Indonesia Conference Directory

In Indonesia, the increase in GDP of the Creative Economy from year to year indicates that there is good potential from creative economic sector in increasing the growth of the national economy. Judging from its contribution to National GDP, during the 2010-2016 period, the creative economy contributed an average of 7.45 percent to national GDP. However, until now the development of the creative economic sector has still not been able to reach the targets set by Badan Ekonomi Kreatif. GDP can be measured using three approaches, namely production, income and expenditure approaches. This research will focus on the production value approach. The purpose of this study is to know the general condition of the Indonesian creative industry and analyze the influence of input factors and ICT on the production value of Indonesias creative industry in 2012 -2015 using the panel data regression, FEM with SUR. The results showed that the ICT development index, labor, fuel, imported raw materials, machinery, the number of businesses with capital facilities had a positive and significant effect on the production value of the Indonesian creative industry, while the export value had no significant effect and had a positive relationship. Thus, to accelerate the GDP growth of the Creative Economy, it is necessary to carry out policies related to HR by increasing employment, improving the quality of education in Indonesia, mobilizing creative economic entrepreneurs to innovate and improve their technological capabilities, provide capital facilities to creative industries, and increase the use of machinery to speed up the production process.