AFAA

Indonesia
Knowledge - Development of Asian Advertising
by Indra Abidin

1981 1985, Advertising Seminarin Jakarta , Emil Salim Minister of Environment and Population, Harmoko Chairman Journalists Association, Indra Abidin Chairman Adv Agencies Association.

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Advertising Institution Building 1932 Developing advertising standards, commenced during the Dutch colonial period and the establishment of “Dagbladdirecteurenbond” / The Association of Publishers Executives in Solo. During this period Samuel de Heer from “Publiciteitbureau Arta” was given the task to develop a long term plan of the Press and Advertising industry.

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1938—It is important to note Unilever have already seriously developed advertising by setting up Lintas (Lever International Advertising Services) as their In-house Agency. Lintas became independent in 1980. From Lintas came advertising practitioners that have made their own names including “Cabe Rawit” Princip Ad.

1949—4 years after proclaiming independence, the advertising agencies established “Bond Van Reclamebureaux in Indonesia” / Perserikatan Biro Reklame Indonesia/The Advertising Agencies Association.

The organization was founded by Dutch practitioners, including De La Maar, Berk Franklijn, and Bergomer.

1952—An advertising company worth to be noted in history is the Balai Pustaka in Bandung - West Java, established in 1952 by Tjetje Senaputra, a company that started servicing local sundry shops/retail. Until 1960, they were mainly handling classified advertising, sales of cars, housing, and lodgings for students. Their performance continuously increased.

In 1960 their advertising billings Rp 24 Million grew to Rp 50 million in 1967. Most of their media placements were using the provincial newspaper Pikiran Rakyat.

1953—Another association called Serikat Biro Reklame Nasional/SBRN was established to further accommodate the indigenous agencies’ interests. Founding member companies were Azeta, Elite, Garuda, Irab, Kilat, Kinibalu, Patriot, Pikat, Lingga, Titi, and Trio.

1954—The two organizations merged and became “Perserikatan Biro Reklame Indonesia” The Chairman elected was F Brekhout.

1956—Muhammad Napis was elected Chairman.

1957—The first Advertising Congress was held, the name again changed to “Persatuan Biro Reklame Indonesia.”

1960—For almost a decade, the country’s advertising was dormant. Indonesia entered the “Guided democracy and guided economy” period. “Modern advertising” started when the country opened doors to Foreign investment in 1968. Since then, multinational companies introduced its products and services into the local market. The economic growth since the “New Order”, steadily increased, and Indonesia became a major Asian market for American, Japanese, European and also Asian brands.

1970—According to the book 1970 World Advertising Expenditures; Indonesia was ranked smallest in advertising expenditure amongst the 75 countries surveyed. USA advertising ranked highest with US$ 75/capita compared to Indonesia US$ 0.01 (Rp 4.15). Advertising expenditure US$ 2 million in Indonesia was predicted to increase consistently.

1972

  • For the AdAsia Congress in Bangkok, Indonesia sent 13 delegates. During this period, the issues discussed on the concerns of foreign dominance in Asian advertising including Indonesia. The Indonesian delegation included Abdul Moeid Chandra, Christianto Wibisono, Ernst Katopo, Usamah, Yo Wijayakusumah, Sjahrial Djalil, and Ken Sudarto. The AdAsia congress Bangkok 1972 awarded Indonesia to host the AdAsia 1974 in Jakarta.
  • The Advertising Agencies Association/PPPI had 30 members. During this period, protecting the interests of the responsible advertising, PPPI tried to establish accreditation for the member agencies, to differentiate with those who were non members. The accredited agencies received education, professional trainings, credit and other facilities from the media and suppliers.
    Abdul Moeid Chandra was elected Chairman of the Advertising Agencies Association/PPPI (1972-1977). Other board members were Savrinus Suardi, Sjahrial Djalil, and Yo Wijayakusumah. December 1972, the association name changed to Persatuan Perusahaan Periklanan Indonesia.

    The name was changed with the consideration that the term “Reklame bureaux” was a word mostly used by the outdoor companies, and media brokers. Indonesia was entering a new modern era since Indonesia opened the doors for foreign investment. Advertising also needed to adjust to the definition of modern marketing, and modern advertising using the full services of communications, market, consumer, product research, and other advertising management tools.

