Luhut: Indonesia's Creative Economy Is The Third Largest In The World, Ahead Of The United States And South Korea

JAKARTA - The Coordinating Minister for Maritime Affairs and Investment (Menko Marves), Luhut Binsar Pandjaitan said that the creative economy sector in Indonesia's current economic growth contributed 7.28 percent to the national gross domestic product (GDP).

In fact, said Luhut, Indonesia was ranked the third largest in the world as the country with the largest creative economy in terms of GDP compared to the United States and South Korea.

"We need to improve this in the future because our number of MSMEs is more than 61 million groups. Of the 17 creative economic sectors, the craft sub-sector is the third largest contributor to Indonesia's GDP," he said, in a webinar entitled 'Launching Proud Trinkets Made in Indonesia' , Wednesday, September 16.

In 2019, the value of the craft sector exceeded US $ 892 million (US), an increase of 2.5 percent from 2018 which amounted to US $ 874 million. According to Luhut, this positive trend must be maintained through a spirit of cooperation.

"Although I honestly say this figure is still far from our expectations," he said.

Luhut encourages micro, small and medium enterprises (MSMEs) in the creative economy sector to continue to innovate. Among other things, by increasing the use of research results and the use of high technology in the production process. The goal is to become the leading region in Southeast Asia, in the production of unique knick-knacks based on research and technology.

"The added value will be even higher when juxtaposed with research and technology. Craft products born from the hands of the nation's children must be the host in Indonesia. These craft products must be strategically located in various shopping center window displays," he said.

Based on a survey conducted by the Central Statistics Agency (BPS), said Luhut, it was found that more than 16 percent of MSMEs tended to diversify their business during the COVID-19 pandemic.

"83 percent of MSMEs recognize the positive influence of online media for marketing. Collaboration and synergy to make Indonesia more prosperous through Proud Made in Indonesia, we strengthen the spirit of mutual cooperation and stakeholder solidarity," he said.

Luhut said, previously, the number of MSMEs connected to the digital ecosystem was only 8 million or 13 percent of the total number of MSMEs of around 60 million. Since the Proud to be Made in Indonesia movement, there has been an additional 1.9 million MSME players joining the digital ecosystem.

Furthermore, Luhut admitted that he wanted more MSME players to be digitally literate. This is because the pandemic has made us aware that the digitization of products made in Indonesia can be marketed in a wider market.

"With a trend like this, we can reach 3 million MSMEs (entering the digital ecosystem) by the end of this year. We have reached 150 percent of the initial target," he said.