Wednesday, June 11, 2008

Ministry Information decree on advertising

RI issues decree to restrict foreign ads

The Jakarta Post, Jakarta |Mon, 06/09/2008 10:29 AM| Headlines

In a bid to protect the country's interests, the Indonesian government has issued a decree restricting the Indonesian media from displaying foreign advertisements.

The joint ministerial decree was signed May 30 by Communication and Information Minister Muhammad Nuh and Culture and Tourism Minister Jero Wacik, Antara news agency reported Saturday.

"The joint decree is aimed at giving more opportunities to domestic production houses, and the employment of one foreign expert must be accompanied by three domestic workers," Nuh was quoted as saying.

The minister said the regulation was in response to missed profit opportunities amid increases in advertisement production costs from Rp 25.5 trillion in 2005, to Rp 30.03 trillion in 2006 and Rp 35.1 trillion in 2007.

"It's a pity we could not reap benefits from the advertisements' Rp 35.1 trillion. So far, only foreign production houses have benefited," Nuh said.

Local television stations saw advertisement revenues of Rp 23 trillion last year, or 66 percent of the market's total, while newspapers accounted for 30 percent and magazines four percent.

Advertisement spending during the January-March 2008 period increased to Rp 8.661 trillion from Rp 7.019 trillion in the same period last year.

The joint decree made some exceptions for advertisements on tourism promotion of foreign countries, properties located outside Indonesia; international games, competition and education, and brand global or brand image with same actors all over the world.

The regulation came one year after Nuh's predecessor Sofyan Djalil issued an advertising regulation limiting the involvement of foreign actors and other resources in the production of broadcast advertising.

The ministerial decree stipulates that the role of local human resources -- models, directors, cameramen, editors, animators and music directors, should be grown, while materials including settings, buildings, languages and music should represent local values.

The government expects locals should be able to take over the position held by a foreign worker in 2009.

Foreign workers in advertisement production are also expected to register with associations related to their professions.


Finally Woken said...

Does it mean now you can take over your boss' job? :D

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Anonymous said...

Ah, ada2 aja, masih inget kasus Indomart yang harus merubah nama jadi "Indomaret" gara2 nama asing tidak diijinkan. Konyol

Anonymous said...

But... foreign advertisements are good for comparison against crappy local ads :P

Menteri komunikasi yang satu ini kurang kerjaan kali yah, ngurusin yang kaya beginian?

As fas as I know, there aren't even THAT many foreign advertisements in our local TV channels to begin with, except for cable TV.

Funny, people subscribe cable because they don't want ads but now cable TV has ads; foreign ads that is.

How about cheaper internet rates? Or cheaper computer softwares so that there will be no piracies and random sweepings that the police just take advantage to get more money out of?

Unknown said...

This particular regulation will limit the usage of foreign film directors and other crews for creative production.

And why do we use them at the first place? Because local human resources aren't ready yet and their work qualities are not as good as foreign crews. Well, maybe some are good but in a very small numbers.

Rishardana said...

I think this will be good. The local ad people will be given chance to prove themselves and develop their skill.

Previously the chance for them to shine are few and far between due to products and brands preferences in using foreign directors and crews. It has to be said that they (foreign) are good but in some cases it's just a mindset. Djarum Mezzo for example.

From Citra Pariwara we could see that there are pool talent amongst Indonesian ad community, and this decree will no doubt encourage them even more :) Case in point are Ipang Wahid and friends for BNI 46 and Surya.

Unknown said...

@ Rishardana: other thing is, language barrier as some of local Directors can not speak or understand English very well.

This would become a major problem for multinational client and agency whose usually have expat people so the meeting will be in English and Director has to present his shooting board in English!

Rishardana said...

Hehe yeah lost in translation.
Anyway if they are THE directors and board, why would they understand English. It should be the other way around no? :)

If a P/H wants to create ad in Japan for example, They need to be able to speak Nihon, and that should also be the case in Indonesia or any other country for that matter. They're the ones who need to win the contract :)

Besides, who else but the locals who can understand better the psyche of their target audience and market.

I think globalisation in the end push people and governments to protect local identity. It's been happening everywhere.

The English Football wanted to protect their local groomed players against the hordes influx of foreign players. Which is fair enough, as their National side are in a slump at the moment (relatively to their stature).

Our country needs to do more initiative like this. I have this grieving concern that our strategic industries such as telecommunication and natural resources have fallen in the hand of Temasek and the likes.

Imagine our ministry of trade is having this crucial trade deal with Singapore and sending crucial email via Indosat's backbone. Yikes ...

Unknown said...

@ Rishardana: Agreed that we have to protect our local values, but in order to be able to compete with other we should be able to communicate in international language, no?

Imagine if you can't understand English, I bet you would not be at what you are now ;).

It's not about we satisfy others who can't speak Indonesian, but we do it for our selves... The chance will be wide open if we can compete with foreigner, then it's the time to prove it to them that we can do it.

How can we prove it if we can't understand the international language?

oigal said...

Xenophobia rules..yaa! Sorry guys its a global world now and Indonesia has for more to gain by importing talent at the moment than restricting it. Look at the USA and Australia, a huge amount and drive and innovation has come from immigrants and foreigners over tha past 60 years. A isolationist policy only leads to incestous stagnation which is excatly is what is happening now.

seputar ebook said...

local content ?? , isn't it going to take us back to the 80's?, i mean learning from the xperience and the experts is the main point - and i suppose indonesian are getting smarter (critical?) everytime, we just couldnt hold back the beauty of the (global) effect.

*thanks for the comment on my blog, ecky