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.