ASEAN ACADEMIC SUMMIT

1ST ASEAN Academi Summit 2022 (AAS 2022)

“Lighten ASEAN through Collaborative Innovation”
November 7 -8, 2022
Venue: Faculty of Social Science and Humanity, University Kebangsaan Malaysia (FSSH-UKM)

Proceedings
ASEAN Academic Summit, Vol. 1 (2022): 45-53

Innovation Strategy in Realizing Creative Economy in Sukabumi

City through the Sukabumi Creative HUB Program

Muh. Arifai *, Sudiarti Dewi Kurra 2, Herman H 3, Nurul Aliah 4, Christiansen Sambali 5, Annisa
Lagenda 6
1 Sekolah Tinggi Ilmu Ekonomi Wirabhakti - Indonesia

Master of Public Administration, Universitas Negeri Makassar - Indonesia

2, 4

3 Department of Administration Science, Faculty of Social Science and Law Universitas Negeri Makassar – Indonesia

5 Bachelor of Economic, Universitas Primagaha - Indonesia

6 Bachelor of Public Administration, Universitas Negeri Makassar - Indonesia

*Corresponding author, contact: (email address of the corresponding author)

Abstract
This study aims to determine the innovation strategy in realizing the creative economy in Sukabumi
City through the Sukabumi Creative Hub (SCH) program. This type of research uses a qualitative
approach with a descriptive method. Data was collected by means of interviews, library research and
documentation. The data analysis technique uses data condensation, data presentation, and drawing
conclusions. This study uses strategic planning by analyzing external and internal factors using the
External Factor Evaluation matrix and the Internal Factor Evaluation matrix then analyzed using
SWOT analysis according to David (2017) as a matching tool that develops four types of strategies.
The results of this study indicate that based on a SWOT analysis, Sukabumi Creative Hub (SCH) has
strong external opportunities but there are internal weaknesses. Based on this, innovation can be
formulated in realizing the creative economy in Sukabumi City which aims to improve internal
weaknesses by taking advantage of external opportunities.
Keywords: Inovation strategy; Creative economy; SWOT analysis.

1. Introduction

The creative industry first emerged when Australia issued a 'Creative Country' policy aimed at assisting
Australia in embracing new IT opportunities and the development of a global cultural wave made possible by
digital media (Fitriana, 2014; Herlambang, 2015; Kamil, 2015; Simatupang, 2007). The 'Creative Country'
policy was issued as a cultural policy (Muji et al., 2016; Wibowo, 2022), but in fact the policy is also an
economic policy. The creative industry is very closely related to the creative economy. The creative economy
concept extends creativity throughout the economy, including socio-economic processes and the
organization of labor or creative means. The UK, as a pioneer in the development of the creative economy,
defines the creative economy as 'culture' and creative industries that lie between art, culture, business and
technology. One of the goals of the creative economy according to the United Nations Conference on Trade
and Development (UNCTAD) is to reconcile national cultural goals with technology policies and
international trade. After internationally, the UK became an important milestone in the development of the
creative industry concept, many countries have started to adopt it, especially countries in Asia and one of
them is Indonesia.
The Indonesian government in 2005 stated the importance of developing industries in sectors originating

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from the nation's crafts and creativity, and in 2009 the Indonesian government ratified Presidential
Instruction No. 6 of 2009 concerning Creative Economy Development in Indonesia and proclaimed it as the
year of creative Indonesia. In 2015 the Creative Economy Agency was formed which is a non-ministerial
government institution through Presidential Regulation of the Republic of Indonesia Number 6 of 2015
concerning the Creative Economy Agency (Antara & Yogantari, 2018; Jefri & Ibrohim, 2021; Masri, 2010;
Purnomo, 2016).

