On November 18, 2021 I attended an online Talk Show event organized by Universitas Airlangga Surabaya where the main speaker was Minister of Tourism and Creative Economy Sandiaga Uno. The theme of the Talk Show was “The Future of Broadcasting and Multimedia in the Digital Industry Era”. The minister explained a lot about the potential of the digital and creative economy in Indonesia.
He explained that the contribution of the creative economy sector to GDP for Indonesia became the third largest in the world after the United States with its Hollywood and its South Korea with K-pop and drama series. Until June 2021, this creative economy sector has contributed to GDP of Rp 1,100 trillion from 17 subsectors of the creative economy dominated by among others fashion and culinary. Minister Sandiaga Uno gave examples of Bali’s success such as in Ubud area, where the region does not build skyscrapers but relies on its creative economic potential, beautiful topography and local wisdom.
It is true that the development of tourism in Ubud of the Island of Bali is so dynamic, it can be seen in this area for example how locals take part in such development by providing accommodations to visitors and Ubud becomes famous as a homestay haven. Through digital economy and digital literacy local owners enter the world tourism market offering remarkable experience. Obviously homestays industry in Ubud can create employment, becomes destination competitiveness and foster creative entrepreneurs. It is also true the town of Ubud – around 25 miles or 40 km north of Denpasar the capital city of Bali attracts visitors as it is known as a center of traditional crafts and dance. The surrounding Ubud district’s rainforest and terraced rice paddy fields, dotted with Hindu temples and shrines are among Bali’s most famous landscapes.
Vice governor of Bali IB Rai Dharmawijaya Mantra once gave an example of the rapid growth of entrepreneurs in Ubud area where there are hundreds of rooms of homestays run by people of Ubud. This robust development of small hotels/homestays has positive domino effect on the growing number of young entrepreneurs that enter business opportunities in sectors such as culinary, souvenir and cultural events as well as transportation and art galleries. Interestingly that huge monetary circulation due to this development is used by these entrepreneurs as working capital to preserve Balinese culture since they offer visitors with Balinese cuisine, show Balinese dance performance, and Balinese traditional outfit, offer tourists with Balinese coffee as well as souvenirs and hospitality. It is therefore, that the development of SMEs in Bali has significant multiplier effects not only in its economy such as increasing income per-capita, reducing poverty, contributing to the Island’s economic growth but also in preserving culture. And Bali is attractive is not only due to its beautiful beaches, verdant rice paddy fields and friendly locals but it is also due to its preserved culture that is passed down from generation to generation.
In case of South Korea, its cultural economic through digital economic creativity have “Multiplier Effects” on business development, and of course the image of the country. The dual impact of this Cultural Economy is its contribution to Korea’s GDP in 2004 by 0.2% or about 1.87 billion US dollars, and skyrocketed to 12.3 billion US dollars in 2019. Its aggressive efforts at economic development including this cultural economy led to South Korea becoming a rich and prosperous country. Previously in 1956 the GDP per capita of this country was below the country’s Ghana in Africa. And now South Korea is one of the largest economies in the world, on par with the United States, Japan, Germany, France, The United Kingdom etc.
It is said that one of the causes of the success of the Korean Wave is the South Korean government’s policy that makes it easier for its citizens to do business and school abroad, especially Europe and the United States in the 1990s. Upon returning from these developed countries, the alumni of universities in Europe and the U.S. and their entrepreneurs (including Chaebol or owners of large companies) transmitted their new experiences of business and new perspectives on art and culture, making innovations to express the image of their country throughout the world (this is done through their R&D). The impact is that various brands or brands of products in this country shot to the fore and permeate the mindset of consumers, such as Hyundai, LG, Samsung, Daewoo, Lotte etc. Cultural products also penetrate the mindset of TV and cinema viewers when looking at Korean Dramas, Movies and K-Pop youth bank groups (including Big Bang, Super Junior.
Data compiled by the Korean Foundation states that in 2019 alone there were 89 million fans or admirers of this cultural economy in 113 countries; approximately 70 million people live in Asia and Oceania; 11.8 million are in the U.S. and 6.6 million in Europe. There is another astonishing data that in 2016 there were about 1.1 billion viewers of Korean TV drama “Descendants of the Sun” in various Asian countries during the 2 months aired. Data compiled by the Korean Foundation states that in 2019 alone there were 89 million fans or admirers of its Hallyu (Korean cultural wave) in 113 countries; approximately 70 million people live in Asia and Oceania; 11.8 million are in the U.S. and 6.6 million in Europe. There is another astonishing data that in 2016 there were about 1.1 billion viewers of Korean TV drama “Descendants of the Sun” in various Asian countries during the 2 months aired.
The amazing achievement is also due to the government’s support on an ongoing basis, especially the Ministry of Culture, Sports and Tourism which has various divisions, one of which focuses on K-Pop, Fashion, comic books, cartoon film products etc. It also mentioned that the South Korean government is also conducting close monitoring in various countries around the world about what Korean products are successful in the markets of the countries concerned, creating an environment conducive to the creative industries in the field of music and film. In addition, the President of South Korea launched the Creative Economy Policy. All policies issued by the South Korean government have a strategic impact on trade, the tourism industry related to its cultural economy accounts for 55.3% of the total tourism industry, and according to the data, foreign tourists spent 1.1 billion US dollars in South Korea in 2019. In addition, the policy gave rise to new superstars in the film industry.
Minister Sandiaga Uno does believe that digital creative economy in Indonesia will surely flourish in the future considering that Indonesia has lot of potentials in this regard.
