Tag: Indonesia

Indonesia – Unilever is set to implement strategic adjustments to its categories, channels, costs, and organisational structure as part of its recovery strategy in response to business challenges in its Indonesia unit.

In its recent year-to-date (YTD) results for September 2024, Unilever Indonesia acknowledged ongoing business challenges and outlined key strategies aimed at strengthening the company’s foundation for future growth.

The company emphasised that, “despite facing headwinds,” it maintains a significant market share and leads in 13 categories, highlighting the enduring consumer preference for its products.

According to the company’s official report, the company plans to strengthen their power brands and portfolios by introducing new product formats that have resonated with consumers.

Unilever will also transform its distributive trade and stock management, optimise promotions to maintain competitiveness, and enhance its social media presence. Additionally, it will reassess costs, enhance efficiency and resource allocation, and redirect investments toward strategic priorities. 

The company further bared plans for enhancing their organisational structure, including changes in their leadership level, to ensure that “the business is always well-prepared for future challenges and opportunities.”

In a statement, the company wrote, “We are undergoing a complete transformation and driving operational improvements that will take some time, at least until the first half of next year. That being said, we fully believe that this is the right thing to do and, in our ability, to turn around the performance. Again, we are committed to emerging stronger, or resilient, and well positioned to seize future opportunities.”

These ‘drastic’ strategic changes come as Unilever in Indonesia reported an 18% revenue drop in the third quarter, primarily due to a decline in sales volumes. 

According to a report by Reuters, the company is facing challenges following a recent consumer boycott of multinational brands, sparked by public response to the ongoing Gaza conflict. 

In the report, Unilever first disclosed in February that fourth-quarter sales growth in Southeast Asia had been impacted by Indonesian consumers boycotting multinational brands in reaction to the Middle East’s geopolitical situation.

CEO Hein Schumacher recognised these “long-standing issues” in the country, stating that Unilever is implementing “significant interventions” in Q3 and Q4 in Indonesia, though he cautioned that these efforts will not produce immediate results in the next quarter.

Meanwhile, chief financial officer Fernando Fernandez told analysts that the company aims to make its brands “more contemporary” in response to “significant societal changes.” He is expecting that these efforts would yield improvements within the next six months.

Fernandez also said that a revamp of the distribution system is currently underway to stabilise prices, noting that the group’s efforts are already “yielding some results.”

“We have been recovering part of the share losses we suffer due to the consumer backlash that is related to the geopolitical situation in the Middle East; we have recovered around one quarter of the share losses,” he said to Reuters. 

In its YTD September 2024 results, Unilever reported a 9.9% year-on-year decline in domestic revenue, attributed to price instability and reduced customer stock in Q3. Although the company’s market share remained stable in 2024, it is still below the YTD October 2023 level.

“We are undertaking necessary adjustments, from refining our product offerings to strengthening our operational efficiency, with a long-term perspective guiding these actions. While the impact of these actions will take time, I am confident in our ability to recover and return to growth. We are committed to emerging stronger, more resilient, and positioned to seize future opportunities,” Benjie Yap, president and director of Unilever, said in a statement.

Indonesia – Leo Burnett Indonesia has launched the inaugural Portfolio Night in Jakarta, offering aspiring young creative talents a unique opportunity to connect and engage with creative leaders from the country’s well-known agencies.

Now in its 21st year, Portfolio Night is a global portfolio review event held in over 70 countries, powered by dedicated host partners in each city. At the Jakarta event, young creatives received in-depth portfolio reviews from industry leaders, gaining valuable advice to boost their creativity and kickstart their careers.

“Never before have young creatives in Indonesia had the chance to meet so many creatives at once and the opportunity to learn from the best. As an agency that supports the industry’s transformation through the development of aspiring creatives, Leo Burnett Indonesia is committed to hosting Portfolio Night, with the ambition that it becomes a major force in shaping the future of creativity in Indonesia,” said Sony Nichani, CEO of Publicis Groupe Indonesia. 

