Harris Thajeb, Dentsu Indonesia president director, said he had decided to put off opening Media Palette until he “understood the new investment laws better”. New rules announced last month restrict the number of foreign employees in advertising and production offices to a 3:1 ratio. According to Thajeb, the Japanese network had been preparing to shift Dentsu Indonesia’s media operations to Media Palette, given the rapid growth of its local portfolio.
Initially, Media Palette Indonesia would likely share accounts with its creative sibling before becoming fully independent, as it is elsewhere.
Outside Japan, Dentsu has Media Palette offices in Taiwan and Thailand. “Thailand is our biggest operation in Southeast Asia; Indonesia second,” said Thajeb. “We plan to roll out across the region eventually.”
Apart from handling both Japanese and local clients, such as Garuda Airlines, Dentsu also picked up the US$20 million XL Telekom account from Universal McCann last month. “We’re planning to staff up for our new win,” Thajeb added.
The news follows the recent closure of Universal McCann Indonesia, which originated from McCann Erickson’s media department in 2005. Sources pointed to the loss of XL, Pizza Hut and Bentoel cigarettes in less than two years as the reason for its demise (Media, 1 June).
