A modest business proposition makes its mark<\/p>\n
Looking back over 20 years, we can take pride that The Jakarta
\nPost has come a long way in establishing itself not only as the
\nEnglish-language daily of record in the country, but also earned
\na place among the major national newspapers.<\/p>\n
Our readership profile today attests to these achievements. We
\nare not a paper targeted for and read solely by the expatriate
\ncommunity, as Indonesians now make up the majority of our
\nreadership (a full 55 percent, according to our latest readership
\nsurvey).<\/p>\n
In short, we have managed to establish our credibility and
\ngain the trust of a sizable number of people in this country, as
\nwell as those abroad who can access our website
\n(www.thejakartapost.com).<\/p>\n
As a business entity, The Jakarta Post's success has been
\ndecidedly modest. Twenty years in business is a long time, and
\nmost other companies in Indonesia would have expanded,
\ndiversified and become a conglomerate (and then probably gone
\nbust, but that's another subject).<\/p>\n
Today, PT Bina Media Tenggara, the publisher of The Jakarta
\nPost, remains a modest-sized company, relying chiefly on its
\nsingle product to generate most of its revenues. There are other
\nproducts and services that the company or its subsidiary manage,
\nsuch as the distribution of the International Herald Tribune and
\nThe Jakarta Post website, but the daily newspaper remains the
\nflagship of the company.<\/p>\n
Return-mind investors would probably have pulled out a long
\ntime ago to seek better business opportunities elsewhere, but it
\nhas not been the case with the backers of The Jakarta Post.<\/p>\n
The newspaper was established in 1983 by a consortium of major
\npublishing houses. Given their background in the publishing
\nbusiness, making money, while important, was never a defining
\nmotive.<\/p>\n
The founders were PT Nawala Nusantara Bangsa (proprietor of
\nSuara Karya daily newspaper), PT Gramedia (publisher of Kompas
\ndaily newspaper), PT Grafiti Pers (publisher of Tempo newsweekly)
\nand PT Sinar Kasih (publisher of Sinar Harapan, now renamed Suara
\nPembaruan). Harmoko, who was chairman of the Indonesian
\nJournalist Association (PWI) in 1983 and then become minister of
\ninformation between 1983 and 1998), also had a minority equity.<\/p>\n
In compliance with the press law, the founders also decided to
\ngive 20 percent of the equity to employees through their
\nfoundation, with 10 percent allotted in grants and the remainder
\npaid out in dividends.<\/p>\n
From the beginning, however, there was the realization that to
\nbe able to serve its readers on a sustainable basis, the company
\nhad to be profitable.<\/p>\n
But we have also learned over the years that serving our
\nreaders well brings greater recognition and acceptance, with an
\nattendant, positive effect on that important bottom line.<\/p>\n
That the Post was a viable business proposition became
\napparent as early as 1986. Only three years into the business,
\nthe company turned a profit, although it only started paying
\ndividends the following year. This is significant given that
\npublishing is a tough world and most companies are not expected
\nto turn a profit until their fifth year.<\/p>\n
The Post's readership grew over the years, taking off in the
\n1990s and enjoying relative prosperity until the financial crisis
\nstruck the country, and the publishing industry, in mid-1997.<\/p>\n
From average daily circulation of 8,557 paid copies in 1983,
\nreadership grew to 22,216 in 1990, reaching 47,504 in 1997. In
\nfact, average daily circulation surpassed 50,000 during the
\nmiddle of that year. Untoward circumstances have caused average
\ndaily circulation to dip since then, reaching a low of 38,844 in
\n2001 (see graphic).<\/p>\n
Readership is not the only number that we look at. Also
\nimportant, especially from the business point of view, are
\nadvertisements, ultimately the bread and butter in a newspaper's
\nsurvival.<\/p>\n
The ad numbers are significantly better than those for
\ncirculation, meaning that in the corporate world, The Jakarta
\nPost has become recognized as an effective medium to communicate
\nwith the public.<\/p>\n
Since we are not a publicly listed company, we are not in a
\nposition to disclose our figures, but suffice to say that
\nadvertising has long taken over from subscriptions as the
\nnewspaper's main source of revenue.<\/p>\n
Advertising in 2001 accounted for nearly 63 percent of all
\nrevenues of PT Bina Media Tenggara. This is a fine ratio for a
\nnewspaper, as anything above 50 percent is considered healthy in
\nthe industry globally.<\/p>\n
Rapid growth in circulation and advertisements from 1990 to
\n1997 was tied to the country's economic boom. Globalization was
\naccelerating, with English the currency of communication in a
\nshrinking world. The Jakarta Post became a must-read for more and
\nmore people in Indonesia, locals as well as expatriates.<\/p>\n
Then came the financial crisis, which hit us just as hard as
\nother publications in the newspaper industry. We quickly switched
\nfrom the growth track of previous years to survival mode.<\/p>\n
The Post embarked on various efficiency measures. While we did
\nnot downsize our company, we had to downsize our product, albeit
\ntemporarily, in 1998, when we temporarily returned to the eight-
\npage edition of our early years in place of 16 pages.<\/p>\n
Since 2001, The Jakarta Post has undertaken sweeping changes
\nface a new, more democratic -- and therefore more competitive --
\nenvironment. While we believe that Indonesia will eventually
\nreturn to the high economic growth of the 1990s, we also know
\nthat growth of our newspaper cannot be taken for granted.<\/p>\n
Yes, the Post strives to be a public institution of trust.
\nAnd, yes, we are also a company that endeavors to grow. We
\nbelieve it is possible to achieve both goals without compromising
\nour principles.<\/p>\n
In weathering the difficulties of our early days and recent
\nyears (the two other English-language newspapers folded), as well
\nas in savoring the good times, we have relied on the continued
\npatronage of our loyal readers and advertisers. Today, we share
\nthis special milestone with all of you, and look forward to
\ncontinued success in the future.<\/p>",
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