“Modern Advertising”


1981 1985, Mr. Mohamad Napis, Former Chairman Advertising Agencies Association 1956~1972.

1963—The pioneer of “Modern Advertising” was Intervista Advertising agency, founded by Nuradi. A Diplomat by background from the Foreign Service Institute of the US State Department, Washington DC, and Public Administration in Harvard, Cambridge Massachusetts. After his working experience in SH Benson UK, Nuradi was attracted to advertising and decided to resign from the prestigious position. His career started in SH Benson Singapore 1962.

1963, Nuradi left the company to set up his own in Jakarta, Indonesia called InterVista Advertising.

This was then called the first “Modern Advertising” Agency in Indonesia starting with only 15 employees, located in a small house with 3 rooms, the Account Executives, Directors, and the Studio. The operation used modest equipment. Employees rotated without any specialization. One time he can be working in the production, and then moved to marketing, and so on. With this set up InterVista was able to produce TV Commercials. For that they contracted artists and television experts.

Used modest techniques, rolling technique, like to produce cartoon films.

InterVista Advertising and Nuradi were the first to introduce creative, production, account management, media planning, research, and other functions. This was different to the other agencies which did not use the new standard practice. The others mostly were self learners, or from the mass media.

InterVista Advertising also introduced “copywriting” to be converted to tin plates, and other metal plates for printing to get better quality results. In the creative, InterVista Advertising pioneered TV Commercials in the only Television station owned by the government: TVRI. Most well known advertising campaigns at the time were Cipayung Hotel, Masayu - Heavy Equipment Company. They stood out because of its modernity, and yet still preserving the local culture. Although InterVista Advertising closed shop in the 1990’s, they have laid down the foundations of “Modern advertising” which was adopted and followed by the other advertising agencies. Nuradi was awarded “The Father of modern Indonesian advertising”

Some of Nuradi well-known landmarks include: Sweet Condensed Milk : Indomilk... sedaap/ Indomilk... delicious

Anker Beer: Ini Bir baru, ini baru bir.../Anker, this is the new beer, this is the real beer. Cigarette: Makin Mesra dengan Maskot/More romantic with Maskot. Motorcycle: Lebih baik naik Vespa. / Better riding with Vespa.

52 Asian Advertising - 2007 1970

Fortune Indonesia was founded by a senior journalist Mochtar Lubis. He called upon Fortune International based in Australia to start up in Indonesia. Their first clients included Cathay Pacific.

1977, Fortune Indonesia suffered losses. The company management was handed over to Indra Abidin a local entrepreneur. Fortune then regained the confidence of its clients, and grew. They were then appointed as the Agency for Dancow/Nestle, and Condom 25. After 10 years since their establishment, Fortune was always leading in the 2nd or 3rd largest agency ranking. 2002, Fortune became the first and only public company, listed in the Jakarta Stock Exchange.

1971—Matari, founded by Ken Sudarto saw the demand for advertising services since the country opened its doors to foreign investment. 1980, Matari was the first Indonesian advertising agency to win the Finalist - Clio Award with the Public Service Advertisement theme of environment. During the “Reform Era” of 1999s Matari was also the first agency to handle the political party campaign for the General Elections.

Matari was always ranked amongst the top 5 Agencies in the country together with the multinationals: Perwanal/DMM, IndoAd/Ogilvy, AdForce/JWT, Fortune Indonesia, Polyama, Artek, Larisa.

1970—Since the Foreign investment open doors policy, the appearance of foreign businessmen have created local practitioners’concerns including Mohamad Napis, Chairman of Persatuan Biro Reklame Indonesia-PBRI.

He even threatened to close his company as a protest. The dominance of foreign experts also created the disappointment of Nuradi. He commented that the presence of foreign experts should be limited to 3 functions only: Advertising Consultant, Advertising Technical, and advertising manager.

