As a result of various technological advances and an increasing awareness of environmental issues, Indonesia is in the process of changing its economic focus from extractive industries[1] to the creative economy. This new economic approach was formally inaugurated by former President Susilo Bambang Yudhoyono at the opening of INACRAFT[2] back in 2005, when he delivered a speech that highlighted the fundamental role that creativity plays in realizing a competitive economy.[3]
 
In order to strengthen the creative economy’s position as one of the nation’s development programs, Mr. Yudhoyono followed up on his speech by issuing Presidential Instruction No. 6 of 2009 on the Development of the Creative Economy (“6/2009 Presidential Instruction”). In the wake of this instruction, Mr. Yudhoyono established the Ministry of Tourism and Creative Economy in order to better organize and manage the sector by issuing Presidential Regulation No. 92 of 2011 on the Second Amendment to Presidential Regulation No. 24 of 2010 on the Positions, Responsibilities and Functions of State Ministries and the Organizational Structure, Responsibilities and Functions of Echelon I Within State Ministries (“92/2011 Presidential Regulation”).[4]
 
Since then, the creative economy has moved centre stage due to the large contribution that it now makes to Indonesia’s development. Not only is the sector creating an increasing amount of jobs and opportunities, but it also generated approximately IDR 642 trillion in 2013, which was equivalent to some 7% of Indonesia’s gross-domestic income for the year. Also in 2013, the average growth posted by the creative-economy sector was 5.76%, a figure higher than the nation’s overall economic growth of 5.74 percent for the same period.[5]
 
However, despite optimism among the general public as regards the development of this sector, not a single regulation offering a comprehensive regulatory framework for Indonesia’s creative economy has to date been introduced. This is indeed disappointing when one remembers that legal certainty is the foundation upon which the development of any sector, including the creative economy, is built.[6] Realizing this oversight, the Regional Representatives Council (Dewan Perwakilan Daerah) initiated the Draft Bill on the Creative Economy (“Draft Bill”)[7] towards the end of 2014 in the hope that it would pass before the ASEAN Economic Community (AEC) was inaugurated.[8]
 
Currently, Commission X at the House of Representatives (House) is striving to incorporate the Draft Bill under the 2016 National Legislation Program. The commission is concerned about the fact that Indonesia should be leading other ASEAN countries as regards its creative-economy sector, due to the incredible potential that exists in this country. However, data reveals that Indonesia is still lagging behind Malaysia, Thailand and Singapore in terms of its exports of creative-economy products. The general perception is thus that there is an urgent need to pass the Draft Bill in order to prevent any negative economic impacts that may arise as a result of the inauguration of the AEC. The potential effectiveness of the Draft Bill’s contents, however, is still a matter for debate.[9]