Muhammad Ashari. Changes In Organic Composition of Capital Behind... MediaTor, Vol 13 (1), Juni 2020, 11-23 Changes In Organic Composition of Capital Behind Pikiran Rakyat Strategy of Convergence Muhammad Ashari Universitas Indonesia, Jl. Salemba Raya No. 4, Jakarta, Indonesia Email: [email protected] Abstract. This article examines the convergence strategy in Pikiran Rakyat media. The convergence strategy is analysed using the Organic Composition of Capital Theory from Karl Marx (1887). The theory describes the interaction between technological improvement (constant-capital) and labour mobilisation (variable-capital) in the production process, which its primary goal is to generate profits for the capitalist. This article highlights technological change, driven by the tendency of capitalism to maximise profit and its consequences for the journalists. The used method for analysis is case study. Data for analysis are collected from documents, interviews, and participant observations. The result indicates that the improvement of Pikiran Rakyat constant-capital, concerning its convergence strategy, is done by integrating the content of all its subsidiaries through newsroom and e-mail, which have the purpose of disseminating news content to various platforms. There is an increase in the number of contents from these efforts. However, it also has a consequence for journalists and editors who are forced to produce news for various platforms. Keywords: Convergence, Organic Composition of Capital INTRODUCTION Kabar Priangan, Kabar Banten, and Convergence has become a Galamedia. business strategy that is adopted by After decades of concentrating in many media today. Mainstream media print media, Pikiran Rakyat has begun to companies in Jakarta, such as Media move towards digitalisation and adopted Indonesia Group, Tempo Inti Media, and a convergence strategy by forming Kompas, have adopted a convergence various digital platforms in this recent strategy in operating their businesses year. Various formed platforms, including (Tapsell, 2015). online news websites, e-paper, and social Pikiran Rakyat, a media company media. Pikiran Rakyat is also starting to that has existed since March 24, 1966, build a streaming television called PRTV has also changed its business strategy and starting to integrate the PRFM radio into convergence. Pikiran Rakyat is line. known as a regional newspaper in West The process of convergence in Java Province and had its head office in Pikiran Rakyat has taken place since the Bandung, the capital city of West Java early 1990s but has not yet reached the Province. Furthermore, Pikiran Rakyat stage of its application in the company’s also has district/city-level subsidiaries business strategy. During the early 1990s, newspapers, such as Kabar Cirebon, convergence was limited to discourse DOI: https://doi.org/10.29313/mediator.v13i1.5126 11 MediaTor, Vol 13 (1), Juni 2020, 11-23 that was drafted by a handful of company through PRTV, which content is streamed employees. This was marked by the through various social media such as involvement of the representative of YouTube, Instagram, and Twitter. In Pikiran Rakyat in attending the World addition, an e-paper application called Association of Newspaper (WAN IFRA) MyPikiranRakyat has also been formed forum. It is a forum that discussed issues (Riyadhiputra & Yusanto, 2019). around journalistic and mass media. From the Marxian political- Every year since 1993, representatives economy perspective, the convergence of Pikiran Rakyat were sent to attend strategy employed by media companies the forum (Resmadi & Yuliar, 2014). In today is closely related to the way the a way, this stage is the era of knowledge social system of capitalism works in transferring about digital media. creating a source of wealth. In the system The online news channel, of capitalism, the source of wealth is PikiranRakyat.com (PR Online), was obtained from the extraction of surplus founded in 1996. However, at that time, value in the process of production (Marx, the news uploaded in PR Online was 1887). This surplus value is also known precisely the same as the news displayed as profit (Mulyanto, 2010). Surplus-value in the newspaper. In addition, there is no is generated from the mobilisation of integration of content into the newsroom, labour that exceeds the average socially as the case at this time, where every needed time to produce a commodity. newspaper within PT Pikiran Rakyat This mobilisation of labour has its source Bandung subsidiaries can access and from the allocation of capital for labour- distribute the same content. At least in that power, which in Marx’s vocabulary is period, company policy still prioritised its termed by variable-capital. newspaper products. For PR Online, the In order to see the appropriation mid-1990s showed a stagnant and often of surplus-value or the process, which is marginalised journey. called valorisation of surplus value, Marx Since 1996 until now (2019), analysed it in the sphere of production. improvements have been made by There are two ways the capitalists valorise expanding