This study examines the role of the creative economy as a nation branding instrument for increasing the competitive advantage of Indonesia within the ASEAN countries. With regard to methodology, a qualitative descriptive research design was chosen based on library research, during which data were selectively collected using purposive sampling from policy and institutional documents from ASEAN and Indonesia, data on particular sectors, scientific articles on creative economy, nation branding, branding management, innovation and regional cooperation. Data were analyzed by thematic analysis and five themes have been considered in this study: Creative assets and competitiveness; Creative products and national identity; Market opportunities within ASEAN; Branding and digitalization; Institutional constraints. It is found out that Indonesian creative economy includes culinary, fashion, crafts, films, music, applications and games, all of which have certain economic and cultural value, contributing to nation branding and competitiveness. However, richness of cultural heritage does not guarantee competitive advantage. To create competitive advantage it is necessary to perform good branding management, innovation of business, access to digital markets, financing and protection of intellectual property. There are opportunities provided by ASEAN cooperation for market growth, cross-border cooperation, exchange of knowledge, innovation and increase of the visibility of Indonesian creative products on a regional level. The study develops an integrated framework that links creative assets, branding management, business innovation and market integration of ASEAN, thus considering creative economy as the link between economic competitiveness and reputation aspect of nation branding. The limitations of the study are related to the use of only secondary data and absence of empirical data at firm and consumer levels.
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