Indonesia's Dual Economic Reality: Challenges in Job Creation Amid Creative Sector Growth

Economic Growth vs Job Creation

Indonesia's economic growth continues to face significant challenges in creating sufficient employment opportunities. Finance Minister Purbaya Yudhi Sadewa emphasized that the projected 5.4% economic growth for the upcoming year will likely be inadequate to absorb the new entrants into the workforce, particularly among the youth ¹

. Purbaya suggested that a growth rate of 6.7% would be more effective in creating meaningful employment opportunities.

Creative Economy's Positive Impact

In contrast to the overall economic growth challenges, Indonesia's creative economy sector is demonstrating robust performance. According to data from the Central Statistics Agency (BPS), the creative economy has successfully absorbed 27.4 million workers, representing 18.70% of the total employed population ²

. This figure has surpassed the national target of 25.55 million workers set for 2025, showcasing the sector's significant role in employment creation.

Key Highlights of Creative Economy Performance:

• Absorbed 27.4 million workers (18.70% of total employed)
• Contributed 7.28% to national GDP in 2024 (Rp 1,611.2 trillion)
• Achieved 6.57% growth, outpacing national economic growth of 5.03%
• Generated US$ 26.68 billion in exports during January-October 2025
• More than 50% of workers are under 40 years old, making it a vital source of employment for the younger generation

Sectoral Contributions and Future Prospects

The creative economy's export performance has been particularly noteworthy, with a total value of US$ 26.68 billion during the January-October 2025 period, exceeding the national target of US$ 26.44 billion ²

. The fashion subsector emerged as the largest contributor to these exports, followed by craft products. The United States remained the primary destination for these exports, followed by Switzerland and Japan.

Policy Implications

The contrasting narratives of overall economic growth challenges and the creative economy's success present both opportunities and challenges for policymakers. While the creative sector's performance offers a bright spot in employment creation and economic contribution, the overall economy's inability to generate sufficient jobs at current growth rates necessitates further policy consideration.