Creative Economy and Out-of-home Media: Synergy for National Economic Growth

By: David Caezario, AMLI Contributor

The Association of Indonesia Out-of-Home Companies (AMLI) and the Indonesian Creative Economy Agency held an online discussion on Synergy for National Economic Growth, Directorate of Advertising, Deputy for Media Creativity on January 15, 2025.

According to Mrs. Selliane Ishak, the creative economy is a main pillar in driving national economic growth by prioritizing creativity, innovation, and collaboration. One sector that has a big role in this ecosystem is the Outdoor Media (MLG), which is not only a means of communication, but also a tool to strengthen the creative economy through aesthetic, technological, and social function contributions.

CREATIVE ECONOMY AS A NEW GROWTH ENGINE

The creative economy has several main focuses, namely:

1. Increasing the nation’s competitiveness and independence through downstreaming and commercialization of creative products.
2. Creative diplomacy to expand Indonesia’s influence at the global level.
3. Creation of quality jobs by supporting the creative industry.
4. Development of a marketing system that protects creative products, including infrastructure and funding facilities.

The development foundation of this sector includes legal, political, academic, and empirical aspects. In 2023, this sector will absorb 24.92 million workers and contribute added value of IDR 1,141 trillion with export contributions reaching USD 23.96 billion.

THE POTENTIAL OF OUT-OF-HOME MEDIA IN THE CREATIVE ECONOMY

OOH is an integral part of the creative economy ecosystem. This media includes billboards, street furniture, transit, and ambiance that combine aesthetics, communication functions, and technology. Based on the 2022 Nielsen Adex report, OOH’s contribution reached 2% of Indonesia’s total advertising spending of IDR 294.6 trillion, with an annual growth of 19% (CAGR).

OOH’s advantages include:

• Unlimited creativity through the integration of technologies such as IoT and Big Data.
• The ability to decorate and enliven the city layout.
• Reaching an active and unavoidable audience. Out-of-home media is able to reach an active audience with messages that are hard to avoid 24/7.
• Large size and visual appeal. The combination of art and technology creates large media that attracts attention with unlimited creativity.
• High repetition rate. Messages can be repeated so that they are easily remembered by the audience.
• Bringing the city to life. This media not only conveys information but also decorates and enlivens the city atmosphere.

CHALLENGES AND SOLUTIONS FOR OUTDOOR MEDIA

Despite its huge potential, OOH in Indonesia faces significant challenges, such as:

1. Complex regulations: Regulations differ from region to region, such as in DKI Jakarta, which makes the licensing process slow (90–180 days compared to digital media which only takes 5 minutes).
2. High tax burden: Advertising tax in Jakarta reaches 36%, much higher than Kuala Lumpur (6%) and Singapore (8%).

To address these challenges, regulatory reform, accelerated licensing, and reduced tax burdens are needed to increase OOH’s competitiveness.

OOH AND CREATIVE ECONOMY CONTRIBUTION TO GOVERNMENT

OOH and the creative economy sector make major contributions through several things, including:

• Local Original Income (PAD) through advertising tax.
• Provision of public facilities, such as bus stops and city parks.
• Opportunities for creative workers in the fields of graphics, digital technology, and content.
• Government communication media, including public education and national disaster alarm systems.

CREATIVE ECONOMY AGENCY’S OUTSTANDING PROGRAM 2025

To accelerate growth, the government launched flagship programs, including:

• Creation: Creative talent development and export acceleration.
• Production: Creative hub activation and government incentives.
• Promotion and marketing: Domestic and international marketing strategies.
• Distribution and consumption: Encouraging the National Movement of Proudly Made in Indonesia (Gernas BBI).

CONCLUSION

The synergy between the creative economy and Off-Home Media shows great potential to drive national economic growth. By overcoming regulatory and tax challenges, and leveraging modern technology, this sector is ready to make Indonesia a major player in the global economy based on creativity and innovation.