The World: Indonesia slaps agencies with 'use local' law.(protectionist law)

Agencies in Indonesia have slammed the government for passing protectionist laws without consulting them.

The 'bule-bule' - a crass vernacular for 'foreigners' in Indonesia - have reason to feel anxious these days. New, unprecedented protectionist laws have all but shooed them away from the local ad scene.

Announced by the Ministry of Communication and Information on 1 May, the decree is two-fold: one part requires all locally aired ads to have been produced and directed locally, and with local talent; the second requires agencies to adhere to a strict 'foreigner to local' employment ratio of 1:3.

Some brands are exempt, such as those whose entire identity is built on a Western image. The Marlboro Man can stay, but the face of Manchester United's Cristiano Ronaldo on ads for Extra Joss, a local energy drink, must go. Questionable circumstances will be reviewed on a case-by-case basis.

Apparently, the decree was sent without warning or prior consultation with Indonesia's 4A's (PPPI), one of Asia's more influential regulatory bodies. And within the first week, according to reports, at least ten production houses had to shut down after their foreign clients ceased giving them work.

So, naturally, people are miffed. 'It's a really silly, backwards rule,' Henry Saputra, the chief of Publicis Metro and a member of the PPPI board, seethes. 'Obviously, the Government doesn't understand the ad industry at all.'

Saputra's concern highlights Indonesia's understanding of its own less-than-stellar creative standards. Indonesia regularly trails its neighbours in awards shows, and its creative directors rely heavily on Malaysia, Thailand and the Philippines for quality production services. 'We just don't have the right level of local talent,' Saputra says. 'I think we'll get to a point where the quality of TV commercials will suffer hugely.'