The creative economy has emerged as one of the key pillars of modern economic development across the world. It contributes to domestic growth and also plays an important role in diplomacy and national reputation. According to UNCTAD’s Creative Economy Outlook 2022, the creative economy refers to the broader process through which creativity generates ideas, innovation, and value. These ideas are then carried forward by the creative industries, which transform them into products, services, and commercial activities, including film, music, and design. Globally, the creative industries contribute about 3.1% of global GDP and 6.2% of total employment, equivalent to roughly 50 million jobs (Fairley, 2022). These figures suggest that the creative industries are emerging as a sector that supports global economic growth.

Alongside their economic impact, the creative industries also play an important role in diplomacy through the concept of soft power, which refers to the ability of a country or city to influence others through culture, values, and ideas rather than coercion (Nawaz, 2025). Creative economic diplomacy builds on this idea by using cultural products and creativity to shape a positive image and strengthen international influence. Expressions such as music, film, fashion, and cuisine act as cultural ambassadors that connect nations and shape global perceptions of identity (Lehr, 2024). This process also supports nation branding by promoting cultural excellence and creativity, helping countries and cities build strong reputations and international recognition (Papaioannou, 2022). A positive image formed through these cultural and creative exchanges can increase global attractiveness, encouraging tourism, foreign investment, and wider collaboration (Dineri et al., 2024). This demonstrates how creative sectors contribute not only to economic growth but also to strategic international diplomacy.

Several nations exemplify how creativity can become a strategic pillar of diplomacy. South Korea stands out as one of the most prominent examples of how creative economic diplomacy can be integrated into national development and foreign policy. The Korean Wave (Hallyu) began in the late 1990s, when the government positioned the creative industry as a key pillar to boost economic growth and build a positive national image (Lodge, 2025). South Korea’s strong reputation for modernity, innovation, and creativity has positioned the country as an attractive destination for investment and global business partnerships.

The United Kingdom, on the other hand, has taken a similar approach, positioning the creative sector as both a driver of economic growth and a means of enhancing investment appeal. In 2023, the UK’s creative industries contributed around £124.6 billion, or 5.7% of GDP, and employed 2.4 million people (Carollo, 2025). Recognizing this strategic value, the government established the Soft Power Council in 2025 to strengthen the role of culture and creativity in diplomacy and economic development. The British Foreign Secretary, David Lammy, emphasized that soft power builds trust and supports long-term economic partnerships, while the Secretary of State for Culture, Media and Sport, Lisa Nandy, noted that creative exports are among the key factors attracting investors to the UK. Cultural assets such as the English Premier League, British music, the Harry Potter franchise, and the country’s world-renowned museums and universities continue to bolster the UK’s reputation as a leading destination for investment and innovation.

These examples illustrate how creativity and culture have become central to national strategies that link economic growth with global influence. With its vast cultural heritage, Indonesia is increasingly recognizing the creative economy as a source of soft power and global competitiveness (Pramono et al., 2025). The sector also plays an important role in the national economy, contributing 7.8% to GDP in 2023 (Wisnubroto, 2023). Meanwhile, creative economy exports contributed 9% to total national exports in 2024. By mid-2025, the value reached USD 13 billion, equivalent to Rp215 trillion or 50% of the 2025 target (Hafiez, 2025). These figures demonstrate that the creative economy has become one of the key sectors supporting stability and driving sustainable economic growth in Indonesia.

Indonesia’s creative economy diplomacy is reflected in various sectors, particularly in culinary arts and fashion. Through initiatives such as Indonesia Spice Up the World (ISUTW), launched in 2021, the country promotes its cuisine and spices globally as part of its soft power strategy (Suharto, 2021). This form of gastrodiplomacy uses food to promote understanding, share culture, and strengthen international relations (Rockower, 2012). A similar approach can be seen in the promotion of batik, a traditional Indonesian fabric art recognized by UNESCO in 2009 as part of Indonesia’s cultural heritage and used as a symbol of national identity and diplomacy (Febrian, 2022). Batik has played a consistent role in Indonesia’s cultural diplomacy, from Foreign Minister Mochtar Kusumaatmadja’s cultural initiatives in the 1980s to President Soeharto’s gift of batik to Nelson Mandela, which helped popularize it globally, and later at the 1994 APEC Summit in Bogor, where world leaders wore batik as official attire and adopted what became known as the Bogor Goals, an important milestone promoting free and open trade in the Asia-Pacific region (Steelyana & WawoRuntu, 2024).

At the city level, Jakarta’s creative economy has become a key driver of growth, contributing around 10.5% to the city’s GRDP in 2023 (Kearney, 2024). The city’s recognition as a UNESCO Creative City of Literature in 2021, home to 60% of Indonesia’s publishers and 25% of its digital collection, highlights its vibrant cultural base (UNESCO, n.d.). Building on this foundation, Jakarta is pursuing its ambition to become a City of Cinema, supported by 70% of the national film industry based in Jakarta (VietnamPlus, 2025). To sustain this creative momentum, the city government has integrated the creative economy into its long-term development strategy through the Jakarta Medium-Term Regional Development Plan (RPJMD) 2025–2029. The plan positions the sector as a pillar of innovation and global competitiveness, focusing on talent development, financing access, and cross-industry collaboration. This vision is reflected in creative districts such as Cikini, Kemang, and Blok M, as well as in the Jakarta Creative Hub (JCH), which supports entrepreneurs through coworking spaces and incubation programs (Anindita, 2017). Through events such as Jakarta Film Week, Jakarta Fashion Week, and Pop Art Jakarta, the city continues to promote creativity as a source of culture, innovation, and global collaboration.

The growing recognition of the creative economy as both an engine of growth and a tool of diplomacy reflects a global shift toward knowledge, innovation, and cultural value as an instrument of influence. From South Korea and the United Kingdom’s cultural exports to their integration of soft power into foreign policy, creativity has proven to be a strategic asset in strengthening economic resilience and international reputation. Indonesia, with its deep cultural heritage and dynamic creative industries, is now building on this foundation to enhance its global competitiveness through cultural diplomacy and creative innovation. At the city level, Jakarta’s commitment to developing a vibrant creative ecosystem through policies, programs, and international collaborations positions it not only as a leading creative hub in Southeast Asia but also as a model for how cities can harness culture and creativity to shape their global identity and attract sustainable investment.

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