Creative Economic Sustainability in Digital Transformation and

Government Policy Instability in the Society Era 4.0

Hardi Fardiansyah

Universitas 17 Agustus 1945 Jakarta, Indonesia

Keywords: Creative Economy Sustainability, Digital Transformation, Government Policy Instability.

Abstract: Economic resilience is a dynamic situation of the nation's economic life and resilience that contains the ability

to develop national strength when facing and overcoming all threats, obstacles, disturbances, challenges both

from abroad or within the country either directly or indirectly to ensure the economy of the state of the

Republic of Indonesia derived from Pancasila and the 1945 Constitution. Digital transformation is currently

one of the important agendas regarding Indonesian economy, which is Indonesia's creative economy, the

demand for transformation is a top priority for companies, to be more agile in a market which changing

rapidly. Those changes are a result of fundamental, disruptive and dynamic transformation. This research uses

empirical and qualitative method, and or a combination of both. The results of creative industry research have

contributed to economic development. However, it’s still had many issues, especially regarding human

resources, which has an impact on competitive advantage, based on the concept of competitive advantage,

having local resources and support for protection policies from the government, also domestic and foreign

markets. In order to gain a sustainable competitive advantage, digital transformation, collaboration and

cooperation from all parties involved in the entrepreneurial ecosystem in each creative industry area are

needed.

1 BACKGROUND

The creative economy sector in Indonesia provides a

significant economic contribution. The development

of the creative economy in Indonesia is supported by

the Presidential Instruction of the Republic of

Indonesia Number 6 of 2009. This industry consists

of: Advertising (creation and production of

advertisements), architecture (city planning,

landscaping, etc.), arts, crafts, design (interior,

exterior) , graphics), fashion (styling), video, film &

photography, interactive games, music, performing

arts, publishing & printing, computer services &

software, television & radio, research &

development. (Meira,2013) The creative industry is

an industry based on creativity and innovation

utilizing natural resources and the environment. This

creativity and innovation added value to the product

and has a positive impact on the economy and social

life of the community. In accordance with the West

Java Provincial Government Regional plan as stated

in the West Java Regional Medium-term

Development Plan (RPJMD) 2013 – 2018, Chapter

VI-4 (Source: West Java Regional Medium-term

Development Plan (RPJMD) 2013 – 2018, Chapter

VI-4), stated that one of the strategies in the industrial

sector is to increase industrial competitiveness, with

the following policy directions:

1. Increasing small and medium-sized industrial

business units and inter-industry partnerships;

2. Increased production and quality of leading

industries (agro-industry, creative industry and

information and communication technology

industry).

With this, the creative industry becomes the main

focuses of the regional government's industrial sector

program. According to Hesmondhalgh and Pratt in

Maryunani, Salfitrie Roos and Mirzanti, Isti

Raafaldini, (Issenberg, 2011) the creative industry

began with the commercialization of cultural

production in the nineteenth century, and from the

early 20th century onwards then increased in

advanced industrial societies. One of the first

literatures on the creative industries was Adorno and

Horkheimer, who developed the notion of the 'culture

industry', which was intended to draw attention to the

commodity of art. In the mid-20th century, the growth

of the “culture industry” increased. (Hoffman, 2000)

332

Fardiansyah, H.

Creative Economic Sustainability in Digital Transformation and Government Policy Instability in the Society Era 4.0.

DOI: 10.5220/0012005700003582

In Proceedings of the 3rd International Seminar and Call for Paper (ISCP) UTA â

Z45 Jakarta (ISCP UTA’45 Jakarta 2022), pages 332-340

ISBN: 978-989-758-654-5; ISSN: 2828-853X

 2023 by SCITEPRESS – Science and Technology Publications, Lda. Under CC license (CC BY-NC-ND 4.0)

The term creative industries then began to be used by

researchers to describe those sectors of the British

economy where science and creativity gain economic

and social value to goods and services.

In its development, the creative industry is

considered as one of the most promising economic

activities in developed countries, having an

environment that has the potential to contribute to job

availability. Furthermore, another role of creative

industries in research and policy making is the

performance of economic innovation. Later, this

innovation becomes one of the sources of strength for

competitive advantage. Local Competitive

Advantage Porter stated that the factor of comparative

advantage has been outweighed by technological

advances. However, each region still has a special

advantage factor which is not only based on low

production costs, but more than that, is the existence

of innovation. Therefore, each region is expected to

have the ability to innovate how to produce products

or services in order to be superior products with great

competencies that describe the unique potential of

each region. (Yun, 2017:1-11)

Regions that have reached the core competency

stage have four attributes:

1. The ability to provide access to a wider

variety of markets

2. The ability to make a significant contribution

to customer opinions regarding the benefits

of goods and services offered.

