KPop in Indonesia

Picture 1. SM Town World Tour III in Jakarta

Korean wave hit Indonesia even harder this year. The Koreans seemed to aware of large fans-base in Indonesia and then more KPop artists visited Indonesia.

Ticket distribution which was previously dominated by direct ticket sales by the event organizer (or promotor). The event organizer would rent a space in a shopping mall or hotel to conduct a one day ticket sales. Currently multiple channels have been used to distribute tickets, as an example:

• SM Town World Tour III: Pre sale ticket was done through multiple local fansites, then the tickets were redeemed during the one day ticket sale. Afterwards, the remaining tickets were sold through a web-based ticketing (MyTicket.co.id)
• Wonder Girls Wonder World: Beside tiket sales through the one-day-ticket-sale, ticket was also distributed through a web-based ticketing (RajaKarcis.com) and a local mini-mart chain (Indomaret)

Other facts about KPop in Indonesia:

A. EVENTS
List of Korean-related event in Indonesia in 2012 (5,6):

Date	Artist	Event	Organizer
17MAR12	B2ST	Beast Beautiful Show	Marygops Studios
28-29APR12	Super Junior	Super Show 4	ShowMaxx Entertainment
16JUN12	Junsu (JYJ)	Xia Junsu 1st Asia Tur	JSK Enterprise
30JUN12	MBLAQ	The Blaq% Tour	Dynamo Buzz, Gamma Live
22SEP12	VA	SM Town World Tour III	W Production
12-13OCT12	Big Bang	Big Bang Alive Tour	Big Daddy Entertainment
31OCT12	4Minute	Volume Up Party	YS Media Entertainment
03NOV12	Wonder Girls	Wonder Girls Wonder World Tour	Marygops Studios
03NOV12	Kim Jae Joong (JYJ)	1st Fan Meeting	SH Entertainment
04NOV12	Lee Seung Gi	Tonight with Lee Seung Gi	Munial Sport Group
24NOV12	2NE1	New Evolution Global Tour	Big Daddy Entertainment
08DEC12	2PM	What Time Is It	Marygops Studios

B. POOLING RESULTS
1. Most Popular KPop Girlband (4).

Data was retrieved from a pooling conducted on March 2010 in the most active forum in Indonesia. Voter is limited to members of the forum.

Girl Group Name	# Voter
Girls' Generation / SNSD	3
f(x)	1
KARA	3
Sistar	2
T-ara	1
Secret	1
2NE1	2
4Minute	-
Miss A	1
After School	2
Wonder Girls	-
TOTAL	16

In 2010, Girls' Generation and KARA seems popular among Indonesians. However, the sample size is considered to be too small to make a conclusion.

2. Most Popular Girls' Generation / SNSD Members

Data was retrieved from a pooling conducted from time to time in the most active forum in Indonesia. Voter is limited to members of the forum.

Name	November 2010 (1)	January 2011 (2)	June 2011 (3)
Taeyeon	1	11	186
Jessica	1	2	106
Sunny	-	4	89
Tiffany	1	8	171
Hyoyeon	-	-	53
Yuri	3	2	115
Sooyoung	2	2	115
Yoona	3	10	282
Seohyun	1	4	131
TOTAL	12	43	1248

Hence, from time to time, it's consistent that Yoona is the most popular one followed by Taeyeon and Tiffany.

Sources:

1. Kaskus - [Vote] Member So Nyuh Shi Dae Favorit agan
2. Kaskus - Vote snsd
3. Kaskus - SNSD / Girls' Generation VOTE !!!
4. Kaskus - most favorite kpop girls group
5. RajaKarcis.com
6. MyTicket.co.id

CSR Activities in Indonesia

Picture 1. Walk for Sight 2012

Investment grade awarded to Indonesia gives impact to the nation. Companies from other countries are willing to keep their presence or investing in Indonesia. The investments come with the companies' culture carried from its originating country, including the culture to give back to local community which    is commonly referred to CSR (Corporate Social Responsibility). Now local companies also actively conduct CSR programs.

CASE STUDY 1: Cataract Surgery

Standard Chartered Bank launched "Seeing is Believing" (1), a global CSR program to help people with eye problems since 2003. The program was introduced in Indonesia as well. Activities held were:

• free cataract surgery (in cooperation with Perdami, a local ophthalmologist association, and Hellen Keller International)
• training for blind people and fund rising (in cooperation with PERTUNI, a local blind association)
• others (like giveaway free glasses)

Since 2011 Sido Muncul, a local pharmaceutical company, funded free cataract surgery (in cooperation with Perdami as well). Another local pharmaceutical company, Soho (3), did the similar CSR program starting this year (2012).

CASE STUDY 2: Hand Wash

Unilever sponsored World Handwashing Day 2012 in public elementary school 003 - 005, Jakarta this October (6). The event was a joint collaboration with Bank Tabungan Pembangunan Nasional (BTPN), a local bank. This event promoted a habit to wash hands with soap to the students which was align with market proposition of Lifebuoy soap. Lifebouy was consistently advertised as a soap that  cleaned and killed germs. This event strengthened value proposition and brand image of the product to customers. It was also covered by local newspaper like Bisnis.com.

BACKGROUND

In 2007, Indonesian government introduced law number 40 on limited liability companies. Chapter V of Article 74 of the law regulates social and environmental responsibility, where companies which perform its business activities in sectors of and/or related to natural resources are required to undertake social and environmental responsibilities (4). This enforce companies to develop and execute CSR strategies.

A study was conducted by Universitas Negeri Semarang to analyze the correlation between CSR disclosure and share price movement in BEI (Indonesia Stock Exchange) (5).

Picture 2. Impact of CSR to Share Price

From 4 different types of CSR, two of them (community and environment) were proven to give positive correlation with share price increase.

OPINION

Indonesian consumers and shareholders have been more aware with social issues as

• Number of companies initiated CSR activities is increasing
• Local icons expressed their concern about social issues through social media
• Companies actively published their CSR activities

Hence, to cope with the local competitors, CSR is important. Rather than viewed CSR activities as additional operational activities which required to be included in budget, CSR activities should be included in the DNA of the company.

Market drives the market price of company's share price. Hence, value of the company will be determined by demand from shareholders and potential shareholders (including consumers). The Hand Wash case above is one example of CSR activities implemented to the DNA of the company - integrated to marketing campaigns. The new formula of corporate value is:

wealth produced + value returned to the community

Hence, alignment between corporate strategy, image, and CSR activities is important. Furthermore, if the company is viewed to be more valuable as more value returned, not only to customers, but also to community and environment, its market value may be more resistant to drop because of external factors.

Sources:

1. Seeing is Believing
2. PT. SIDOMUNCUL ADAKAN BAKTI SOSIAL DI TOMPASO BARU MINAHASA SELATAN
3. Soho Group Pharma Gelar Bakti Sosial Untuk Penderita Katarak
4. Corporate Social Responsibility by Limited Liability Companies - Indonesia
5. Pengaruh Indeks Pengungkapan Corporate Social Responsibility (CSR) Terhadap Harga Saham Pada Perusahaan Perbankan yang Terdaftar di Bursa Efek Indonesia Tahun 2006-2008
6. Murid SD gelar peringatan CUCI TANGAN sedunia