Indonesia's Creative Industry Braces for Mass Layoffs as AI Takes Over in 2025
The Indonesian creative sector is facing a tough year ahead. Minister of Creative Economy Teuku Riefky Harsya recently highlighted a sharp rise in layoffs across creative agencies, attributing part of this trend to the growing adoption of artificial intelligence (AI).
While AI is playing a role in replacing some jobs, the minister acknowledges that this technology also serves as a valuable tool for creative professionals. The key, according to him, lies in how AI and creative talents collaborate to add value rather than compete.
Balancing AI and Human Creativity
“The challenge is how this technology works alongside creative industry workers to enhance their output,” Riefky explained during a meeting with Commission VII of the House of Representatives on July 9, 2025.
He stressed that AI is unstoppable and must be integrated thoughtfully to support creativity, not just to reduce costs or headcount.
Freelancers and Social Security Challenges
Another critical issue facing the creative workforce in Indonesia is the predominance of freelancers. Many creative workers operate without formal employment contracts, limiting their access to social security benefits.
To address this, the Ministry of Creative Economy is coordinating with regional offices to extend social protection programs for these workers, aiming to provide more stability amid industry changes.
New Directorate to Focus on Digital Technology
To better meet the needs of a digital market, the ministry has established a new directorate focused on digital technology. This move is intended to help maintain a healthy creative job market as digital tools and AI become more prevalent.
Concerns from Lawmakers
Members of the House are raising alarms as well. Nila Yani Hardianti, a member of Commission VII, reported that layoffs have been widespread this year. She noted that some agencies have cut nearly 60% of their staff, replacing them with AI systems.
“Creative workers are especially vulnerable to this shift. The ministry must play a strategic role in supporting and equipping younger creatives with the skills needed to stay competitive,” Nila said.
What Creative Professionals Can Do
- Stay updated on AI tools relevant to your field.
- Develop skills that complement AI, such as strategic thinking, emotional intelligence, and unique creative insights.
- Consider training programs focused on AI integration in creative jobs to increase employability.
If you're looking to strengthen your AI skills alongside your creative talents, explore AI courses for creative professionals designed to help you adapt and thrive.
The Indonesian creative industry is at a crossroads. Embracing AI as a tool rather than a threat could be the difference between job loss and new opportunities. Staying proactive about skill development will be essential for anyone working in this space.