3. The ability to produce superior goods and

services that are difficult to imitate and create

entry barriers for other regions to provide

similar services.

4. The ability to perform complex coordination

of various technologies and skills.

Local Economic Development (LED) emerged as

a new strategy in regional development. In this

concept, communities determine what and how their

own future will be, identify local potentials

(resources), and think about what kind of economic

activities will be developed according to local

potentials and characteristics. According to Blakele,

the main goal of local economic development is to

create and increase the number and types of jobs that

are adapted to the skills and expertise of the local

community. The more job opportunities for local

workers develop, the more the welfare of the

community will increase. An increase in the welfare

of the community is an indication that the region is

experiencing development.

Each region has a pattern of economic growth that

is different from other regions. Therefore, the first

step of planning the economic development is to

recognize the economic, social and physical

characteristics of the region itself, including its

interactions with other regions. Thus, every region

will have different economic development strategies.

On the other hand, the plan of regional economic

development strategies, both in the short and long

term, an understanding of the theory of regional

economic growth, which is summarized from a study

of patterns of economic growth from various regions,

is a factor that is sufficient to determine the quality of

the region economic development plan.

MSMEs/SMEs who have inadequate knowledge

and experience with digital models in carrying out

their business activities have a great potential when

experiencing a crisis during the COVID-19

pandemic. In contrast with large or established

businesses that have experience knowledge and

access to digital models which made them respond to

changes relatively quickly, MSMEs/SMEs must

adopt digital models then continue to carry out digital

transformation into their business activities in order

to remain stable. Digital transformation can also be

carried out as one of the anticipations to have

sustainable business activities after the COVID-19

pandemic, namely the new normal era.

Based on a report from the World Economic

Forum, during the COVID-19 pandemic the use of

digital models experienced a significant increase.

Internet usage increased by 70%, the use of

application-based communication increased by 2

times and the daily use of video streaming services

increased by 20 times. Below are some factors in the

era of digital transformation. (Kurjakovic; Masuda;

Kohda, 2017)

1. In the era of digital transformation, the

business sector is expected to be able to adapt

to changes that occur and adjust its business

strategy in order to maintain its competitive

advantage

2. Changes in the business sector that constantly

occurs pose challenges for MSMEs/SMEs to

harmonize information technology with their

business processes.

3. In digital transformation, business owners do

not only use technology to increase efficiency

in running a business, but can also explore

existing potentials through digital innovation.

According to Article 3 of Law Number 20 of 2008

concerning Micro, Small and Medium Enterprises

(MSMEs) (Republic Of Indonesia Law Number 20,

2008:Article 3) the objective of Micro, Small, and

Medium Enterprises shall be engendering and

developing their businesses in the context of building

the national economy based on equitable economic

Creative Economic Sustainability in Digital Transformation and Government Policy Instability in the Society Era 4.0

333

democracy. One of the objectives of empowering

MSMEs based on Article 5 letter (c) of Law Number

20 of 2008 concerning Micro, (Republic Of Indonesia

Law Number 20, 2008:Article 5) Small and Medium

Enterprises is to improving the role of Micro, Small,

and Medium Enterprises in regional development,

creating job opportunities, even distribution,

economic growth, and alleviation of people from

poverty. Meanwhile, digital transformation, also

known as digitization, has changed the way people

communicate and interact with their environment.

(Simon; Fischbach; Schoder, 2017)

Digital transformation is defined as a company's

initiative to use new capabilities by leveraging digital

technology to change an organization's strategy and

operations. Digital transformation is a new concept

that looks different for every company, digital

transformation is closely related to: (Berghaus and

Back, 2016)

1. The use and alignment of digital technology

within a company,

2. Make organizational alteration,

3. Enable activity

4. Create and capture new opportunities and

valuesopportunities and values.

According to Garzoni et al, the four-level

approaches to digital transformation are digital

awareness, digital needs, digital collaboration, and

digital transformation. Meanwhile, according to

Bautista et al, digital transformation is divided into 4

stages, namely analysis, execution, optimization and

big data. (Nasiri; Ukko; Saunila; Rantala, 2020) The

main goal of digital transformation is to redesign the

organization's business through the introduction of

digital technology, achieving benefits such as

increased productivity, reduced costs and innovation.

