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Focus On Indonesia

VitalStatistics

Population: 232,517,000
Monetary unit: rupiah (Rp)
Capital city: Jakarta
Major languages: Indonesian
Major religions: Muslim (excluding syncretists) 55.8%; Neoreligionists (syncretists) 21.2%; Christian 13.2%; Hindu 3.2%; traditional beliefs 2.6%; nonreligious 1.8%; other 2.2%.
Ethnic composition: Javanese 36.4%; Sundanese 13.7%; Malay 9.4%; Madurese 7.2%; Han Chinese 4.0%; Minangkabau 3.6%; other 25.7%
Age breakdown: under 15, 27.0%; 15–29, 27.2%; 30–44, 23.3%; 45–59, 14.7%; 60–74, 6.1%; 75 and over, 1.7%
Life expectancy: male 67.4 years; female 72.4 years
Education: Percentage of population ages 15–64 having: no schooling or incomplete primary education 19.3%; primary and some secondary 57.2%; complete secondary 19.3%; higher 4.2%.
Urban/Rural split: urban 44.0%; rural 56.0%
Income per household (USD): -
Broadband internet users (%): -

Source: Encyclopedia Britannica

Introduction

With a population of around 230 million, Indonesia is the fourth most populated country in the world. It is also a functioning democracy with a free media, and so has a thriving PR industry. In the past five years it has grown exponentially, and corporates in Indonesia are now so keen on PR that even alcohol and cigarette brands are looking to gain editorial coverage in this Muslim country.

Yet, many of those running the agencies, and their clients, decry the lack of skills and talent available to them. Some are taking steps to address the problem. A group of agencies - Maverick, IndoPacific Edelman, Weber Shandwick, and R&R – recently joined forces with some clientside PR experts to form the Indonesian PR Practitioners Group, an informal grouping providing training for entry-level and junior PR professionals on PR basics.

Chris Kanter is the chairman & founder of logistics firm Sigma Sembada Group, as well as well as deputy chairman of the Indonesia Employers Association. He says: “Clients also need to be educated on the role PR can play. So, it's good to see many leading business schools in Indonesia such as Prasetya Mulya Business School, offering students courses in public relations alongside those in marketing and advertising.”

Perhaps the most significant recent development in Indonesia PR – in Indonesian life in general – has been the arrival of the Internet and social media. “Indonesians are social people,” says Hermawan Sutanto, director, Central Marketing Organization at Microsoft Indonesia. “ They are the world’s number one users of Twitter (20 per cent of the population use it) and number two users of Facebook. In Indonesia everyone is a spokesperson and everyone has his or her own media.”

He adds: “This allows us to distribute our messages widely, instantly and in the right context for the recipient. It’s a great opportunity for anyone involved in PR, but it also brings its own challenges. You have less control over the message, it is difficult to make your communication stand out, and it is difficult for people to distinguish between fact and opinion.”

Looking ahead, the 2014 presidential election will be a major event for the country. Already the political parties and leading figures have begun their media campaigns, and these will continue to intensify as the election itself draws ever closer.

Media

Kompas Gramedia Group (KGG) is the oldest and the largest media group in Indonesia. It publishes leading newspaper Kompas Daily and co-owns The Jakarta Post, which is the leading English-language newspaper.

 It also publishes technology, healthcare, automotive and lifestyle magazines. It runs Sonora radio and Kompas TV and has part ownership of TV7.

Media Group is the second largest group. It runs 24-hour news channel Metro TV, which broadcasts in Indonesian, English and Mandarin. The third largest media group is Globe Media Group, which publishes The Jakarta Globe and Investor Daily.

 

Online news portals such as Detik.com, VivaNews.com and Kompas.com  are important. Imelda Adhisaputra, director of corporate affairs at Intel, comments: “To date our activities have focused on print media like Kompas Newspaper, Koran Tempo, and so on, but as more and more people get the news via Twitter or some other online source that’s increasingly where we’re working.”

 

Major Brands

FMCG is an important sector in Indonesia and companies such as Diageo, Unilever and Kraft Foods have a strong presence. PR industry leaders also mention Danone, Philip Morris, Ponds, L’Oreal and Sunsilk as brands achieving impressive editorial coverage.

 

The finance sector is strong and Bank Mandiri, AXA Insurance and Manulife stand out there. Hankook Tire and Mazda lead the way in the manufacturing and automotive sectors.

 

Agencies

There are many PR agencies in Indonesia. Imelda Adhisaputra, director of corporate affairs at Intel, says: “The sheer number means we have a good chance of finding one that specialises in our sector and can deliver the exact type of PR service we need.”

Most experts point to Weber Shandwick as the leading agency in the country. Other global groups with a presence include Indo Pacific Edelman, Burson Marsteller and Ogilvy. Fleishman-Hillard expanded to Indonesia early last year.

PULSE Communications and Maverick lead the pack of local agencies with Inke Maris, Fortune PRPrisma, Cognito, Java PR, R&R, and IPM also worthy of mention.

 

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