6%
Tokopedia 26.6%
Lazada 15%
Bukalapak 13.1%
Blibli 2%
MOST PURCHASED CATEGORIES IN E-COMMERCE
Specializations and niches Relevance to target audience Technology (AI, VR) Distribution of contents
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 2018-2022 which can be accessed at www.pwc.com/ outlook.
TIONS, AND TRUST
In an annual study conducted by PwC, titled
Perspective from the Global Entertainment & Media Outlook 2018-2022, the global Entertain-ment & 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.
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
real-world problem(s).
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.; Ven-turing 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; Ven-turing into the motion picture business with its Amazon Studios.
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
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.
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 horizon-tally 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.
CASE STUDY
Problem:
Parking hassle
Problem:
Traffic jams
Problem:
Too lazy to
move
Problem:
Pressed for time
Problem:
Comfortable &
affordable public
transportation
Problem:
Alternative payment
system besides debit /
credit
Convergence
Integrated solution
TAKE AWAY
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
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 mea-surement 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
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 &
Tab-loid 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 The data used in this report is taken from the 2017
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 trans-actions. The data exchange ecosystem’s tested incentive mechanisms ensure continuous usage of the application. HARA’s pilot projects have al-ready 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 block-chain 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 alterna-tive 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
2009
The South Korean government established an agency to oversee and coordinate the South Korean creative industry
2013
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% (year-on-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
CASE STUDY: SOUTH KOREA
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
(dou-ble income household)
2018
53%
PERCENTAGE OF
MARRIED COUPLES
IN INDONESIA WITH
EQUAL DIVISION OF
WORK (TASK-BASED
SHARING) 2018
TASK-BASED SHARING HOUSEHOLD PROFILE 2018
Wife earns more: 6%
Both earn same: 16%
Husband earns more 787%
FORECAST 2019
PROJECTED DATA CONSUMPTION BY CONTENT TYPE (CAGR) 2017-2022
Source: PwC Global Entertainment & Media Outlook 2018-2022. www.pwc.com/outlook
Communications 28.5%
Games 27.8%
Video 25.4% Other digital content 24.2%
Music 23.9% Social Networking 20.7%
Web Browsing 18.8%
THE ESSENTIAL EIGHT
Internet of Things (IoT)
Robots
Drones
3D Printing
Artificial Intelligence (AI)
Blockchain
Virtual Reality (VR)
Augmented Reality (AR)
PROJECTED
PERCENT-AGE OF EARNINGS IN
DIGITAL SEGMENT VS.
TOTAL GLOBAL
REVE-NUE 2022
56.9%
SURVEYED
CONSUM-ERS WHO AGREED
THAT COMPANIES
SHOULD TAKE A
PROACTIVE ROLE IN
PROTECTING
PERSON-AL DATA*
92%
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
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 technol-ogies 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 Thai-land 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 un-necessary 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 barri-ers for content creators, such as crowdfunding.
The blockchain platform is popular for crowdfunding: Fanship (for Kpop), Hubii Network (for funding films).
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
de-sign must, therefore, be able to communicate its very
func-tion and purpose succintly.
6.05%
GDP Growth
Rate in
Archi-tecture 2016
Rp 21,567 Bn
GDP Value of
Architecture
2016
53.844
Number of Creative
Workers in
Architec-ture 2016
5.740
Number of
Creative
Businesses in
Architecture 2016
Persentase TK Berdasarkan Gender 2016
Male — 92.39%
Female — 7.61%
64.04%
Percentage of Creative
Businesses Utilizing
E-Commerce 2016
Utilizes E-Commerce
in Business / Does Not
Utilize E-Commerce in
Business
(2nd highest)
52.20%
Percentage
of Creative
Businesses Utilizing
the Internet 2016
(3
rdhighest usage)
ANDRA MATIN
Interior Design
Over the past two decades, developments in the Interior Design
Sub-Sec-tor has shown very rapid progress. More and more people are
increasing-ly 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
interna-tional 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 La-bor Force Based on Gender (%) 2016
Male — 77.7%
Female — 22.3%
23,967
Number
of Creative
Workers in
Interior Design
2016
Labor Workforce Growth Rate in In-terior Design 2016
71.13%
Percentage of Creative
Businesses Utilizing
E-Commerce 2016
36.47%
Percentage
of Creative
Businesses
Utilizing the
Internet 2016
6.6%
Provinces with Highest
Concentration of Interior
Design Businesses
DIANA NAZIR
81.72%
Percentage
of Creative
Businesses Utilizing
E-Commerce 2016
616
Number of Creative
Businesses in
Visu-al Design 2016
Breakdown of Creative
Labor Force Based on
Gender (%) 2016
Male
— 92.05%
Female
— 7.95%
Rp 579.3 Bn
GDP Value of
Visual Design 2016
8.98%
GDP Growth Rate
In Visual Design
2016
Visual Design
The Visual Design Sub-sector has great potential in
increas-ing 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
73.70%
Percentage of Creative
Businesses Utilizing the
Internet 2016
Provinces with Highest
Concentration of Visual
Design Businesses
DI Yogyakarta Bandung
DKI Jakarta
88.80%
Percentage of Visual Design Businesses Without Legal
Entity 2016 According to data compiled by BEKRAF from
FEAT
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
associ-ations to increase the use of local product designs.