Successful and consistent digital transformation

requires not only investments in IT artifacts and

infrastructure (e.g. hardware, software, networks,

etc.), but also in strategic, intellectual, structural,

formal and informal, social and cultural dimensions.

(Li,2020)

Despite the high demand from the industry for a

digital transformation approach, most companies are

not satisfied with their current activities regarding

digital transformation. Digital transformation among

MSMEs ensue the four stages of the digital

technology initiation process, changes in functions

and processes, the management of the resulting skill

gap, and strategic shifts, which are also driven by

managerial cognition, social capital development,

human resource development, and organizational

capacity development. The needs of MSMEs in the

digital transformation processes are varied thus the

content privatization is needed through company size,

sector, and MSMEs, the speed of digital

transformation is actually determined by consumer

demands, the key factor to support SMEs to take

advantage of technological opportunities in

connection with digitalization is the adaptation of

high concepts with demands company specific.

(Jeansson and Bredmar, 2019)

Industry 4.0 and the digital transformation had

major challenges for companies and employees.

Digitalization requires radical changes both in terms

of strategy and in terms of culture within the

company. However, according to Ericson,

implementing digital transformation does not

necessarily require more disruptive and radical

changes in organizational culture and leadership.

Changes, adaptations and innovative business models

that do not involve large investments in new

technologies seem to be quite common among SMEs.

While digitalization can offer great opportunities for

SMEs to enter new markets, the path of digital

transformation remains unclear, and manufacturing

SMEs face major barriers to digital services. (Graf;

Peter; Grivas, 2019)

2 PROBLEM FORMULATION

1. How is Creative Economy Sustainability as an

Alternative Solution to Improve National

Competitiveness in the Digital Age?

2. How the Government Prevents Creative

Economy Instability and Digital

Transformation in Indonesia?

3 RESEARCH METHOD

The problems that have been formulated above will

be answered or solved using an empirical juridical

approach. The juridical approach (law is seen as a

norm or das sollen), this research uses legal materials

(both written law and unwritten law or both primary

and secondary legal materials). Empirical approach

(law as a social, cultural reality or das sein), because

this research uses primary data obtained from the

field research. Thus, the empirical juridical approach

in this study is intended to analyze the problem by

combining legal materials (which are secondary data)

with primary data obtained in the field. Thus, the

empirical juridical approach in this study is intended

to analyze the problem by combining legal materials

(which are secondary data) with primary data

obtained in the field, namely about the sustainability

ISCP UTA’45 Jakarta 2022 - International Seminar and Call for Paper Universitas 17 Agustus 1945 Jakarta

334

of the creative economy in digital transformation,

which is engaged in industry and has a large, small,

or medium scale.

4 THEORETICAL FRAMEWORK

4.1 People's Economic Theory

A Background

There are 4 (four) reasons why the people's economy

needs to be used as a new paradigm and a main

strategy for Indonesia's economic development. The

four reasons referred to are:

1. Characteristics of Indonesia

The success of South Korea, Taiwan, Singapore,

Brazil, imitated the concept of economic

development carried out by Western European and

American countries, in fact for other developing

countries, which applied the concept that gave

different results. By relying on foreign loan funds to

finance development, investment from abroad,

strengthening the export substitution industry, for two

to three decades it has succeeded in encouraging a

fairly high growth of national output and providing

ample employment opportunities for the people. Even

though Indonesia was once dubbed as one of the eight

countries in Asia as the Asian Miracle or a magical

Asian country, due to its fairly steady economic

growth rate for three decades, it turned out to be very

vulnerable when faced with supply shocks. The Bath

currency crisis in Thailand, in fact, quickly brought

Indonesia into a serious economic crisis and in a very

short time, the Indonesian economy collapsed.

This fact shows us that the concepts and strategies of

economic development that are successfully

implemented in one country will not necessarily be

successful if applied in other countries. Harrod-

Domar's growth theory, Rostow's growth theory,

David Romer's growth theory, Solow's growth

theory, are built from the structure of the community

of economic actors that is different from the

economic structure of Indonesian society. Each

theory is always built with certain assumptions,

which not all countries have assumed conditions.

That is why, to build a strong, stable and just

Indonesian economy, it is not possible to use existing

generic theories. We must formulate our own concept

of economic development which is in accordance

with the political demands of the people, the demands

of our constitution, and in accordance with our

objective conditions and subjective situation.

