Indonesia’s Creative Economy in the Digital Era: Opportunities and Challenges

Abstract

The creative economy has become one of Indonesia’s strategic drivers of growth, especially in the digital era where technological advances reshape how creative products are produced, distributed, and consumed. This study applies a qualitative literature review approach to explore the opportunities, challenges, and strategies for strengthening Indonesia’s creative economy. The findings show that digitalization particularly through e-commerce and social media has democratized market access, accelerated innovation, and expanded the sector’s contribution to GDP. Moreover, government initiatives, such as Presidential Regulation No. 142/2018, provide a regulatory foundation, yet gaps in implementation remain. Indonesia’s demographic bonus, dominated by millennials and Gen Z, offers significant potential for advancing digital creative industries. Nevertheless, barriers such as limited digital literacy, weak intellectual property protection, and unequal technological access hinder progress. The study concludes that achieving sustainable development of Indonesia’s creative economy requires integrated strategies that combine digital technology, inclusive policymaking, and youth empowerment. Academically, this research enriches the discourse on creative economy and digitalization, while practically offering insights for policymakers, industry stakeholders, and young innovators.