Indonesian sports alerted to sponsorship potential

Indonesian sports alerted to sponsorship potential

By Primastuti Handayani

JAKARTA (JP): The success of Indonesian shuttlers in retaining
the Olympic Games gold medal and women weightlifters in bringing
additional medals home now has a different meaning.

It was the first time the Indonesian contingent was sponsored
professionally by three big companies -- fast food firm
McDonald's Indonesia, Korean-giant PT Samsung Electronics
Indonesia and energy drink producer Extra Joss.

One important result of the sponsorships was the awakening of
the sports community to the knowledge that they are valuable
commodities.

Sports organizations -- especially badminton -- have world-
class athletes who are suitable representatives for many
companies. Sports lovers can see men's singles Taufik Hidayat's
good-looking face on TV screens advertising Japanese electronic
products while men's doubles Candra Wijaya's face is on
newspapers carrying the latest model Korean mobile phone.

The organizations also have competitions to be sponsored. The
Indonesian Basketball Association (Perbasi) managed to set up a
new sponsorship deal with a soap producer offering more money
than the previous cigarette company sponsor.

These groundbreaking examples demonstrate the great economic
potential in Indonesian sports yet to be realized.

The National Sports Council (KONI) managed to work together
with McDonald's, Samsung and Extra Joss and several co-sponsors
for the Olympics.

McDonald's and Samsung have also promised to help KONI in the
upcoming 2001 Kuala Lumpur Southeast Asian (SEA) Games, although
they have yet to discuss the mechanism.

Their promise is good for sports development, providing money
to groom more younger athletes for the future.

Before those sponsorships, KONI was always seeking funds from
the government through the State Budget or from the Gelora
Senayan Management Board (BPGS). BPGS gave Rp 2 billion
(US$212,700) for the Olympics preparations and will hand over Rp
5 billion for next year's Games.

It is time for KONI and sports organizations to seek
sponsorships in a more professional way.

Selling events

KONI head of sports business and industry, Fritz E.
Simandjuntak, said that KONI can get money from selling the multi
sports events.

"Take the Olympics as an example. KONI could seek sponsors
because the Olympic Games are a saleable event for companies.
It's a major event and a perfect media for promotion."

"We can also do that with the Asian Games and SEA Games
contingent."

By selling the competitions, KONI can cover the expenses to
groom and send the contingent.

KONI started the idea when staging the 1997 SEA Games.
Unfortunately, mismanagement and allegations of collusion and
corruption ruined the chance of making sporting events a
profitable undertaking.

Spectators have been traumatized at sports events, making
fewer people come to Senayan sports complex to watch
competitions.

The situation has been worsened by giving free-of-charge seats
to spectators.

Sports organizer Helmi Yahya opposed the idea.

"Making sporting events free is definitely an uneducated way
for our spectators. They must spend their money to watch sports
events to appreciate our athletes performances."

Helmi successfully staged Kobatama national basketball league
and Livoli Indonesian volleyball league. The matches of both
leagues have always been full house specially in cities outside
Jakarta.

"People come to sports venues to watch competitions and their
idols (athletes). They have to be educated to appreciate
sportsmanship and the players by buying tickets."

Damura

Needing Rp 100 billion for athletes development, it will be
hard for KONI to seek sponsorships. However, it is also unwise to
only wait for donations. Moreover with the political and economic
situation of Indonesia, politicians tend to put sports in the
lower priority list. KONI must be independent, especially in
seeking funds.

KONI attempted a fund raising scheme called Damura (the
People's Fund for Sports) which offered cash prize rewards.
However, the idea was strongly opposed by the Indonesian Ulemas
Council (MUI), the Indonesian Consumers Foundation (YLKI) and the
House of Representatives. They all suspected Damura would
encourage people to gamble.

People protested the scheme because the percentage that would
go to sports development was only 6.5 percent of the proceeds.

Damura operator, Mutia Farida, defended her decision saying
that 50 percent of the profit went to the production process, the
rest going to the operators and distributors.

Finally, the now-defunct State Minister for Social Affairs and
chairman of the National Social Welfare Agency (BKSN) Anak Agung
Gde Agung decided on April 14 to withdraw the Damura permit
because of complaints from citizens.

KONI did not stop trying to seek money after Damura was
halted. It set up the KONI Foundation to earn Rp 100 billion per
year.

However, foundation officials, installed in October, have yet
to arrange a program.

The failure of Damura and the uncertainty of the Foundation's
future should influence KONI to boost its sports business and
industry performance instead of allowing private companies to
take advantage of sports development.

The new millennium is a good time for KONI and its members
(sports organizations) to think, act and work in a more
professional way to support national athletes performances in
world events.