2. Constitutional Demand

Although the formulation of our constitution

concerning the economic order that should be built is

not clear enough and a bit hard to explain and even

can be interpreted in various ways (a kind of

pendulum clock economy, depending on the owner’s

ideological beliefs); however from historical analysis

actually the meaning is quite clear. (Republic Of

Indonesia Constitution, 1945:Article 27 & 33) The

spirit of the economic system of business which

money based on kinship is an economic system that

provides opportunities for all people to participate as

economic actors. The economic order that should be

built is not a monopoly, monopsony or oligopoly

economic system. The economic system demanded

by the constitution is an economic system that

provides opportunities for all people or citizens to

own assets in the national economy. The national

economic system is an economic system that clearly

distinguishes which goods and services must be

produced by the government and which goods and

services must be produced by the private sector or the

non-government sector. Regarding the form of

economic institutions, although in the explanation of

article 33 it is interpreted as a form of cooperative, but

must adapt to the development of society and the

environment.

3. Empirical Facts

Rupiah against the dollar, apparently did not paralyze

the national economy. That due to the economic

crisis, the prices of basic necessities have soared,

inflation has barely been controlled, exports have

decreased (especially exports of manufactured

products), imports of capital goods have decreased,

production of manufactured goods have decreased,

unemployment has increased. However, all of this did

not have a serious impact on the people's economy,

whose source of income is not from selling labour.

Many businesses that are engaged in or owned by

the people, whose products do not use imported

materials, have almost no significant shocks. Another

fact is that when investment was zero percent, and

there was even a decrease in capital, it turned out that

the Indonesian economy was able to grow 3.4 percent

in 1999. This all proves that the Indonesian economy

will be strong if the economic actors are carried out

by as many citizens as possible.

4. Failure of Economic Development

The economic development that we have carried out

for more than 32 years, from one aspect, has indeed

shown quite good results. Even though during that

period, we faced 2 economic crises (namely the

Pertamina debt crisis and the crisis due to the drop in

Creative Economic Sustainability in Digital Transformation and Government Policy Instability in the Society Era 4.0

335

oil prices), however the average national economic

growth is still above 7 percent per-year. Per capita

income or GDP also increased sharply from 60 US

dollars in 1970 to 1400 US dollars in 1995. The

volume and value of oil and non-oil exports also

increased sharply. But on another aspect, we must

also recognize that the number of poverty is

increasing (SUSENAS) the income gap between

population groups and between regions is getting

wider, the amount and ratio of debt to GDP has also

increased sharply, as well as the transfer of ownership

of economic assets from the people to a small group

of citizens.

Although we have implemented various poverty

alleviation programs, we have launched 8

equalization pathways, but in fact all of them have not

been able to solve these problems. Therefore, what

we really need now is not a poverty alleviation

program, but to reformulate a development strategy

that is suitable for Indonesia. If the present economic

development strategy is correct, then all development

programs are the same as poverty alleviation

program.

B Sustainability Theory

Sustainable development aims to improve people's welfare,

to meet human needs and aspirations. Sustainable

development is essentially aimed at seeking equal

distribution of development between generations, both now

and in the future. According to KLH development (which

is basically more economically oriented) sustainability can

be measured based on three criteria, namely: (Djajaningrat,

2001)

1. There is no waste of use of natural resources or

depletion of natural resources;

2. No pollution and other environmental impacts;

3. The activities must be able to increase useable

resources

In line with the above concept, Sutamihardja stated that the

sustainable development targets include efforts to realize

the occurrence of: (Susmihardja,2004)

1. Equitable distribution of the benefits of

intergenerational development results

(intergenerational equity) which means that the use

of natural resources for the sake of growth needs to

pay attention to reasonable limits in the control of

ecosystems or environmental systems and is directed

at replaceable natural resources and emphasizes the

lowest possible exploitation of resources

irreplaceable nature.

2. Safeguarding of the preservation natural resources

and the environment and preventing ecosystem

disturbances in order to ensure a good quality of life

for future generations.

3. The use and management of natural resources is

solely for the sake of pursuing economic growth

regarding equitable distribution of sustainable use of

natural resources between generations.

4. Maintaining sustainable people (society) welfare

both in the present and in the future (inter temporal).

5. Maintaining the benefits of development or

management of natural resources and the

environment that have long-term or sustainable

impacts between generations. Also, maintaining the

quality of human life between generations in

accordance with their habitat or replaceable

resources.

