Creativity of Local Governments in Developing the Creative Economy Sector for Millennials

This study focuses on local governments’ strategic role in driving the creative economy’s growth, particularly in Madiun and Kediri, East Java, Indonesia. The study highlights the increasing socioeconomic contribution of the creative economy, driven by rapid digital transformation, which opens up innovation and job creation for creative and cultural workers. The study examines how local governments create an enabling environment through policies, incentives, and infrastructure support. The study emphasizes the importance of initiatives such as co-working spaces, training programs, and cultural festivals that promote creativity, especially for millennials. The study uses qualitative descriptive methods, including surveys and interviews with stakeholders such as government officials, creative industry players, and academics. The study aims to evaluate the impact of local government strategies on regional economic development and identify challenges and opportunities. The study also seeks to determine how local government creativity can generate significant multiplier effects and economic spillovers. Several challenges, including infrastructure and low technology adaptation, are problematic and require intervention in the form of digital training and marketing. The results of this study show how local government creativity can generate a multiplier effect with significant economic impacts, including increased income. Lastly, this study intends to offer policy recommendations to increase the contribution of the creative economy to GDP and local welfare.