The Indonesia Policy on Television Broadcasting: A Politics and Economics Perspective

Authors

1 Department of Communication, Ahmad Dahlan University, Yogyakarta, Indonesia

2 Károly Ihrig Doctoral School of Management and Business, University of Debrecen, Debrecen, Hungary

Abstract

All around the world, the TV broadcasting business has had an enormous impact on the social, political, and economic fields. Therefore, in general, most the countries regulate TV business well to produce an optimal impact on the nation. In Indonesia, the TV broadcasting business is growing very significantly. After implementing Broadcasting Act number 32 of 2002, the number of TV broadcasting companies increased to 1,251 compared to before 2002, which only had 11 channels, and were dominated by private TV stations. However, the economic contribution of the TV broadcasting
business in Indonesia is still small. Even in 2017, the number of TV companies decreased by 14.23% to 1,073. This situation raises a serious question: how exactly does Indonesian government policy regulate the TV industry? This article is the result of qualitative research that uses interviews and document analysis as a method of collecting data. The results showed that the TV broadcasting industry in Indonesia cannot develop properly because the government does not apply fair rules to the private TV industry. Political interests still color the formulation of rules in which the government and big TV broadcasting companies apply the symbiotic mutualism policy to protect each other's interests. 

Keywords


Altheide, D. L. (1991). The Impact of Television News Formats on Social Policy. Journal of Broadcasting & Electronic Media, 35(1), 3–21.
Aman, H. (2013). An Analysis of the Impact of Media Coverage on Stock Price Crashes and Jumps: Evidence from Japan. Pacific-Basin Finance Journal, 24, 22–38.
Aman, H., Kasuga, N., & Moriyasu, H. (2018). Mass Media Effects on Trading Activities: Television Broadcasting Evidence from Japan. Applied Economics, 00(00), 1–18.
Andreas, D., & Bievre, D. De. (2014). The Question of Interest Group Influence. Journal of Public Policy, 27(1), 1–12.
Armando, A. (2014). The Greedy Giants: Centralized Television in Post-Authoritarian Indonesia. International Communication Gazette, 76(4–5), 390–406.
Baasanjav, U. (2016). The Public Interest and Mongolian Digital Television Transition. International Journal of Digital Television, 7(1), 7–22.
Besley, J. C. (2006). The Role of Entertainment Television and Its Interactions with Individual Values in Explaining Political Participation. Harvard International Journal of Press/Politics, 11(2), 41–63.
Beyers, J., Eising, R., & Maloney, W. (2009). Researching Interest Group Politics in Europe and Elsewhere: Much We Study, Little We Know? West European Politics, 31(6), 1103–1128.
Central Bureau of Statistics. (2017). Women and Men in Indonesia2016. Retrieved from https://doi.org/10.1017/CBO9781107415324.004 (in Indonesian).
Bureau of Labour Statistics. (2017). The Economic Contribution of the Motion Picture & Television Industry to the United States. Retrieved from https://www.bls.gov
Chan-Olmsted, S. M., & Kim, Y. (2001). Perceptions of Branding among Television Station Managers: An Exploratory Analysis. Journal of Broadcasting & Electronic Media, 45(1), 75–91.
Collins, K. (2004). The Logic of Clan Politics: Evidence from the Central Asian Trajectories. World Politics, 56(2), 224–261.
Corbett, K. (1996). The Rise of Private Property Rights in the Broadcast Spectrum. Duke Law Journal, 46, 611–651.
Corbin, J., Morse, J. M., & Morse, J. M. (2003). The Unstructured Interactive Interview: Issues of Reciprocity and Risks When Dealing with Sensitive Topics. Qualitative Inquiry, 9(3), 335–354.
Costa e Silva, E. (2015). Crisis, Financialization, and Regulation: The Case of Media Industries in Portugal. The Political Economy of Communication, 2(2), 47–60.
Dalyop, G. T. (2019). Political Instability and Economic Growth in Africa. International Journal of Economic Policy Studies, 13, 217–257.
Danermark, B., Ekstrom, M., Jakobsen, L., & Karlsson, J. C. (2002). Explaining society: Critical Realism in the Social Sciences. London and New York: Routledge.
DellaVigna, S., & Kaplan, E. (2007). The Fox News Effect: Media Bias and Voting. Quarterly Journal of Economics, 122(3), 1187–1234.
Deloitte. (2017). Economic Contribution of the Film and Television Industry in India. Retrieved from https://www.mpa-i.org/wp-content/uploads/2018/05/India-ECR-2017_Final-Report.pdf
Eklof, S. (2004). Power and Political Culture in Suharto’s Indonesia. Power and Political Culture in Suharto’s Indonesia, Retrieved from https://www.diva-portal.org/smash/get/diva2:848549/FULLTEXT01.pdf
