Monday, 01 August 2022 11:20

Government Consistency Protects Creative Economy Businesses

Soon Indonesia will hold the World Conference on Creative Economy (WCCE) 2022 in Bali, precisely on October 5-7, 2022 by bringing the mission of global recovery through the creative economy sector (EKRAF). This is done so that creative actors gain global recognition for their potential in encouraging sustainable and resilient economic growth. In WCCE 2022, Indonesia took the opportunity to emphasize the economy as an important sector for global recovery through four sub-themes. The first is an EKRAF for global revival by discussing policies that support the creative sector, actors, and the entire ecosystem that seeks to develop the sector, the second is about the protection and marketing of an intellectual property, advertising material rights, and the use of technology to maintain the livelihoods of creative actors globally.
 
Furthermore, the inclusivity agenda and Sustainable Development Goals (SDGs) to encourage the creative sector can answer global issues, finally, the event raised the sub-theme "Future of Creative Economy" to map the development of the creative sector collectively in line with global changes. In the country itself, the creative sector has contributed IDR 1,274 trillion or 7.35 percent of the total Gross Domestic Product (GDP) in 2021 with the culinary, fashion, and craft sub-sectors being the flagship. These achievements are among others supported by three flagship programs of the Ministry of Tourism and Creative Economy (KEMENPAREKRAF), namely Appreciation of Indonesian Creations (AKI), Creative Regencies/Cities (KaTa), and Tourism Villages. The Minister of Tourism and Creative Economy, the AKI program is deliberately designed as a solution to all the problems of creative Micro, Small, and Medium Enterprises (MSMEs) so as to obtain a number of special benefits, starting from training or boot camps for MSMEs to increase business capacity, facilitating marketing in the form of exhibitions in malls and other similar places, building networks and market shares, rebranding or making new product designs, product promotional videos, facilitating intellectual property rights (HAKI) registration, to providing access to business actors to obtain financing. 
 
Every year, the Ministry of Tourism and Creative Economy holds AKI programs in 16 regencies/cities which include Banda Aceh, Padang in West Sumatra, Pekan Baru in Riau, Jambi, Cilegon and South Tangerang in Banten, Tasikmalaya and Cirebon in West Java, Yogyakarta and Tegal in Central Java, then Sidoarjo, and Jember in East Java. Then also Pontianak in West Kalimantan, Banjarmasin in South Kalimantan, Kendari in Southeast Sulawesi, and Ambon in Maluku. 
The program is aimed at creative actors from the culinary, craft, fashion, music, film, animation, application, and game subsectors. Until July 2022, Sandiaga and his staff have held MMR in eight regencies/cities or the remaining eight regions until the end of the year. Only through this program, the government has accommodated 160 creative MSMEs over the past seven months with an average of 20 MSMEs involved in the 2022 MMR. Not to mention the Creative KaTa program which provides four benefits to creative business actors, namely increasing business capacity, growing business networks, meeting the Minister of Tourism and Creative Economy to obtain knowledge briefings and opportunities to be promoted for their business products, and getting various lessons from speakers with various expertise. With the involvement of around 35 participants per 2022 Creative KaTa activity, the Ministry of Tourism and Creative Economy has facilitated 840 creative actors in 24 regencies/cities as of July 2022 and will continue in 11 regions before entering 2023. Likewise with the Tourism Village program which helps the development of creative MSMEs, especially in rural areas. Although the focus of the program is on the tourism sector, the creative economy is also boosted due to the arrival of travelers who buy ekraf products in various villages. Moreover, there is the 2022 Indonesian Tourism Village Award (ADWI) program which includes the souvenir category as one of the assessment categories. This means that MSME actors in tourism villages will compete to increase the number and quality of creative products through various training provided by the central and regional governments to be able to win the event. 
Of the top 50 tourist villages included in ADWI 2022, the Minister of Tourism and Creative Economy has visited 22 tourist villages until July 2022. Sandiaga wants ADWI to be a locomotive driving the tourism sector and the creative economy, especially since the success of the program has received a positive response from the community. "I hope that with the launch of these three programs this year, we will reach more people who will directly have a positive impact on the welfare and economy of Indonesia," he said in Jakarta, Saturday (19/2). The funding of the creative sector, the creation of an ecosystem for the Indonesian creative sector is also supported by regulations related to creative business financing through Government Regulation (PP) Number 24 of 2022 concerning the Implementation of Law Number 24 of 2019 concerning the Creative Economy which was just passed by President Joko Widodo on July 12, 2022. The regulation is focused on making it easier for creative business actors to obtain financing with intellectual property product guarantees that apply to 17 creative subsectors, namely applications, music, advertising, architecture, crafts, interactive games, visual communication design, culinary, performing arts, product design, fashion, fine arts, interior design, publishing, TV and radio, photography, and film, animation, and video. In PP No. 24/2022, there are four financing schemes presented. The first is that the creative actor applies for financing to bank / non-bank financial institutions, then bank / non-bank financial institutions verify and assess intellectual property that is used as collateral, and after verifying and assessing, the financing will be disbursed to the creative actors. Finally, the creative actor returns the financing according to the agreement.
There are two conditions that must be met by creative actors so that intellectual property becomes collateral, namely that it has been registered with the Ministry of Law and Human Rights (Kemenkumham), and is managed by themselves and/or transferred only to other parties. Before PP No. 24/2022 was implemented, the Ministry of Tourism and Creative Economy had organized a number of activities that provided financing to creative business actors. Among others, the Islamic Creative Economy Funder Fund (ICEFF) 2022 program was created to support the acceleration of the halal industry, especially in the culinary, craft, application, and modest fashion subsectors to get funding from financial institutions and financiers. Banking Coordinator of the Ministry of Tourism and Creative Economy Mugiyanto said that there were 32 creative actors participating in the bootcamp and pitching of the ICEFF 2022 program in Bandung, West Java, on July 12-13, 2022 from four subsectors. Namely nine fashion actors, 17 culinary actors, five craft actors, and one application actor. The majority of the participants were called the results of the Kemenparekraf program, namely AKI. Meanwhile, in the city of Surabaya, the ICEFF 2022 bootcamp and pitching was held on July 16-17, 2022, which was attended by 30 creative actors from 19 culinary actors, five fashion actors, four craft actors, and two application actors. Deputy for Industry and Investment of the Ministry of Tourism and Creative Economy Henky Manurung said that there were 18 investors present at ICEFF 2022 to see firsthand the creative actors in Surabaya, East Java, Sunday (17/7). Some of these investors include SME Business Group, Team Leader of Bank Syariah Indonesia, CEO of PT LBS Urun Dana, Head of Funding Business Alami Shariah, Head of Shariah Group LinkAja, CEO of PT Dana Syariah Indonesia, Indonesian Export Financing Institution (LPEI), and the National Committee for Sharia Economy and Finance (KNEKS). "These 18 investors will see opportunities for financing partnerships and others to the business actors who are present today. We assure you that the program we are building will make it in the true direction of engagement or contracting rather than MSME actors," said Henky. Ahead of WCCE 2022 in Bali, Indonesia has the opportunity to showcase the resilience of the domestic creative sector and can be used as a reference to answer global issues, especially those contained in the SDGs. Little by little, the government is realizing an ekraf ecosystem as an alternative source of state income. Although the number of business actors who received various training and funding was relatively small considering that the total number of creative actors reached eight million, the government's work to maintain livelihoods in the sector has proven to be consistent.

 

 

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