Creative economy and regional growth: evidence from five creative cities in Indonesia

Abstract

Purpose: to examine the contribution of the creative economy to regional economic growth and identify the leading creative-economy subsectors in five Indonesian creative cities: Bandung, Yogyakarta, Surakarta, Denpasar, and Makassar, during 2018–2023.

Method: this study employs a quantitative descriptive-analytical approach using secondary data from 2018–2023 for five Indonesian creative cities: Bandung, Yogyakarta, Surakarta, Denpasar, and Makassar. Data were obtained from BPS, Bekraf, and relevant government institutions and analyzed using descriptive statistics, trend analysis, and comparative analysis to examine the contribution and development of the creative economy and its subsectors.

Findings: the creative economy made an increasing contribution to regional economic development, with its average share of GRDP rising from 5.8% in 2018 to 6.6% in 2023. Bandung recorded the highest average contribution (8.15%), followed by Yogyakarta (7.05%), Surakarta (6.55%), Denpasar (5.65%), and Makassar (4.42%). Fashion and culinary were the leading subsectors, while the creative economy also demonstrated significant employment absorption and resilience during the post-pandemic economic recovery.

Implications: the importance of strengthening the creative economy through targeted policies, human capital, digital infrastructure, financing, and market access to support regional economic growth.

Originality: provides a comparative analysis of the creative economy’s contribution to regional economic development across five Indonesian creative cities, highlighting differences in subsector specialization and regional performance.