After the enactment of Presidential Instruction Number 6 of 2009 concerning Creative Economy
Development in Indonesia, many regions have started to develop their creative economy. In its development,
the creative economy in Indonesia is still experiencing several obstacles as contained in the 2020-2024
KEMENPAREKRAF/BAPAREKRAF Strategic Plan, namely; 1) Research for the development of the creative
economy is still limited; 2) Knowledge and skills of creative economy actors need to be improved; 3) The
access of creative economy actors to sources of funding and funding is not yet widespread; 4) Infrastructure
both physical and ICT needed by creative economy actors is still limited; 5) Creative economy products are
not yet widely known and consumed by both domestic and foreign consumers; 6) The incentive scheme for
developing an intellectual property-based creative economy has not yet been developed; 7) Creative economy
actors who have Intellectual Property Rights over their work are still limited.
One of the cities in Indonesia that has implemented creative economic development is the City of
Sukabumi. The creative economy in Sukabumi City has only received more attention from the local
government in 2018 (Jefri & Ibrohim, 2021; Marlinah, 2017; Santosa, 2020; Sari, 2018). In its
implementation, the creative economy in Sukabumi City experienced several problems in the industrial
economic sector, especially the creative economic sector. Creative economy problems in Sukabumi City are;
1) Unavailability of space for creative economy actors, and lack of access to the distribution of works and
products of creative economy actors; 2) The limitations and uncertainties of the situation, and the many
challenges that will be faced in the distribution of works and products; 3) Limited space for skills
improvement, access to infrastructure, access to marketing, and access to information and government
policies (Sukabumi Creative Hub, 2019).
Responding to the problems that have been described, the Government of the City of Sukabumi created a
program whose aim is to accommodate creative economy actors in the City of Sukabumi. This program is
called Sukabumi Creative Hub (SCH). Sukabumi Creative Hub (SCH) is a forum created for community
actors of sixteen creative economy sub-sectors with the aim that creative economy actors can learn to be
creative in creating and marketing a product.
During the two years of its implementation, Sukabumi Creative Hub (SCH) has become a place for
creative economy actors to be creative and improve their skills. Quoted from Republica.co.id, the Mayor of
Sukabumi City said that since 2019 the number of creative economy actors in Sukabumi City has reached
770 actors (Amanda, 2019). In 2020, the new Sukabumi Creative Hub (SCH) has become a forum for 218
creative economy actors. When viewed from this, there are still a number of problems that must be solved
and resolved to create a creative economy in the City of Sukabumi.
Various problems regarding the creative economy have been extensively researched by several previous
researchers. Referring to research conducted by Risma Nurmilah, et al (Nurmilah et al., 2013) with the title
"Creative Economy Development Strategy for the City of Sukabumi" using descriptive analysis methods and
the Analytic Hierarchy Process (AHP) shows the research results that there are seven main strategies that
appear to be developed namely providing training (0.149), providing business assistance (0.09), assisting
with online media promotion (0.081) product standardization by maintaining quality (0.069), market
expansion with the main target being the local market (0.060), providing assistance (0.060), and improve
electricity infrastructure (0.057).
Likewise with problems regarding innovation strategies that have been carried out in many previous
studies. One of them is the research conducted by Yundhi Ananda (Ananda, 2016) with the title "Innovation
Strategy of the Integrated Investment Service Agency in Licensing Services in Pekanbaru City (Case Study of
Trading Business License)" using a descriptive qualitative approach shows that the innovation strategy of the
Integrated Service Agency Investment in the implementation of trade licensing services in Pekanbaru City

