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How Indonesia can institutionalize funding support for creativity
The Creative Economy Law has cleared the way for the facilitation of creative economy ecosystem development funding.
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A show of creativity: Visitors enjoy artwork by artist Nandang Gawe. (Antara/Agus Bebeng)
A
n opinion article that appeared in the March 14 edition of The Jakarta Post stressed the need for a specific entity to channel financial support to the creative sector. There are various steps that the government should take to make this a reality.
First, the entity must have legal standing. The institution might take the shape of a public service agency. Within the framework of governmental configurations, there is already a law that allows ministries to establish an agency to meet a specific need.
The issuance of Government Regulation No. 23/2005 on financial management of public service agencies paved the way for the development of several agencies in the public sector in Indonesia. The Creative Economy Law has also cleared the way for the facilitation of creative economy ecosystem development funding and the legal prospect of establishing a dedicated agency, if required for the industry's further growth.
Second, the agency must be part of the Tourism and Creative Economy Ministry work unit from which the technical competence originated. However, it will be subject to market-like rigor of productivity and efficiency standards.
This institutionalization will lead to a sharper mission, in both the development of strategy and delivery of services. Results will improve, and accountability will be strengthened through enhanced performance monitoring. This shift in the government's role from steering to rowing will ensure long-awaited dedicated funding for the creative industries.
However, the macro-level challenges of institutionalization, such as resources, regulation and market structure, as well as micro-level organization and management ones of autonomy, control and internal management, should be identified and mitigated in advance.
For example, there is a strong chance that regional governments will establish their own agencies as a result of the institutionalization and the recently introduced Government Regulation No. 24/2022. In order to minimize differences, avoid overlaps and synchronize implementation at the national and local levels, the national agency should assume oversight for these local entities.