There were suspicions and accusations that many of these local agencies affiliated with multinational agencies have illegally been bought out or were fully owned by multinational agencies. The Minister of Trade Soemitro Djodojhadikoe soemo (Read Sumitro Joyohadikusumo) then issued a decree in 4 December 1970 No 314/KP/XII/70, establishing that foreign advertising companies were disallowed to operate in Indonesia. and that the use of foreign expatriates were limited to Advertising Manager, Technical Advisor, and Management Consultant. This new regulation was received well by the local practitioners.

1976—73% of products advertised were imported products.

The availability of foreign products contributed to the economic growth, and was felt by the local advertising agencies. In a study made by Bhineka agency in 1971, total market was Rp 2.5 billion (Indonesian currency Rupiah)

  • Newspaper 49.0%
  • Magazines 1.5%
  • Cinema 13.0%
  • TVRI 11.0% (Government TV Station)
  • Radio 3.5%
  • Outdoor 9.0%

At the time Bhineka advertising billings were Rp 126 Million.

1974—During the Advertising Agencies Association Congress, a compromise was reached to allow foreign experts to complement the local expertise; during that time, still lacking in quantity and quality. Foreign advertising companies operating in Indonesia were disallowed. In 1978, the government further regulated the advertising industry specifically on ownership, affiliations, and relationships. Since then many new advertising companies mushroomed, and affiliated with multinational agencies. The main reasons were to be able to secure competitiveness, learn how to handle multinational advertisers, also to learn more from its counterparts.

As the economy developed, the industry grew, there were small and large advertising agencies in the capital city and in the provinces. As a national organization, PPPI was faced with the responsibility to embrace all advertising agencies wherever they operate.

19811996 Seminar Broadcasting Law, Senyon Kim in middle, Javed Jabbar Pakistan standing.Despite the ban on Television advertising and equity distribution policies; agencies continued to emerge in Indonesia including JC&K, DM Pratama

Dwi Sapta Pratama. DM Pratama founded by Maria Indriyani, started her career in DDB Needham India, ABS Gardner Dixon Hall/TBWA Srilanka. In 1993 DM Pratama affiliated with Bozell Worldwide, 6th largest advertising agency in USA.

This relationship terminated in 2002, and DM Pratama decided to go on its own since then.

1983—Kompas Newspaper was the largest, followed by Sinar Harapan, Pikiran Rakyat, Suara Merdeka, Surabaya Post, and Pos Kota. Jawa Pos is as success phenomenon. From a middle player, Jawa Pos gradually became 2nd next to Kompas.

1984—PPPI presence expanded to West Java, Central Java, East Java, West Sumatra, North Sumatra. Since then, PPPI became the national organization. In some areas where there were no advertising agencies, the print media and radio had to develop their own marketing. They set up their account executives.

In the provinces, data and market information were difficult to access. Some were made of assumptions, estimates coming from the local media including Kedaulatan Rakyat-Jogyakarta, Suara Merdeka-Semarang, and Pikiran Rakyat- Bandung.

hey were the major local print media originating from the provinces, and they successfully expanded to other areas competing with the large national media.

AC Nielsen/Media Scene, a research company reported that there were many local/regional/ provincial media increasing their presence becoming national. They include Media Indonesia,Bisnis Indonesia, Suara Pembaruan, Bali Post, Pikiran Rakyat, Fajar, Suara Merdeka.

With a small advertising market cake in the areas/provinces, competition was fierce, and cut throats. Especially on price competition, some even offered their services at Zero Fee. This was counterproductive to the industry since, it would backfire to them eventually. There were provincial agencies exporting this unhealthy practice to Jakarta by offering national advertisers very unhealthy terms and conditions. Many companies using this short term suicidal methods went bankrupt.

1990—After a 10 year ban on Television advertising; the new fresh change when the government announced the deregulation policies on television media, opening possibilities of private television stations operating. This triggered the advertising billings growth.

In 1990, advertising billings reached Rp 639 Billion (Indonesian Currency Rupiah) The practitioners immediately jumped to this encouraging development.

1993—New agencies appeared MAC909, a separatist of IndoAd/Ogilvy&Mather, CCHQ in 1996, AdFokus in 1992, Avicom Airvestising in 1995, Belcomm or Gobel Communications in 1994 which was originally an In-house agency for National-Panasonic Electronics. And Cabe Rawit in 1992.

