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Digital strengthening defines the future of Indonesia’s music industry

Harry Koko Santoso, a music promotor from Deteksi Production, estimated the number of music concerts canceled due to COVID-19 at 70,000.

Luki Safriana (The Jakarta Post)
Jakarta
Sat, December 5, 2020

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Digital strengthening defines the future of Indonesia’s music industry

T

he event industry is a lot more than just MICE (meetings, incentives, conferences and exhibitions). It encompasses the growth of art culture—music and entertainment. One of the industry branches affected by the off-air culture caused by the pandemic is the music industry. It is estimated that the industry has lost trillions of rupiah in revenue.

In a discussion titled “Entertainment industry recovery in the new normal era“ held by the music, film and entertainment section of the Jakarta chapter of the Indonesian Journalists Association (PWI) in Bogor on Aug. 8, Harry Koko Santoso, a music promotor from Deteksi Production, estimated the number of music concerts canceled due to COVID-19 at 70,000.

The figure could surge to 76,000 if it includes small group bands which used to perform in community level, according to Harry. Indonesia is rich in music talents, with Harry estimating there is at least one group band in each of the country’s 6,000 villages and subdictricts.

On the other hand, these data show the massive potential of musical acts, not to mention the number of other stakeholders involved. A large amount of music concerts, group bands and public interest when compared with the survey data from the Association of Indonesian Internet Providers (APJII) in 2018 regarding 171.17 million internet users in Indonesia show huge potential. A synergy between all existing elements will benefit Indonesian music industry players.

The data collection on the music sector is considered too low because it only refers to data from 2016. Based on these data references, the music industry is placed second on the potential of a subsystem that is rapidly developing, with a score of 7.27 percent.

In a discussion titled "Corona Plague: A Catalyst for a New Era" in May, lawmaker Ferdiansah, of the House of Representatives Commission X overseeing people’s welfare and human development, highlighted the need for a reformation in the music industry as well as the tourism industry in general.

Another speaker, musician and composer Mahvira Wisnu Wardhana, observed two opposing trends during the pandemic. On one hand, there is a drastic decline of art performances. However, the industry itself grew over 40 percent in terms of technological advancement. It means a significant force of technology transformation in the music industry is happening.

Such technology was previously popular among younger people aged 16 to 30, but now older people aged between 30 to 45 are enjoying them as well. Digital platforms such as YouTube, Instagram, Facebook Live, Spotify and TikTok have revolutionized the music industry.

According to the World Economic Forum, the global music industry has two main sources of profit. First, through live or offline performances that generate 50 percent of the total profit, mainly from the number of ticket sales. Secondly, from recording, including revenue from streaming, digital downloads, physical album sales and synchronization revenue (music licenses for games, TV and advertisements).

In another analysis released by Hootsuite's 2020 Digital Data Report, the number of internet users in Indonesia has increased by around 17 percent. The data from several telecommunications service providers show that internet consumption has also increased during this pandemic. Out of the 175.4 million internet users in Indonesia, more than 80 percent stream music and 99 percent watch online video content. This means that collaboration between the music industry and digital platforms is increasingly commonplace.

The released data mentioned above prove that to build a strong relationship, positive responses from all relevant stakeholders along with the strengthening of the music industry revolution are necessary. A discussion on music performance in the new normal held on July 13. Armand Maulana, a senior musician, stated that musicians must adapt in order to keep the music industry running, by adhering to the protocols.

Armand refers to virtual concerts and collaborations with digital platforms that eventually become new options and opportunities. The digital platform is a new tool that many musicians use to connect with music lovers, as well as a channel for them to work.

A phenomenal surprise clearly happened during the Live KompasTV Charity Concert on April 11, thanks to the late Didi Kempot effect. The concert raised a total of Rp 7.6 billion (US$538,800) to be donated to those affected by the coronavirus.

Broadcast through various digital platforms, the concert brilliantly and singlehandedly broke the perception that digital channels are virtually useless. From there, numerous musicians began holding virtual concerts as well. Those concerts include Home Music Festival (Aug. 21 to 23), Flavs (Aug. 15 to 16) and Independence Concert with Barasuara, Nadin Amizah and Adhito Pramono (Aug. 16). Some more recent ones include Noah 8th Anniversary Concert “A Never-Ending Journey” and Prambanan Jazz.

The digitization and strengthening of the management system is undeniably necessary. Falling behind on technology or the low ability to execute online events will no longer be an excuse. Stakeholders of the music industry should not remain silent and must continue to create.

The role of the government – in this case, the Tourism and Creative Economy Ministry – must be able to support the music sector to ensure that the future of the music industry is still bright.

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The writer is a part-time lecturer at Event Program, Universitas Prasetiya Mulya, Jakarta.

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