Dr M Ali Hamza
When we hear the word ‘economy’, we usually think of factories, agriculture, oil, and heavy shipping containers. For decades, traditional trade was built almost entirely on tangible physical goods. Today, however, another sector is quietly driving growth around the world: the Creative Economy.
This sector includes gaming, software, film, design, fashion, music, and food culture. It turns human imagination and cultural heritage into profitable, high-value businesses. Unlike natural resources, which run out over time, creative ideas are renewable. In an increasingly digital world, the creative economy is no longer a luxury; it is a core driver of modern employment and export revenue.
This October, Indonesia is hosting the 5th World Conference on Creative Economy (WCCE) 2026, in Jakarta. The event brings together ministers, international organizations, tech giants, and independent creators. A close look at the agenda shows that Indonesia is not treating culture merely as entertainment, but as a strategic pillar for long-term economic development.
Look at Indonesia’s blueprint for the WCCE 2026, that includes themes like Bankable Creativity: where the sessions focus on helping banks and investors accept intellectual property (IP), copyrights, and digital assets as collateral for business loans. Indonesian retail brands, such as popular coffee chains like Kopi Kenangan and TUKU, are treated as cultural ambassadors that drive international business and this comes under the theme Gastro Diplomacy. A discussion on Digital Platforms & AI will bring leaders from Google, TikTok, Shopee, and local studios to address how local creators can survive, compete, and scale in the digital era. This all required robust Global Governance; so, a session is dedicated to focus on that how through frameworks like the “Friends of Creative Economy” and the “Jakarta Vision,” Indonesia actively shapes international rules and UN policies regarding creative trade.
Indonesia’s leadership in this field did not happen overnight. Years ago, the country established a dedicated ministry and specialized agency to support creative industries. Instead of relying only on traditional exports like palm oil, minerals, electronics etc., Indonesia decided to build an ecosystem that monetizes its culture and digital talent.
Indonesia has shown that when a government provides proper legal protections, easy financing, and digital infrastructure, creative talent can turn into massive economic value. Indonesia’s policy frameworks and institutional focus have delivered measurable economic returns. The creative economy contributes over Rp 1,500 – 1,611 trillion (approx. $90 – 100 billion), accounting for 7.28% of Indonesia’s total GDP. The sector employs 26.47 to 27.4 million workers, predominantly young professionals under the age of 40, representing roughly 18% of the national workforce.
Creative exports surpassed $26.6 billion, representing approximately 12% of Indonesia’s non-oil and gas export earnings, led by fashion, handicrafts, and culinary industries. Institutional backing including intellectual property collateralization drove creative sector investment to Rp 183 trillion. And by initiating the inaugural World Conference on Creative Economy (WCCE) in Bali (2018) and driving UN General Assembly Resolution 74/198, Indonesia elevated its creative trade while formalizing the 2026–2045 Creative Economy Master Plan.
On the other hand, Pakistan has an enormous amount of raw creative energy. It has one of the youngest populations in the world, a booming freelance community, talented software developers, and a television drama industry that reaches millions of viewers across South Asia, Central Asia, and the Middle East. Pakistani artisans in Lahore, Multan, and Karachi produce world-class textiles, pottery, brass work and what not.
However, Pakistan’s creative sector faces serious bottlenecks, such as Lack of Formal Financing. Banks still hesitate to lend money to animators, game developers, or fashion designers because their main assets are ideas and software, not land or machinery. There is a weak Intellectual Property Enforcement: Without reliable copyright and patent protections, creators struggle to protect their work and monetize it properly. And most importantly an absence of a Unified Policy: unlike Indonesia, Pakistan does not yet have a single, dedicated national framework that connects artists and coders directly to export promotion and trade finance.
Pakistan and Indonesia enjoy warm diplomatic ties, but their bilateral trade has historically been quite narrow. Indonesia exports large amounts of palm oil to Pakistan, while Pakistan mainly exports raw cotton, and fruits. Both countries can expand beyond bulk commodities by partnering in the creative space. Through studying Indonesia’s model, Pakistan can learn how to treat its creators not just as freelance workers, but as small and medium enterprises (SMEs) that deserve structured tax incentives, venture funding, and export support.
The upcoming conference in Jakarta demonstrates that global trade is moving toward knowledge, technology, and culture. For developing nations with large youth populations like Pakistan, this shift offers a real path to sustainable economic growth.
Pakistan has the talent, and Indonesia has built the working blueprint. If both countries look beyond traditional cargo shipments and invest in joint digital, cultural, and media ventures, they can build a modern economic partnership that benefits the next generations of both brotherly nations.
