The diktat, issued by the Ministry of Communication and Information and the Ministry of Culture and Tourism (MCT), has prohibited local media from carrying foreign commercials. The ruling came after plans were made last year to introduce the ban, which does not apply to tourism brands and those from outside Indonesia.
However, the initiative also now involves the MCT, which has confused many.
“We are not clear about why the MCT are involved. We support the decree but want these measures to be enforced gradually,” said Narga Shakri Habib, president of PPPI (Indonesia’s advertising association).
Observers have suggested that the ruling will result in the country’s limited number of directors (about 50, working in 40 production houses) finding it difficult to handle the 8,000 ads produced annually.
Another problem will be finding talent who can handle productions for categories, such as fashion and beauty. Indonesia has about 10 experienced directors and relies heavily on directors from Malaysia, Singapore, Hong Kong and South Africa for high-end production.
Critics bemoan the lack of a Government body specifically geared towards regulating the decree.
How foreign directors should apply for a work permit and how the country’s 35 TV stations and its censor board will screen ad content also remains sketchy.
Ad decree leaves industry in the dark
JAKARTA - Confusion reigns in Indonesia's ad industry following the introduction of a decree that places restrictions on foreign-made advertising.