181055 opus creative economy outlook 2019 english version
C re a tiv
Opus e E con om y O u tlook
2
1
- Joko Widodo, President of The Republic of Indonesia.
ADVISOR: Triawan Munaf Ricky Joseph Pesik DIRECTOR: Abdur Rohim Boy Berawi
Wawan Rusiawan
Dian Permanasari Rizky Deco Praha Celsius Creative Lab
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 “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!”
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 Anisa Citra Bagus Ghufron
PERSON IN CHARGE:
EDITORIAL TEAM:
EXECUTIVE TEAM:
Foreword
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.
JAKARTA, OCTOBER 2018 CHAIRMAN OF CREATIVE ECONOMY AGENCY OF REPUBLIC OF INDONESIA TRIAWAN MUNAF
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 Creative Economy
Content Updates On
BEKRAF Activities
Epilogue Creative Economy 2017 – 2018 Sub-SectorsArchitecture Deputy of Research, Global Economic
34 - 78 - 140 -
Education and Development Prospects Interior Design
36 -
Deputy of Access to Capital Indonesia’s Economic
94 - 141 -
Visual Design Conditions
38 -
Deputy of Infrastructure
108 -
Product Design Indonesia’s Creative
40 - 142 -
Deputy of Marketing Economy Prospects
118 -
Film, Animation and Video
42 -
Deputy of Facilitation of
124 -
Photography Intellectual Property Rights
46 -
and Regulation Craft
48 -
Deputy of Institutional
130 -
Culinary and Regional Relation
50 -
Music
52 -
Fashion
54 -
Application dan Game
58 -
Developer Publishing
62 -
Advertising
66 -
Television dan Radio
68 -
Performing Arts
70 -
Fine Arts
72 - Preamble
What Is Creative Economy?
John Howkins, the so-called “Father of the The Creative Economy’s primary resource is Creative Industry,” defines Creative Economy creativity, which is the quality to invent and as a new economic system that deals in ideas create new ways of thinking as well as unique and money. In his seminal book The Creative products which offer real-world solutions to existing problems.
Economy: How People Make Money from
), Howkins wrote how the Creative
Ideas (2001
Economy is the first kind of economy where Yet, perhaps the most important distinction imagination and ingenuity drives what people between true Creative Economy and other desire to do and produce. creative ventures is the economic value that
Creative Economy can generate. A creative It is a new, novel economic paradigm which rely venture, if undertaken as merely a hobby and on ideas or creativity generated by individuals not an economic one, does not fall under the as its core product instead of hard commodities Creative Economy umbrella. produced by machines, which nonetheless carry the potential to affect systemic changes in society.
“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 ADVANTAGES OF CREATIVE ECONOMY VS. TRADITIONAL ECONOMY 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
Low Cost: Collaborative:
Investment into the country The Creative Economy sector The Creative Economy is requires little to no upfront capital, collaborative and communal, unlike traditional sectors which bringing together various require heavy investments in ma- individuals from different fields chineries or plants and backgrounds
Environmentally friendly: Promote Indonesian IP: The Creative Economy does Intellectual Property Rights are not tax the environment, since highly valuable assets not only for the primary product is human the individual creators, but also creativity for the culture, nation and state of
Indonesia Higher Value Economy: Flexible:
Creative Economy has high The Creative Economy is, by added value, both culturally nature, flexible and not rigid like and economically traditional industries, and can
Low Barrier to Entry: The Creative Economy sector has better adapt to a rapidly changing
a relatively lower barrier to entry environment
compared to traditional sectors,Where We Stand Today
In 2015, Ernst and Young (EY) released the In Indonesia, the seeds of the Creative Economy first-ever Creative Economy study of its kind, was first planted during the 2007 Indonesian which revealed that the Cultural and Creative Cultural Product Week. In 2009, the Indonesian Industries (CCI), as it was termed, was worth 2.3 Government issued Presidential Instruction trillion United States dollars, or equivalent to Number 6 Year 2009, a pioneer legislation which 3 percent of the total Gross Domestic Product sets forth the roadmap for the Development of (GDP) globally. Creative Economy and which placed the fledgling sector squarely on the national stage.
