Film adds $2 billion to Indonesia economy

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Industry News

Film and television in Indonesia contribute over $2 billion to the local economy and support over 190,000 jobs, an economic impact study has found.

Conducted by Oxford Economics and presented by the Motion Picture Association, the report highlights $845 million of direct contributions from the sector, leading to tax revenues of $86.5 million in 2010. Indirect contributions to GDP total a further $1.23 billion and a further 159,000 jobs.

"Taking into account the direct, indirect and induced transactions, the film and television industry's total economic contribution to GDP in 2010 was USD$2.98 billion (Rp 27.1 billion) — 0.43% of economy-wide GDP," the report says.

"A vibrant screen industry is valuable to our country both culturally and economically. This report will provide an important foundation for identifying our industry's areas for potential growth," said producer Shanty Harmayn in a statement.

"This report further highlights that there are good economic reasons to continue to nurture this sector [in Indonesia]," said Mike Ellis, president and MD of MPA Asia Pacific.

The report was critical of the under-development of the cinema exhibition sector in the world's fourth-most populous nation.

"We are a movie-loving nation. However we've yet to develop our screen industry to its potential. More screens would benefit both audiences and local producers. We'd all love to see more local movies with bigger budgets being seen by more Indonesians," said Chand Parwez, an Indonesian producer and representative of the Indonesian Motion Picture Producers' Association (PPFI).

The figures were presented by the MPA as part of a producers workshop it co-hosted with the Indonesian Contemporary Art & Design exhibition.

Some 100 producers and executives attended including producer Mira Lesmana, Malaysian producer-writer-actor Norman Halim, Golden Village cinemas CEO Kurt Rieder, special advisor to the Ministry of Tourism & Creative Economy Cokorda Istri Dewi, producer Maya Barack Evans (The Raid), writer/director Joko Anwar, producer Shanty Harmayn, producer Meiske Taurisia (Postcards From The Zoo), Fortissimo Films chairman Michael J Werner, director-writer-producer Riri Riza, writer-director-producer Teddy Soeriaatmadja, producer-director Gary Hayes (Eat, Pray, Love) and producer-director Lola Amaria (Miggu Pagi di Victoria Park).

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