From Fauzi’s economic point of view, there are at least

three main reasons why economic development must be

sustainable. (Fauzi, 2004)

1. First, concerns moral reasons. The current

generation enjoys goods and services produced from

natural resources and the environment, so it is

morally necessary to pay attention to the availability

of these natural resources for future generations. The

moral obligation includes not extracting natural

resources to the point of damaging the environment,

which could deprive future generation opportunities

to utilize the same advantages.

2. Second, regarding ecological reasons, for example,

biological diversity has a very high ecological value,

therefore economic activities should not be directed

at the use of natural resources and the environment

alone, which in the end can threaten ecological

functions.

3. Third, economy is the reason to pay attention to the

sustainability aspect. The reason from the economic

side is still in debate because it is not known whether

or not economic activity has met the sustainability

criteria, as we know, that the sustainable economic

dimension itself is quite complex, the sustainability

aspect from the economic side often only limited to

the measurement of intergenerational welfare

maximization.

According to Sutamihardja, in the concept of sustainable

development, policy collisions may occur between the need

to explore natural resources to fight poverty and the need to

prevent environmental degradation also need to be avoided.

Sustainable development also requires the fulfillment of

basic needs for the community and providing broad

opportunities for community members to pursue the ideals

of a better life without compromising future generations.

The development of the concept of sustainable

development needs to consider socially and culturally

reasonable needs, disseminate values that create different

consumption standards within the limits of the

environment's capabilities, and naturally everyone is able to

aspire to it. However, there is a tendency that the fulfilment

of these needs will depend on the need to realize economic

growth or production needs at a maximum scale.

Sustainable development clearly requires economic growth

where the main needs cannot be consistent with economic

growth, as long as the content of growth reflects the

ISCP UTA’45 Jakarta 2022 - International Seminar and Call for Paper Universitas 17 Agustus 1945 Jakarta

336

principles of sustainability. However, the reality is that high

production activity can occur simultaneously with

widespread poverty. This condition can harm the

environment. So sustainable development requires people's

needs by increasing their production potential and at the

same time ensuring equal opportunities for everyone. How

can this be done? The government certainly needs a policy

realistic strategy that can be implemented with an

appropriate control system. Exploitation of natural

resources is recommended preferably on replaceable

natural resources so that the ecosystem or environmental

system can be maintained. (Heal, 1998)

5 RESULTS OF ANALYSIS AND

DISCUSSION

5.1 Creative Economy Sustainability as

an Alternative Solution to Improve

National Competitiveness in the

Digital Era?

As a new talent, the creative economy is expected to

be able to leverage competitiveness. Its existence

requires recognition that must be realized through

various regulations/policies and joint actions between

regulators, mediators, facilitators, implementors,

actors, and even other beneficiaries.

From a managerial perspective, a sense of urgency

perspective, there are 5 (five) creative economy

development agendas that have been identified as

requirement which need complete arrangement and

management. The five agendas are: (Buhler, 1999:14)

1. Mapping of operational constraints;

2. Breakthrough efforts;

3. Commitment and action;

4. Public awareness; and

5. The importance of database

The term creative economy developed from the

concept of creativity-based capital that could

potentially increase economic growth in an area.

According to President Susilo Bambang Yudhoyono

in Agung Pasca Suseno, "The creative economy is the

fourth wave of economy which is a continuation of

the third wave of economy with an orientation

towards creativity, culture, and cultural and

environmental heritage". Jo Foord (Foord, 2008)

stated that there must be an integration between

public institutions and private sector with corporate

growth and social causes that are increasingly popular

at the city regarding the development of the creative

economy.

Promotional activities and support for the

development of creative industries require strategic

planning. At the same time, the growth of creative

industry employment began to be erratic in the

centers of cities thus it need wider and greater

economic knowledge to overcome them. Economy

creative based on the book titled The Development of

Indonesia Economy Creative 2025: Indonesia

Economy Creative Plan in 2009-2015, published by

the Ministry of Trade of the Republic of Indonesia is

a new economic era that intensifies information and

creativity by relying on ideas and stock of knowledge

from its human resources as the main production

factor in its economic activities. In other words, the

main concern of the creative economy is on the

human capital factor.

Science (knowledge) in the modern economy

plays the most important role. A society that

develops, is advanced in civilization and has good

welfare is a society that has a good foundation of

economic knowledge. This is absolutely necessary,

especially in Indonesia, whose economy is still

developing. Quoting from the Creative Economy

Blueprint 2025, the creative economy is an act to add

value (economic, social, cultural, environmental)

based on ideas born from the creativity of human

resources (creative people) and the implementation of

science, including cultural heritage and technology.