MILESTONES 2009 2011 2007 st
1 -ever Indonesian Cultural Presidential Instruction No. 6 of Presidential Regulation Number 92 Product Week 2009, pioneer legislation for of 2011 established a new ministry, Creative Economy in Indonesia namely the Ministry of Tourism and Creative Economy, with its first Change of name from “Indonesian minister, Mari Elka Pangestu Cultural Product Week” to “Indone- sian Creative Products Week”
2017 2016 2015 Three Sub-sectors, namely the BEKRAF pushed for the creation of The Creative Economy Agency Culinary, Crafts, and Fashion, a series of legislation addressing the (BEKRAF) was formed under the became the biggest contributor to fledgling Creative Economy sector administration of Joko Widodo Indonesia’s Creative Economy GDP in Indonesia and insuring protection through the Republic of Indonesia’s at 41.69%, 18.15%, and 15.70%, for creative players. Presidential Regulation Number 6 respectively. of 2015. BEKRAF received a direct BEKRAF began work at various mandate from the President to regions in Indonesia to build advance and develop the Creative efficient and conducive Ekraf Economy sector in Indonesia. ecosystems throughout the archipelago.
2018 Four out of 16 Sub-sectors were identified as potential new economic drivers, namely Film, Music, Fine Arts and Games (animation). These four 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)
2017 17.43 4.13% 2016 16.91 5.95% 2015 16.06 5.22% 2014 15.46 2.94%
PEOPLE 16,909,690 PEOPLE
3.02 % 5.95 %
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.
Creative Economy GDP Projections 2018
YEAR NUMBER (IN MILLIONS PEOPLE) GROWTH (%)
CREATIVE ECONOMY WORKFORCE GROWTH 2016* 118,405,188
GROWTH RATE GROWTH RATE
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
Valuation Estimation (May 2018): US$ 2 Bn (Rp 28 Tn) Leading Investors: Tencent, Ex- pedia, East Ventures, JD.com (Unicorn status achieved) 2017: US$ 500 Mn (Rp 7 Tn)
INDONESIA’S STARTUP UNICORNS S um b e r: fo to i st im e w a 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 facilitation 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
We Going? INDONESIA’S GLOBAL RANKING BASED ON LARGEST ECONOMY (PROJECTIONS FROM PWC, 2018)
- Source: Minister of Communication and Information, Rudiantara
8
5
4 2016 2030 2050 Rank Rank Rank
US$ 130 Bn Projection for Indo- nesia’s Digital Econ- omy in 2020 (11% of national GDP)*
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
ISSUED THE E-COMMERCE ROAD MAP, A ROADMAP FOR ELECTRONIC-BASED NATION- AL TRADE SYSTEM ESTABLISHED BEKRAF, THE STATE-MANDATED CRE- ATIVE ECONOMY AGENCY TASKED WITH DEVELOPING THE CREATIVE ECONOMY IN
INDONESIA S o u rc e :
IS M A Y A G R O U P
RP 1,105 T*
THE ARCHIPELAGO
7º To better meet the Creative Economy sector’s 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
Communication Visuals — 8.98%
TV & Radio — 10.33%
Film, Animation & Video — 10.09% Performing arts — 9.54%
Top 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 Provinces
5
29 (Yogyakarta, Bali, West Java,
East Java, North Sumatra)
48.04% 51.96%
29 Other Provinces
71 TOP CREATIVE ECONOMY EXPORT 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%
IN INDONESIA
Male: 61.60% Female: 38.40% 600 Mn ESTIMATED TOTAL POPULATION IN SOUTHEAST ASIA 250 MN ESTIMATED TOTAL POPULATION
143.26 Mn Estimated Internet Users in Indonesia 2016 (52% from
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 Source: Tempo.co
Insights 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 e r: fo to i st im e w a
SNAPCART
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
Ages: SES: Gender: Female: 51.1% 15-24: 24.8%
25-34: 25% A B C1 C2
>
26 R
26 R 19 <
27 m (m (m (m p p R R
35-44: 21.9% on on on on p p .6%
2. .3% 1 .7% .3%
