Jakarta, Indonesia – The Indonesian government has officially prohibited the use of social media for e-commerce transactions, a move that was previously hinted by President Joko Widodo several days ago.

For the government, the move is aimed at quashing e-commerce sellers that are purportedly abusing pricing tiers on social media to promote their products, a move that officials say ‘kills’ offline merchants.

“What the people are expecting is that the advancement of technology can create new economic potential, not kill existing economies,” President Widodo previously said.

In a recent announcement, Trade Minister Zulkifli Hasan has noted that social media can be only used to promote things, not use it as an avenue for online transactions.

“Social commerce is only allowed to facilitate the promotion of goods or services, not direct transactions. Direct payment is no longer allowed, it is only allowed for promotion,” he said.

Several Indonesian officials have said that TikTok is one of these platforms where social e-commerce is mostly practiced.

Previously, TikTok Indonesia clarified that its latest shop-centric initiative, ‘Project S’, will never be launched in the market, and that they do not intend to become a retailer or wholesaler that will compete with sellers in Indonesia.

Singapore – Indonesian on-demand coffee company Fore Coffee has announced the launch of its first store in Singapore, marking its entry into the international market scene. 

Fore Coffee’s expansion to Singapore is expected to open up the Indonesian coffee culture in the region. 

Drawing on insights from flavor group discussions (FGDs), the coffee company will tailor a selection of 16 key SKUs to capture the essence of Singaporean coffee culture. It will also adhere to the local nutrition preferences with the aim of empowering individuals to enjoy their drinks consciously while promoting healthier choices through its affordable and accessible diversity of options. 

Fore Coffee’s entry in the new market is also guided by research focusing on the Singaporean coffee landscape, in collaboration with strategy consultant Redseer. According to the research, the coffee market in Singapore is projected to grow at a CAGR of 5%, which means it will reach $1,286 million by 2027, presenting a compelling opportunity for the company to flourish. 

Furthermore, Singaporeans’ strong affinity for coffee, averaging 6-7 cups per week, aligns perfectly with Fore Coffee’s mission. The brand recognizes the mature coffee market in Singapore, combined with a love for Indonesian beans, particularly Arabica. 

Fore Coffee aims to redefine Singapore’s coffee culture in the ‘Indonesian way’ by extending their highly curated coffee beans and signature coffee blends to the new market. 

The brand’s business journey has been marked by profitability since 2021 in Indonesia, even amidst pandemic challenges. A part of its success lies in its adept use of cutting-edge technology, from tools to its mobile app, combined with skillful bean blending techniques.

Vico Lomar, co-founder and CEO at Fore Coffee, said, “Fore Coffee’s brand positioning and menu reflect its role as an ambassador of Indonesian coffee culture in Singapore. The brand’s signature coffee blends, crafted with a deep understanding of the discerning Singaporean palate, redefine the local coffee landscape through an Indonesian lens.”

Jakarta, Indonesia – The Asia Video Industry Association (AVIA) and the Video Streaming Association of Indonesia (AVISI) have signed a Memorandum of Understanding (MoU) in Jakarta to fight piracy and protect and promote content in Indonesia. 

The signing of the MoU was held at the Coalition Against Piracy’s (CAP’s) State of Piracy Summit. It marks a closer collaboration and a significant step towards AVIA and AVISI combining their resources to fight online piracy and protect Indonesia’s creative and media industries.

The AVISI and AVIA partnership also marks a significant milestone in the ongoing struggle against piracy, reaffirming AVISI’s unwavering dedication to upholding a piracy-free digital-creative industry. 

Both associations pledge to strengthen defenses, promote legal access to content, and champion the rights of content creators, ensuring that creativity thrives and piracy recedes.

Representatives from Indonesia’s Ministry of Communication and Information Technology (Kominfo) were also in attendance at the signing of the MOU, which followed a panel at the State of Piracy Summit hosted by AVIA and attended by representatives from Kominfo and AVISI.  

