West Nusa Tenggara and the Policy Challenge of Building a Creative Economy

West Nusa Tenggara (NTB) is increasingly being positioned as a policy testing ground for Indonesia’s creative economy ambitions. From traditional weaving villages to digital start-ups, local creativity is being encouraged to evolve into a sustainable economic driver. With government-backed financing schemes and a long-term national development vision to 2045, the region illustrates both the promise and the structural challenges of embedding the creative economy into regional development policy.

From cultural practice to economic activity

Across NTB, creative activity takes many forms. In rural areas, traditional weaving remains central to livelihoods, particularly in Lombok and Sumbawa, where woven textiles are both cultural artefacts and sources of household income. In urban centres, graphic designers, content creators and application developers are contributing to a growing digital creative sector.

This diversity reflects the breadth of Indonesia’s creative economy, which spans at least 17 subsectors, from crafts and fashion to film, music and digital applications. In NTB, these activities are closely tied to local identity, reinforcing the idea that cultural heritage can support economic participation rather than sit apart from it.

Local government initiatives and cultural platforms

District governments in NTB have begun to invest in skills development and cultural promotion. In West Sumbawa, a 20-day training programme on weaving motif development was introduced to improve product quality and market competitiveness. The initiative aimed not only to strengthen technical skills but also to encourage new designs with higher commercial value.

Cultural festivals and exhibitions also play a role in expanding market access. Events such as Karya Kreatif NTB and the Lombok Sumbawa Tenun Festival combine craft bazaars, performing arts and culinary markets, demonstrating how creative activities can generate economic spillovers across supply chains, from production to tourism consumption.

At the village level, the establishment of small museums in parts of Lombok shows how cultural preservation can be aligned with new economic uses. These spaces increasingly function as community hubs, where younger residents translate local history into tourism experiences with commercial potential.

Financing constraints and the role of KUR

Despite this momentum, access to finance remains a major constraint. Many creative businesses operate on a micro or small scale and rely on intangible assets such as designs or intellectual property, which are difficult to use as collateral under conventional banking models.

Against this backdrop, the government’s decision to designate NTB as a pilot region for the People’s Business Credit (KUR) scheme tailored to the creative economy is significant. The approach allows intellectual property to be considered in credit assessments, potentially enabling creative entrepreneurs to access substantially larger amounts of financing to expand their operations.

This financing push aligns with broader national efforts to improve small business inclusion, including digital payment initiatives such as QRIS for SMEs, which have been promoted to strengthen formal financial participation and transaction efficiency.

Human capital and digital infrastructure gaps

Funding alone, however, is insufficient. Statistics Indonesia (BPS) identifies three persistent barriers to creative economy development nationally: limited access to finance, low human resource capacity and uneven digital infrastructure. In NTB, skills gaps are particularly evident in areas such as business management, branding and digital marketing.

As competition becomes increasingly digital, product quality must be matched with effective storytelling, visual presentation and market strategy. Without reliable high-speed internet and access to digital platforms, many local creative products struggle to reach national or global markets.

These challenges mirror wider policy discussions on the role of digital systems in supporting tourism and regional economies, including initiatives highlighted in Indonesia’s digital innovation agenda for tourism and aviation.

Towards an integrated creative ecosystem

Policymakers increasingly recognise that a partial approach will not be enough. A functioning creative ecosystem requires coordinated attention to talent development, financing mechanisms, market access and physical or digital creative spaces. Education and training programmes aligned with industry needs are essential, particularly for younger people entering creative fields.

Market access must also be strengthened through festivals, exhibitions and online platforms that allow local products to reach wider audiences. Digital tools developed for travel and mobility, such as the All Indonesia App, illustrate how integrated platforms can support user access and visibility, a principle equally relevant to creative producers.

Mandalika and long-term regional strategy

The Mandalika Special Economic Zone (SEZ) is often discussed in the context of tourism and major events, but it also presents an opportunity to anchor a digital-based creative ecosystem. If development extends beyond hotels and sports infrastructure, Mandalika could serve as a convergence point for tourism, technology and creative industries.

Ultimately, NTB’s experience underscores a broader policy lesson. Economic resilience does not rely solely on natural resources or large-scale infrastructure, but also on the capacity to cultivate local ideas into viable economic activity. The central challenge now is ensuring that this creativity can be sustained, scaled and integrated into Indonesia’s long-term development trajectory.