Indonesia’s MICE industry upbeat about 2023 business; IPOS returns in person

PHOTO CAPTION: From left: IPOS' Harry Nugraha, The Sultan Hotel & Residence Jakarta's I Nyoman Sarya, IVENDO's Mulkan Kamaludin and Teuku Zacky

Although the number of event activities in Indonesia has surpassed that of the pre-pandemic era at 23,000 events in 2022, the overall gross turnover is still far below that of 2018-2019.

This information was part of The Dynamics of the Event industry Indonesia 2022-2023 survey done by The Indonesian Event Industry Council (IVENDO). The survey also revealed that the revenue was 534 billion rupiah (US$34.6 million), much lower than that of the pre-pandemic era which was between 97 and 121 trillion rupiah.

From left: IPOS’ Harry Nugraha, The Sultan Hotel & Residence Jakarta’s I Nyoman Sarya, IVENDO’s Mulkan Kamaludin and Teuku Zacky

The survey was conducted in 25 provinces, with 247 respondents comprising organisers, event suppliers and production houses, where 34 per cent handled 32 events last year, and another 24 per cent handled 12 events.

In terms of value, 58 per cent of the events were worth between 10 and 50 million rupiah, and only 10 per cent had a value of one billion rupiah per event.

As for the types of events, government activities dominated in 2021, with events in 2022 starting to balance out, comprising the government (13 per cent), association events (12 per cent), state-owned companies (12 per cent), and corporate meetings (14 per cent). The survey also noted that 19 per cent of respondents created new events.

The types of events also varied, including Meetings (14.8 per cent), Exhibitions (12.1 per cent), Incentives (11.6 per cent), Entertainment (11.6 per cent), Festivals (9.8 per cent), Conventions (8.2 per cent), Training (8.04 per cent), Sport (5.4 per cent), and others (18.4 per cent).

At a recent press event in Jakarta, Mulkan Kamaludin, chairman of IVENDO, said: “What’s interesting is that 17 per cent of respondents got their business from fellow event organisers. This cooperation system helped to overcome capital challenges, (because) during the pandemic, many organisers were forced to sell assets in order to survive.”

Overall, business event players (64 per cent) are optimistic that the situation will improve in 2023.

Buoyed by this optimism, the annual Indonesia Professional Organizer Summit (IPOS) will return in person after a two-year hiatus. Themed Baku Dapa, which means meeting face to face, the event will be held from May 16-18 at The Sultan Hotel & Residence Jakarta.

It is expected to attract 100 corporate and government buyers, as well as 50 sellers from hotels, venues, tourist attractions and related suppliers.

Harry D Nugraha, IPOS’ founder, said that this was a sign that the events industry was recovering.

“With many new venues and destinations that sprung up (during the pandemic), events’ stakeholders also need to get up to date,” he added.

IVENDO is also planning to roll out a proposal to the government for a National Event Worker’s Day during the Baku Dapa event.

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