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has been running optimally (Ellitan, 2006; Fatimah, 2021; Mawati et al., 2020; Suhaeni, 2018).
Based on previous research, research on the creative economy focuses more on developing and
empowering the creative economy, and research on innovation strategies focuses more on innovation
strategies in public services. This research is different from previous studies, where the difference lies in the
variables, focus and theory used.
Based on the previous explanation, researchers feel interested in conducting research on "Innovation
Strategies in Creating a Creative Economy in the City of Sukabumi through the Sukabumi Creative Hub
(SCH) Program".
2. Methods
This study uses a descriptive research method with a qualitative approach which is intended to find out
how the innovation strategy is to create a creative economy in the City of Sukabumi through the Sukabumi
Creative Hub (SCH) program, the researcher tries to describe how things are happening, what innovation
strategies are being carried out, and how creative economic conditions in the city of Sukabumi. This research
was conducted at the Sukabumi City Millennial Creative House and at the Sukabumi City Youth, Sports and
Tourism Service (DISPORAPAR) on the grounds that the selected location met the requirements to obtain
the data, information and documentation needed in this study. The data sources used in this research are
primary data sources and secondary data sources. The data sources referred to are as follows: The primary
data sources used in this study were obtained from informants selected through a purposive sampling
technique with the consideration that the selected informants were considered to have more knowledge
regarding what would be studied. The informants in this study were: (1) the Sukabumi Creative Hub (SCH)
Team, (2) the Sukabumi City Youth, Sports and Tourism Service (DISPORAPAR) related to data and
information regarding the Sukabumi Creative Hub (SCH) program, (3) Actors creative economy in
Sukabumi City. Secondary data sources used in this study were obtained from various media such as online
news, journals, and other documentation related to this research.

3. Results and Discussion

Results
Sukabumi City Creative Economy
The number of creative economy actors in Sukabumi City who have registered with the Sukabumi
Creative Hub (SCH) as of March 2021 is 288 creative economy actors consisting of 16 sub-sectors namely
architecture, television and radio, application development, interior design, advertising, DKV, animated
films and video, craft, performing arts, fine arts, fashion , music, photography, and culinary.
Table 1 . Number of Creative Economy Players Registered in Sukabumi Creative Hub
(SCH) as of March 2021
Types of Creative Economy Amount
Architecture 5
Television and Radio 2
Development Application 3
Design interior 1
Advertising 1
DKV 8
Animated Films and Videos 13
Crafts 28
Performing Arts 9
Art 15
Fashion 21
Music 50

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Photography 40
Culinary 92
Amount 288

Source: Record Counts Sukabumi Creative Hub (SCH), 2021

SWOT analysis
To find out the innovation strategy in creating a creative economy in Sukabumi City through the
Sukabumi Creative Hub (SCH) program, an analysis of external and internal factors was carried out using
the IFE ( Internal Factor Evaluation ) matrix. and EFE matrix ( External Factor Evaluation ) which were
then analyzed using SWOT ( Strength, Weakness, Opportunities, and Threaths ) analysis to produce four
types of strategies according to David (2017), namely:
1) Strategy Strengths – Opportunities ( SO )
2) Strategy Weaknesses - Opportunities ( WO )
3) Strengths-Threats ( ST ) Strategy
4) Weaknesses-Threats ( WT ) Strategy
Internal factors consist of strengths and weaknesses which are controlled organizational activities that
are carried out well or badly ( David , 2017: 10) . The internal factors in question are all things that come
from the Sukabumi Creative Hub (SCH) itself such as strengths and advantages and aspects that need to be
improved.
While external factors consist of opportunities and threats that refer to economic, social, cultural,
demographic, environmental, political, legal, governmental, technological, and competitive trends as well as
events that may significantly benefit or harm the organization in the future. future ( David , 2017: 9) . The
external factors referred to in this study are all factors originating from the environment outside the
Sukabumi Creative Hub (SCH) such as creative economy actors who in Sukabumi City, the use of
technology, support from the Regional Government as well as the challenges and obstacles being faced. The
following describes the results of interviews with several informants.
1) Internal factors
The internal factors owned by Sukabumi Creative Hub (SCH) can be summarized as follows:
a. Strength _ _
1. Sukabumi Creative Hub (SCH) has extensive network access nationally .
2. Sukabumi Creative Hub (SCH) has structured and planned programs .
3. Sukabumi Creative Hub (SCH) is packed with Society 5.0 technology
b. Weaknesses _ _
1. Not yet optimal in conducting outreach to creative economy actors in Sukabumi City
2. The regional regulations governing the creative economy have not yet been ratified
3. Difficult access to central government
2) External Factors
The external factors of Sukabumi Creative Hub (SCH) can be summed up as follows:
a. Opportunities _ _
1. The use of technology by Sukabumi Creative Hub (SCH) is good
2. Got good support from the government of Sukabumi City
3. Got a good response from creative economy actors in Sukabumi City
b. Threats _ _
1. Limited access during the covid-19 pandemic
2. In the technological era of society 5.0, it is increasingly demanded to be more innovative and
creative
3. There are still creative economy actors who have not been digitized
Based on the SWOT analysis matrix, SO ( Strengths - Opportunities ) strategies are produced, WO
( Weaknesses - Opportunities ) strategies, ST ( Strengths - Threats ) strategies, and WT
( Weaknesses-Threats ) strategies are described as follows:
1) SO Strategy ( Strengths - Opportunities )

