Digital technology powering 'Metro' into highly competitive news niche
By Antariksawan Jusuf
JAKARTA (JP): Is it too much of a dream to watch Indonesian movies on American cable HBO? Considering the current situation of the Indonesian film and television industry, you will definitely say "No way." But not Sumita Tobing.
Tobing is embarking upon her ambitious plan with a new television station Metro TV, whose investment totaling US$20 million is backed by businessman Surya Paloh.
Former general manager of the prestigious Liputan 6 news program of SCTV and now Planning Advisor to Metro TV, Tobing said the station is expected to hit the air for the first time in May or June next year.
"We have the equipment design ready and have done the frequency scanning ....so about 40 percent of the project has been completed," Tobing said.
A 200-meter high tower will be erected in the four-hectare Media Indonesia daily complex in Kedoya, West Jakarta. Paloh, owner of the posh five-star Sheraton Media hotel in North Jakarta, is a publisher of the newspaper.
Apparently, he is not discouraged by the prediction that television advertising revenue this year is expected to slump to Rp 453.6 billion (US$56.7 million) from Rp 2,678 billion ($334.75 million) in 1997.
In fact, some consider the timing to be perfect.
"Now is just the right time to invest since the cost of entry is so low," Chairman of the Indonesian Advertising Agency Association (P3I) Yusca Ismail said.
"Forget what happens today. By the time the economy improves, you'll have the chance to grab the expanding advertising cake," Ismail said.
Even in the current economic crisis, hopes are still running high for a station which relies on local news programs as the cash cow. Because since the riots and Soeharto's ouster in May, television news programs have gained a new status as one of the most preferred sources of news.
During May, for the first time all news programs in all stations including TVRI, gained a double digit rating. The rating has slid down in the subsequent months, but it remains relatively high at 5 to 8 percent from 2-3 percent before May.
Despite the mushrooming of print media, which since May have seen more than 200 new licenses issued by the information ministry, television news programs have advantages in terms of accessibility to viewers and their moving pictures are more interesting to ordinary people.
Metro TV's catchment area, in the first phase, will include greater Jakarta and the West Java capital of Bandung.
"That's about an average investment for a local station in the United States," said Tobing, who holds a Ph. D. in Mass Communications from Ohio University and worked 26 years for the state-run television TVRI.
The station is expected to broadcast on average 12 hours a day from 11 a.m. It will bank on its news programs which will fill about 60 percent of its programming line up. Entertainment programs such as talk shows, music programs and sitcoms will be aired in the remaining hours.
However, none of the programs will be imported or commissioned. "We will set up our own educational institution to support the industry," she said.
The station plans to employ a total of 150 staffers. The firm will start recruiting workers about three months before its launch.
Metro TV will introduce a novel approach of news gathering in Indonesia, where about 40 reporters will be armed with digital cameras to shoot events without the help of cameramen. "We will seek experienced reporters, blood-thirsty wolves who have an aesthetic touch, a sense of humor, and integrity."
About two years after the first launch, "In the second phase, we will add TV movies," Tobing said, adding that "My target is to export our programs overseas. I'd like to see our programs on HBO."
Lots of stories such as how Indonesian working class people -- teachers, parking men and other ordinary people - can financially survive are interesting to foreigners. "We will produce them at Hollywood quality and standards."
The next phase will include setting up affiliate offices in other big cities such as Surabaya, Medan, Semarang or Yogyakarta and Ujungpandang. These cities are five major centers where respondents of research institute SRI Nielsen are scattered.
Affiliate offices will be assigned to produce their own local news for each particular territory. Other programs such as talk shows, music and situation comedies will be supplied by headquarters in Jakarta. "We don't rely on satellites to carry out our programs. We will deliver them by cargo," Tobing said.
Tobing is not worried about the current stiff competition and the plunge of television advertising revenue by over 60 percent since the economic crisis hit last year. She said the station only requires a monthly revenue of up to Rp 3 billion (US$375,000) to survive.
"Because I don't need to pay high bank interest charges. We don't need to pay an annual $400,000 for Reuters news service like other stations do and we don't need to buy expensive commissioned local series and serials from production houses," she said.
Citing the current average television advertising revenue at Rp 40 billion a month, she said there is a room for the station to grow. "Other bigger stations will need some Rp 10 billion to Rp 14 billion ($1.25 million to $1.75 million) a month, but with a revenue around four to five billion rupiah we will throw a party."