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Minister of Finance Sri Mulyani Indrawati emphasized the Government's commitment to continue to create a conducive business atmosphere for creative economic actors as one of national economic growth triggers. Moreover, Indonesia demographic bonus which is dominated by the middle class and the millennial generation will be the main consumers of the creative economy.

These are the Impacts and Opportunities of Indonesia as a Middle-Income Country

Jakarta, 22/01/2019 - Minister of Finance Sri Mulyani Indrawati emphasized the Government's commitment to continue to create a conducive business atmosphere for creative economic actors as one of national economic growth triggers. Moreover, Indonesia demographic bonus which is dominated by the middle class and the millennial generation will be the main consumers of the creative economy.
 
This was conveyed by Minister of Finance at the A1 Forum discussion on the topic "Indonesia is not a Poor Country" at Tjikini Lima Restaurant, Jakarta, Tuesday (22/01). In the event with panel discussions, besides the Minister of Finance, present as a panelist were economists who were also former Minister of Finance Chatib Basri and Happy Salma artists and entrepreneurs as well as moderators were sociologists Imam Prasodjo.
 
"The real middle class are economically secured. That's around 45 million in 2010. This year (2019) may have risen to nearly 60 (million). And later in 2020 it is estimated to reach 85 million. Indonesia is the biggest engine of growth because of its middle class (compared to ASEAN countries for example)," said Minister of Finance.
 
Moreover, Indonesia does not only have a fairly large middle class but the group is dominated by the millennial generation. One of the characteristics of the middle class and the millennial generation is having money, consumptive, and emphasizing lifestyle and experience. Both are opportunities and also challenges for creative economic actors.
 
"Groups that are a combination of the middle class and the millennial generation, life style and experience are important for them. So, for them to drink coffee (as a life style) is important," said the Minister of Finance about the example of the behavior of the millennial generation that emphasizes the importance of lifestyle and experience.
 
Aside from the culinary side, the middle class and millennial generation love fashion, enjoy performing arts and tourism. This is an opportunity for creative industry players to create products and services in the field.
 
In line with Minister of Finance, Chatib Basri pointed out that consumer needs have shifted to not to fulfill basic needs (needs) but to wants.
 
"That (consumers' tastes) changes from what their needs to their wants. So, if people talk about wants, they don't talk anymore about clothes to just being used but those must be beautiful and attractive. The food is not a tool for nutrition but it must be tasty. Now, this is what I see that the future of the creative industry is unlimited," Chatib Basri added.
 
This change in taste has created new jobs that promise a good future such as being a cook and barista. Even though these jobs were still underestimated.
 
From the Government side, Minister of Finance exemplifies several policies that are pro-growth in the creative industry, for example through tax deductions for creative industries, encouraging vocational education, grants provided by the Creative Economy Agency (Bekraf) and special allocation funds for performing arts.
 
Even further, in the future the President wants an endowment for the creative industry. This shows the seriousness of the Government to continue to support the development and growth of the creative industries in Indonesia.
 
"The president said he wanted to make an endowment for creativity. If the President's direction of policy is there, we secure it. This is 2019, the State Budget Law has been completed so it's not there. However, later we can think about it in 2020," completed the Minister of Finance. (btr/ind/nr)