Enhancing human capital competitiveness through creative industrial development based on local culture

Indra Nur Fauzi, Erlyn Yuly Astuti and Dimas Agung Trisliatanto
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Indra Nur Fauzi: Study Program of Management, Faculty of Economic and Business, University of Muhammadiyah Surabaya, Surabaya, East Java, Indonesia
Erlyn Yuly Astuti: Regional Economic Development Institute, Indonesia
Dimas Agung Trisliatanto: Post-Doctoral in Human Resource Development, Postgraduate School of Universitas Airlangga, Indonesia

Technium Social Sciences Journal, 2026, vol. 85, issue 1, 372-381

Abstract: Globally, the COVID-19 pandemic had a substantial impact on both the domestic economics of nation-states and the existence of creative sectors. This event brought about a new normal for human living, which included learning how to collaborate and engage with others. The creative industrial sector was the most obvious outcome of this new normalcy. Local knowledge is essentially an action that protects and preserves the natural world and ecosystem. Local wisdom evolved when individuals engaged with their environment to meet their various needs. This was closely related to the role of human capital, one of the essential elements of economic development. To increase human capital competitiveness in Indonesia's new normal after the COVID-19 pandemic, this study sought to identify and assess the creation of a local culture-based creative economy. This study combined a literature review strategy with a qualitative approach. According to the study's findings, the system of the creative sector was thought to have the capacity to both resolve these problems and offer a substitute for addressing global economic challenges that would necessitate a change in the current economic system. Indonesia, a nation with a sizable population and a rich cultural legacy, had enormous potential to develop a culture-based creative industry through the division of four waves of economic civilization: the agricultural economy wave, the industrial economy wave, the information economy wave, and the creative industry wave focused on creative ideas, inventions, and innovations. According to the study concluded that the creative industry sees human capital as the main resource in a process that starts with concepts, ideas, and thoughts. In the future, it is anticipated that this human capital will be able to convert low-value goods into high-value, marketable goods.

Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:tec:journl:ojs:13757

DOI: 10.47577/tssj.v85i1.13757

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