2000—With the post economic crisis in Asia also Indonesia over, the winds of change brought new optimism and new economic improvements. The agencies breathed new fresh air, 2000, advertising billings increased to Rp 7.9 Trillion (Indonesian Currency Rupiah) 2001, increasing again to Rp 9.717 Trillion. 2002, reached to Rp 12 trillion.

This growth opportunity was again then, taken by multinational agencies, entering with affiliations with the local agencies. Slowly the multinational agencies dominated the market. Based on the PPPI Persatuan Perusahaan Periklanan Indonesia (Indonesian Advertising Agencies Association); foreign affiliated agencies ranked top 10 amongst the 25 largest agencies. Matari was the only 1 categorized as local agency ranked No.3.

No.1 was Lowe with Rp 347 Billion, and No. 2 JWT at Rp 261 billion. The multinational agencies also dominated the Citra Pariwara Creative Awards, the prestigious local creative awards:

With the autonomy and decentralization, PPPI/The Indonesian Advertising Agencies Association members grew from 1998 194 agencies 1999 226 2000 257 2001 298 2002 356 To harmonize the practices and relationship between advertisers, agencies, and media, PPPI issued and came into effect the “Standar Usaha Periklanan Indonesia”/ Advertising Business Practice Standards.

Complementing the Indonesian Advertising Code of Ethics and Code of Practice. This Advertising Business Practice Standards covered the practice of agency selection/pitching, transfers of clients, confidentiality of client’s information, recruitments and employee’s remuneration, portfolios, agency presentations, information, concepts and others. Laid down also were standards on Conflict resolutions, and arbitrage.

 

Becoming Member of the Press Family

1974—This issue became a hot topic during the Publishers Association 5-8 June 1974; where it was agreed to regulate the ratio of advertising 30% and news 70% each edition for magazine and newspaper. The newspaper was then further regulated and limited to 12 pages per publication. The issue of equity distribution of the advertising cake further increased its importance with the increasing advertising share was being taken by television; reducing the advertising share of the press/print media.

The print media owners demanded advertising regulations to ensure their share of the cake along with the steady growth of the advertising expenditure/ billings.

President Soeharto, issued a decree to ban Television advertising, in the only television station in Indonesia - TVRI.

With this decree it was expected that the institution building of the press can be ensured through the advertising cake, ensuring a better equity distribution of the advertising cake specially amongst the weaker and smaller print media. The presidential decree was based also from concerns from various sources of the people including the Yayasan Lembaga Konsumen/consumerists association.

Another study made by the National Defense Council, that TV advertising reach capabilities through the satellite was national. Advertising can be seen by villagers in the remote jungles of the country. Many have never even seen a car, and many other products that were being advertised through TV. The study concluded that with all commercial exposures to those in the remote areas amongst people who cannot afford these products could create social jealousy, instability. The television ban, impacted to the closure of many advertising companies who were dependent from television advertising. The loss was felt also by the industry that had to suddenly stop promotion due to the loss of television as a medium.

1981—March, The press council opened the portion of advertising

And changed from 30:70 to advertising 35% and News 65% each edition for magazine and newspaper. The press council also formed a Body for Advertising Equity distribution/Badan Penyalur Pemerataan Periklanan Nasional/BPMN with members representing the Publishers Association, Newspapers Printers Association, Journalists Association and Advertising Agencies Association. The body aims to further equity distribute the advertising cake both amongst the larger print media and the weak/smaller print media giving better opportunities for all the print media to grow.

Print media was considered vital to the dissemination of information, education, and communication for the people across the country. During that period advertising was concentrated in 2 newspapers Kompas and Sinar Harapan/Suara Pembaruan and the other national media. Provincial newspapers received 5 % including Pikiran Rakyat-Bandung, Suara Merdeka- Semarang, and Suara Indonesia Baru-Medan. Magazines were only enjoyed by the national circulated magazines.

