The Impact of Digital Infrastructure on Creative Economy Growth in Indonesia

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The Impact of Digital Infrastructure on Creative Economy Growth in Indonesia

Kosasih

Universitas Sangga Buana, Bandung, Indonesia [email protected]

*corresponding author

ARTICLE INFO ABSTRACT

Article history:

Received 31 Ags 2022 Revised 6 Sept 2022 Accepted 13 Sept 2022

Currently, creative economic growth is developing in Indonesia. One crucial element that needs to exist to be able to help the growth of this creative economy is the existence of developments in digital infrastructure. This research then looks at how digital infrastructure can impact the growth of the creative economy in Indonesia. This research will be carried out using a qualitative approach. The data used in this research comes from the results of previous research or studies that are still relevant to this research. The results of this study then found that the creative economy can grow and develop as a result of the development of digital infrastructure. Therefore, the government’s role in improving digital infrastructure is essential so creative economy actors can grow better.

Keywords:

Digital Infrastructure, Creative Economy, Technology and Information

I. Introduction

The rapid development of Information and Communication Technology (ICT), which is super-fast in this century, encourages all production sources to adapt to this dynamic development.

The development of digital technology is carried out so that various activities can become more practical, effective and efficient to maximize existing resources, especially human resources, in increasing productivity so that performance will be better [1]. This is because business competition has experienced a paradigm shift towards something that was previously simple and conventional, changing by following the development of information technology so that it switches to management that is changing in nature and with digital terms based on science and technology (IPTEK) both directly and indirectly which can provide a stimulus for ideas and creativity supported by the variety of media available today [2].

With the development of this Information and Communication Technology, the exchange of information can be carried out more quickly in the form of voice, data and video with an extensive range, which can penetrate unlimited space and time. By utilizing the digitization of this information in business activities, it will be able to provide enormous benefits, both from the organizers or service providers and customers [3]. In this case, those who can master information technology with the support of ideas and creativity will have a greater chance of obtaining profit or profit from the business being carried out, considering the vast market potential with very high demand for a product (goods and services), both domestically and abroad in the sense that the market place will be more comprehensive [4].

The term creative economy was introduced in 2006 but only intensified in 2009 with the development of 14 economic sub-sectors in the industry supported by Presidential Instruction Number 6 of 2009. This Presidential Instruction is also marked as the Year of Creative Indonesia.

In the current era, the concept of the creative economy enhances information and creativity by depending on human resources' ideas and knowledge as the primary forces of production [5].

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The Creative Economy (Ekraf) is one area that is anticipated to become a new sustainable national economic power, as it stresses the value-adding effects of human thought and creativity.

The creative economy is a catalyst for Indonesia’s economic growth amidst a slowdown in global economic growth. The Indonesian government, in this case, the Ministry of Tourism and Creative Economy, pays more attention to this sector, intending to maximize the potential and opportunities for the Creative Economy in Indonesia [6].

Then based on Presidential Regulation Number 92 of 2011, the government officially formed the Ministry of Tourism and Creative Economy, which is responsible for the development of the creative economy in Indonesia, both the Creative Economy Based on Arts and Culture and the Economy Based on Media Design and Science and Technology by developing 17 economic sub-sectors from previously only 14 sub-sectors. This is because Indonesia can increase national economic growth by developing a creative economy [7].

Business actors in the creative economy sector occupy the largest share of the Indonesian people’s economic activities. Indonesia will also experience a demographic bonus until 2035, whereby in 2035, the productive age population is estimated to be above 60 percent, and 27 percent of them are young people with a vulnerable age of 16-30 years [8]. These young Indonesian residents have the potential to become entrepreneurs and workers who have ideas and creativity that can drive economic, social and cultural dynamics. This opportunity is also supported by the fact that many regions and areas still have great resource potential but have not been optimally developed [9].

Based on the brief explanation above, the researcher then intends to look at how digital infrastructure can help the growth of the creative economy in Indonesia.

II. Method

This research will be carried out using a descriptive qualitative approach. Sugiyono argues that this research method is naturalistic because it is carried out in natural conditions [25]. This research data is secondary data that uses the results of previous studies or studies that still have relevance to the results of this study. Research data that researchers have successfully collected will be processed immediately so that later the results of this research can be found

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III. Result And Discussion

A. The Role of Technology in the Creative Industries

Developments in the digital, scientific and creative fields have sparked the birth of a discourse on the creative economy, which has now become a global phenomenon. Apart from developed countries, the development of the creative economy is also growing rapidly in several developing countries such as China, India, Brazil, Argentina, Mexico, and even Burkina Faso, located in mainland Africa. Sri Sultan Hamengku Buwono X, Governor of DIY, at the opening of the PI-UMKM workshop at Inna Garuda, Yogyakarta, stated that this creative economy sector reportedly contributed 3 percent of GNP. Sultan further gave an example, in the UK and the Netherlands, the creative economy sector has contributed up to 30 percent to create new jobs.

Meanwhile, in Indonesia, the development of the creative economy sector has also been growing rapidly in several big cities over the past ten years.