Creativity is not limited to works based on art and

culture, but can also be based on science and

technology, engineering and telecommunications.

There are 3 main things that form the basis of the

creative economy, including creativity, innovation

and invention.

a. Creativity

Can be described as a capacity or ability to produce

or create something unique, fresh, and generally

accepted. It can also generate new or practical ideas

as a solution to a problem, or do something different

from the existing one (thinking out of the box).

Someone who has creativity and can maximize that

ability, can create and produce something useful for

themselves and others

b. Innovation

A transformation of ideas based on creativity by

utilizing existing inventions to produce a product or

process better than the original, added value, and its

usefulness. As an example of innovation, look at

some of the innovations in Youtube videos with the

keyword "lifehack". The video shows how an original

product is then innovated and can produce something

of higher selling value and more useful.

c. Invention

This term emphasizes creating something that has

never existed before and can be recognized as a work

Creative Economic Sustainability in Digital Transformation and Government Policy Instability in the Society Era 4.0

337

that has a unique function or has never been known

before. Making applications based on Android and

iOS is also one example of inventions based on

technology and information that greatly facilitates

humans in carrying out their daily activities.

The term Creative Economy has been widely

discussed since John Howkins, wrote the book

"Creative Economy, How People Make Money from

Ideas". Howkins states the Creative Economy as an

economic activity in which its inputs and outputs are

ideas. In short, the essence of creativity is an idea. So

it is conceivable that only with the ideas, someone

who is creative can earn a relatively high income. The

economic condition expected by Indonesia is a

sustainable economy and also has several sectors as

pillars and supports for economic activity in

Indonesia.

Sustainability in question is the ability to adapt to new

geographical conditions and economic challenges,

which ultimately results in sustainable growth. High

growth is reflected in the competence of individuals

in creating innovation. Creative Economy in which

there are creative industries have high bargaining

power in a sustainable economy because individuals

have creative basic which they can use to create

innovations. In Indonesia, what is meant by

contribution to the economy are as follows: First,

contribution to Gross Domestic Product (GDP).

According to data from the Central Statistics Agency

(BPS) this industry in Indonesia contributed 7.28% to

GDP in 2008 and 7.8% to GDP on average from 2002

to 2008. The creative industry's contribution to GDP

mostly came from fashion (3.7%) and handicrafts

(1.9%). Second, job creation, data from BPS shows

that the creative industry in Indonesia absorbed

7,686,410 workers in 2008 and an average of

7,391,642 workers employment from 2002 to 2008.

On average from 2002 to 2008, the creative industry

absorbed 7.7% of the total workforce in the industry.

With such a large percentage, the creative industry is

the fifth largest industry that absorbs labour after the

agriculture, livestock, forestry, and fisheries

industries; trade, hotel and restaurant; community

services; and processing services. (Department Of

Trade Republic Of Indonesia)

5.2 The Government Prevents Creative

Economy Instability and Digital

Transformation in Indonesia

Indonesia is one of the countries that has the greatest

economic performance. In 2015 Indonesia recorded

growth in gross domestic product (GDP) 4.79%

higher than global economic growth which was

estimated to only reach 2.4%. This positive climate is

certainly the right moment for the government to

strengthen the foundation of the economy, especially

in the real sector. One of the real sectors that has

become a priority is the creative economy. The

government is optimistic that it will become the

backbone of the Indonesian economy. In contrast to

other sectors that are highly dependent on the

exploitation of natural resources, the strength of the

creative economy relies more on the superiority of

human resources. (Burhanuddin, 2008)

Diagram 1: Presentase Kontribusi Perekonomian Indonesia.

The creative industry in Indonesia has made a good

contribution to petrify the national economy. This can

be seen from the increasing number of creative

industries in Indonesia. So that it can make a very

good contribution to national economic growth. The

creative economic system is believed to be able to be

a solution in overcoming these problems, as well as

an alternative in facing global economic challenges

that will shift the existing economic system.

Indonesia, which is rich in culture and has a large

population, has enormous potential in developing the

creative economy. (Suwartawan and Purbadharmaja,

2017).

