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How ticket scalping hurts Indonesia’s concert industry

Massive markups by resellers can be a spoiler for businesses and fans alike.

Yohana Belinda (The Jakarta Post)
Jakarta
Sat, June 3, 2023

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How ticket scalping hurts Indonesia’s concert industry

C

oncert organizers have enjoyed a revival of their business since pandemic-related activity curbs were lifted early last year. But large-scale reselling of tickets is creating a chasm between what fans must fork out and what stagers take in.

When concert tickets are in high demand, they can be resold for a massive profit. Tickets for top seats at a Coldplay concert later this year, initially sold for Rp 11 million, have since changed hands at more than twice that.

Tickets to Suga's Agust D event sold like hotcakes ahead of the concert last month.

A VIP ticket for the event was listed at Rp 4 million on ticket.com, but the price may be marked up to Rp 5 million or more.

Harming the industry

Tourism and Creative Economy Minister Sandiaga Uno has voiced his disappointment over ticket scalping and scams in Indonesia.

"This [taints] the image of the entertainment business in Indonesia," he said on May 22 during his weekly press briefing.

Sandiaga shared his disappointment over the scammed fans and said his ministry was cooperating with the Criminal Investigation Department (Bareskrim) cybercrime division to punish the ticket scammers.

He further suggested that should this fail to deter “irresponsible parties,” it would be worrisome to the point of undermining the trust of event organizers and fans alike.

"It is beneficial when Indonesia is entrusted [with holding events] thanks to our hard work. For example, the Java Jazz Festival invites world-class musicians, [who are by no means forced] to come to Indonesia," he said.

The minister said the difficulty lay in the fact that ticket scalping in Indonesia occurred not only through websites but also through social media, such as WhatsApp and Instagram.

"It's challenging, because they [scammers and victims] have direct communication, but we will coordinate further with the Communications and Information Ministry and the National Cyber ​​and Crypto Agency [BSSN], because we believe that this method is more of a random one," Sandiaga added.

Meanwhile, event organizer noisewhore founder Argia Adhidhanendra said ticket scalping could also harm the promoters because they could no longer estimate the demand, which created scarcity.

“I think the worst nightmare for a promoter is overestimating a show. Say you make a show for an artist at a 5,000 [place] venue but only 500 tickets are sold all in all. It's embarrassing! Trust me, I've been there,” he said.

Reza Prawiro, CEO of the Stellarindo event, adds that the presence of ticket brokers may damage the event organizers' reputation, making it challenging for them to find sponsors in the future.

"Typically, sponsors would request our participation to raise brand recognition. Their expectation for us as an event organizer is that they receive brand engagement from a large crowd," Reza said.

"If the engagement falls short of expectations, sponsors may lose faith in event organizers for the following event," he said.

Regulations needed

Argia and Reza called for government-imposed restrictions to combat ticket scalping in the country.

“Better protection against ticket scalpers may be achieved through stricter verification procedures that prevent certain parties from buying tickets. Alternatively, scalpers should be subject to stricter regulations,” Argia said.

Read also: Going to (ticket) war: Coldplay divide local listeners

China and Australia are two of many countries that have taken measures against ticket scalping. According to the Global Times, authorities in Beijing have formed a special group, which includes representatives from the city's culture and tourism departments, internet and information technology supervisors, public security, law enforcement and a market watchdog.

According to reports, individuals found guilty of ticket scalping on April 24 were sentenced to 15 days of administrative detention and a fine of 1,000 yuan (US$142).

In Australia the 2009 Major Events Act prevents scalping and guarantees that everyone who wants a ticket to a major event can get one.

The resale of tickets of more than 10 percent above face value is prohibited once the government designates it as a big event.

In South Australia and New South Wales individuals and businesses found guilty of ticket scalping could face fines of A$22,000 ($14,635) or A$110,000, respectively.

“Unfair”

Tika Pradistia, a social media manager and fan of the K-pop group BTS, aimed to purchase tickets for Suga's upcoming concert through Twitter.

At Rp 5.3 million, the scalper's asking price was relatively low compared with others. She claimed that many genuine fans could not attend the show because of exorbitant prices.

“I think it's unfair [for scalpers] to put others at a disadvantage [by buying many tickets early], even though most promoters take measures to restrict ticket scalping through the annulment of resold tickets. However, there will still be a significant number of scalpers,” Tika said.

The president director of Java Festival Production, Dewi Gontha, understands that fans are in a moral dilemma, and says those who have been taken advantage of by scalpers should get their tickets directly from an official organizer.

She urged fans to do their due diligence on purchasing tickets online, adding that she had also handled reports of ticket-selling scams through fake websites.

"Buy tickets from a valid source that can be held accountable," minister Sandiaga advised.

 

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