Esser, F., Vreese, C. H. de, Stromback, J., Aelst, P., Aalberg, T., Stanyer, J., & Reinemann, C. (2012). Political Information Opportunities in Europe: A Longitudinal and Comparative Study of Thirteen Television Systems. International Journal of Press/Politics, 17(3), 247–274.
Gentzkow, M. (2006). Television and Voter Turnout. The Quarterly Journal of Economics, 21(3), 931–972.
Grossmann, M. (2012). Interest Group Influence on US Policy Change: An Assessment Based on Policy History. Interest Groups & Advocacy, 1(2), 171–192.
Herter, C. J. (1985). The Electromagnetic Spectrum: A Critical Natural Resource. Natural Resources Journal, 25, 651–664.
Ho, T.-K., & Yeh, K.-C. (2014). The Post-Asean Crisis Drop in Investment: The Cases of Indonesia, Korea, Malaysia, and Thailand. Contemporary Economic Policy, 32(2), 618–638.
Holbert, R. L. (2005). A Typology for the Study of Entertainment Television and Politics. American Behavioral Scientist, 49(3), 436–453.
Jenssen, A. T. (2009). Does Public Broadcasting Make a Difference? Political Knowledge and Electoral Campaigns on Television. Scandinavian Political Studies, 32(3), 247–271.
Kenny, C., & Eltzroth, C. (2003). Broadcasting and Development (11). Washington, DC: The World Bank.
Koshpasharin, S., & Yasue, K. (2014). ERIA Study on the Development Potential of the Content Industry in East Asia and ASEAN Region. In Study on the Development Potential of the Content Industry in East Asia and the ASEAN Region, ERIA Research Project Report 2012-13 (33–45).
Larreguy, H., & Marshall, J. (2019). The Incentives and Effects of Independent and Government-Controlled Media in the Developing World (1–38). In E. Suhay, B. Grofman, and A. Trechs (Eds.), Oxford Handbook of Electoral Persuasion. Oxford: Oxford University Press.
Lee, C., Long, M., Slater, M. D., & Song, W. E. N. (2014). Comparing Local TV News with National TV News in Cancer Coverage: An Exploratory Content Analysis. Journal of Health Communication, 19, 1330–1342.
Losoncz, I. (2017). Methodological Approaches and Considerations in Regulatory Research (77–95). In P. Drahos (Ed.), Regulatory Theory: Foundations and Applications. Retrieved from https://library.oapen.org/bitstream/handle/20.500.12657/31596/626829.pdf?sequence=1#page=113
Lucas, K., Hanegraaff, M., & De Bruycker, I. (2019). Lobbying the Lobbyists: When and Why do Policymakers Seek to Influence Advocacy Groups in Global Governance? Interest Groups and Advocacy, 8(2), 208–232.
MarketLine. (2017). Broadcasting & Cable TV in Indonesia. Retrieved from https://store.marketline.com
Mehraj, H. K., Bhat, A. N., & Mehraj, H. R. (2014). Impacts of Media on Society: A Sociological Perspective. International Journal of Humanities and Social Science Invention, 3(6), 56–64.
Musey, J. A. (2012). Broadcasting Licenses: Ownership Rights and the Spectrum Rationalization Challenge. The Columbia Science & Technology Law Review, XIII(307–370), 307–370.
Mütterlein, J., & Kunz, R. E. (2018). Innovate Alone or with Others? Influence of Entrepreneurial Orientation and Alliance Orientation on Media Business Model Innovation. Journal of Media Business Studies, 00(00), 1–15.
Myutel, M. (2019). Commercial Television in Indonesia: The Sindhi Element. Bijdragen Tot de Taal, Land- En Volkenkunde, 175, 155–176.
Na’im, A., & Syaputra, H. (2010). Citizenship, Ethnicity, Religion, and Everyday Language of Indonesians (1st). Jakarta: Biro Pusat Statistik (in Indonesian).
Nainggolan, B. (2018). Dynamics of National Television Industry Market Concentration. Jurnal ASPIKOM, 3(4), 767-770 (in Indonesian).
Newton, K. E. N. (2016). Public Service and Commercial Broadcasting: Impacts on Politics and Society. The Political Quarterly, 87(1), 31–38.
Nielsen, R. K., Fletcher, R., Sehl, A., & Levy, D. (2018). Analysis of the Relation Between and Impact of Public Service Media and Private Media. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2868065
Ohlsson, J., & Sjøvaag, H. (2018). Protectionism vs. Non-Interventionism: Two Approaches to Media Diversity in Commercial Terrestrial Television Regulation. Javnost - The Public, 0(0), 1–19.
Overstreet, B. S., Rider, B. C., Strohacker, K., Crouter, S. E., Springer, C. M., Baldwin, D., & Bassett, D. R. (2017). Effects of Television on Enjoyment of Exercise in College Students. International Journal of Sport and Exercise Psychology, 16(6), 657–669.
Oxford Economics. (2015). The Economic Contribution of the Film and Television Industries in China. Retrieved from https://www.mpa-i.org/wp-content/uploads/2018/05/China_film_tv_2015_V2.pdf
