The wave of the industrial revolution 4.0 has brought fundamental changes to various global life orders, marked by the growing development of creativity and innovation using information technology that disrupts various aspects of global life, including competition in the economy. This study aims to examine the empowerment of local creativity in supporting the implementation of the digital economy. The locus of study took place in the city of Yogyakarta. This study uses an exploratory qualitative approach with data collection techniques through in-depth interviews, observations, and document review. The results suggested that the Department of Industry, SME, and Cooperatives of Yogyakarta City are advised to provide more training, especially on how to expand the market for MSME players independently. Then the Yogyakarta City Trade Office is advised to increase the frequency of meetings (which contain education, direction, motivation, and socialization) with traders. Meanwhile, Yogyakarta City HIPMI (Young Entrepreneurs Association) is advised to expand its marketing network both throughout Indonesia and abroad so that in the future, the creativity and ideas of young Indonesians can be widely known.
Keywords: creativity, digital economy, MSMEs (small and medium enterprises), traditional market traders