Public Affairs is the corporate function that addresses non-market factors — social, political, and cultural — that envelop a corporation or organization and influence its interactions with stakeholders. From this perspective, 2024, which is quickly drawing to a close, is a highly dynamic and eventful year, replete with political and social hustle and bustle surrounding the national and regional elections, as well as their various corollary developments, some of which may spill over into the new year.
President Prabowo met with OECD Secretary-General Mathias Cormann to discuss Indonesia’s economic developments and the country’s accession process to the OECD, on Thursday (November 28, 2024). (Photo: BPMI Setpres_Rusman)
In practical terms, public affairs covers a wide range of activities, monitoring the legal and regulatory frameworks that impact business operations for a start. Large corporations, in particular, must be attuned to political movements at both national and local levels, as any policy changes can directly affect business operations. Today’s economy and its interplay with political forces and interests create a highly dynamic regulatory framework that corporations need to be alert to.
At times, organizations may need to conduct advocacy to align operations with the social environment, clarify perceptions, or drive change. One of the key steps preceding these actions is stakeholder management, which begins with identifying the right stakeholders and their respective stakes for targeted engagement. Missteps in identifying or assessing stakeholders may be disastrous for a company’s operations or reputation, with long-term consequences.
Public affairs thrives within a democratic framework that allows open debate. This means creating space for anyone to examine and debate ideas or concepts in the public domain without interference from authorities. This being premised, I view the year 2000 as the beginning of public affairs in Indonesia. That year, President B.J. Habibie made a surprise strategic move toward re-establishing democracy by lifting the requirement for media outlets to obtain a Press Publication Business License (Surat Izin Usaha Penerbitan Pers/SIUPP), which had served as a tool to control free speech during the New Order era.
In advocating and debating ideas, it is sometimes necessary to form alliances or coalitions between various parties. This is the primary distinction between lobbying and public affairs, the definitions of which have evolved in more developed countries. Initially, both were often viewed as synonymous. Lobbying is a closed-door activity without public participation, whereas public affairs, though often with similar goals to lobbying, requires public and media involvement as partners in the advocacy process.
Building alliances and coalitions is a vital function of public affairs, therefore practitioners in this area must be adept at media relations and possess a deep understanding of the issues being advocated. When ideas are presented publicly, the media and the public have the right to question and critique their validity. Failure to address legitimate concerns leads to rejection of the issue or idea being advocated, this is why it is imperative to accurately identify stakeholders and their stakes early on.
Government in the broadest sense is the primary stakeholder influencing a company’s operational environment. Simply put, the executive branch governs through policies, regulations, and laws; the legislative branch plays a key role in formulating laws and overseeing their implementation by the executive arm; and the judiciary adjudicates violations or resolves disputes. In a democratic system, the balance of power between these branches forms the bedrock of the proper functioning of government.
In non-democratic settings, where freedom of expression is limited and the press lacks the latitude to voice opinions, lobbying often becomes the default alternative. This closed-door activity is vulnerable to misuse, particularly in countries without clear regulations to oversee and regulate lobbying practices, such as Indonesia.
Another core role of public affairs is bridging the gap between business interests and government bodies. As such, any political event that impacts business operations requires special attention. This is especially the case when a replacement of government officials occurs —be it by way of individual appointments or mass changeover set in motion by a transition of power in the legislative and executive branches following national or regional elections.
The year 2024, abundantly filled with political activity at various levels and regions, has been an exceptionally busy year for public affairs practitioners. However, amidst all this activity, it is vital not to lose sight of the need to continuously reinforce the academic foundations of this practice and applied discipline, preparing it for future development. In this context, I have completed my second book, titled Public Affairs as a Strategic Management Support (Public Affairs sebagai Penunjang Manajemen Strategis), in collaboration with the publisher of textbooks, Rajawali Pers. This concept was scrutinized at the Faculty of Social and Political Sciences (FISIP) at the University of Indonesia in October, in a scholarly forum with a distinguished panel of Prof. Dr. der Soz. Gumilar Somantri and Prof. Dr. Ibnu Hamad, both members of the University of Indonesia’s Faculty of Social and Political Sciences (FISIP) Board of Professors, as well as Karl Isaksson, CEO of Kreab Worldwide, partner of Kiroyan Partners based in Stockholm, Sweden. The Dean of FISIP, Prof. Dr. Semiarto Aji Purwanto provided opening remarks that set the tone for the forum.
Four years ago, PT Media Piar Indonesia, publisher of PR Indonesia magazine, released my first book, Public Affairs: Theory and Practice (Public Affairs: Teori dan Praktik), which compiled various of my works mostly drawn from articles in the special column called Public Affairs Corner in PR Indonesia magazine. The book published this year is an entirely new work, specifically written in complete book format, rather than a collection of shorter articles. Both books aim to provide a solid theoretical foundation for the practice of public affairs and material for academic research. A professional practice that is devoid of academic foundations is hard to advance, especially considering the nature of the non-market factors public affairs addresses and their entanglements to global developments that require well-grounded academic training to make sense of as a prerequisite for problem-solving.
At an international level, 2024 saw the publication of the Research Handbook on Public Affairs, edited by Arco Timmermans, a public affairs expert at Leiden University in the Netherlands. The book features cutting-edge studies on the discipline and practice of public affairs, with 24 contributions from contemporary experts like Craig S. Fleisher and Phil Harris. The two previously edited The SAGE Handbook of International Corporate and Public Affairs in 2017, an expansion of The Handbook of Public Affairs first published in 2005. Not long ago, in 2022, Harris and Fleisher, together with two other scholars, Alberto Bitonti and Anne Skorkjær Binderkrantz published The Palgrave Encyclopedia of Interest Groups, Lobbying and Public Affairs in two volumes, an invaluable reference in the field.
2025 will mark a quarter-century of public affairs in Indonesia, following President Habibie’s 2000 decree that initiated its birth. Indonesia’s social and political fabric has become increasingly complex in line with the country’s progress since the reformation in 1998. Furthermore, with President Prabowo Subianto’s active participation in various international forums since the beginning of his administration and his commitment to preserving democracy, public affairs will increasingly play a significant role in Indonesia’s national life for the benefit of both public and private sectors.
Noke Kiroyan
Chairman, Kiroyan Partners
This article has been published in PR Indonesia magazine 111th edition issued on December 2024, page 40-41.
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