1982—The advertising became regulated under the Press Law (Undang Undang Pokok Pres, and formally established advertising as part of the press Institution. PPPI As the Advertising organization became member of the press family together with the PWI/journalists, SPS/publishers, SGP/Press printers association.

PPPI since then interacts with the press Council as the highest body for the press, accompanying the government in the national development of the press.

PPPI/ Advertising Agencies Association as a formal institution governed by Law, was able to strengthen its presence and communications with various organizations horizontally and vertically. Including the conflict resolutions of practices and ethics. Opportunity was also created for the advertising industry to enter the legislative positions. Savrinus Suardi former chairman of the PPPI/Advertising Agencies Association (1975- 1981) became Member of Parliament in 1987- 1997.

The Press Law also prohibits foreign ownership of an advertising company. The Law also aims to create better distribution of the cake of advertising billings. Advertising ethics and good practices became the responsibility of PPPI/The Advertising Agencies Association to formulate and apply within the industry players. A national advertising symposium was held 19- 20 June 1980 formulating the code of ethics and code of practice.

The next issue for the Press Council was called upon to formulate, how the cake of advertising billings can be better distributed amongst the media.

This situation, and with increasing rates, created a very high cost print advertising in the world. Although the BPMN was fully endorsed by the government, it failed to meet the objectives. Their plead to the advertisers to place advertising in the small and weaker media was ignored. The rates disparity between the strong media and weak media still exists. As an example the advertising rate for Sinar Harapan/Suara Pembaruan was Rp 6.000/millimeter column compared to Fajar in Sulawesi was Rp 50/ millimeter column.

Where to place, which media to be used for your advertising was based on corporate, and marketing objectives, how many people that can be reached by each media, geographic area coverage, appearance, and profile of the newspaper. Advertising must deliver, be accountable in terms of effectiveness, and efficiency to achieve marketing communication targets established for the interest of the advertiser/client.

Eventually, equity distribution was directed to government corporations advertising programs, announcements. BPMN functions as the source of information, and give advice to the government advertisers to place their advertising in the provincial, weaker and smaller media also.

 

An Advertising Odyssey? Maybe. An illustrious photo collections showcasing the Asian advertising development through ’70s and ’80s contributed by Mr. Indra Abidin, AFAA representative and a member of AFAA International Council.


Click image to open!

Self Regulation

1982—The Advertising Commission which was established. It is an independent, non government body, to create a self regulating industry, supervising the practice of advertising ethics. To create and develop advertising that is culture sensitive and up keeping the local values. Membership of the Advertising Commission includes:

Advertisers Association/Aspindo - Asosiasi Pemrakrasa dan Penyantun Iklan Indonesia, Advertising Agencies Association/PPPI, The Publishers Association/BPMN-SPS, Private Commercial Radio Broadcasters Association, Cinema Owners Assocation/GPBSI, Outdoor Media Association/AMLI, TV Foundation/Yayasan TVRI, Private TV Stations Association/ATVSI. 2004, The Advertising Commission, changed name to Advertising Council 1999///// A new Press Law 1999 was issued regulating the advertising replacing the previous. Advertising prohibits to use; SARA/ Racial, Social disparity, Religion, and Ethnic differences. Also prohibits Alcoholic drinks, drugs/narcotics, addictive components, also the use of cigarette, and consumption of cigarettes.

The Broadcasting Law 2002 further regulated advertising, including limiting advertising to Commercial Airtime to 15 % for public/government stations, and 20% for private stations.

And private stations will allocate 10% for public service advertising of their commercial airtime; 30 % of government stations’ commercial airtime.

The Broadcast stations were obliged to allocate some of their profits for the production of public service advertising materials. The new Broadcasting Law also regulated the use of local skills, production house, and local talents.

International Participation

1970—“The New Order” triggered the engine of growth, and emergence of many multinational companies. This was the start of “modern advertising” that is market economy oriented, following the economic development strategy; the “New Order” government invited the presence of foreign capitals. The flow of foreign capital supported by strong political stability. The presence of foreign capital, created a positive impact for the advertising business in the country, considering the production and services processing must be balanced by good sound and modern marketing strategies. What was not anticipated with the arrival of foreign capital was the challenge and unbalanced competition between the multinationals and locals.

