The COVID-19 Pandemic: The Beginning of the Media’s Decline?

The COVID-19 pandemic has triggered a crisis across various sectors, ranging from tourism, manufacturing, and the economy to transportation—and, without exception, the communications sector, including the media. Indeed, several national media outlets in Indonesia have carried out layoffs to cut corporate expenses and ensure their survival amid this situation.

One English-language media outlet in Indonesia, for example, recently announced its decision to implement layoffs. This was due to employee payroll expenses accounting for nearly 75% of the company’s total expenses. These high payroll costs were not balanced by the media outlet’s minimal revenue during the pandemic.

During the COVID-19 pandemic, businesses’ interest in advertising has plummeted since economic activity faltered when the government urged the public to stay home. Consequently, consumer spending on goods and services has also declined. Brands and companies ultimately cut back on advertising costs in the mass media, which relies on advertising for the majority of its revenue.

Journalists Who Made a Difference

Looking back at the media’s role in the early days of the pandemic, journalists became heroes for the nation by going out into the field and covering the latest developments in the COVID-19 situation. Through the lens of their cameras and the words of reporters, the public was able to see just how terrifying the COVID-19 virus is, how dire the current economic situation has become, and how people can help reduce the number of COVID-19 cases.

It was no easy task to continue working while the government was asking the public to stay home. Just like the general public, journalists also feel significant concern about the risk of contracting COVID-19 while working in the field. However, their sincerity and sense of responsibility as trusted guardians of public information have driven them to continue providing information to the public while adhering to health protocols.

Revitalizing the Media Industry

The Press Council and various journalistic organizations are urging the government—particularly the Ministry of Communications and the Ministry of Finance—to provide incentives to the media. There are approximately seven incentive requests that have been submitted, including the elimination of value-added tax (VAT), BPJS contributions, tax installment relief, the reallocation of government advertising budget funds, and so on.

In addition to the incentives provided by the government, Google Indonesia has also launched the “Google for Media” program, which takes three approaches: Google is working to develop business models to drive sustainable growth, elevate and strengthen quality Indonesian journalism, and empower news organizations through technological innovations it has developed.

In closing, we—the Media Buffet family, which has long maintained close ties with our media colleagues—share the concerns regarding the challenges the media industry is currently facing.

Just as the sun rises again after setting, the media will shine once more after its resilience has been tested.

We hope that our journalist friends who have been furloughed will soon find better opportunities, and that the media industry will continue to rise so it can deliver news to the public.

Written by Runi & Hani, PR Consultants at Media Buffet PR