Indonesia seeks distribution makeover
By Patrick Frater
Thu, 11 August 2011, 09:30 AM (HKT)
The Indonesian government has invited Hollywood's Motion Picture Association to be involved in putting the country's distribution sector back on a stable footing.
The move follows a nearly six month hiatus in the distribution of Hollywood films that ended last week with the release of Harry Potter and the Deathly Hallows: Part 2.
Finance minister Agus MARTOWARDOJO met with the MPA's executive vice president and chief policy officer and said that more companies need to be involved in the distribution sector. He said that local and foreign firms should incorporate in Indonesia.
In a statement the two described the status quo and some tentative steps forward:
- Indonesia's foreign movie import industry — from importation to cinema chain — is currently controlled by the Cineplex 21 Group.
- The country currently has 676 cinemas, more than 500 of which are owned by Cineplex 21 (pictured), in 65 out of 498 cities.
- Some 36% of Indonesia's population falls into the key cinema-going age bracket of 15-40 and that there is a high demand for entertainment in the country.
- "The government target of 1,000 movie screens nationwide by 2014 is not nearly enough," Agus said. "We need five to six times as many.
- The new target is within reach, given the 8-9% growth rate of the national economy. Indonesia's per capita income is now above US$3,000.
- The dispute centred on Rp 31 billion ($3.6 million) that the Finance Ministry says three film importers owe in back taxes. This led to the MPA members halting imports from mid-February.
- The blockbuster drought was eased somewhat when the government announced a new film tax policy in June.
- The MPA has expressed its continuing concerns about "the increase in duties" and on import restrictions placed on the troubled importers.
- Distribution of Hollywood films restarted when a film import license was issued to a new distributor, PT Omega Film.
- The government welcomes foreign companies to Indonesia, particularly those that can stimulate the economy.
- The creative industry should also be open to Indonesian businesses in general.
A follow-up meeting is expected, which will seek a solution that will be beneficial in the long-run for all parties — importers, the MPA, theatre businesses, movie-goers and the entire nation's film industry stakeholders.
Also attending the meeting were US deputy ambassador to Jakarta, Ted Osius; director general for customs and excise Agung Kuswandono; ministerial special staff Robert Pakpahan; and Indonesia's Chamber of Commerce and Industry vice chairman Peter F. Gontha.