Jakarta – The Indonesian government has issued a decree restricting the Indonesian media from displaying foreign-made advertisements, say local reports. Communication and Information Minister Muhammad Nuh is reported as saying that the joint decree is aimed at giving more opportunities to domestic production houses, and the employment of one foreign expert must be accompanied by three domestic workers. Ad production costs have risen from Rp 25.5 trillion (US$2.7 billion) in 2005 to Rp 35.1 trillion (US$3.7 billion) in 2007, but Nuh said that so far only foreign production houses had benefited from this rise. Local television stations saw advertisement revenues of US$2.45 billion last year, 66 percent of the market’s total; while newspapers accounted for 30 percent and magazines four percent. Advertisement spending during the January-March 2008 period increased to US$922 million from US$747 million in the same period last year. The joint decree made some exceptions for advertisements but followed last year’s advertising regulation limiting the involvement of foreign actors and other resources in the production of broadcast advertising.
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