The Dynamics of Indonesian Creative Industry Sectors: An Analysis Using Input–Output Approach

Abstract

The purposes of this study are (1) to get the other perspective related to the role of creative industry sectors in the national economy of Indonesia and (2) to inquire about the ways to improve these industries. The period of analysis of this study is from 1990–2005. This study employs input–output (IO) analysis as a tool of analysis. More specifically, simple output multipliers method, as well as the comparison with a previous study, is used in order to achieve the first objective while demand-pull IO quantity model is applied to obtain the second one. The results show that the other perspective regarding above role is acquired from this study, namely the industries did not have an important role in Indonesian national economy in the analysis period. The results also indicate that the ways to improve above sectors are to restrict the import activity related to the creative industries products, especially the products which domestic producers are possible to produce, and to improve the quality and price of these commodities.