The development of the creative economy has

developed into a phenomenon in facing the

developments and challenges of globalization. The

information technology factor makes the

development of the creative economy more rapid, so

that the creative economy becomes an answer to the

challenges in the welfare of the community, besides

that the creative economy can reduce the

unemployment rate. (Fahrudin, 2008) The creative

economy will provide added value both to the

production process and to human resources so that the

creative economy system is believed to be able to

answer the challenges of various problems that exist

today. The development of science and technology

has been able to change the perspective, mindset, and

pattern of human life and is able to encourage the

ISCP UTA’45 Jakarta 2022 - International Seminar and Call for Paper Universitas 17 Agustus 1945 Jakarta

338

creation of inventions which hinder the scarcity of

goods and services. (Saksono, 2012:93) Through

continuous innovation, research, development,

products and services are created according to

consumers want and need. Creative economy

development can increase business income. Revenue

is the amount of money that craftsmen receive from

selling products to customers. Income is one indicator

to measure the level of prosperity and welfare of the

community so that the size of economic income

reflects economic progress. (Azizah and Muhfiatun,

2017:66)

The government efforts in preventing the

instability of the creative economy and digital

transformation are:

1. Labour sector: the most constraining obstacle

is the absence of workers, this is further

exacerbated by the low quality and undiscipline

workers, as well as the poor management

system

2. Production process sector: the most

constraining obstacles is the poor

implementation management system which

includes operations and production,

governance, technology maintenance, and

innovation, in addition to the low quality of

human resources, which is reflected in the low

awareness of workers regarding safety and

quality.

3. Facilities sector: the most constraining obstacle

is the complexity of the bureaucratic process in

obtaining permits and assistance. Another

factor is the ignorance and inability of creative

economy human resources (owners) to make a

correct and good financial reports, general

infrastructure that is far from expectations.

4. Business competition sector: the most

constraining obstacle is the instability of raw

material prices and selling prices as well as the

number of craftsmen, another factor is the

insensitivity of creative economy actors to the

latest information and global competition.

6 CONCLUSION

1. Sustainability of the creative economy of

digital transformation is a concept in the new

economic era that intensifies information and

creativity by relying on ideas and knowledge

from human resources (HR) as the main

production factor in economic activity.

Therefore, ideas are an important factor in the

development of the creative economy. The

creative economy can affect the economy in

Indonesia because human resources in

Indonesia always have new ideas. Thus that the

creative economy sector experiences economic

growth which can be seen from the Gross

Domestic Product or GDP. Creative economy

has no effect on economic growth.

2. Based on the discussion above, it can be

concluded that the development of information

and communication technology contributes and

encourages the growth of the creative

economy, which can be used as a solution for

the welfare of the community because the

creative economy system provides added value

both to the industry itself or to its human

resources.

7 SUGGESTION

1. There are still obstacles to developing creative

economy such as lack of fund, skilled

personnel, and lack of fund assistance from the

local government. Therefore, for cases in

several regions, it is an assignment for us to

solve problems more serious and need

cooperation from all parties, both the

community, the government and the private

sector in developing the creative economy so

that their products have innovative value and

high competitiveness also are useful for

improving more stable economic growth.

2. The existence of the creative economy has a

positive impact in reducing the unemployment

rate and will ultimately increase the level of the

economy.

REFERENCES

A. Berghaus, S., & Back, “Stages in Digital Business

Transformation: Results of an Empirical Maturity

Study.” 10th Mediterranean Conference on Information

Systems. Cyprus., 2016.

A. Javaid, S. Kurjakovic, H. Masuda, and Y. Kohda,

“Enabling digital transformation in SMEs by

combining enterprise ontologies and service

blueprinting,” Lect. Notes Comput. Sci. (including

Subser. Lect. Notes Artif. Intell. Lect. Notes

Bioinformatics), vol. 10371 LNCS, pp. 224–233, 2017,

doi: 10.1007/978-3-319- 61240-9_21.

Abdullah, Burhanuddin. 2008. Ekonomi Islam. Jakata: PT.

Raja Grafindo Persada

Buhler, P. (1999). Managing in the 90‘s:Training 90‘s

style: An Organizational Requirement. National

Research Bureau 60 (14)

Creative Economic Sustainability in Digital Transformation and Government Policy Instability in the Society Era 4.0

339

D. Simon, K. Fischbach, and D. Schoder, “An exploration

of enterprise architecture research,” Commun. Assoc.

Inf. Syst., vol. 32, no. 1, pp. 1–71, 2013, doi:

10.17705/1cais.03201.

Djajadinigrat, 2001 Untuk Generasi Masa Depan:

“Pemikiran, Tantangan dan Permasalah Lingkungan”,

ITB.

Departemen Perdagangan RepublikIndonesia:

Pengembangan Ekonomi Kreatif Indonesia 2025:

Rencana Pengembangan Ekonomi Kreatif Indonesia

2009-2015, Deperdag RI, 2009

Fahrudin, Adi. 2008. Pemberdayaan Partisipasi &

Penguatan Kapasitas Masyarakat. Bandung:

Humaniora.