During the same time, multinational advertising companies also penetrated other Asian countries, including Malaysia, Thailand, Singapore, Thailand, and Philippines, Asian Advertising Congresses often witnessed / heard the voices of concerns on this issue.

The feeling of being threatened by the multinational advertising companies existed strongly.

This Asian Advertising Congresses aimed to create cooperation, between Asian advertising industries to face their common issues, Exchange information, exchange of experience for the betterment of Asian advertising standards. The spirit to make indigenous companies as “host” in their own home countries, came to surface since the first Asian Advertising Congress in Tokyo 1958. Founded by senior practitioners including Hideo Yoshida, President of Dentsu, a leading advertising company and Domen President of Ajinomoto. Attended initially by 10 foreign delegates and 120 Host country delegates. With the aims of increasing the standards of Asian advertising, Asian Advertising Congresses - AdAsia was held biannually in different places of Asia. This continued without an umbrella organization permanently overseeing the congresses, thus lacking in consistency, quality and continuity. In 1978, Asian Federation Of Advertising Associations was formed as the Umbrella organization of AdAsia Congresses. Indonesia was one of the founding members of AFAA; and attended all the AdAsia Congresses every two years. 1980 Singapore, themed “Communications Towards 21st century” 1982 New Delhi, themed “Advertising - an essential input for economic growth.” 1984 Seoul, “Advertising helping Asia grow” 1986 Bangkok, “Ad-Venture in the Asian economy” 1988 Lahore “Together towards tomorrow” 1990 Kuala Lumpur “Advertising to power tomorrow’s power house”

 

Meeting West’s Presence

1970—On record, the first Indonesian delegates attended the AdAsia forums 1970 in New Delhi. During the 7th AdAsia 1972 in Bangkok, Indonesia was selected to host the AdAsia 1974. President Soeharto was the 1st Head of State to open the 8th AdAsia Congress in Jakarta. This protocol was followed by the other congresses afterwards.

To organize the event, Persatuan Perusahaan Periklanan Indonesia/PPPI- The Indonesian Advertising Agencies Association solicited support from the Indonesian Chamber Of Commerce and Department Of Trade/Kamar Dagang Indonesia-KADIN. Themed “Modern Advertising and its social responsibilities in developing countries.” The Congress discussed various issues including the equity distribution of advertising, Multinational advertising companies operating in Asia, and commercial advertising business practices. At that time, PPPI only had 30 members, compared to today over 400. Also today participants of AdAsia Congresses reach up to 2.000 participants. Philippines were selected to host the XI AdAsia Congress in 1978, themed “Responding to the Imperatives Of Change in Asia” The Asian Federation of Advertising Associations was founded in Manila, a body accommodating larger scopes, hopes and aspirations compared to the AdAsia congresses held every two years, discussing working papers.

The concept of AFAA came from Antonio De Joya the Chairman Organizing Committee of XI AdAsia Congress. To realize the establishment of the body, Antonio approached various countries for two years.

For the next six years, Antonio was heavily involved in exchange of information, experience and techniques of Developmental Communications focusing developments for rural population of Asia. He was convinced that Asia belonged to Asians. Participants from Indonesia, Israel, Malaysia, Singapore, and Taiwan agreed to form and establish AFAA during the plenary session in Manila 1978. Since then AFAA stakeholders expanded not only from Asians, AFAA members also were from Australia, and New Zealand. With the establishment of AFAA, besides AdAsia Congresses, AFAA expanded its activities to education/professional trainings, publications were activated independently, and enriching the congresses.

1990s—Vietnam joined AFAA, and immediately opened their opportunities to increase their standards through various forums and networking with other AFAA members.

Politics cannot be completely out of AFAA however hard they distance from politics. In 1993-1995 the amendments of the AFAA Constitution were made; as decided during the meeting Kuala Lumpur Malaysia in 1990. It was proposed that countries representation, to be changed to area representations. It was during that period, Taiwan joined AFAA membership. China immediately sent out a letter protesting the decision to accept Taiwan. China objected the use of the name of the Taiwan delegation: Taipei Association of Accredited Advertising Agencies. They were on the principle of One China Policy that is “China - Taipei.” As a protest, China decided to be non-active, stopped sending delegates to AdAsia Congress in Bali 1995.