The signing of the MOU comes at a time when CAP’s most recent annual consumer surveys show that 54% of consumers in Indonesia access pirate services in 2023, the fourth highest incidence of piracy in the region. However, the survey also revealed the growing awareness of the downsides of piracy, with 94% of Indonesian consumers believing that online piracy has negative consequences, the highest percentage in the region, with damage to the creative industry being the biggest perceived negative impact.  

Ajeng Parameswari, general secretary of AVISI, emphasized the core mission behind AVISI’s inception and further underscored the imperative for a collective, amplified response to piracy. 

Parameswari said, “AVISI was established to cultivate a thriving ecosystem for the digital-creative industry, one that harmonizes seamlessly with the video streaming business model. Yet, the primary challenge we confront today is the pervasive threat of piracy.”  

“AVISI is delighted to announce a pivotal partnership with AVIA, aiming to widen the battle against piracy, transcending borders and safeguarding content not only within Indonesia but also on an international scale. The eradication of piracy is a shared responsibility, one that must resonate as a resounding deterrent to those who perpetrate it. In this endeavor, government support is pivotal,” she further added. 

Meanwhile, Louis Boswell, CEO at AVIA, said, “We are delighted to join with AVISI to continue the fight against online video piracy. Piracy is the single biggest problem the video industry faces and to solve  the problem there has to be a multi-pronged approach.” 

Boswell also noted, “With the creation of AVISI, I believe we will have  greater success and engagement with the industry in Indonesia to continue working towards  solutions. And we have to acknowledge the great support of the government with the Ministry of  Communication and Information Technology (Kominfo) who have been such great partners in addressing  and mitigating the problems of piracy. With our new relationship with AVISI and Kominfo support, I am  more optimistic than ever that momentum is growing which will continue to stem the tide of piracy in  Indonesia.”  

Jakarta, Indonesia – The Indonesian video industry is set to reach a value of US$2.5b this year and ballooning up to US$3.7b in 2028, a new report from Media Partners Asia has stated.

According to the report, TV’s share, including net advertising and subscription, dropped to 48% from 56% in 2023, as the shift to online video accelerates, led by UGC and social video as well as including premium video-on-demand (VOD), including freemium and SVOD platforms.

Surya Citra Media (SCMA) and MNC will remain market leaders in terms of monetisation with SCMA a clear beneficiary from the shift to digital terrestrial television (DTT). 

Meanwhile, linear-based pay-TV adoption will continue to decline, as pay-TV’s incremental growth remains anchored to bundles of home broadband and payTV offered by players such as Telkom Indonesia and Axiata-owned LinkNet.

In terms of online share of the video industry, the report notes that revenue will grow from 44% in 2023 to 52% by 2028. UGC and social video, driven by YouTube and TikTok, lead monetisation, with UGC expected to grow advertising at 12% over the next 5 years for a 26% share of total video industry revenues by 2028. Meanwhile, SVOD is expected to grow at 11% over the 2023-28 period in order to grow market share in total video from 16% to 19%. Premium AVOD, meanwhile, is forecasted to grow at 16% from a low base with total video industry market share rising from 5% to 7% over the 2023-28 period.

Lastly, the report notes that Indonesian content investment grew 13% in 2022 to US$979m, representing Southeast Asia’s largest video content market. FTA remains the largest video content investment vertical. Meanwhile, online video content (local entertainment and sports) investment is the fastest growing as Netflix, Amazon and SCMA’s Vidio continue to invest through 2023. The report projects video industry content investment to grow 6% to just over US$1b in 2023 with online video rationalizing a notch. 

Vivek Couto, executive director at Media Partners Asia, said, “The advertising economy endured a poor 1H 2023; this will be partially offset by a stronger 2H 2023. TV is in the doldrums with annual ad declines over 2022 and 2023. TV ratings continue their gradual decline as audiences drift online. Free TV remains critical for mass ad campaigns, but growth is capped, held up largely by local consumer brands. Meanwhile, Indonesia remains Southeast Asia’s most intense battleground for streamers.” 

