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Indonesia: Traditional Media
The mass media has been growing at a high rate in Indonesia since the fall of Suharto in 1998. Indonesia gained greater press freedom and commercial profits soared since then. Number of TV stations reached a number of 83 in 2006 but was later asked to merge at the end of 2006 by the order of Minister for Communications and Information. The rapid increase in number of TV stations was mainly driven by the high potential revenue from business. New regional and city television stations are entering the market.
Penetration of televisions has increased throughout the years. More coloured television sets can now be found in villages and rural areas. The television has moved from a luxury product to a necessity.
Table A: General Media Statistics
Table A: Penetration of Televisions and Number of TV Channels: 1990/1995/2000/2003-2005
| Per 100 households/ as stated | 1990 | 1995 | 2000 | 2003 | 2004 | 2005 |
| Black and White TV set | 34.66 | 40.10 | 39.99 | 40.47 | 40.06 | 39.95 |
| Colour TV set | 28.98 | 36.93 | 45.56 | 50.38 | 51.86 | 53.41 |
| National TV Channels (number) | 7 | 6 | 6 | 6 | 6 |
The following diagram shows Indonesians' media consumption and the clear leader is television followed by radio and print.
Diagram by BatesPanGulf Advertising: Indonesia Media Landscape 06-07
ADVERTISING
Indonesia’s net advertising revenue in 2006 was over US$1.1billion, of which around 70% (US$775million) was spent on TV advertising and 30% on print. If advertising can be maneuvered onto the web, revenue for the businesses involved will be unimaginable, especially if the archipelago that spans over more than 16,000 islands improves on its infrastructure, giving rise to a higher internet penetration rate.
Online advertising revenue is insignificant compared to the overall advertising revenue. The Nielsen report in 2006 showed no percentage of online advertising revenue. However, Hokum Pokum, a blogger who blogs about media related issues estimated online advertising revenue to be only slightly more than US$6 million in 2006, with detik.com taking about 40% of that.
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