F. Li, “The digital transformation of business models in the

creative industries: A holistic framework and emerging

trends,” Technovation, vol. 92–93, no. November, pp.

1–10, 2020, doi: 10.1016/j.technovation.2017.12.004.

Fauzi.A. 2004, Ekonomi Sumber Daya Alam dan

Lingkungan, Teori dan Aplikasi, Gramedia Pustaka

Utama, Jakarta

Genisa Meira, Tity Soegiarty, Bandi Sobandi. (2013). Kain

Tenun Ikat Dengan Bahan Sutera Alam (Analisis

Deskriptif Oranamen Kain Tenun Ikat dengan Bahan

Sutera Alam di Kampung Tenun Panawuan Kabupaten

Garut). Kriya Tenun dan Tekstil, Volume 1, Nomor 3,

Oktober 2013

Isenberg, Daniel. (2011). The Entrepreneurship Ecosystem

Strategy As A New Paradigm For Economy Policy:

Principles For Cultivating Entrepreneurship. Babson

Entrepreneurship Ecosystem, Babson College, Babson

Park: MA

Hoffman, Nicole P. (2000). An Examination of the

"Sustainable Competitive Advantage" Concept: Past,

Present, and Future. Academy of Marketing Science

Review volume 2000 no. 4

Herie Saksono, ―Ekonomi Kreatif : Talenta Baru Pemicu

Daya Saing Daerah,‖ Jurnal Bina Praja Vol. 4 No. 2

(Juni 2012): 93.

Heal, G.1998 Valuing the Future: Economic Theory and

Sustainability. Columbia University Press.New York

Howkins, John. 2001. Creative Economy: How People

Make Money from Ideas. London: Pinguin Global.

Komang Suwartawan dan Purbadharmaja, ―Pengaruh

Modal dan Bahan Baku Terhadap Pendapatan Melalui

Pengerajin Patung Kayu di Kecamatan Sukawati

Kabupaten Gianyar,‖ Jurnal Ekonomi Pembangunan

Universitas Udayana Vol. 6 No. 9 (September 2017):

1633.

JinHyo Joseph Yun, et al. (2017). Growth of a platform

business model as an entrepreneurial ecosystem and its

effects on regional development, European 10

AdBispreneur: Jurnal Pemikiran dan Penelitian

Administrasi Bisnis dan Kewirausahaan Vol. 3, No. 1,

April 2018, DOI:

https://doi.org/10.24198/adbispreneur.v3i1.16083, hal

1-11 Planning Studies, 25:5, 805-826, DOI:

10.1080/09654313.2017.1282082

J. Jeansson and K. Bredmar, “Digital Transformation of

SMEs : Capturing Complexity,” 32nd Bled

eConference Humaniz. Technol. a Sustain. Soc. BLED

2019 - Conf. Proc., 2019, doi: 10.18690/978-961-286-

280-0.28.

Jo Foord, 2008, Strategies for creative industries: an

international review, Creative Industries Journal

Volume 1 Number 2 Cities Institute, London

Metropolitan University.

M. Nasiri, J. Ukko, M. Saunila, and T. Rantala, “Managing

the digital supply chain: The role of smart

technologies,” Technovation, vol. 96–97, no. March, p.

102121, 2020, doi:

10.1016/j.technovation.2020.102121.

M. Graf, M. Peter, and S. Gatziu-Grivas, Foster Strategic

Orientation in the Digital Age. Springer International

Publishing, 2019.

Siti Nur Azizah dan Muhfiatun, ―Pengembangan Ekonomi

Kreatif Berbasis Kearifan Lokal Pandanus Handicraft

dalam Menghadapi Pasar Modern Perspektif Ekonomi

Syariah,‖ Jurnal Aplikasi Ilmu-ilmu Agama Vol. 17 No.

2 (2017): 66.

Sutamihardja, 2004 Perubahan Lingkungan Global;

Program Studi Pengelolaan Sumber Daya Alam dan

Lingkungan Sekolah Pascasarjana; IPB

Undang-Undang Dasar 1945

Undang-Undang Nomor 20 Tahun 2008 tentang Usaha

Mikro, Kecil dan Menengah bahwa Usaha Mikro, Kecil

dan Menengah (UMKM)

ISCP UTA’45 Jakarta 2022 - International Seminar and Call for Paper Universitas 17 Agustus 1945 Jakarta

340