Jakarta’s inaugural Portfolio Night brought together creative leaders from top agencies, including Leo Burnett, Accenture Song, TBWA, seleBRasi Kreatif, Dentsu, Jelly Agency, FCB, MullenLowe Lintas, Pinc Group, Inner Circle, Future Creative Network, Moonfolks, Tu7uH Creative Lab, Fortuna, and Gojek. These experts shared invaluable insights with young creatives before voting on their favourite portfolios.

Mudit Trevedi, managing director at Publicis Groupe Indonesia, elaborated, “Jakarta’s advertising industry is relatively young, so there aren’t many opportunities for creative students to interact within the industry and learn from established creatives. By bringing Portfolio Night to Indonesia, Leo Burnett Indonesia hopes to shape a generation of creatives who are passionate about world-class creativity and hungry to make transformative work for the country’s best clients.” 

Jakarta’s Portfolio Night, organised by The One Club for Creativity, drew over 75 participants, with Sayid Muhammad earning the top-scoring portfolio. Sayid will advance to Portfolio Night’s global All-Stars program, a virtual competition in January 2025, where All-Stars will compete for a chance to attend The One Club’s Creative Week in New York in May 2025.

Ravi Shanker, chief creative officer at Leo Burnett Indonesia, shared, “Sayid is special. His work demonstrates modern and bold ideas and a non-traditional approach to thinking. The ideas vary from product concepts to gadgets and skins for games, all with powerful insights. Most importantly, his attitude towards learning more, winning more, and doing more makes him a true winner.” 

Jakarta, Indonesia – Indonesia has requested that Alphabet’s Google and Apple remove the Chinese fast fashion e-commerce platform Temu from their app stores in the country to prevent it from being downloaded, a government minister announced on Friday via Reuters. 

The decision aims to protect local small and medium-sized enterprises (SMEs) from the influx of cheap products offered by PDD Holdings’ Temu, according to Communications Minister Budi Arie Setiadi, although there have been no recorded transactions by Indonesian users on the platform so far.

Temu’s rapid expansion has drawn attention in several countries due to its low-cost business model, which involves shipping products directly from factories in China to customers. Budi criticized this approach, calling it “unhealthy competition” because it significantly undercuts prices. 

“Our priority is not to safeguard e-commerce platforms, but to protect our small and medium businesses. We have millions to look after,” he stated.

The Indonesian government also intends to block any potential investment by Temu in local e-commerce, should such plans arise, Budi added, noting that no such proposals have been made yet. 

Additionally, the government is considering a similar request to block the Chinese shopping service Shein.

It should be noted that the Indonesian government has blocked Temu to protect SMEs, with another one update being Bukalapak denying reports of Temu acquiring them to boost the popular e-commerce app’s expansion in Indonesia.

Singapore – French-Italian regional aircraft manufacturer ATR has launched a series of videos to promote Indonesia while highlighting the importance of regional air connectivity within the country. 

The campaign was supported by Singapore-based public relations and marketing agency, Francis & Low, and was filmed in various locations on the Indonesian islands of Flores, Sumba, and Borneo (Kalimantan).

The videos highlight the positive impact regional air connectivity has on Indonesia’s development, while capturing the nation’s rich cultural heritage and breathtaking landscapes.

Moreover, its stunning narrative explores how ATR air services provided by Indonesian regional airline Wings Air are transforming lives and industries across Indonesia. The series explores how air connectivity is: supporting Flores’ thriving coffee trade, facilitating Sumba’s tourism sector and connecting communities within Borneo, the world’s third largest island.

The first video, ‘Connecting Indonesia: Brewing Opportunities in Flores’ highlights how ATR aircraft facilitate business and trade, particularly in the coffee industry. Meanwhile, ‘Connecting Indonesia: Sumba’s Wings to Paradise’ focuses on the ATR air services’ role in supporting tourism which in turn is helping to improve the livelihoods of locals on the island of Sumba. Lastly, ‘Connecting Indonesia: Exploring the Green Wonders of Borneo’ focuses on how air services are essential in Borneo because of the sheer size of the island and the fact that there is very limited road infrastructure.

