Definition of Creative Economy: Characteristics and Examples

Definition of Creative Economy – The development of the times has made the economic concept more developed, so that many people have started doing economic activities. In fact, today, many young people have entered the world of economics. In addition, the growing economic concept is also due to technological developments that are increasingly modern. With this increasingly developing technology, we can carry out economic activities only from cellphones or laptops.

The combination of young people who enter the world of economics and the maximum use of technology will produce an increasingly modern economic concept. What’s more, young people can be said to be quite good at using technology. In addition, to carry out economic activities, ideas that are out of the box are needed , so that economic activities become more colorful. Therefore, for young people it is supposed to hone ourselves to find ideas out of the box so that we are no less competitive with economic activities.

Currently, in the era of globalization, the concept of the economy cannot be separated from ideas that are out of the box or known as creative ideas. That’s right, more precisely the concept of the economy that is developing in this era of globalization is often referred to as the “creative economy”. Talking about the concept of the creative economy has recently been hotly discussed, especially in Indonesia. The creative economy became known in Indonesia during the reign of Susilo Bambang Yudhoyono or more precisely in 2004.

A creative economy will not run well if everyone, especially young people, does not want to think creatively independently in carrying out economic activities. If things like this are allowed to continue, then the success rate in developing a business is very low because they cannot compete with competitors who have endless creative ideas.

With the creative economy in Indonesia, it can be said that the Indonesian nation and state are ready to compete with the global economy. However, “the creative economy is not well known by some people. Because the term “creative economy” has not long been known by Indonesian people, this term still sounds vague to some Indonesian people.

Therefore, so that the nation and state of Indonesia can apply the creative economy, we need to know the meaning of the creative economy. By knowing the creative economy, it will be easy for us to carry out creative economic activities. In fact, it is possible if it can become a business in the creative economy.

Definition of Creative Economy 

The creative economy continues to experience development in Indonesia, so the Indonesian government makes a creative economy law so that creative economy actors can easily run a creative economy. The creative economy is listed in Law Number 24 of 2019 Concerning the Creative Economy. In the law, the creative economy is the embodiment of added value from intellectual property originating from human creativity based on cultural heritage, science and/or technology.

Based on the notion of the creative economy that comes from Law No. 24 of 2019, it can be said that the creative economy cannot be separated from cultural heritage, science and technology. Therefore, Indonesia’s rich cultural heritage can be used as a creative economy that can make Indonesian culture known abroad as well as promote the economy. This can be done if the human resources have creative ideas.

Meanwhile, the creative economy originating from science and technology is usually in digital form, such as advertising, animation, and others. What’s more, now there are lots of various kinds of social media that can make the creative economy develop too. However, the production of the creative economy may not run smoothly, if the ideas and knowledge possessed by human resources cannot be maximized.

Therefore, many people have become actors in the creative economy because this economic concept has been proven to be able to develop the economic sector. Thus, it can be said that the creative economy can develop optimally if its human resources are willing to promote creativity within them. So, are you one of the actors in the creative economy?

Understanding Creative Economy According to Experts

Meanwhile, several experts also stated about the notion of the creative economy. Below will be explained the meaning of the creative economy from several experts.

1. Ministry of Trade of the Republic of Indonesia

According to the Ministry of Trade of the Republic of Indonesia, the creative economy is an industry that originates from creative ideas, skills and talents owned by each individual with the aim of creating prosperity and opening up jobs through the creation and utilization of creativity.

2.John Howkins

John Howkin said that the creative economy is a concept that is used to develop a sustainable economy through the power of creativity possessed by each individual. He also added that each individual’s creativity is the main capital in running a creative economy, especially in creating something.

3. Institute for Economic Development and Finance

The Institute for Development Economy and Finance reveals that the creative economy is a process to increase the added value of results derived from intellectual property consisting of expertise, creativity and individual talents to produce or create a product that can be sold.


Taken from the UNCATD website, the creative economy is an economic concept which is very dependent on creativity, the use of technology, knowledge, and the use of ideas in order to create a product, especially in the creative industry sector and can play a role in developing the economy.

Characteristics of the Creative Economy

1. Sourced from Individual Creativity

As previously discussed, the creative economy comes from creative ideas that are owned by each individual. Therefore, it can be said that the development of the creative economy is very dependent on creative ideas and innovation from human resources.

2. Can be Distributed Directly and Indirectly

Companies engaged in the creative economy can distribute a product directly or indirectly, so that the products distributed can reach consumers properly. In addition, the distribution process is also adjusted to the type of business being run.

3. Can Be Replaced or Changed Easily

A product resulting from a creative economy effort will be easily replaced and modified according to consumer wishes. Flexibility in the manufacture of this product can increase comfort for consumers because they feel their needs or desires can be met by a company.

4. No Limits 

Creative and innovative ideas will always exist and never die, it’s just that it depends on whether we want to hone creative ideas or not. Therefore, in developing the creative economy there are no limitations, so that a special product can be created.