He further added, “By consumption and value, it is the largest market in SEA. Improvements in the quality of local content, combined with the proven viability of Korea content and localized tier-1 US content, has helped drive user acquisition and engagement. More rational pricing and packaging is helping to slowly boost per subscriber economics. The challenge remains the growth of free VOD platforms YouTube and TikTok. Both dominate viewership on mobile while YouTube is also increasingly popular on CTV. YouTube also remains the VOD category leader in terms of revenues by some distance though TikTok is growing rapidly while Netflix leads SVOD.”

Jakarta, Indonesia – Rumah.com, the Indonesian marketplace counterpart of proptech company PropertyGuru, will be shut down by November 30 this year. This was according to a letter sent out by Hari V. Krishnan, group CEO and managing director at PropertyGuru, to employees.

According to Krishnan, up until the day they cease Rumah.com’s operations, they will continue to serve their Rumah.com agent and developer partners to ensure minimal disruption to their business operations, as well as refunding the fees paid by them as per the respective contracts.

Meanwhile, for their vendor partners, they will pay the dues as per the individual contractual commitments. 

“This decision has not been taken lightly, and we recognize the impact it will have on our valued Gurus and customers, who we have served for well over a decade,” he said.

All of the 61 employees affected by the shutdown will be offered enhanced packages, healthcare support and assistance in their transition to new opportunities, Krishnan also added.

He also announced that it is also shutting down its SaaS product FastKey across all of their markets. It will shut down first in Indonesia on July 31, 2024, and in Malaysia and Singapore on October 15, 2024.

“To our consumers, customers, and vendors, especially those in Indonesia, who have been by our side throughout this journey, we extend our deepest gratitude. Your partnership and trust have been invaluable to us, and we cherish the relationships we have built over the years,” he said.

Indonesia – McDonald’s Indonesia has revealed its new J-Pop advertisement jingle titled ‘Nihon No Fureeba’ written fully in Japanese, to promote the relaunch of McDonald’s ‘Taste of Japan’ burgers.

‘Nihon No Fureeba’ is a full, untranslated Japanese pop song made to promote the comeback of McDonald’s Taste of Japan burgers in Indonesia. The song’s lyrics talk about crispy nori and yakiniku sauce, ingredients highlighted on the fast food chain’s Japanese flavoured-inspired burgers. 

Written in a completely different language, the message the advertisement jingle aims to highlight is that even though some might not understand McDonald’s onigiri-looking burgers, they’ll love the taste anyway. Just  like they love Japanese songs. 

Advertising agency Leo Burnett’s cultural findings on Indonesians’ adoration for Japanese pop songs propelled the idea of creating the jingle. The agency tapped Indonesian-Japanese singer Ica Zahra to create the song, which was released as a Japanese single without subtitles.

Within one week, the music video was watched more than three million times. The song became the talk of the radio, and hundreds of covers and TikTok dances were made. 

Soon after, the agency and the singer revealed that the song, which most people didn’t understand but still listened to, was actually an untranslated ad to promote McDonald’s product relaunch. The jingle has topped the country’s music charts and become the #1 search on music search application Shazam causing a huge jump on the burger’s first-week sales. 

With the launch of ‘Nihon No Fureeba’, people’s curiosity towards the burgers spiked so fast that first-week sales surpassed those of the past 3 years. 

“Because no one knew that it was an ad. The lyrics were in Japanese, untranslated, and  people thought that it was just a nice feel-good J-Pop song!” explains Ravi Shanker, chief creative officer of Leo Burnett Indonesia on how an ad became a popular favorite pop song in the country. 

“Japanese pop culture is strong in Indonesia. People love Japanese pop songs and put  them in their playlists, sing along, even wearing cool t-shirts with Japanese letters—all  without understanding what they mean,” he continued. 