With stunning aerial footage and personal stories, the video series also illustrates how ATR aircraft are not just connecting places, but also transforming lives across Indonesia. By bridging previously inaccessible destinations, ATR is playing a crucial role in promoting tourism, trade, and sustainable development.

Leithen Francis, managing director of Francis & Low (F&L), said, “In this series of videos, we interviewed Indonesians from different communities across the archipelago, allowing them to share their stories, which in turn highlighted the broader importance of regional air connectivity.”

He added, “Another key strategic objective of the video series was to promote Indonesia as a tourist destination by showcasing the nation’s diversity and beauty. We explored places that many people don’t get to see, but hopefully these videos will motivate intrepid travellers to visit Flores, Sumba, and Borneo.”

As a digital media agency specialising in taking a human approach to connecting brands with people across all channels, M&C Saatchi Performance’s approach has been driven by their approach involving meticulous media planning and buying across digital channels such as search & social, retail & commerce media, influencer marketing, amongst others. In Indonesia, the agency is currently working with clients such as IKEA, JULO, and JobStreet by SEEK–focusing on channel-driven campaigns.

For our latest Agency Leadership Decoded interview, we sat down with Nachiket Desai, country director at M&C Saatchi Performance Indonesia on understanding how it feels like leading an agency whose mission is to cater to the ever-changing media needs of Indonesians, and carrying the message of surviving and thriving.

Leading agencies with a ‘top-down’ approach

It is worth noting that Nachiket has been with M&C Saatchi Performance since 2018 back in India before transitioning to Indonesia a year later. For him, being able to work in fast-moving markets like the aforementioned two allowed him to observe the fact that despite significant shifts in workforce expectations, personal ambition, and career progression, a traditional hierarchy-driven mindset persists. 

For him, this collaborative approach often still guides thinking and execution in his own leadership style.

“In my leadership tenure and with all the fantastic local talent that we have managed to attract to our team, I’ve focused on two key pillars: empowerment and accountability. By fostering an environment where individuals have the space to make mistakes and learn, we create room for growth,” he explained.

Nachiket also says that it is important to cultivate a culture where ideas are discussed freely and decisions are made collaboratively, even if it means challenging the status quo. Moreover, this approach helps develop a healthier and more engaged team.

Some of the initiatives Nachiket shared in order to help engage teams include having anonymous internal surveys to ensure an open dialogue and identify areas for improvement, a flexible hybrid office policy that promotes work-life balance, as well as conducting ‘stay interviews’ (instead of only exit interviews) to address potential issues early on. 

Moreover, Nachiket highly encourages involvement of key team members in revenue planning and projections, giving them a sense of ownership, as well as being available as a consulting figure, offering support in difficult situations. There is also regular quarterly training focused on both hard and soft skills, as well as providing access to Mental Health partners so employees can schedule an appointment with a mental health professional at their discretion.

“As a service-based company, our people are our greatest asset. It’s essential everyone feels valued and believes they are in the right environment for growth. 

Observing change and gaining retention

Over the past six years of leading the agency, Nachiket has noted significant changes—from the pre-COVID boom to global shifts, economic tightening, and the rapid rise of AI–but there’s always one constant factor evident, and that’s change. 

For them at M&C Saatchi Performance, they have embraced the mantra of adapting not just to survive but to thrive. 

“Being a nimble, independent agency has allowed us to make quick decisions at critical moments, helping us navigate these shifts successfully. Additionally, we’ve expanded our service offering, transitioning from a specialist mobile agency to one managing end-to-end media strategy, execution, and data for some of the region’s largest traditional brands,” he said.

Nachiket also stated that a major indicator of their success is their high retention rates—both in terms of employees and clients. For them, year-on-year growth is only sustainable when the foundation is strong.

“Many of our team members, who started as interns between 2019 and 2020, have grown into managerial roles. These individuals have played a pivotal role in shaping a culture centred around curiosity, learning, and fun,” he added.

Reflecting where they started–and advice on leadership

Nachiket also reflected on his early days with the agency, noting how much they have come a long way to win clients like IKEA, JULO, and JobStreet in recent months.