5. Can Follow Trends Easily 

One of the advantages of the creative economy is being able to follow trends easily. In other words, a product that you want to create is very flexible because it can change, so there will be many consumers who want to buy trending products.

6. Requires Cooperation

In advancing or developing the creative economy, cooperation is needed so that the business that is built is maximized. This is because by working together there will be many creative ideas that emerge, so that the products produced will always attract the attention of consumers.

7. Have Cultural Values

The creative economy has cultural values, several creative businesses that contain cultural values, such as batik businesses, handicraft businesses, film businesses, and others. Therefore, creative economy products that have cultural values ​​can be exported.

Creative Economy Benefits

The existence of a creative economy actually has several benefits, including:

1. Sharpening creative ideas that are already owned by each individual
2. Creating new jobs, so that the unemployment rate is reduced
3. Building healthier business competition
4. Creating new professions that were never thought of before
5. Accelerating product innovation in various types of fields

Examples of Creative Economy

For those of you who want to get into the creative economy, but don’t know what business to build, then you can see some examples of the creative economy from various types of businesses.

1. Crafts

Indonesia is well known for its cultural diversity, so there will be many types of handicrafts that are characteristic of an area. Therefore, not a few people who have a profession make handicrafts and sell them. Handicrafts made in the traditional way will add to the cultural value and quality of the handicrafts, so that the selling value of the handicrafts will increase.

Therefore, in order for Indonesian handicrafts to progress and develop and become increasingly recognized by foreign tourists, human resources who have high creativity are needed, so they can make crafts of higher quality. In fact, the handicrafts that are created can compete with foreign products.

2. Design

Talking about design cannot be separated from creative ideas and knowledge from humans themselves. Creative ideas and knowledge about this design are obtained from various things. The creative economy in the field of design business can be said to be very broad, starting from interior design, graphic design, product design, and so on. Even the designs you make do not rule out the possibility of being sold abroad.

3. Music

It’s no stranger to musicians having creative and innovative ideas so they can produce music that is comfortable to listen to. The creative ideas possessed by musicians are not only limited to creating music or songs, but also creative ideas are used to think of ways so that the songs they create can be heard by the wider community. The more people hear the music or songs that you create, it means that the music you create is very good.

4.Fashion _

In the world of fashion , clothing trends always follow the times, so new trends always emerge. The more fashion trends, the more choices of fashion products that suit us. Fashion business can be used as a creative economy business, why is that? Because in making fashion products , creative ideas from a designer are needed so that they are not unable to compete with other designers. In addition, Indonesia already has a fashion product that is well known to the world community, namely batik, so this business is very suitable for the creative economy.

5. Game or Application

Technological developments can create games or applications. In making or creating a game or application, individual abilities are needed, especially in the field of technology, creative ideas, and knowledge of technology. What’s more, the effort to make games or applications is quite promising because there are already many children, teenagers, and adults who play a game .

However, in making games or applications, collaboration with other people or companies is required, because it will be very difficult to create games or applications without collaboration.

6. Film, Photography and Video

For someone who works in the fields of film, photography and video, they definitely need creative ideas so that every work they make is always updated and different from works in general. If you don’t use creative ideas in making films, photography and videos, the resulting work will be monotonous, and some will even think that these works look normal.

If you make films, photography and videos using the concept of the creative economy, you can produce good works that are liked by many people, so you can participate in developing the economy.

7. Advertising or Advertising

In the world of advertising, creative and innovative ideas are required so that the advertisements made are special and people are interested in buying the advertised products. Behind attractive advertisements there are creative human resources. Therefore this advertising can be used as a creative economic venture.

Moreover, currently there are many media to advertise a product, from television, social media, to billboards. Even though making an ad requires creative ideas, don’t forget to think about how to market the ad that has been made.

8. Culinary

This culinary business will never end because humans definitely need it, especially in Indonesia there are various types of food that can be used as business opportunities. Therefore, you can build a creative economy through this culinary business, you can sell Indonesian or foreign food that is adapted to the Indonesian tongue. To change the taste to suit the Indonesian tongue, brilliant creative ideas are needed, so that culinary businesses can be recognized by many people and sell well in the market.

9. Architecture

The creative economy concept can be applied to the architectural sector because with this concept, development will become more creative and can keep up with the times. Development that can keep up with the times will produce a building that is modern and liked by many people, especially the millennial generation. We can usually see the concept of the creative economy in the architectural sector in houses or residences where the business will never die.

10. Computer, Laptop and Equipment Services

As technology continues to grow, the use of computers and laptops is growing. This is because almost all work must use a computer or laptop. Therefore, we can open computer and laptop repair services. In order for repair services to grow, you can use the concept of the creative economy. With the presence of the creative economy, it’s not just repairs, but you can also sell laptop or computer devices.

11. Television and Radio

The creative world is also found on television and radio, so we will find all kinds of excitement on television and radio. With the existence of human resources who have a lot of creative ideas, the content on television and radio will always be interesting to watch and hear. Therefore, television and radio can be used as a creative economic venture.

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