---------- (2012). The Economic Contribution of the Film and Television Industries in Indonesia. Retrieved from http://hkisa.film/contenthtml/economic_contribution_report/2012/Ind_film_tv.pdf
Picard, R. G. (2016). Isolated and Particularised: The State of Contemporary Media and Communications Policy Research. Journal of the European Institute for Communication and Culture, 23(2), 135–152.
Puppis, M. (2008). National Media Regulation in the Era of Free Trade the Role of Global Media Governance. European Journal of Communication, 23(4), 405–424.
Putra, M. K., Djuyandi, Y., & Mani, L. (2017). News Content Perspective of TV One and Metro TV in Seeing Indonesia Government Policy Keywords: Media Content and Objectivity. Global Media Journal, 15(29), 1–5.
Rahayu, T. P. (2016). Indonesia’s Digital Television Migration: Controlling Multiplexing. International Journal of Digital Television, 7(2), 233–252. https://doi.org/10.1386/jdtv.7.2.233
Richardson, J. (2000). Government, Interest Groups and Policy Change. Political Studies, 48, 1006–1025.
Rider, B. C., Bassett, D. R., Strohacker, K., Overstreet, B. S., Fitz-, E. C., & Raynor, H. A. (2016). Psycho-Physiological Effects of Television Viewing During Exercise. Journal of Sports Science and Medicine, 15, 524–531.
Riyanto, P., Yusuf, I. A., Cahyono, M. F., Zuhri, S., Adiputra, W. M., & Siregar, A. E. (2012). Domination of Private (National) TV: The Diversity of Content and Ownership (1st). Yogyakarta: Yayasan Tifa & PR2Media (in Indonesian).
Ryan, F., Coughlan, M., & Cronin, P. (2016). Interviewing in Qualitative Research: The One-to-One Interview. International Journal of Therapy and Rehabilitation, 16(6), 309–314.
Salomon, E. (2016). Independent Regulation of Broadcasting: A Review of International Policies and Experiences. Paris: Montevideo.
Smith, J. A. (2011). Evaluating the Contribution of Interpretative Phenomenological Analysis. Health Psychology Review, 5(1), 9–27.
Sørensen, R. J. (2019). The Impact of State Television on Voter Turnout. British Journal of Political Science, 49(1), 257 - 278.
Stipp, H. (2012). The Branding of Television Networks: Lessons from Branding Strategies in the U.S. Market. International Journal on Media Management, 14(2), 107–119.
Strużak, R., Tjelta, T., & Borrego, P. (2016). On Radio-Frequency Spectrum Management. Journal of Telecommunications and Information Technology, 3, 108–130.
Sudibyo, A. (2004). Political Economy of Broadcast Media (1st). Yogyakarta: LKiS Pelangi Aksara (in Indonesian).
Sudibyo, A., & Patria, N. (2013). The Television Industry in Post-Authoritarian Indonesia. Journal of Contemporary Asia, 43(2), 257–275.
Thomas, P. (2014). The ambivalent State and the Media in India: Between Elite Domination and the Public Interest. International Journal of Communication, 8(1), 466–482.
Torii, A. (2017). Effects of Public Broadcasting on the Competition Among Private Broadcasters and the Total Surplus. Journal of Media Business Studies, 14(2), 116–145.
Tusalem, R. F. (2015). Democracies, Autocracies, and Political Stability. International Social Science Review, 90(1), 1–42.
Walker, C., Orttung, R. W., Walker, C., & Orttung, R. W. (2014). Breaking the News : The Role of State-Run Media. Journal of Democracy, 25(1), 71–85.
Wallington, S. F., Viswanath, K., & Blake, K. (2010). Antecedents to Agenda Setting and Framing in Health News: An Examination of Priority, Angle, Source, and Resource Usage from a National Survey of U.S. Health Reporters and Editors. Journal of Health Communication: International Perspectives, 15(1), 76–94.
Widyatama, R. (2018a). The Impact of Ambiguity Regulation in Indonesia’s Television Industry. Actual Problems Of Economics, 1(199), 28–38.
---------- (2018b). The Television Business in Indonesia: A Comparative Study of the Old Regime, the New Order, and the Reform Era. Oradea Journal of Business and Economics, III(1), 66–75.
---------- (2018c). Who Owns the Broadcasting Television Network Business in Indonesia? Network Intelligence Studies, VI(11), 7–16.
---------- (2017). Capitalism vs Business Ethics in Indonesia’s Television Broadcasting. SEA-Practical Applitacion of Science, VI(16), 27–35.
Woods & Poole Economics. (2015). Local Broadcasting: An Engine for Economic Growth. Retrieved from https://www.woodsandpoole.com
Woolcock, M. (2001). Global Business Regulation. Contemporary Sociology, 30(6), 626-627.
Zaid, B. (2018). A Normative Study of Broadcast Regulators in the Arab World. International Journal of Communication, 12, 4401–4420.
Zarkasyi, H. F. (2008). The Rise of Islamic religious-political Movements in Indonesia: The Background, Present Situation, and Future. Journal of Indonesian Islam, 02(02), 336–378.