“When I first moved to Jakarta in 2019, we were a small team of four, taking client calls from cafes and figuring things out as we went. We’ve come a long way since then. That scrappy spirit has fueled our growth; today, we’re a team of nearly 100 people,” he said.

He also added, “Along the way, we’ve had the privilege to work with some of Indonesia’s and the region’s most prestigious brands. While we are always striving for more, it’s been a rewarding journey to reflect on what we’ve achieved so far.”

When asked for his advice on leadership, he focused simply on two words: enable and empower. 

“When a group works together with a shared sense of attachment and purpose, the results are exponentially greater than what any individual high performer could achieve on their own,” he concluded.

Jakarta, Indonesia – E-commerce company Bukalapak has addressed reports of an alleged acquisition by Temu on the local e-commerce player. It is worth mentioning that various reports have stated that Bukalapak’s share price increased by over 22% in the past 5 days, from 120 rupiah on Oct 2, 2024, to 147 rupiah per share on October 8 over alleged acquisition talks.

In a letter to the Indonesian Stock Exchange (IDX) reviewed by MARKETECH APAC, Bukalapak stated that they are not aware of any information regarding its acquisition plans by TEMU.

“The increase in share price on October 7th, 2024 reflects the market’s reaction to unverified information regarding the Company’s acquisition plans, which has not been confirmed by the company’s management. Market speculation is beyond the company’s control,” wrote Cut Fika Lutfi, corporate secretary at Temu.

Bukalapak has advised public shareholders and investors to observe official disclosure of information by the company before making any investment decisions on the company.

It is worth mentioning that this news follows the Indonesian government mandate to ban Temu in the country in a bid to safeguard the standing of local SMEs in the country.

Indonesia – Global hospitality group Accor has launched the ‘KarnavALL Batik Indonesia’ as a month-long commemoration of National Batik Day. In celebration of Indonesian heritage, Accor will host a series of Batik-inspired activities.

‘KarnavaALL Batik Indonesia’ comprises fashion shows, workshops, and exhibitions that feature local Batik products. Even culinary delights are infused with Batik themes, showcasing the artistry of the Indonesian textile.

One of the highlights of the initiative is local enterprise Tlatah Nusantara’s mini Batik showcase at Mercure Bandung City Centre. It will also include a talk and fashion show, which will also be held at Mercure Samarinda and ibis Samarinda.

Meanwhile, at Mövenpick Resort & Spa Jimbaran Bali, guests can learn about the artistry behind Indonesian Batik through a workshop and talk show led by renowned national costume designer Inggi Kendran.

As part of the initiative, guests can also share photos of themselves in Batik through an Instagram challenge for a chance to win prizes.

“We are thrilled to celebrate Indonesia’s rich cultural heritage through the KarnavALL Batik Indonesia initiative. This celebration not only honours the exquisite art of Batik but also connects tradition with contemporary experiences, allowing our guests to engage with Indonesian culture in meaningful ways. We are proud to support local communities and small and medium-sized enterprises, showcasing their craftsmanship while offering unique and memorable experiences to our guests,” Garth Simmons, Accor’s chief operating officer of premium, midscale & economy division in Asia, said.

Jakarta, Indonesia – Popular Chinese e-commerce app Temu has been blocked from entering from Indonesia, according to a statement from Fiki Satari, Special Staff to the Minister for Creative Economy Empowerment at the Ministry–and confirmed by the country’s Ministry of Cooperatives and SMEs.

According to the ministry, should Temu enter the country, it will result in jeopardising sustainability of MSME players in the country.

“If Temu enters, it will greatly threaten local MSMEs. This application from China allows direct transactions between factories in China and consumers in Indonesia, which has the potential to kill small businesses here,” Fiki said in a statement.

Fiki explained that Temu’s business model enables goods to be sold directly from factories to consumers, eliminating the need for intermediaries like sellers, resellers, dropshippers, or affiliates. Furthermore, the platform offers subsidies, which significantly lowers product prices.

“They have entered the US and European markets, and are now expanding into Southeast Asia, including Thailand and Malaysia. Therefore, we must remain vigilant and ensure Temu does not enter Indonesia,” he added.

