Who wins, what’s misplaced when Jakarta’s bus stops, rail stations are named after corporations and even a rock band? | USAEMALL.com

MASSIVE EXPOSURE FOR BRANDS

Buyers of naming rights get to have their brands’ names prominently displayed on transit stops and other infrastructure including signage, wayfinding systems, route maps and announcements.  

According to business and marketing expert Yuswohady, naming rights offer an advantage over other forms of advertising.

“With billboards, the exposure is temporary — it could last a month or even just a week, and brands have to share space with others,” said Yuswohady, the managing partner of marketing research firm Inventure.

Naming rights agreements typically last for years, he noted. 

“Beyond that, when a brand becomes part of a destination’s name, it gets mentioned frequently by people and even appears on Google Maps, significantly expanding its reach.”

The exposure to potential customers is also massive.  

In 2024, TransJakarta recorded 371.4 million passengers in total, averaging about one million riders per day. MRT Jakarta served over 40.8 million users, and LRT Jakarta saw 21 million passengers last year.  

Some commuters agreed naming rights leave a lasting impression.  

Jakarta commuter Tasya said station names have made certain brands stick in her mind.

“For example, with Cipete Raya Tuku Station, now whenever I want to buy coffee, I automatically think of Tuku,” she said, referring to the Indonesian coffee chain.

Cosmetics manufacturer Paragon Technology and Innovation — the company behind the brands Wardah and Kahf — acknowledges the benefits of having its name on a TransJakarta stop.  

“While we haven’t directly measured the impact on sales, our monitoring of digital conversations shows an increase in brand awareness for Paragon,” Dwi Suci Candraningsih, its corporate communication senior executive, told CNA.  

Dwi declined to disclose the cost of Paragon’s naming rights for the Swadarma TransJakarta stop, but confirmed that the agreement is for five years. 

Another advantage of buying public transit naming rights, said Yuswohady, is that “entering the public domain makes a brand feel like it’s owned by everyone”.

“And a brand that holds a position in the public domain is highly valuable,” said Yuswohady, who has authored nine books on branding and marketing.