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AbstractThis paper investigates how the global discourse on creative economy is interpreted in a developing country context, and in particular the case of Indonesia. We accomplish this by examining how this discourse is institutionalized in several cities. We found that the discourse is interpreted differently across localities. Bandung appears as a special case of the knowledge-based creative industry development, as it is strongly supported by academia and communities who really wanted to experiment with this policy narrative. The Bandung case also provides an insight that the creative economy, as a relatively new idea, develops not only as a discourse, but also as a workable framework for development policies. Meanwhile, other cities seem to pragmatically rebrand the policy to drive economic development, without considering the local contexts, whereby traditional cultural industries are rebranded as creative industries, although they hardly perform new knowledge learning and innovation.Apart from this, as we learn from Bandung there are possibilities for a developing country like Indonesia to foster the creative economy by reshaping local institutions that will support successful experimentation with this new policy idea.