Meanwhile, Michael Hartono, marketing director at McDonald’s Indonesia, said, “At the end of the  day, the campaign is making people love not only the burgers but also the brand. Even after people realized that it was an ad, they still continue doing karaoke with it, and  the song–I mean the jingle–is now in thousands of Spotify playlists to this day.” 

Jakarta, Indonesia – Media platform IDN Media has announced that it has acquired local livestreaming monetisation platform Saweria, in a bid of improving its livestreaming business ecosystem, while also supporting the local content creator economy.

The synergy between IDN Media and Saweria is anticipated to substantially expand the economic potential of content creators in Indonesia, particularly to strengthen IDN Media’s priorities in the livestreaming industry. 

“Beyond boosting user growth, this synergy is expected to significantly support the integration of cutting-edge technologies within IDN Media and to further solidify inter-team collaboration for future endeavors,” the company stated,

Despite the acquisition, the Saweria team will continue to function as usual. Livestreamers’ experience in utilizing the Saweria platform will remain unchanged, and the primary focus of both Saweria and IDN Media is to ensure the satisfaction of livestreamers and Saweria users.

Winston Utomo, founder and CEO at IDN Media, said, “We are delighted to announce the acquisition of Saweria into the IDN Media ecosystem. Our heartfelt gratitude to all partners, streamers, and users who have supported Saweria and Indonesia’s creator economy.” 

He added, “With this acquisition, we are committed to continuing our vision of creating a one-stop platform for Millennials and Gen Z and strengthening the livestreaming industry in Indonesia. As Indonesia’s largest livestreaming monetization platform, we hope Saweria can empower its streamers to craft high-quality content that enables them to create a sustainable livelihood for themselves and their family.”

IDN Media is continuously expanding its media and entertainment business over the years. In June 2022, the company acquired the operations of idol group JKT48, which was previously handled by Dentsu Inter Admark Media Group Indonesia. At that same month, it was also able to get undisclosed funding from various investors, including Mayapada Group and KMIF.

The post-pandemic scenario presents opportunities and hurdles for on-ground activations, especially with marketers now facing the pressing task of rebuilding consumer confidence in participating in public events while adhering to stringent health and safety protocols. 

Leveraging technology and data-driven insights, brands can strategically identify and target specific audiences to curate smaller, more intimate activations that ensure attendees’ safety while maximising engagement. 

The pandemic has also given rise to hybrid event models, blending in-person experiences with virtual elements to reach wider audiences and enhance overall brand reach. Moreover, sustainability and social responsibility have gained prominence, compelling brands to incorporate meaningful initiatives into their activations, resonating with socially conscious consumers. But this begs the question: how do we merge these modern strategies with the plethora of various cultures in such a diverse market, such as Indonesia?

To learn more about how the on-ground activation scene in Indonesia works, MARKETECH APAC’s deep dive series The Inner State spoke with industry leaders Aji Harsono, business director at M&C Saatchi Shopex; Mike Forster, marketing consultant for Southeast Asia; and Rolly Pane, managing director at Clozette Indonesia, to know about their insights on the recent changes on on-ground activations in the local market, how they are adapting to these changes, and what industries could tap more into this.

The marriage of digital channels and marketing creativity to the local on-ground activation scene

In terms of what changed in the local on-ground activation scene at a post-pandemic time, all of the marketing leaders have agreed that utilising more channels has helped them amplify further their existing on-ground activations. And while these channels were previously used before the pandemic, usage of these strategies was more amplified, especially with many customers also wanting to check out these branded experiences.

For Clozette’s Rolly Pane, they are no stranger to these types of activations, considering how they have implemented it previously for campaigns with their clients. However, he noted that a key change during these post-pandemic times is that aside from their on-ground activation campaign, they now need to make sure that broadcasting it across their social media channels is a necessity.

“We saw [a trend that] where client the is getting more [traction] from their ongoing activations because they were hitting more people, [and] that [they] could attend their event compared to the ones that are actually there in the room with them,” he said.

Meanwhile, for marketing consultant Mike Forster, he noticed that many consumers were genuinely interested in how these new types of digital channels can change their perception of on-ground activations, and how these can change their relationship with the brands they love and support.

