Reaching the Consumer in Indonesia
- Growing Sectors
- Consumption destined for food is dropping in favour of non-food products. Consumption of goods and services, household equipment and clothing is increasing.
- Consumer Behavior
- Consumers, especially those with average or low income, are very aware of prices and the economic situation. Loyalty to a brand and recognition of its name are enhancing elements. Customer follow-up and the quality of after-sales service count.
- Consumer Profile and Purchasing Power
- Consumption is an enhancing act, assimilated to modernity and the riches of the western lifestyle. The purchasing power of the majority of the inhabitants being low, consumption essentially turns around food products and other basic goods.
- Consumer Recourse to Credit
- Consumption, which has been rising over the last few years, rests heavily on the creation of credit.
- Consumers Associations
YKLI , Indonesian consumer association
Mediakonsumen , Communication and information media for Indonesian consumers
Media in Which to Advertise
- Television is the best means of reaching consumers on a national level. Adverts shown at meal times have a strong impact. According to statistics from the
BPS, 85.86% of the population over 10 years old watches television.
- According to statistics from the
BPS, 23.46% of the population over ten years old reads newspapers or magazines. These media make it possible to reach a not insignificant part of the population.
The Jakarta Post
The Far Eastern Economic Review
- Direct advertising by post is effective if the addressees are correctly targeted and if the product seems to be easily accessible.
- In Transportation Venues
- Advertising on billboards, streamers, stickers on buses, are effective for reaching the whole of the population.
- According to statistics from the
BPS, 40.26% of the population over ten years old listens to the radio. As it is accessible to an uneducated audience, radio is effective for bringing advertising to a large part of the population.
Radio Republik Indonesia
- New Technologies (E-Marketing, SMS, etc.)
- As the use of Internet is not widespread, any advertising using this medium will have an impact limited to the users of this technology. Nevertheless, it is a booming market.
- Main Advertising Agencies
Cheil & Co
DNA Design in action
WIra Pamungkas Pariwara (Ad-Force JWT)
PT Ad Indonesia
Main Principles of Advertising Regulations
- Advertising for alcoholic drinks must not incite people to begin drinking strong spirits; nor must it be associated with activities needing concentration; nor be aimed at children under sixteen or pregnant women, nor use images of them; advertising drinks containing between 20% and 55% alcohol is prohibited.
- Advertising cigarettes is not prohibited but it must not be aimed at children under sixteen.
- Advertising medicines needs an authorization from the Ministry of Health.
- Other Rules
- All advertising must be approved by the Indonesian Broadcasting Commission (KPI)
- Use of Foreign Languages in Advertisement
- The use of foreign languages is not prohibited for broadcasting adverts, but Indonesian is recommended in order to reach a wide audience.
- Organizations Regulating Advertising
Website of the Indonesian Broadcasting Commission (KPI)
Website of the Ministry of Communication and Information
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Advertising in local media and newspapers is recommended for introducing new products, particularly in areas of purchasing power concentration, such as Jakarta and West Java.
U.S. Commercial Service Poland on 2 Mar 2010 related to Reaching the Consumer in Indonesia
U.S. Department Of Commerce, Indonesia