Economic Opportunity in Cultural Development

NonaRia musical band performing in the Night Market: Mini Festival of Arts, Culture, and Development, Tuesday, July 10, 2018.

Jakarta, July 10, 2018 - A successful development is not only measured by economic growth. Oppositely, cultural development also matters. Realizing its importance, the Deputy Minister of National Development Planning/Head of Bappenas for Human, Social, and Cultural Development, Subandi, said that culture is one of the critical development issues, as well as one of the leading factors directing it.

“Development is not always associated with economic growth and infrastructure development per se. Instead, culture also serves as a promotion machine for development,” he added during a talkshow session in Night Market: Mini Festival of Arts, Culture, and Development, on Tuesday, July 10, 2018. 

Adding to Subandi’s remark, the Director General for Culture, Ministry of Culture, Hilmar Farid, said that culture can also be used by sub-national governments to improve their region’s economy and reduce disparity. This can be materialized by treating cultural sector as a major business. 

“Law No.5 of 2017 on Cultural Advancement provides a platform to achieve such a purpose (cultural development),” Hilmar further explained. 

To achieve the intended target, the national government collaborates with sub-national governments to design the proper way for cultural development. The Director General of Regional Development of the Ministry of Home Affairs, Diah Indrajati, stated that the MOHA is responsible for bridging national and sub-national governments and prepare the latter to achieve the targets set up for cultural development.  

“By setting up the regions that can be reached out for collaboration with the Ministry of Education and Culture to achieve our national targets,” she added. 

As for cultural development, Diah explained that sub-national governments have made it as one of the icons or core businesses in their region. Cultural development can be financed by sub-national governments through their local budget, as well as collectively managed with the national government. 

Diah said that there are targets set to ensure that the winning candidates from the recently completed Sub-national Election incorporate cultural element into their Regional Mid-Term Development Plan. The reason being is that infrastructure development which undermines local culture often ends up with marginalization of local potentials. 

With cultural development attached, economic growth will ensue, with creative economy/business as its core.  The Deputy Head of Indonesia Creative Economy Agency (BEKRAF), Ricky Joseph Pesik, said that there are three cultural developments that can be supported by creative economy: contribution to the National Gross Domestic Product (GDP), creation of employment, and production of export commodities, respectively. 

Ricki further explained that Indonesia has massive potential in this sector, as a country endowed with rich culture. Every region has its distinctive potential. BEKRAF’s task in this regard is to ‘contemporize’ the local culture. 

“There are approximately 17 thousand islands across the country that might spur imaginations associated with creative economy,” he added. 

The efforts to leverage culture as one of the sources of economic growth show that local potential can be used as a solution to address inter-regional disparity. This step comes up as one of the inspirations and best practices showcased in the Indonesia Development Forum 2018. 

Indonesia Development Forum 2018 is held by the National Development Planning Agency (Bappenas) with the support of the Government of Australia through Knowledge Sector Initiative (KSI). IDF 2018 promotes a more equal and sustainable development acceleration in Indonesia that is based upon science, relevant experiences, and facts. 

This year’s IDF is held under the grand title of “Pathways to Tackle Regional Disparity Across the Archipelago”. The results of the forum will be used as a reference to develop the Mid-Term Development Plan of 2020-2024.**