Rethinking the Growth of Creative Economy in Indonesia
Rethinking the Growth of Creative Economy in Indonesia: The Music and Gaming Sub-Sectors
The report Rethinking the Growth of Creative Economy in Indonesia explores the potential and challenges of Indonesia’s music and gaming industries within the evolving digital economy. The creative economy, contributing 4.5% to Indonesia’s GDP, is expanding rapidly with strong government support, a rise in digital consumption, and increased entrepreneurial efforts in these sectors.
Music Industry
Indonesia’s music sector is heavily domestic, with 40% of consumption being local. Streaming services dominate revenue, but only 1% of Indonesians pay for premium subscriptions. Live performances remain a key income source for musicians, while new digital platforms offer indie artists more opportunities. However, royalty distribution remains inefficient, limiting earnings.
Gaming Industry
Indonesia is the 17th-largest gaming market globally and a fast-growing sector in Southeast Asia. Despite a 51% compound annual growth rate, the industry faces challenges due to low domestic market share (less than 2%), reliance on B2B services, and difficulties in-game monetization. Indie developers struggle to secure funding and publishers.