1
4
5 .75 th th th th
Male: 48.9% 45+: 28.2% M .75 ly ly ly ly n – 4
M ) – 2. ex M ex ex ex p n p p 5 p n
) M en en en en d d d d n
) itu itu itu itu re re re re
PROVINCES WITH HIGHEST CONCEN- TRATION OF E-COMMERCE USERS: MOST USED E-COMMERCE Greater Jakarta Area 20.4% Dl Yogyakarta 2.7% PLATFORM IN INDONESIA: East Java 17.8% Bali 2.6%
Central Java 12.7% Riau 2.4% Shopee 41.2%
West Java 9.3% East Kalimantan 1.5% Tokopedia 27.4%
North Sumatera 7.6% West Kalimantan 1.5% Lazada 13.6%
South Sulawesi 3.7% Riau Islands 1.4% Bukalapak 12.7%
South Sumatera 3.4% Jambi 1.3% JD.id 1.9%
Lampung 3.2% South Kalimantan 1.3%
SOURCE OF INFORMATION REGARDING E-COMMERCE:
Social Media (Facebook / Instagram / Twitter,dll) 53.4% TV 41.7%
AVERAGE MONTHLY
Ads in other online websites 33.8%
SPENDING IN E-COMMERCE
Family / Relatives / Friends 29.3% (LAST 3 MONTHS, ALL
Ads in Other Apps 25.9% PLATFORM) “Social media is
OOH (Ads in Buildings, Offices, Hospitals etc.) 11.3% the main source
Rp 101,000 -250,000 40.5% Other 8.5% for e-commerce
Billboard Ads 8.4% Rp 251,000 – 500,000 27.0% related infor-
Ads in Public Transport 7.3% < Rp 100,000 14.7% mation”
News 6.2% Rp 501,000 – 1 Mn 10.3%
Ads in Streaming Music (Joox, Spotify, etc.) 3.4% Rp 1.1 Mn– 3 Mn 5.3%
Booth/Event 3.0% > Rp 5 Mn 1.1%
Ads in Radio 2.8% Rp 3.1 Mn – 5 Mn 1.0%
Gadgets & Accessories 34.7%
2 – 3x per month
13.1% Blibli
15% Bukalapak
26.6% Lazada
38.6% Tokopedia
5.8% HIGHEST TOP-OF-MIND E-COMMERCE BRAND Shopee
1x per 4 – 6 month
11.9%
<6x per month
17.7%
1x per 2 – 3 month
19.7%
1x per month
24.2%
8.8%
Digital Products (Data packages, mobile games voucher,
social security, electricity, etc.)
1x per week
11.9%
>1x per month
5.2% E-COMMERCE SHOPPING FREQUENCY
7.2% Office supplies
12% Sports & Outdoor
12.5% Home Appliances
18.9% Kids & Baby Products
20.7% Groceries
26.8% Hobbies & Collections
27.7% Shoes
29.2% Bags
34.5% Personal care & cosmetics
2% MOST PURCHASED CATEGORIES IN E-COMMERCE Fashion & Accessories 48.2% e r: L u lu L u tfi L a b ib i
TRENDING NOW: CONVERGENCE, CONNEC- PWC TIONS, AND TRUST
PwC is one of the largest professional auditor services in the world today with over 236,000 In an annual study conducted by PwC, titled employees spread throughout the world. In Perspective from the Global Entertainment & Indonesia, PwC Indonesia has become part of Media Outlook 2018-2022, the global Entertain- the nation’s economic success story for more ment & Media (E&M) industry is believed to be in than 45 years. the midst of a severe disruption. To succeed and thrive in the future, PwC inferred that creative All data is taken and sourced from a special players in each Sub-sector must identify and report by PwC, titled Perspective from the understand the three trends currently engulfing
Global Entertainment & Media Outlook 2018- the E&M industry: Convergence, Connections 2022 which can be accessed at www.pwc.com/ and Trust.
outlook.
RAPIDLY EVOLVING MEDIA Connections Trust
ECOSYSTEM Specializations and niches Big Data Relevance to target audience Privacy Technology (AI, VR)
Convergence 3.0 Data Security Distribution of contents
Multiple dimensions Multiple layers Vertikal - Horizontal Horizontal - Vertikal Supercompetitors
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).
CASE STUDY
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.
TAKE AWAY
Problem: Too lazy to move
Problem: Pressed for time
Problem: Comfortable & affordable public transportation
Problem: Alternative payment system besides debit / credit
Convergence Integrated solution
In a rapidly changing world, having access to the right technology and content, delivered cost-effectively to the right audience who trusts the brand will be keys that unlock future opportunities.