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SO ( Strengths - Opportunities ) strategy is a strategy created by using internal strengths to take

advantage of external opportunities (David, 2017: 171). The resulting strategies are:
a. Consistent in carrying out and creating innovative programs by utilizing existing technology .
b. Developing synergy between government, business and academics in the development of the creative
economy in Sukabumi City .
2) WO Strategy ( Weaknesses - Opportunities )
Strategy WO ( Weaknesses - Opportunities ) is a strategy designed to improve internal weaknesses
by taking advantage of external opportunities (David, 2017: 171) . The resulting strategies are:
a. Optimizing support from the Sukabumi City Government to support the running of the Sukabumi
Creative Hub (SCH) programs in helping to create a creative economy in Sukabumi City .
b. Optimizing the socialization of Sukabumi Creative Hub (SCH) to creative economy actors evenly and
thoroughly using social media and other digital platforms by collaborating with social influencers .
3) ST Strategy ( Strengths - Threats )
ST strategy ( Strengths - Threats ) is strategies made using internal strengths to avoid or reduce the
impact of external threats (David, 2017: 171). The resulting strategies are:
a. Providing training and developing digitalization skills for creative economy actors .
b. Developing a reward and punishment system for the Sukabumi Creative Hub (SCH) team by the
Sukabumi City Government to increase motivation to always be creative and innovate .
4) WT Strategy ( Weaknesses-Threats )
The WT ( Weaknesses-Threats ) strategy is a strategy created to reduce internal weaknesses and
avoid external threats (David, 2017: 172). The resulting strategies are:
a. Strengthening the quality of human resources owned by both Sukabumi Creative Hub (SCH),
creative economy actors and the Government of Sukabumi City.

Discussion

This research discusses the innovation strategy implemented in creating a creative economy in Sukabumi
City through the Sukabumi Creative Hub (SCH) program. Sukabumi Creative Hub (SCH) is one of the 15
flagship programs of the Mayor of Sukabumi City as a form of government effort in developing the creative
economy in Sukabumi City.
This study uses the SWOT analysis technique as a tool to determine what strategy is appropriate to
implement in creating a creative economy in Sukabumi City by analyzing internal factors, namely strengths
and weaknesses using the IFE ( Internal Factor Evaluation ) matrix and analyzing external factors, namely
opportunities ( Opportunities ) and threats ( Threaths ) using the EFE ( External Factor Evaluation ) matrix.
After conducting research, an innovation strategy was produced in realizing the creative economy in
Sukabumi City through the Sukabumi Creative Hub (SCH) program as follows:

SWOT Analysis of Innovation Strategy in Creating a Creative Economy in Sukabumi City

Through the Sukabumi Creative Hub (SCH) Program
Sukabumi Creative Hub (SCH) is a committee for accelerating, structuring and developing the creative
economy in the City of Sukabumi which was formed to encourage collaboration of creative economy
stakeholders in generating creativity and innovation that provides added value and improves the quality of
life of the Sukabumi people .
Sukabumi Creative Hub (SCH) was created to be a forum for community actors of sixteen creative
economy sub-sectors with the aim that creative economy actors can learn to be creative in creating and
marketing a product. Sukabumi Creative Hub (SCH) is also trying to translate the creative economy as the
backbone of the new economy in Sukabumi City.
Based on the results of research by analyzing internal factors and external factors Sukabumi Creative
Hub (SCH) using the I FE matrix and E FE matrix then analyzed using SWOT analysis as a matching tool
that develops four types of strategies , it is known that Sukabumi Creative Hub (SCH) has strong external

