Indonesia movie-goers hope for end to film drought

Tue Jun 21, 2011 6:10am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

JAKARTA (Reuters Life!) - Indonesian cinema-goers thirsty for first-run foreign films hope the government has moved a step closer to settling a tax battle with importers that has kept most Hollywood blockbusters out of the country for the past few months.

Earlier this year, the government said it would push film importers to pay higher customs duties on imported films and force them to shell out more than a decade's worth of unpaid royalties -- over $30 million.

Indonesia's predominant Hollywood film importer promptly retaliated by restricting the number of films it would bring in, limiting access to all but a handful of foreign movies.

As a result, Indonesian cinema-goers have been condemned to a strange combination of second-tier Hollywood movies that have been dug up from the vaults, or avoided the ban, plus low budget Chinese martial arts flicks and domestic horror films that combine ghosts with erotic scenes -- to viewer dissatisfaction.

"Some movies deserve to be enjoyed at the I hope the government and film importers can sort this out soon," said Johannes Prayudhi, a 31-year-old accountant.

"The holiday season has started and we are waiting for Harry Potter and Transformers."

But, in an encouraging sign for thousands of cinema aficionados, Finance Minister Agus Martowardojo said Monday that the tax system would be simplified so no royalty payments would be made.

Previously, there was a set import duty per film as well as royalty payments per viewing. The new regulations have no royalty payment but higher import duties, which would let the country turn booming consumer demand in Southeast Asia's biggest economy to its advantage.

"By changing this import duty system, we hope that imported films can return again," he added.   Continued...

<p>A woman stands in front of a street with posters of Indonesian films in Jakarta June 21, 2011. REUTERS/Beawiharta</p>