APPRI, with the support of UNIKA Atma Jaya Jakarta Communications Study Programme, has launched a study on PR consultancy spending trends and industry optimism in Indonesia. The research was conducted between late 2025 and February 2026, with 24 multisectoral organisations involved as respondents.
The study found that communication is increasingly recognised as critical to business success, yet its role has not fully evolved into a core strategic driver. Instead, PR continues to sit between operational execution and strategic ambition, reflecting a gap that shapes much of the industry’s current condition.
The research focused on three themes as follows:
Awareness, commitment, strategic priority, investment and challenges of the communication function
The study highlighted a persistent gap between leadership awareness of the importance of communication and the actual commitment shown in practice. Leadership involvement tends to be reactive and operational, particularly during crises, rather than proactive and strategic. Communication is recognised as important, but not always supported with consistent investment or integration into broader business strategy.
Budget trends indicate growth, with 29 per cent of organisations allocating more than IDR 3 billion annually and around 30 per cent increasing budgets year-on-year. However, investment remains uneven across sectors and is still often perceived as an expense rather than a strategic driver.
Organisations also face ongoing challenges in managing increasingly complex communication environments. These include fragmented internal coordination, rapid digital disruption, and the lack of robust systems for monitoring and evaluation. As a result, communication functions often operate in silos and struggle to deliver fully integrated strategic impact.
Organisational preferences for PR consultancies and experience in engagement
Organisations are increasingly relying on PR consultancies not only for execution but also for strategic input, the study found. Reputation management is the most in-demand service, cited by 75 per cent of respondents, followed by media relations, strategic communication planning, and crisis management.
The study found a strong preference for local PR firms: 88 per cent of respondents prefer to work with local firms, driven by their ability to understand local contexts, stakeholder dynamics, and cultural nuances. While international firms offer global expertise and networks, local consultancies are viewed as more adaptable and cost-effective.
Despite this, most engagements remain short-term. Only around 8 per cent of organisations maintain long-term partnerships (more than 12 months), indicating that PR services are still largely approached as project-based support rather than integrated strategic collaboration.
Clients evaluate consultancies based on strategic capability, responsiveness, execution quality, and crisis management expertise. However, concerns persist that some consultants lack sufficient business acumen or offer overly theoretical solutions that are not readily implementable in real-world contexts.
Client awareness of measuring performance and recognition of PR consultancy work
Measurement remains one of the most significant challenges within the industry. Organisations continue to rely heavily on output-based metrics, such as media coverage, while more advanced measures, such as outcomes, impact, and return on investment, are not yet consistently applied.
Although awareness of outcome-based measurement is growing, practical implementation remains limited. The study revealed that budgets allocated to monitoring and evaluation are often minimal, and systematic approaches to measurement remain underdeveloped. This makes it difficult to demonstrate the full value of communication activities.
Recognition of performance reflects this imbalance, the study found. 54 per cent of organisations provide incentives or bonuses to internal PR teams, while consultancies are typically evaluated through contract renewal. At the same time, around 57 per cent of organisations do not extend contracts if consultants are perceived as lacking capability or alignment, underscoring the importance of trust and demonstrated value.
Key highlights:
- PR is increasingly recognised as important, but it is not yet consistently embedded in strategic decision-making.
- Budget growth is evident (29 per cent above IDR 3 billion; ~30 per cent increasing budgets), but the investment mindset remains limited.
- Clients prioritise reputation management (75 per cent), alongside strategic and crisis capabilities.
- Industry visibility is low, with 96 per cent of respondents lacking clarity on market size and players.
- Future growth depends on shifting from execution to strategic advisory, supported by stronger data, insight, and business alignment.
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