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opportunities, but there are constraints on internal weaknesses. The results of this study formulate several
strategies in realizing the creative economy in Sukabumi City . The strategy is described as follows:

Consistent in carrying out and creating innovative programs by utilizing existing technology .
e -conomy is a concept where the economy is developed through creativity . To realize this, new
innovations are needed that can create new breakthroughs in the creative economy sector. Sukabumi
Creative Hub (SCH), which is the committee for accelerating, structuring and developing the creative
economy in Sukabumi City, is also required to continue to innovate in implementing and creating programs.
In response to this, a strategy was formulated by using internal strengths to take advantage of external
opportunities, namely remaining consistent in carrying out and creating innovative programs by utilizing
existing technology .

Developing synergy between government, business and academics in the development of the
creative economy in Sukabumi City .
Synergy between government, business and academia is needed in economic development in an area.
Likewise in the development of the creative economy in the City of Sukabumi. The Sukabumi City
Government, in this case the Department of Youth, Sports and Tourism and the Sukabumi Creative Hub
(SCH), which is a non-structural institution with business and academia, needs to develop a form of
cooperation in realizing a creative economy in the City of Sukabumi. This cooperation can be realized in the
form of providing stimulant financial assistance to creative economy actors by business parties through the
Sukabumi Creative Hub (SCH) and for academics to create a curriculum that can increase students'
creativity and ability to innovate in order to produce new quality human resources and be able to compete in
the creative economy industry.

Optimizing support from the Sukabumi City Government to support the running of the
Sukabumi Creative Hub (SCH) programs in helping to create a creative economy in
Sukabumi City .
In carrying out its program, Sukabumi Creative Hub (SCH) certainly requires good and optimal support
from the Sukabumi City Government. Because the support provided will greatly affect the smooth running of
all activities and programs that will be carried out. From the results of the research, it can be seen that the
form of support provided by the Sukabumi City Government has been shown through the full authority and
trust given to Sukabumi Creative Hub (SCH) in compiling programs, budgeting, and facilitating
collaboration with other agencies with an economic touch. creative. However, there are still several obstacles
to internal weaknesses, namely the regional regulations regarding the creative economy that have not been
ratified yet and the difficulty of access to the central government.
Seeing this, it is necessary to take advantage of external opportunities to improve internal weaknesses by
optimizing the support provided by the Sukabumi City Government to Sukabumi Creative Hub (SCH) such
as hastening the ratification of Regional Regulations regarding the creative economy which can clarify policy
directions in order to carry out activities or programs for the sake of progress of the creative economy in the
City of Sukabumi and improving the quality of good forms of cooperation between the City Government and
the Sukabumi Creative Hub (SCH) . By optimizing the support provided, good synergy will be created
between the Sukabumi City Government and the Sukabumi Creative Hub (SCH) in the aim of realizing a
creative economy in Sukabumi City.

Optimizing the socialization of Sukabumi Creative Hub (SCH) to creative economy actors
evenly and thoroughly using social media and other digital platforms by collaborating with
social influencers .
As previously explained, the Sukabumi Creative Hub (SCH) is a committee for accelerating, structuring,
and developing the creative economy in the City of Sukabumi which was formed to encourage collaboration

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between creative economy stakeholders in generating creativity and innovation that provide added value and
improve the quality of life of the S community. ukabumi . Therefore, conducting outreach to creative
economy actors is an important first step. All forms of outreach have been carried out by Sukabumi Creative
Hub (SCH) by utilizing current technology. However, based on research results, there are still creative
economy actors who do not know about the Sukabumi Creative Hub (SCH) .
Seeing this, it is necessary to take advantage of external opportunities to improve internal weaknesses by
optimizing the socialization of the Sukabumi Creative Hub (SCH) to creative economy actors evenly and
thoroughly, such as by visiting potential creative economy centers in Sukabumi City which is constrained by
direct access to information, as well as optimizing outreach to creative economy actors using social media
and other digital platforms by collaborating with social influencers . Because as is known, that at this time
social influencers has more ability to influence others to follow what he is doing. It is hoped that this will
provide an opportunity for creative economy actors to find out about the Sukabumi Creative Hub (SCH) .