It is worth noting that since September 2022, Temu has tried to register its trademark in Indonesia three times. On July 22, 2024, they again applied for registration at the Directorate General of Intellectual Property Rights (DJKI), Ministry of Law and Human Rights.

“Temu App has tried to register trademarks, designs, and others with the DJKI. However, they have not been able to enter because there are already companies from Indonesia that have similar names and business categories. Even so, we must remain vigilant and continue to monitor,” Fiki explained.

Fiki hopes that various relevant agencies, including the Ministry of Law and Human Rights, the Ministry of Trade, the Ministry of Communication and Information, along with other stakeholders, will collaborate to prevent the entry of the Temu marketplace into Indonesia.

Indonesia – Prudential plc has announced that its Indonesian subsidiary PT Prudential Sharia Life Assurance has entered into a long-term strategic bancassurance partnership with Bank Syariah Indonesia (BSI). Through this cooperation, Prudential will become the Syariah life insurance provider of BSI from early 2025 and BSI will market, promote, distribute and/or refer Prudential products to its customers.

This partnership marks a significant step in diversifying Prudential’s Indonesian business which has historically been dependent on the agency channel. It will increase Prudential’s participation in the fast-growing bancassurance channel and deepen its exposure to the under-penetrated Syariah segment.

Solmaz Altin, managing director of strategic business group at Prudential plc, said, “This is a unique opportunity for us to partner with the market-leading Syariah bank in Indonesia. Indonesia is a key growth market for Prudential in ASEAN and this partnership will accelerate our growth ambitions. We look forward to working closely with BSI to support their customers in achieving their savings and protection goals.”

Meanwhile, Anil Wadhwani, CEO at Prudential plc, commented, “We are excited to leverage our bancassurance expertise in the Indonesian market. We will deploy our operating experience and product capabilities for our new banking relationship with BSI, further advancing our extensive transformation of our Indonesian business. Our focus is on creating a platform of long-term sustainable value for our customers, our partners and our shareholders. This in-country transaction aligns with our strategic and financial objectives.”

Indonesia – Kahf, the men’s personal care brand under PT Paragon Technology and Innovation, has launched Kahforward 2024, an inclusive movement centred around the theme #LangkahBerdampak, aimed at inspiring young Indonesians to take meaningful and impactful action.

Kahf’s #LangkahBerdampak initiative invites Indonesia’s youth to embark on a journey of positive change. Featuring UFC World Champion Khabib Nurmagomedov as the global event speaker at Indonesia Arena, the movement’s tagline, “Begin the Purposeful Journey,” motivates the younger generation to take small yet impactful steps that foster personal, professional, and social transformation.

Through the Kahforward movement and the #LangkahBerdampak theme, Kahf embodies the values exemplified by Khabib Nurmagomedov, who is renowned for his unwavering discipline, determination, and faith.

This marks Khabib’s first visit to Indonesia, where he inspires Kahfbro by emphasising the importance of meaningful actions. As a former UFC champion, Khabib motivates Indonesia’s youth with his philosophy of taking small, purposeful steps that lead to significant change, urging them to start their own journeys and reminding them that every positive contribution can create a lasting impact.

Khabib shared, “I believe we all have the capacity to make a positive impact. I hope that by building schools in my hometown, I can help improve the quality of life for the local community. This effort isn’t just about today, but also about leaving a lasting legacy.”

Alongside Khabib, Kahforward 2024 features more than 50 local and global speakers and offers a range of engaging activities, including workshops, community networking, art installations, and the latest innovations in men’s grooming technology, such as a robot perfume maker and a skin-check analyser.

Salman Subakat, CEO of NSEI ParagonCorp, stated, “This year’s Kahforward calls on young people not just to dream but to take real, impactful steps toward a meaningful journey. Just like Khabib Nurmagomedov, who has inspired the world with his discipline and perseverance, we believe that every step, no matter how small, can create a huge impact. Khabib is not only a champion in the ring but also in life. Even after retiring from sports, he continues to stand for the values he believes in.”