Maudey Khalisha, Jakarta – At least two major music festivals have canceled this year's editions, citing a lack of appetite among concertgoers.
Industry experts note that the trend was driven by declining support from sponsors, including state-owned enterprises (SOEs), as well as a shift in consumer spending from discretionary activities like music concerts to basic necessities amid weakening purchasing power.
In April, We The Fest officially announced a hiatus this year and plans to return in 2026, after running annually every summer since 2014, with the exception of the pandemic in 2022. The festival's promoter, Ismaya Live, said the decision was made to "prepare a stronger foundation" for the next edition, with a fresher and more innovative concept.
Joyland, another music festival that was originally scheduled for Nov. 28-30 this year, followed suit by announcing its cancellation on Aug. 11, despite having already begun ticket sales. The promoter ultimately opted to issue refunds rather than risk delivering a scaled-down version of the festival's promise to provide a quality experience.
"This year, we felt that continuing as planned would mean compromising on that vision. Rather than push forward with something that didn't feel fully right, we chose to pause, to reflect, and to preserve what makes Joyland meaningful in the first place," Joyland program director Ferry Dermawan told The Jakarta Post on Aug. 15.
Ferry added that while many festivals in Asia also struggled with ticket sales in 2024, others such as Fuji Rock in Japan and Clockenflap in Hong Kong managed to draw strong audiences this year.
"But in Indonesia, I can feel that the landscape is a bit different. Many local festivals are not seeing the same kind of traction. We're paying close attention to that shift," he said.
Aldo Sianturi, a music business expert with 30 years of experience in artist development and industry strategy, told the Post that Indonesia's music festival business is undergoing a market recalibration, transitioning from post-pandemic euphoria into a phase of rationalization and efficiency.
He pointed to waning interest from corporate sponsors, especially SOEs that have "reallocated budgets" to programs more closely tied to government priorities, as a key driver behind the wave of festival cancellations.
"Sponsorship often makes up 40-60 percent of a festival's revenue structure," Aldo said on Aug. 13. "A decrease in commitment will push promoters to shift the burden by increasing ticket prices."
He added that promoters are also experiencing margin pressures, as operating costs such as talent fees, logistics and permits have in some cases risen 30 percent year-on-year without proportional revenue growth, while presale ticket sales have failed to reach break-even targets.
"Many promoters are operating with limited cash flow, leaving little room to absorb risk," he said.
The squeeze is also hitting local artists, many of whom now depend on performance fees as income from physical sales dries up and streaming platforms deliver only meager payouts.
Bank Mandiri, an SOE lender that backed both We The Fest and Joyland in past editions, said sponsorship deals are renewed annually and are not guaranteed across multiple years, noting that "any decisions are made by the organizers."
"In the current economic climate, we prioritize the curation of activities that focus on quality, effectiveness and optimal return potential, both financially and in terms of the company's reputation," Bank Mandiri corporate secretary M. Ashidiq Iswara told the Post on Aug. 15.
Following the establishment of state asset fund Danantara as their operational holding in February, SOEs are under greater pressure to increase profits and deliver higher dividends to the state budget.
During his speech presenting the draft state budget for next year on Aug. 15, President Prabowo Subianto even said that state-run firms should contribute US$50 billion annually, compared with the $5.3 billion recorded in 2024.
"Because of that, I tasked Danantara to clean up our SOEs," he said.
Demand struggle
Experts noted that Indonesia's middle class, long the backbone of live entertainment, is increasingly strained by rising basic costs, education expenses and household debt, making them more selective about paying for festivals.
According to Aldo, consumers are tightening their belts, channeling more of their spending toward essentials and leaving the discretionary entertainment sector facing weaker demand.
Singer and activist Melanie Subono, daughter of prominent concert promoter Addie Subono, said local promoters have tried various strategies to boost ticket sales, from offering early-bird tickets as far back as 2024 to installment plans through credit cards.
However, these measures may not be enough to save this year's events.
"People who once had extra money and sought entertainment are now starting to think twice, as the economy becomes more difficult. We know many have gone into debt just to buy tickets, and perhaps now the time has come for them to finally pay those debts," she told the Post on Aug. 15.
Melanie added that the market has become saturated with too many festivals offering similar lineups, while the flood of international concerts in recent years has created an additional challenge.
"On top of that came the nonstop wave of international concerts, with rising ticket prices. It's not only because of the prices themselves, but also because the rupiah has continued to weaken," she concluded.
Source: https://asianews.network/concert-pullouts-in-indonesia-signal-sponsorship-spending-strains