Providing training and developing digitalization skills for creative economy actors .
The creative economy is a new economic concept that promotes creativity-based economic development.
As creative economy actors, you are definitely required to be more innovative in this modern era by utilizing
various available technologies. The ability to digitize is a basic ability that is important for every creative
economy actor to be able to compete in creating a product. Based on the results of the research, there are still
creative economy actors who have not been digitized.
Seeing these obstacles, it is necessary to utilize internal strengths to avoid or reduce the impact of
external threats by providing training and developing digitalization capabilities by Sukabumi Creative Hub
(SCH) for creative economy actors in order to generalize the basic skills possessed by creative economy
actors in Sukabumi City in run the creative economy. This is very useful for creative economy actors who
have problems in developing their creative economy in this digitalization era.

Developing a reward and punishment system for the Sukabumi Creative Hub (SCH) team by
the Sukabumi City Government to increase motivation to always be creative and innovate .
Someone in essence has the desire to achieve the goals that have been determined. To achieve these goals,
motivation is needed to encourage that person to carry out an activity in order to achieve his goals. Like the
Sukabumi Creative Hub (SCH) which has the goal of translating the creative economy as the backbone of the
new economy in Sukabumi City. To achieve this goal, it is necessary to develop a reward and punishment
system for the Sukabumi Creative Hub (SCH) team by the Sukabumi City Government which is useful for
increasing the motivation of the Sukabumi Creative Hub (SCH) team in creating creative ideas and always
innovating to create a creative economy in the City. Sukabumi and translating it as the backbone of the new
economy in Sukabumi City.

Strengthening the quality of human resources owned by both Sukabumi Creative Hub (SCH),
creative economy actors and the Government of Sukabumi City.
Strengthening the quality of Human Resources (HR) within an organization is an important effort to
improve the ability of members to carry out all forms of activity within the organization. Efforts to
strengthen Human Resources (HR) are useful for organizations in dealing with various types of problems
according to the abilities of members of the organization. Based on the research results, it is known that
Sukabumi Creative Hub (SCH) has fresh human resources who are willing to work.
In response to this, a strategy was produced to reduce internal weaknesses and avoid external threats,
namely by strengthening the quality of human resources owned by Sukabumi Creative Hub (SCH) , creative
economy actors and the Sukabumi City Government. This strategy can be implemented by conducting
discussions or Focus Group Discussions (FGD) to identify and explore the various needs needed for each
individual and determine what efforts to strengthen human resources are in accordance with the needs.
After determining the efforts to strengthen human resources that are appropriate, then there needs to be

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supervision to see further how these efforts are carried out properly, which later needs results to be
evaluated as a form of evaluation of the efforts that have been made.

4. Conclusion
Based on the research results, it can be concluded that Sukabumi Creative Hub (SCH) has strong
external opportunities, but there are constraints on internal weaknesses. Then an innovation strategy is
formulated in realizing the creative economy in Sukabumi City through the Sukabumi Creative Hub (SCH)
program by taking advantage of external opportunities to improve internal weaknesses as follows: (a)
Optimizing support from the Sukabumi City Government to support the running of the Sukabumi Creative
Hub (SCH) programs ) in helping to realize the creative economy in the City of Sukabumi. (b) Optimizing the
dissemination of Sukabumi Creative Hub (SCH) to creative economy actors evenly and thoroughly using
social media and other digital platforms by collaborating with social influencers.

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