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Indonesia’s financial sector has been flourishing over the past half decade. The COVID-19 pandemic period, while being a time of austerity for most sectors, led to revolutionary innovations in Indonesia’s financial services industry, particularly in fintech. From December 2020 to December 2022, total assets of the fintech sector grew by 48.54 percent from 2020 to 2022. This growing trend continued even after the pandemic lockdowns ended, as total assets in fintech grew by 30.8 percent from December 2022 to December 2023.
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Indonesia’s financial sector has been flourishing over the past half decade. The COVID-19 pandemic period, while being a time of austerity for most sectors, led to revolutionary innovations in Indonesia’s financial services industry, particularly in fintech. From December 2020 to December 2022, total assets of the fintech sector grew by 48.54 percent from 2020 to 2022. This growing trend continued even after the pandemic lockdowns ended, as total assets in fintech grew by 30.8 percent from December 2022 to December 2023.
With fintech paving the way forward, traditional banking followed suit by revolutionizing its services. From 2022 to 2023, the banking industry’s fund distribution increased by 6.28 percent, source of funds increased by 6.33 percent, and total assets in the industry grew by 6.98 percent, reaching a total of US$8.22 trillion. Moreover, even regional banks have been benefitting from this wave of innovation. For the same period from 2022 to 2023, the regional banking sector saw a 7.67 percent in distributed funds, an 8.08 percent increase in source of funds, and a 7.52 percent increase in total assets, reaching a total of US$137.96 billion.
Innovations in Indonesia’s finance sector extend beyond financial services. On September 2023, the Indonesian monetary authority, Bank Indonesia (BI), introduced three pro-market monetary instruments that function as short-term fixed income securities with high coupon rates. The three instruments, SRBI, SUVBI, and SUVBI, were able to collect Rp 409 trillion (US$25.2 billion), US$2.31 billion, and US$387 million, respectively.
Particularly in the case of the SRBI, this instrument represented an innovative way to attract capital flow from abroad during a period of high credit costs and slow investment. Approximately 20.77 percent, or Rp 85.02 trillion (US$ 5.26 billion), of the total outstanding SRBI were owned by non-Indonesian residents, underscoring the SRBI’s success as a monetary instrument.
Even when compared to other countries in the same region, the Indonesian finance sector stands out for its stability against fluctuations. Throughout 2023, the global cost of credit was high due to hawkish Fed policies made to curb US inflation, resulting in a stagnation of capital flow on a global scale. Entering the second quarter of 2024, the composite index of many Southeast Asian countries such as Singapore and Thailand recorded price decreases compared to the same period last year, reaching -3.96 percent and -13.9 percent on the Straits Times Index (STI) and the Bangkok SET index, respectively. Meanwhile, the Jakarta Stock Exchange Composite Index (JKSE) recorded a price increase of 5.18 percent for the same one-year period.
In summary, the Indonesian financial sector stands out for its stability and consistency, maintaining growth through innovation even during periods of austerity or global uncertainty. This consistency is also reflected in its GDP, which grew by 7.4 percent from 2022 to 2023, contributing roughly 4.16 percent to the national GDP in 2023.
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Indonesian popular culture is gaining global traction, with Joko Anwar’s Ghost in the Cell (2026) set to screen in 86 countries and music artists like NIKI, Anggun, Rossa and Voice of Baceprot touring internationally. Yet these successes remain largely driven by individual efforts, leaving the country’s creative industries with a fragmented and under-institutionalized global presence, highlighting the need to position the sector as a strategic industry.
Unlike South Korea, which has treated its culture as a strategic pillar of its creative economy as early as the 1990s, Indonesia is yet to place the sector at the center of its development strategy. Instead, the national economy remains heavily reliant on natural resource, particularly coal and palm oil as well as manufacturing industries. Without a well-defined policy framework and stronger government support, Indonesia risks underutilizing its creative industries, leaving their potential unfulfilled.
In 1994, South Korean president Kim Young-sam reportedly watched the Hollywood hit Jurassic Park and came away with a striking realization: the movie generated revenue equivalent to exporting 1.5 million cars, more than twice that country’s annual automobile exports at the time. That moment helped shift the policy mindset to position culture not merely as art but as a high-value industry.
Today, the Korean Wave is a global phenomenon and a core pillar of South Korea’s economic strategy. Its impact extends far beyond screens and stages and by 2025, cultural exports including music, games and film, alongside related sectors such as K-beauty and K-food, had reached an estimated US$37.94 billion, making culture the country’s fourth-largest export sector.
In Indonesia, the spillover effects of the creative economy are already visible, particularly in film. One notable example is Laskar Pelangi (The Rainbow Troops, 2008), which significantly boosted local tourism for Belitung Island with a surge in visitor arrivals following its release, contributing to a 20 percent increase in hotel occupancy between 2008 until 2009.
More recently, Ngeri-Ngeri Sedap (Missing Home, 2022) showcased the landscapes of North Sumatra, particularly around Lake Toba, while highlighting Batak culture. The film received strong institutional backing, including promotion by former tourism minister Sandiaga Uno. Although official data remain limited, early indications suggest a similar boost in tourism following its release in 2022. These cases demonstrate that, much like South Korea, Indonesia’s cultural products can generate meaningful economic spillovers.
Investment in the creative economy is gaining momentum and reached Rp 183.01 trillion ($10.68 billion) last year, or 9.48 percent of total investment. This reflects growing interest from both domestic and foreign investors, particularly in digital subsectors such as mobile applications and content development. Further, the sector is projected to absorb 27.4 million workers, underscoring its expanding role in job creation. Indonesia’s creative capacity, therefore, is no longer in question.
However, despite its vast potential, the culture sector remains constrained by structural weaknesses, including unclear definitions, limited skills, inadequate infrastructure and weak enforcement of intellectual property rights. The absence of a reliable, integrated data system also complicates policymaking and deters investment, as both government and investors lack the tools to assess either performance or risks.
While other countries have strategically leveraged creative industries, particularly the film industry, to drive tourism, exports and broader economic growth, Indonesia still lacks a coherent, long-term national strategy. Without a clear road map supported by stronger institutions, better data governance and targeted policy interventions, the creative economy will remain fragmented, unable to scale into a competitive and sustainable engine of growth.
As one of the most populous and culturally diverse countries in the world, Indonesia’s creative economy holds significant untapped potential. In the digital era, Indonesians are not only consuming content but also increasingly creating music, film and digital products, which are rising in quality as they gain wider global relevance.
To move forward, the country must begin treating its creative economy not as a complementary sector but as a strategic pillar of national development. This requires more than rhetoric: It demands coordinated policies to strengthen data systems, improve intellectual property protection, expand funding access and invest in talent and infrastructure.
Equally important is a clear strategy for positioning Indonesia’s cultural exports in global markets. The success stories and demand growth are already evident. What remains is the political will to scale them. Without this, Indonesia risks remaining a consumer market for global content instead of emerging as a producer of value in the global creative economy.