Moreover, he notes that with pandemic restrictions now easing out, many consumers are yearning for more social interactions.

“They want to have that communal experience and be together. And that’s great for activation, but they also expect that experience now to be hybrid. And that’s partly because of what we’ve all been through. I think, [during] the pandemic, the introduction of new technologies [and] a lot of contactless technology, [as well as] how technology changed experience during the pandemic now means there’s an expectation there about that should happen still now,” Forster explained.

For M&C Saatchi Shopex’s Aji Harsono, a key change that was evident was that with many consumers spending more time indoors during the pandemic, the demand for more face-to-face interactions are returning, including engaging in on-ground activities. Moreover, he noted that as consumer behaviour changes, on-ground activation strategies should keep pace with it.

“The habit of the consumer is changing a lot. People usually interact with the product directly face to face. They can feel the brand, but during the pandemic, everything is [moved] to be online. We need to fairly consider also, not only the mechanism and the flow but also what the consumer needs,” he said.

How mobile event trucks can help shape the local on-ground activation scene?

When asked if mobile event trucks are a thing in the local on-ground activation scene in Indonesia, Pane noted that while he hasn’t seen a brand doing an activation using this, there is great potential in this type of activation, provided that issues such as permits and logistics can be fixed. Additionally, Pane believes that using a mobile event truck works out if it can visit one place and another to allow customers to experience a brand’s product or service.

“I think it all goes back to what kind of content you want on the mobile event truck. It can actually be treated as a stage, so you can actually have a talk show on the truck and set up down there, where people could be participating in it. You can actually have performers to go live in the whole get-together,” he said.

Forster also echoed Pane’s sentiments, adding that a mobile event truck is a fantastic way of taking a brand experience to audiences outside, creating a ‘theatre’ for the brand. Moreover, it is also great to reach audiences who are in rural areas, and who are otherwise unreachable from mainstream digital channels for brand experiences.

“You can get the truck to be whatever you want it to be. Whether it’s more entertainment, educational, or info style or even whether it’s more just a show and less interactive even, depending on what your brand is and who your audience is, you can tailor the mobile truck experience to all those different looks and all those different fields,” he said.

Meanwhile, for Harsono, the idea of having a mobile truck activation is great in terms of bringing the brand experience to the consumers, not having the consumers do the effort in finding that experience to satisfy them.

“We come to the consumer, not the consumer comes to us. The benefit also is when we do the on-ground activation with the truck, it also becomes the mobile branding [for the client],” he said.

How to make your on-ground activation stand out: tips and best practices

For Forster, the reason why mobile truck experiences can do better than many other communication channels and en route is they can change consumer behaviour. He also added that through this, brands can move consumers closer to them being converted to choose that particular brand by offering them that experience on a mobile truck that gives them entertainment, information, and sampling all in an interactive and equal measure.

“I think it’s very important that the team that you have manning the mobile truck really embody the brand’s values and understand the consumer group very well. Because no matter how good your actual experience is, if your team doesn’t live it, and they’re not able to deliver it a hundred per cent, then that level of engagement won’t be there,” he said.

Forster also added that there are several tips marketers should consider to properly deliver a hybrid brand experience, which also integrates on-ground activations: (1) think virtual first, (2) redefine success metrics, (3) drive separate physical and digital experiences, but make them work together, (4) prioritise the latest trends, and (5) create a multi-tiered experience.

“If you create this multi-tiered experience, it enables everybody to engage at the level that they feel comfortable with, but also, it rewards those who understand your brand a bit better or those who are already consumers because they already have that prior experience. If you can create an experience that has that impact on people emotionally, then you’re gonna hit home and they’re gonna give you a bit more of their time to fully enjoy the brand experience,” he said.

Meanwhile, Pane said that in order for an on-ground activation to work, introduce a well-known persona to be the one driving the engagement in the event. For him, this puts the perception of the attendees that their time spent here is worth it.

