Jakarta sees future for creative industries
By John Aglionby 

Published: October 25 2007 01:43 | Last updated: October 25 2007 
01:43

Indonesia wants to more than double the creative industries' 
contribution to the national economy in the next few years through 
aggressive development of the country's rich, but largely untapped, 
artistic traditions and cultural heritage.

Mari Pangestu, the trade minister, says the creative industries 
contribute about 4.75 per cent of Indonesia's $400bn (£195m) gross 
domestic product. 

"I think we should be able to get it up to 10 per cent," she 
said. "It will take five to eight years. But we think Indonesia can 
have a niche [in creative industries] because of the very rich 
artistic capability of Indonesia and the very rich cultural 
heritage, as well as very high skills."

The move is seen as an important plank in a wider, long-term 
strategy to diversify Indonesia's economy away from the resource-
based industries and labour-intensive manufacturing on which it now 
relies.

Officials trumpet the recent arrival of Royal Doulton, the British 
tableware and collectables manufacturer, as a sign of how overseas 
companies can tap into Indonesian creativity. It has a large factory 
near Jakarta and recently transferred 1,400 jobs to it from Britain, 
opening a design studio nearby.

Narinder Arora, the head of Royal Doulton in Indonesia, said the 
local population's creativity was something of a hidden 
talent. "They're very poor at marketing," he said, "and they're very 
shy people, but what we've discovered with our products is that the 
quality and the creativity is as good as their British counterparts."

Longstanding uncertainty over intellectual property rights, endemic 
corruption and burdensome labour laws have long been regarded as 
brakes on investment in Indonesia. 

South-east Asia's largest economy languished in 123rd place out of 
178 countries in terms of the ease of doing business in a recent 
World Bank ranking. 

Mrs Pangestu said the drive to push investment in the creative 
industries would require a shake-up of government policies regarding 
intellectual property rights and education. But there are still 
those who see enormous potential in Indonesia's initiative. 

Yudhi Soerijoatmodjo, the head of a team at the British Council 
helping to develop Indonesia's cultural industries, said the country 
had spent the past three decades focusing on securing investment in 
labour-intensive, low-end manufacturing rather than on product 
design and branding. But when it had ventured into creative 
industries it had found success. 

Mr Yudhi said a good example was the music and related mobile phone 
ringtone industry. "Eighty per cent of music sales in Indonesia are 
now from local artists," he said. "And bands have found they can 
make masses of money from just one song by making it into a mobile 
phone ring tone."

Samson, a local rock band, made $1.8m from downloads last year. 

The internet is also providing hitherto undreamt-of opportunities 
for creative Indonesians, according to Chris Kie, an Indonesian who 
draws the American GI Joe comic stories and designs matching action 
figures.

"Artists can put their work on sites ... and get noticed in a way 
that they couldn't before because not many Indonesians can go abroad 
and showcase their talents," he said.

The biggest impediment to success is seen as the government's 
ability to abide by its promises of reform.

"The lack of co-ordination between government ministries is the big 
problem," Mr Yudhi said. "If everybody can work in a co-ordinated 
way the challenges can be overcome because there's a lot of buzz in 
the local media and society."

Andrie Trisaksono, who started designing automated teller machines 
on a scrap of paper four years ago and turned a $4,000 loan into a 
multi-million-dollar company, said the government needed to 
address "economic creativity" issues. 

"If they can make it easier to do business here and attract 
investment then our creative industries could be extraordinary," he 
said. 

http://www.ft.com/cms/s/0/53199d60-8285-11dc-a5ae-0000779fd2ac.html?
nclick_check=1



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