Product Design
Rp 2,281 Bn
GDP Value of Product
Design 2016
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
20.20
%
MYCOTECH
ALVIN T
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
sig-nificantly grown to reach a 64-percent increase. Furthermore, PwC
pre-dicts 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
produc-tion and audience. The naproduc-tional 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)
Top Export Countries
for Film, Animation &
Video 2016
Hong Kong
Singapore
39,546
Number of
Cre-ative Workers in
Film, Animation
& Video 2016
(+5.85% vs.
2015)
2,418
Number of
Cre-ative Businesses in
Film, Animation &
Video 2016
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
42,7 Mn
Number of
Indonesian
Cinema-goers 2017*
*Source: Statistics Indonesia
Total Screens in
Indonesia (Nationwide)
2018
PENGABDI SETAN (2017)
Provinces with Highest Concentration of Film,
Animation & Video Businesses:
Sumatera (19.35%)
DKI Jakarta (16.79%)
16 Mn Number of
Indonesian
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-bioskop-indonesia-meningkat-pesat-dalam-lima-tahun-terakhir (19/2/2018), Katalog Film Indonesia (KFI) dalam artikel Kaleidoskop 2017
Indonesia Theater Market Share (Nationwide) 2018:
Company/Chain Screen Theater
Cineplex 21 1003 177
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)
3,665,509 audiences
My Stupid Boss (2016)
3,052,657 audiences
Ayat Ayat Cinta 2 (2017)
2,840,159 audiences
93%
Source: filmindonesia.or.id
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
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
eco-system.
6.89%
Growth Rate in
Pho-tography 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%
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 celeb-rities 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, person-ify 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 class-es, 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 sem-inal fine arts photography book, obtained a Bachelor’s degree in Electrical Engineering and a Masters degree in Management In-formation 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 Satuka-ta advertising agency; Co-Founder Forum Grafika DigiSatuka-tal (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 photog-raphy 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.
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
Econo-my 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
en-terprises, 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 Busi-nesses 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)
21.99%
Labor Workforce Growth Rate in Crafts 2016 (3rd highest)
22.03%
Labor Workforce
Ab-sorption in Crafts Vs.
Total Labor Workforce
in Creative Economy
2016
57.48%
Percentage of Creative Businesses Utilizing E-Commerce 2016
US$ 7,797.6 Mn
Export Value in Crafts 2016 (2nd largest)
Switzerland is #1
Export Destination
for Crafts 2016
US$ 2.06 Bn Export
Value in Crafts to
Switzerland 2016
77.93%
Percentage of Creative Businesses in Crafts Found-ed in 1990-2014
95.19%
Percentage of Creative
Businesses in Crafts
Without Legal Entity
2016
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 prod-ucts per year. Raja Serayu prodprod-ucts boast a unique combination of hand-crafted bamboo woven and high-quality and chic batik plaits, packaged in attractive materials such as rattan, weeds (al-ang-alang), and even water hyacinth. Raja Serayu’s business mod-el, 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 wom-en, 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 orig-inated 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 Indo-nesia 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.
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
busi-nesses)
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
im-mense 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.
5,550,960
Number of Creative Work-ers 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 Cu-linary 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%
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 opportuni-ties 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, af-fordable 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 Indone-sian consumer, so that the IndoneIndone-sian 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 MATCHAMU
Matchamu is the first and largest curator of processed matcha (Japanese green tea powder) and its derivative products in Indo-nesia, 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 attract-ed five potential investors and one investor which had officially signed a contract with the food startup.
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
ab-sorption, 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
prior-ity 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
Cre-ative Workers in
Music 2016
4.9%
Labor
Work-force Growth
Rate in Music
2016
Top Export
Countries for
Music 2016
SINGAPORE
BELGIUM
TAIWAN
Provinces with Highest
Con-centration of Interior Design
Businesses:
West Java (17.57%)
East Java (16.14%)
Central Java (14.7%)
34,242
Number of
Cre-ative Businesses in
Music 2016
Breakdown of Creative Labor Force Based on Gender (%) 2016
Male — 82.85%
Female — 17.15%
53.35%
Percentage of
Creative
Busi-nesses Utilizing
E-Commerce 2016
10.37%
Percentage of
Cre-ative Businesses
Utilizing the
Inter-net 2016
Rp 3,061,858 / mo
Average Salary in
Music 2016
(5
thhighest among
KARINDING ATTACK
Since its inception in 2009, Indonesian metal band Karind-ing 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 Neth-erlands, 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
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 festi-vals 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 Chair-man of BEKRAF, Triawan Munaf, during the live perforChair-mance 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.
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
(2
nd
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
Fash-ion 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 La-bor 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
1990-2014
57.10%
Percentage of Creative
Businesses Utilizing
E-Commerce 2016
94.41%
Percentage of Creative
Businesses in Fashion
Without Legal Entity
2016
865
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 popula-tion 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, Joko-wi also hoped for Indonesia to become the lead-er 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
TORAJA MELO