AFAA Chairman Yusca Ismail tried hard to mediate and reach a resolution with China. Visited Beijing and Taipei several times with no results.

1995—Preparations for AdAsia 1995 started five years immediately after AdAsia Kuala Lumpur Malaysia. AdAsia XIX Congress was held 6-9 November 1995 in the Nusa Dua Convention center Bali. Themed “Uptrends in Asia” attracted over 1200 delegates from 18 countries from Asia Pacific. The Opening ceremony was officiated by the President Soeharto, 21 years since his last opening for AdAsia 1974 in Jakarta.

AdAsia 1995 Bali Congress speakers Allen Roshenshine President of BBDO Worldwide and Roger Fidler, an American Research expert and author of Metamorphosis: “Understanding the new media”; they were convinced that From the economic indicators, Asia Pacific will be the main world advertising contributor. And that Asia Pacific will be the largest profit contributor for multinational advertising agencies. JWT President Director of Asia Pacific was quoted that 25% of consolidated profits were from Asia. This was larger than Europe.

At this rate, North America was believed to be exceeded within the next 3 years. East Asia was believed to grow 30% each year. China and India even higher, each 100% and 50%. Amongst Asian countries, China, Indonesia, and Thailand were the Most potential markets.

This growth created pressure in Indonesia lacking of local experts. Many made shortcuts by hiring foreign experts.

1995—Another new policy came into effect. The separation of the AFAA Chairmanship and AdAsia Organizing Committee Chairmanship. In the past these positions were held by one person meaning legislative and executive functions in one hand.

It was becoming more and more difficult to organize AdAsia congresses, and at the same time hold AFAA chairmanship by the same person.

 

Formulating the Ethics, Developing the Advertising

1976—Djoko Lelono, a senior practitioner former managing director of Bates Indonesia and Lever Industrial Advertising Agency (Lintas) illustrated advertising in Indonesia as “The wild, wild West” Advertising situation during that time was considered, wild behavior, mean, and disorganized, In that situation, conflicts frequently occurred. This brought the burden to Abdul Moeid Chandra, Chairman PPPI-Advertising Agencies Association. In 1972 he stated that the advertising can create a negative influence to the culture, and values of life.

This accusation reflected the commercial selfishness, ignorance amongst advertising practitioners, towards packaging their commercial messages, and their roles in the dissemination of information to the masses.

Advertising is not a simple work process that can be done in an amateurish manner. It is a work process that must be practiced responsibly. Considering well on the positive negatives, and impacts to the society. These considered, must preserve the values, beliefs, and observe behavioral attitudes of a community within a specific area, and certain period of time. In other words advertising is not a matter of offering products and services; it must also communicate with the majority of the people with respect.

1978—September, the process towards the creation of the advertising code of ethics and code of practice started with the establishment of The Advertising Council.

The Working Committee consisting of the PPPI/Advertising Agencies Association, Publishers Association/SPS, TVRI & RRI Government Television & Radio , GPBSI/Cinema Owners Association, ASPINDO/Advertisers Association.

Chairman—Indra Abidin/PPPI,
Vice Chairman—Daradjad

Advisors were T. Atmadi from the Department of Information and M. Panggabean from Department Of Trade. The Advertising Council was the Indonesian representative to AFAA.

1980—19-20 June, Seminar was held to formulate the the advertising code of ethics and code of practice. Supported and participated by PPPI/Advertising Agencies Association, Publishers Association/SPS, TVRI&RRI Government Television & Radio, GPBSI/Cinema Owners Association, PRSSNI/Private Radio Broadcasting Station Association, and ASPINDO/ Advertisers Association.

Seminar with 150 participants accommodated inputs from all participants regarding the ethics and practice of advertising acceptable to all, formulated a Code of Ethics and Code of Practice towards a self regulating industry.

1981—The convention was finally reached and agreed by all organizations related to advertising, by signing the Code Of Ethics and Code Of Practice.

 

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