Problem: Parking hassle
Problem: Traffic jams Recipe For Success 2018-2022 Right Technology > Right Content > Right Distribution Channel > Right Audience > Brand Trust (you have successfully owned the user experience) NIELSEN
Top Products / Brands with Highest ADEX in Nielsen, a leading global information and mea-
Indonesia 2017 (in trillion rupiah, rounded decimals) surement company, provides market research, insights and data about what people watch,
Meikarta Cikarang 1,539
listen to and buy; providing valuable information
Traveloka 1,137
on specific sectors on request since 1923. In
Indomie 981
Indonesia, Nielsen is represented by The Nielsen
VIVO Smartphone 823
Company (Indonesia), which releases its annual
Clear Anti Ketombe 795
ADEX (Advertising Expenditure) report on the
SGM Eksplow 1 Plus 770
regular. www.nielsen.com/id
Kemenkes RI 702 The data used in this report is taken from the 2017
Samsung Smartphone 640 ADEX annual report released by The Nielsen Company (Indonesia). www.nielsen.com/id
Dove Nutrition Solutions Total Damage 610 Cap Bango 590 Rp 145.5 T
FMCG Sectors with Highest ADEX 2017
Total Adspent TV & Print
(in trillion rupiah) )
2017 (+8% Vs. 2016)
ADEX 2017
Personal Care
24.9
5.25 Mn
Beverage 21.6 Number of Spots TV & Print
Food 19.1 2017 (-2% Vs. 2016)
Pharmaceutical 10.4 Household 5.9 Rp 115.8 T ADEX in TV 2017 (Vs.
Non-FMCG Sectors with Highest ADEX 2017
Rp 103.8 T in 2016)
(in trillion rupiah)
ADEX 2017
Rp 28.5 T
Telco & Digital
13.3 ADEX in Newspaper Cigarette 5.4 2017 (Vs.
Automotive 5.4 Properti 4.1 Rp 29.4 T in 2016)
Finance 3.4 Rp 1.1 T ADEX in Magazine & Tab- loid 2017 (Vs. Rp 1.6 T in 2016)
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 IndonesiaWithout IPR
2009CASE STUDY: SOUTH KOREA
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
Any government must take an ac- tive role in developing the national Creative Economy, which begins with efforts to protect its IPs. The South Korean government is an ex- emplary case of how a government can successfully jump-start one of the world’s youngest, most dynam- ic creative economies in the world.
HILL/ Hakuhodo
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% Satisfaction level with this arrangement: Husband: 89%
Wife: 79%
FORECAST 2019 PROJECTED DATA CONSUMPTION BY CONTENT TYPE (CAGR) 2017-2022 Communications Games 27.8% 28.5% THE ESSENTIAL EIGHT Video 25.4% Other digital content Internet of Things (IoT)
24.2% Robots Drones
3D Printing Music 23.9% Social Networking
Artificial Intelligence (AI) 20.7%
Blockchain Virtual Reality (VR) Source: PwC Global
Augmented Reality (AR) Entertainment & Media
Web Browsing Outlook 2018-2022. 18.8% www.pwc.com/outlook
7*
INDONESIA’S PROJECTED 56.9% 92%
WORLD RANKING, BASED ON PROJECTED PERCENT- SURVEYED CONSUM-
LARGEST ECONOMY, 2030 AGE OF EARNINGS IN ERS WHO AGREED
- Source: McKinsey
DIGITAL SEGMENT VS. THAT COMPANIES TOTAL GLOBAL REVE- SHOULD TAKE A
4 NUE 2022 PROACTIVE ROLE IN PROTECTING PERSON-
INDONESIA’S PROJECTED AL DATA*
WORLD RANKING, BASED ON Source: PwC Global Entertainment &
LARGEST ECONOMY, 2050 Media Outlook 2018-2022. www.pwc. com/outlook
- 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). Indonesia Blockchain Hub: The first blockchain forum in Indone- sia, which is founded by KADIN (Indonesian Chamber of Com- merce), BEKRAF, and startup agritech, HARA.
Updates
Sub Sectors
on 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.
