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Bekraf grants Rp 4.5b this year to support creative economy players
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A man plays a game developed by Agate during the Bekraf Game Prime 2017 in Jakarta. The creative economy contributed 7.4 percent to Indonesia’s GDP in 2016, with growth expected to reach 9.6 percent this year to top Rp 1.2 quadrillion, according to Bekraf. (JP/A. Kurniawan Ulung)
T
he Creative Economy Agency (Bekraf) will channel Rp 4.5 billion (US$320,613) in grants to 62 creative economy businesses so they can boost productivity as the share of the creative economy's contribution to gross domestic product (GDP) continues to increase.
The agency will channel the funds through the government incentive aid (BIP) program aimed at giving additional working capital to small and medium enterprises so they can be bankable, said Bekraf nonbanking access director Syaifullah Agam.
Small businesses, especially those in the creative industry, often cannot get bank loans because of the “rigidity” of its system, and grants could help boost the creative sector, he added.
“We encourage them to be a formal business entity so they can contribute to the nation’s economy by paying taxes,” Syaifullah said on Tuesday.
The creative economy contributed 7.4 percent to Indonesia’s GDP in 2016, with growth expected to reach 9.6 percent this year to top Rp 1.2 quadrillion, according to Bekraf. The growth rate will be much higher than the overall economy that grew 5.05 percent in the second quarter year-on-year, a trend that has been seen in the past few years.
In its third year, Bekraf’s grants have reached more business owners as it allowed registration from five subsectors, namely crafts, culinary, digital apps and games, fashion and film.
One of the recipients was Sri Andriani from Malang, East Java, who applied for Rp 95 million ($6,768) to improve her wooden shoes business.
