JAKARTA: The complex bureaucratic processes involved in organising events in Indonesia – particularly that for concerts – are to blame for Southeast Asia’s largest economy losing out from hosting many international artistes, President Joko Widodo said.
He cited the example of pop superstar Taylor Swift for instance, who held her concerts in Singapore instead of Indonesia.
“Why does Singapore always manage to host these events? It’s because of their efficient service in attracting these artistes, coupled with strong government support in terms of convenience, security, and other factors,” Mr Widodo was quoted as saying by CNN Indonesia at the launch of a digital licensing service event in Jakarta on Monday (Jun 24).
Singapore was the only stop in Southeast Asia for Taylor Swift’s “The Eras Tour” earlier this year, with six sold-out concerts that were held from March 2 to 4 and from Mar 7 to 9. It was reported in the media that Singapore had struck a deal with Swift to make the Republic the only Southeast Asian stop on her world tour.
According to Mr Widodo, a substantial portion of Swift’s audience in Singapore comprised Indonesians, referencing Spotify data that shows 2.2 million Indonesians are listeners of the artiste.
He further highlighted that the comprehensive support from the Singapore government in facilitating access and ensuring security for international events is a critical factor.
“I asked the (local) organisers, and they said our licensing process is too complicated,” said Mr Widodo.
He further highlighted how Indonesia’s cumbersome licensing system is a significant deterrent to attracting more international events, citing the annual Mandalika Moto GP event held in West Nusa Tenggara as an example.
According to Mr Widodo, the organisers of the event required 13 different permits and recommendation letters to host the event.
Elaborating on the financial impact of losing out on organising internationally-renowned events, Mr Widodo said that money is flowing out of Indonesia to Singapore resulting in a financial loss for his country.
“So there was capital outflow, as Indonesia’s money went to Singapore. We were not only losing the money on the concert tickets. But we were also losing money as people spent their money on hotels, transport, food, and beverages,” he said, according to a report by The Jakarta Globe.
Economists estimated that Swift’s concert could contribute up to S$500 million (US$369 million) in tourism revenue for Singapore’s economy.
Mr Widodo said that an almost similar situation happened when Singapore hosted British rock band Coldplay for six nights in January. Meanwhile, the band only played for one night in Jakarta last year in November at the Gelora Bung Karno Main Stadium as part of its Music Of The Spheres world tour.
Mr Widodo stressed the need for Indonesia to simplify its licensing system in order to make it more accessible for organisers to host events involving foreign artistes, hoping that the process could be streamlined in the future.
“With the upcoming digitisation of permits, I hope it will not just be a web service but truly provide ease of management, advance certainty, reduce bureaucracy, and lead to lower costs while being more open and transparent,” he said.