Information technology’s role has become dominant in producing creative work in the creative industry. Among the 13 creative industry groups, at least ten industries are closely related to information technology. These industries are advertising, architecture, design, video, film and photography, interactive games (games), music, publishing and printing, computer and software services, television and radio, and research and development.

The availability of hardware as the major support for data processing, production, post-production, and dissemination in the creative industry subsector. The development of this processing technology has made the manufacturing process more convenient, and the quality of the goods produced is of a higher standard.

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A society that develops and advances in civilization and has good welfare is a society that has an excellent economic knowledge base. The Ministry of Tourism and Creative Economy has indicated that the development of the creative economy is essential, particularly in Indonesia, whose economy is still in its early stages of growth. Using previously untapped sources of economic, social, cultural, and environmental value, people contribute to what is known as the

"creative economy." Works based in science and technology, engineering, and telecommunications are just as creative as those rooted in the arts and humanities.

Work, production, and distribution patterns became cheaper and more efficient as a result of industrialization. Existence of new breakthroughs and discoveries in the sphere of information and communication technology, such as the internet, email, Google, play store, etc., encourages people to be more active and productive in supporting their performance, production, and originality in the business sector. The consequence of this phenomenon of wave change is the establishment of higher market competitiveness or competition. This scenario necessitates that business actors discover ways to conduct promotions and lower costs as inexpensively and effectively as feasible in order to survive.

Two main things need to be considered in creative economy businesses: creativity and innovation. Creativity is defined as the capacity to develop or construct anything that is original, novel, and well-liked by consumers. Someone with creativity who is able to maximize that skill can generate something helpful for themselves and others. What we mean when we talk about innovation is the process of taking a unique concept or set of ideas and turning them into something that is better, more valuable, and more usable in the real world.

B. The Creative Economy is Very Close to Technology

Several types of the creative economy are highly dependent on digital infrastructure. This infrastructure will also enhance growth in this type of creative economy. The types of creative economy that are heavily influenced by digital infrastructure include:

1. Advertising

Creative activities related to the creation and production of advertisements, including market research, advertising communication planning, outdoor advertising, production of advertising materials, promotions, public relations campaigns, and display of advertisements in print and electronic media.

2. Architecture

Creative activities related to building blueprints and production information include garden architecture, urban planning, construction cost planning, conservation of heritage buildings, auction documentation, and others.

3. Art and Antiques Market

Creative activities related to creation and trade, work, antiques and ornaments through auctions, galleries, shops, supermarkets and the internet.

4. Crafts

Creative activities related to creating and distributing handicraft products include handicrafts made of precious stones, accessories, goldsmithing, silver, wood, glass, porcelain, cloth, marble, lime and iron.

5. Design

Creative activities related to the creation of graphic design, interior, product, industry, packaging, and corporate identity consulting.

6. Fashion Design

Creative activities related to the creation of clothing designs, footwear designs, and other fashion accessories designs, production of fashion clothing and accessories, consulting on fashion product lines, and distribution of fashion products, for example, Batik.

7. Video, Film and Photography

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Creative activities related to creating video production, films and photography services, and distributing video recordings and films. This includes script writing, dubbing, cinematography, soap operas, and film exhibitions.

8. Interactive Games

Creative activities related to creating, producing and distributing computer and video games that are entertaining, agile and educational. For example, online archipelago games. This is an online game in the MMORPG (Massive Multiplayer Online Role Playing Game) genre. This online game is the work of the nation’s children with a historical background of the archipelago’s past.

9. Music

Creative activities relating to the creation, production, distribution and retail of sound recordings, recording copyright, music promotion, lyricist, songwriter or music composer, musical performance, singer and musical composition.

10. Performing Arts

Creative activities related to content development, performance production, ballet performances, traditional dance, contemporary dance, drama, traditional music, theater music, and opera, including ethnic music tours, design and manufacture of performance clothing, stage setting, and lighting arrangements.

11. Publishing & Printing

Creative activities related to content writing and publishing books, journals, newspapers, magazines, tabloids, digital content, and news agency activities.

12. Computer and Software Services

Creative activities related to information technology development include computer services, software development, system integration, system design and analysis, architectural software design, software and hardware infrastructure design, and portal design.

13. Television & Radio

The imaginative processes involved in making, packaging, airing, and transmitting television and radio programs.

14. Research and Development

Creative activities are associated with innovative firms that offer scientific and technological discoveries, the application of research and knowledge to product enhancement, and the invention of new goods, processes, materials, tools, and methods that can satisfy market demands.

IV. Conclusion

The Creative Economy has grown and developed rapidly by utilizing digital infrastructures such as Facebook, WhatsApp and Instagram social media accounts. Utilization of digital infrastructure is positively correlated with an understanding of creative economy business actors in line with an increase in income or income of creative economy business actors. As for improving creative economic growth, government coordination is expected to enhance the quality of digital infrastructure. This will significantly help the creative industry’s development, which is growing rapidly. Thus, the functional value of IT becomes in sync with the creative industries and the creative economy sector

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The Impact of Digital Infrastructure on Creative Economy Growth in Indonesia