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Indonesia’s rising creative economy and IP
17 February 2021
Recognizing the potential of Indonesia’s creative sector to pump up the economy via increased domestic consumption and exports, President Joko Widodo established the Indonesian Agency for the Creative Economy (BEKRAF) in 2015.
The aim goes beyond boosting the national economy; it was also the administration’s goal to transform Indonesia into a global creative economy player by 2030.
It has been the mission of BEKRAF, now merged into the Indonesian Ministry of Tourism and Creative Economy, to create an environment conducive to the growth of Indonesia’s creative industry players and make such goal a reality.
“I believe that goal is possible, since Indonesia has a strong growth potential in its creative economy, with large domestic market and opportunity to expand the market to foreign countries. In 2019, the creative economy contributed 7.28% to the national GDP,” said Endra Prabawa, a partner at Roosdiono & Partners, member of ZICO Law, in Jakarta.
“If the government is consistent in maintaining the growth and supporting the performance of the creative industries, I believe Indonesia’s goal to become a global creative economy player by 2030 will be realized,” Prabawa added.
Is Indonesia’s IP infrastructure robust enough to support this goal? Are copyright, trademark and design protection strong enough to encourage the growth of creative industries?
Indonesia’s creative economy is composed of 16 sub-sectors. Of these, the fashion and culinary and craft sub-sectors accounted for the biggest slice in Indonesia’s GDP, at least during pre-pandemic times. Its movies, animation and video; music; and apps and game development sub-sectors are also posting strong growth trajectories. Its movies in particular had been attracting audiences locally and winning awards internationally. Meanwhile, startups in the creative arena were also sprouting, founded by young Indonesians.
“While the Indonesian IP law covers copyright, trademark and design protection to encourage the growth of creative industries, the implementation of the laws can be improved,” said Prabawa. “The infringement of these rights, such as piracy and counterfeiting, still poses a problem to creative industry players. The strong implementation of the laws may encourage the growth of creative industries more.”
Regulation of IP rights is among BEKRAF’s six functions. The others are research, development and education; access to capital; infrastructure, marketing, facilitation; inter-governmental relations; and inter-regional relations.
To begin with, awareness of IP rights is still not enough, according to Prabawa.
“It is still growing, but there is not enough awareness about copyright and other IP rights in the creative sectors in Indonesia. The government, through BEKRAF and Indonesian Ministry of Tourism and Creative Economy, has established many programs such as IP awareness workshops and seminars regularly in cities around the country,” Prabawa said.
Back in 2016, BEKRAF also launched its mobile app BIIMA (Bekraf IPR Info on Mobile Apps). BIIMA is a useful tool for startups and small companies to be aware of their IP rights and learn how to protect their IP assets in order to grow their business. Indonesia’s creative sector has many small and medium-sized businesses who only market their products within the country.
Espie Angelica A. de Leon