52.20% 5.740
6.05% Number of Percentage
GDP Growth Creative of Creative
Businesses in Rate in Archi-
Businesses Utilizing Architecture 2016 the Internet 2016 tecture 2016 rd nd
(3 highest usage) (2 highest) Persentase TK Berdasarkan
Gender 2016 Rp 21,567 Bn
Male — 92.39% Rp 5,331,833 / mo GDP Value of
Female — 7.61% Average Salary in
Architecture Architecture 2016
2016 (highest average
64.04% among all Sub-sec-
Percentage of Creative 53.844
Businesses Utilizing tors) Number of Creative E-Commerce 2016 Workers in Architec- Utilizes E-Commerce ture 2016 in Business / Does Not Utilize E-Commerce in
ANDRA MATIN
Isandra Matin Ahmad, or better known as Andra Matin, is one of Indonesia’s young, most talented architects with numerous awards and recognitions from both home and abroad under his belt. His works are renowned for conveying a simple yet brilliant design philosophy: every space, every design, and every line must have its own specific function apart from its character. As a result, his designs are instantly recognizable thanks to his bold lines and minimalist-contemporary approach, while inviting second looks with his use of traditional materials such as Siyalti wood com- bined with rattan, or ironwood with concrete. Andra believes that function trumps form, as he describes function as a “sensitivity towards the environment” in which the design or space exists. Andra’s portfolio spans from commercial to public to residential projects, and his latest works saw him revamping the looks of the Aquatic Stadium at Gelora Bung Karno Main Stadium in Jakarta for the 2018 Asian Games, as well as building the Indonesian Pavilion at the 2018 Venice Architecture Biennale entitled “Elevation,” of which he won the “Special Mention” award from the Venice 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% 798 23,967 Number
Number of Creative GDP Growth Rate in of Creative
Businesses in Interior Interior Design 2016
Workers in Design 2016
Interior Design Rp 1,483.7 Bn GDP Value of Interior
Breakdown of Creative La- 2016 bor Force Based on Gender Design 2016 (Vs. Rp
(%) 2016 1,354 Bn in 2015)
36.47% Male — 77.7%
Percentage Female — 22.3% of Creative Businesses
71.13% Utilizing the
Percentage of CreativeInternet 2016 Businesses Utilizing E-Commerce 2016
Provinces with Highest 6.6%
Concentration of Interior Labor Workforce
Design Businesses Growth Rate in In- terior Design 2016
West Java (17.7%) DKI Jakarta (15.3%)
DIANA NAZIR
In 1991, Diana Nazir founded Artura Insanindo, an interior design firm which later would become one of the top leading interior consultants in Indonesia with some of the largest commercial projects under its belt; founder of Indonesian Contem- porary Art and Design (ICAD), one of the archipelago’s most important art event; and which later opened its first Designershop, an interior boutique shop that sells products such as Wiron Dining Chair (2016), Jejari Hanging Lamp (2014), Tweet Tweet (2011), Wiron Sofa (2010), and many others. Diana’s illustrious career in the creative universe has also elevated her country’s name into the international stage, including at the 2018 Super Design Show, part of the Milan Design Week which was the world’s largest design event, and the Home Décor exhibition in Europe through the Ambiente 2017 event held in Frankfurt, one of the largest international exhibi- tions in Germany. Diana’s participation in the events, along with the other Indone- sian contingents, was made possible thanks to an initiative carried out by BEKRAF to encourage export of the national craft products to overseas, via exhibitions, tours, and other promotional and marketing initiatives. 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
According to data compiled by BEKRAF from 2011 to 2016, the GDP growth rate of the Visual Design Sub-sector was the fourth highest in the Creative Economy sector. This shows that the Visual Design Sub-sector has tremendous poten- tial, but is still constrained by limited ecosystems and facilities. Going forward, the government must encourage the development of the Visual Design Sub-sector so that it can grow further and GDP revenue can continue to be increased.
Rp 579.3 Bn 81.72%
616 GDP Value of Percentage
Number of Creative Visual Design 2016 of Creative
Businesses in Visu- Businesses Utilizing al Design 2016
8.98% E-Commerce 2016 GDP Growth Rate
In Visual Design 2016 Breakdown of Creative
88.80% Labor Force Based on
Percentage of Gender (%) 2016
Visual Design Businesses Male — 92.05%
Without Legal Female — 7.95%
Entity 2016 73.70% Percentage of Creative Businesses Utilizing the Internet 2016 Provinces with Highest
Concentration of Visual Design Businesses DI Yogyakarta Bandung
FEAT