“Create something that will get their attention and their interests, because I think the moment that you’re able to gather interest is another effort for you to create something that will make them stay right during the entire on-ground activation campaign,” he said.

Lastly, Harsono said that with consumers getting smarter nowadays, it’s important for brands to make sure that their marketing strategies are made with genuine intentions, and not just another stunt to lure consumers.

“They know (the consumers) what is real or fake marketing. We need to fairly understand the consumer, but also how to bring honest experiences to them. We can create something unique or experimental, as offering these experiences is very important to the consumer,” he said.

This feature is done in partnership with Unicom Marketing.

Unicom Marketing is an event management company spanning Southeast Asia that provides full-service such as roving event trucks, on-ground activation, online digital activation, and virtual event management.

Jakarta, Indonesia – A new survey from YouGov reveals that telecommunications provider Telkomsel is the most preferred provider in Indonesia, with around 57% of respondents saying the local provider is the most ideal provider in their local area.

According to the data, Telkomsel enjoys the highest regard in Indonesian cities outside Java island (65%) and in Greater Surabaya (63%), where over three in five consumers say its network coverage is the best.

Meanwhile, Indosat Oredoo is the second best-rated telco brand in the country and is the top pick for 15% of all Indonesian consumers. Regionally, Indosat Oredoo enjoys the highest regard in cities in Java outside the Jakarta and Surabaya metropolitan areas, where about one in five consumers (19%) say it offers the best network coverage – but is most poorly regarded in cities outside Java (9%).

XL Axiata comes in third overall – and is the top choice for about a seventh of consumers across regions – but is second most well-regarded in cities outside Java (12%). Meanwhile, 3/Tri (a telco brand under Indosat Oredoo Hutchinson) is fourth best-rated in the country, followed at a distance by Smartfren.

In terms of service perception, Telkomsel by far has the largest proportion of customers who think their current provider provides the best service – at over nine in ten (91%). Next most well-regarded among Telkomsel’s customers is XL Axiata, with 4% saying the telco’s mobile network coverage is the best option where they live.

XL Axiata has the next largest share of customers who think their current provider offers the best coverage in their area, at almost seven in ten (69%). Following closely are Smartfren and Indosat Ooredoo (both 66%), where two-thirds of each telco’s customers think they offer the best mobile network coverage where they live, ahead of 3/Tri where just over three-fifths (62%) of its customers say the same.

Singapore – Global communications agency Redhill has announced the appointment of Windy Anindya Putri as its country head of Indonesia

As country head, Putri will be working closely with Redhill’s management team and local stakeholders to oversee operational functions and develop new business in Indonesia, strengthening the agency’s presence and expanding its local network.

Putri enters her new role at Redhill with more than ten years of expertise in public relations, advertising, startups, and recruitment in Southeast Asia. Her most recent positions, as Marketing Director of Orbit Future Academy and Director of Orbit Jobs, both with PT Orbit Ventura Indonesia, allowed her to lead product launches in Indonesia while serving as the Head of Marketing at Carro, Southeast Asia’s first automotive unicorn. Earlier in her career, she also held the positions of Head of Marketing at Carro and Director of Orbit Jobs.

Speaking on her own appointment, Putri said that Indonesia is full of amazing opportunities for brands and businesses, which is good for an agency like Redhill.

“Redhill has long been recognised as a trailblazer in the industry, and I’m honoured to join this exceptional team. My goal is to work together to align our visions and take Redhill Indonesia to new heights, revolutionising the industry and exceeding client expectations through strategic innovation, agility and an unwavering commitment to the success of both Redhill and our clients”, she added.

Meanwhile, Manisha Seewal, president of Redhill said “Based on first-hand experience, I’m confident that Windy will be a valuable addition to Redhill. She has a wealth of experience as a communications professional, especially in agile organisations with high growth, and her familiarity with the Indonesian market is unmatched. Indonesia has always been an important market for Redhill and Windy is the perfect person to take our presence here to the next level.”