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Indonesia hidden gem for sport sponsorship

Despite getting cut off by some big sponsors when his cheating scandal broke in 2009, Tiger Woods could still stand tall, as a number of popular brands, including Nike, backed him all the way up to his triumph in last week’s Masters Tournament 2019

Ramadani Saputra (The Jakarta Post)
Jakarta
Fri, April 26, 2019

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Indonesia hidden gem for sport sponsorship

D

span>Despite getting cut off by some big sponsors when his cheating scandal broke in 2009, Tiger Woods could still stand tall, as a number of popular brands, including Nike, backed him all the way up to his triumph in last week’s Masters Tournament 2019.

Woods’ case is a little example of how brands are not quickly discouraged from endorsing themselves through sports, a medium that has yet to be fully utilized here in Indonesia because of many challenges.

During a discussion on “Sports as Sleeping Giant in Indonesia” in Jakarta on Wednesday, business players and experts agreed that sports could play a vital role for business, but that opportunity seems to have been largely overlooked by the business community in the country so far.

This was deemed unfortunate, as the country’s people were quite enthusiastic about sport. Google’s Year in Search 2018, a compilation of what people mostly looked for in their Google searches, shows that sport was a trending topic among Indonesian internet users last year.

“Seven of 15 trending searches in Indonesia last year were related to sports. [The list includes] the 2018 FIFA World Cup, the Asian Games, the ASEAN Football Federation [AFF] Cup and the [national soccer league] Liga 1,” said Mira Sumanti, brand and creative lead of Google Southeast Asia.

She explained that searches related to sports in the country accounted for 8 percent of total searches. For comparison: In the United States, which has a much more developed sports industry, that figure stood at 13 percent.

Last year’s Asian Games in Jakarta and Palembang, South Sumatera, were more proof as to how sports can generate benefits for the business sector. The Games organizers and the Tourism Ministry estimated that
Rp 3.6 trillion (US$255 million) was spent by spectators and participants during the two-week-long event. Nielsen Television Audience Measurement also recorded that the Games had reached 85.4 percent of television viewers in the country.

PT DBL Indonesia CEO and founder Azrul Ananda might be one of the few business players who is sharp enough to see an opportunity in this sports enthusiasm.

The company, with around 300 employees, has been successful in managing DBL Indonesia, a high-school league and development program that has reached some 40,000 students at least over the past 14 years.

DBL Indonesia’s success is not merely about keeping the youth league alive as it manages to attract loyal sponsorships, such as motorcycle manufacturer Astra Honda Motors and jewelry maker PT Untung Bersama Sejahtera (UBS), that benefits both the company and the sponsors.

“Astra Honda Motor is the main sponsor of the DBL since 2008, and it will continue until 2020. Its sales data show that its involvement in the DBL has boosted its sales, especially among the youngsters,” Azrul said.

The lucrative market offered by the youth basketball competition has attracted a business player that might not be easily associated with the sport. Untung Bersama Sejahtera has officially sponsored the league since 2015 and is reaping the benefits by aiming for the “mom’s market”, as many mothers accompany their children at the competition.

However, Azrul noted that there were still many challenges that hindered the development of the sports industry in the country, such as a lack of adequate infrastructures and stages or mediums to develop the potential.

Scott Kronick, public relations chief executive for advertising company Ogilvy in Asia Pacific, noted that sports had so many qualities brands loved to associate with, such as performance, reaching human potential and participation.

“[The participation] comes from not only people who participate, but also spectators’ involvement. It creates tribes. You can build a community around sports. The business of sports is a fascinating area, it’s a growth business,” he said.

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