Ministerial decree will attempt to encourage the growth of domestic market in advertisement
The Jakarta Post
Monday, June 9, 2008
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.
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