Indonesia proposes pitch fees

JAKARTA - Indonesia's advertising industry body, the PPPI, has launched a "protocol of pitching" for advertisers and agencies, which proposes the introduction of pitch fees.

Fifteen agency members of the PPPI - both multinational and local - have already signed the protocol, while Indonesia's client community has yet to be approached.

"The idea [of introducing pitch fees] has been brewing in Indonesia for some time," said Irfan Ramli, the secretary general of the PPPI, and CEO of Hakuhodo Indonesia. "There have been many complaints from our members, who have pitched only for no winner to be given the business."

"We have also found that agencies have prepared for a pitch, only to discover they were competing with 20 or even 30 other agencies," he added.

The protocol obliges advertisers with a marketing budget of up to Rp 10 billion (US$1 million) to pay Rp 10 million to each participating agency, or Rp 25 million if their budget exceeds p 10 billion.

It also stipulates that advertiser pitch lists should be capped at five agencies.

"Pitching should be organised in a correct and open manner, not merely as a forum for free idea gathering," reads a draft of the protocol.