digital media channels. It is surplus-value in the production process, done with one primary purpose, which which is by (1) extending labour time is to adopt a convergence strategy. above the average socially needed time There are several digital media channels to produce a commodity or (2) the use formed: (1) www.pikiran-rakyat.com, of technology developed in the society a news portal that provides breaking which could make the labour process news, realtime and running news; becomes more intensive and productive. (2) www.info.pikiran-rakyat.com, an The first method, the extension of information site that provides West Java labour time beyond its average socially directory data, business information and needed time, is called the valorisations other information related to business of absolute surplus-value. The second activities; (3) Pikiran Rakyat Microsite, method, through the use of technology that which is a website that provides news functions to accompany labour process, is and information about products in the called the valorisation of relative-surplus form of articles, galleries and videos; (4) value. PR-epaper, which is an online channel What distinguishes the containing a digital edition of Pikiran valorisation of relative surplus-value Rakyat print newspaper. Pikiran Rakyat from absolute surplus-value is that the has also penetrated into visual offerings surplus-value could be appropriated 12 Muhammad Ashari. Changes In Organic Composition of Capital Behind... without having to extend overall labour constant-capital can affect the amount of time as in the case of absolute surplus- labour-power required in the production value. Moreover, the mobilisation of of commodities, especially if it increases labour could be increasingly massive productivity. In other words, a large-scale than before because it is also driven by investment to constant-capital at the same productive technology. time could result in a reduction of the The process of valorising surplus- variable capital component. Nevertheless, value - especially in the case of relative at the same time, an increase in labour surplus-value - shows the interaction productivity could be created. between technology and the process The relation between constant- of mobilising labour. Both of these are capital and variable-capital is called significant factors in a production process the Organic Composition of Capital that aims to valorise surplus-value. (Marx, 1887). The organic composition Marx (1887) mentioned part of capital could be enlarged through of the capital that is allocated in the investments in constant-capital. That production sphere, such as technology, means there is an effort to improve raw materials, etc., as constant-capital. the production sphere through the It is called as constant-capital because its improvement of machinery, factory quantitive value does not increase while buildings, engineering, management being used in the production process. In systems, etc. In practice, the massive fact, its value continues to decrease as it is allocation of constant-capital enables used over time in the production process. the efficiency of production. In turn, it For example, machinery will experience affects the amount of capital allocated on a worn-out after it is used perpetually in variable-capital. In other words, it could the factory after a period of time. become another way to reduce costs for Another part of the capital is worker wages or the portion of the worker called variable-capital. This capital refers itself in the production sphere. Not only to the capital allocated to the purchase of reduce the cost of wages and the portion labour-power. In the production process, of the worker but increased investment labour-power is the only source who can in constant-capital also at the same time add value to a commodity. For example, makes productivity become more intense. labour-power could be mobilised to Marx saw the Organic transfers the value contained in raw Composition of Capital in two points of materials such as yarn through a spinner view: (1) as a process of value creation (constant capital) so that it has a new and (2) as a technical composition of value in the form of a commodity of capital invested in the production process. clothes. Labour-power could also be Both of these have close relations in the mobilised to produce commodities above process of capital accumulation. the social average time to produce it so From the point of view of (1) the that more value could be created. The process of value creation, the Organic role of labour-power as an element of Composition of Capital shows the ratio the production sphere who can add value between constant capital and variable to a commodity becomes the basis of its capital in the process of producing the categorisation as a variable-capital. value of a commodity. As for the point Marx (1887) mentioned the of view (2) the technical composition of relation between constant-capital and capital, it shows its material elements variable-capital in the production by looking at the function of capital, process.