Film Forecast: Showing as Scheduled

Film Forecast: Showing as Scheduled

Indonesian fans of Hollywood films need not worry, theater operators say. New Hollywood blockbusters will be screened here as scheduled.

Concerns have been aired that since the resumption of the supply of Hollywood movies in July, the flow of feature films to the country’s theaters has been little more than a trickle.

Catherine Keng, corporate secretary of Cineplex 21, one of the nation’s largest cinema operators, said Hollywood film distribution was proceeding “smoothly.”

“Some were postponed because we want to first screen several films that could not be screened a while ago,” Catherine said via text message.

She went on to say that most upcoming Hollywood blockbusters would be screened in Indonesia on time.

“ ‘The Adventures of Tintin’ and ‘Breaking Dawn: Part 1’ [of The Twilight Saga] will be screened as scheduled, but ‘Paranormal Activity 3’ will be postponed because the slots for films at the cinema are currently already full,” Catherine said.

Top film studios in the United States launched a boycott of the Indonesian market in February because of a dispute over royalties, but they resumed their exports in July.

Djonny Sjafruddin, who heads the Indonesian Cinema Companies Union (GPBSI), said films from the Motion Picture Association of America were being given screening priority.

“We are prioritizing films from the MPAA so that we are not left behind other countries. American indie films, we will delay,” Djonny said.

The MPAA represents many of the biggest Hollywood studios, including Warner Bros. and Disney.

He said that since the boycott was lifted, movie theaters were beginning to see their incomes return to normal levels.

He also said that although the members of his association remained committed to having Indonesian films account for 60 percent of those screened, the market did not appear to support those efforts.

“There may only be about 5 percent of all national film productions that are capable of drawing the market’s interest,” Djonny said.

He said Indonesian film producers and directors should seek input from public figures as well as from movie theater operators to see what kind of films the country’s movie-goers actually demand.

“Better quality Indonesian films would benefit all sides as national films would be popular among the public,” he said.

Cineplex 21 Admits Cosy Links To Film Importers

Cineplex 21 Admits Cosy Links To Film Importers

Cineplex 21 has acknowledged it is affiliated with three film importers previously banned by the government from bringing foreign films into the country, but the Indonesian film giant is rejecting accusations that they are monopolizing the industry.

Camila Internusa Film and Satrya Perkasa Esthetika Film, which used to import Hollywood blockbusters, were banned from doing so by the Finance Ministry in March pending payment of Rp 22 billion ($2.6 million) in back taxes and interest.

A resolution of the controversy over import duties and royalties in June absolved Camila and Satrya’s back taxes issues.

A third distributor, Amero Mitra Film, paid Rp 9 billion in back taxes in May and has resumed importation.

In an exclusive interview with the Jakarta Globe on Thursday, Anitio, a director of Cineplex 21, acknowledged that all three importers were affiliated with the Indonesian cinema giant.

“Legally, the owners of Cineplex 21 and the importers have no relation, but we have always acknowledged we are close to them and we admitted that to KPPU in 2002,” he said, referring to the Business Competition Supervisory Commission.

“We also have a different operational system,” he added.

The third distributor, Omega Film, is also not legally related to Cineplex 21, Anitio said.

But he admitted that it was established by Ajay Fulwani, a nephew of Harris Lesmana, one of Group 21’s primary owners.

Still, he said this did not constitute a monopoly.

“It needs to be understood that we established our business in 1990, that is how we became dominant in the industry,” Anitio said. “We have been investigated four times by KPPU but they have found no monopoly practices in our business.”

Tadjudin Noer Said, a commissioner at KPPU, acknowledged that the cinema industry was dominated by one player, but he explained that as long as it did not control prices, it was not considered a monopoly.

With regard to the back taxes, Anitio said it was not true that they did not want to pay. “We do not have the ability to pay those taxes,” he said.

He argued that the penalty and interest imposed on them was not rational and he disagreed with the government’s calculation of what they owed.

As a director of Cineplex 21, Anitio said he was glad the foreign film dispute had been resolved because the cinema industry must recover from the financial loss incurred during the five-month foreign film drought.

“Although we were still able to air independent films during this time, the foreign film distribution boycott had caused a 60 percent drop in the local cinema industry’s income,” he said.

Is Indonesia in for a Disappointing Sequel?

Is Indonesia in for a Disappointing Sequel?

Droves of moviegoers flocked back to hundreds of cinemas across the country on Friday to see the boy wizard defeat Voldemort once and for all on the big screen.

That the screening of “Harry Potter and the Deathly Hallows: Part 2” — the biggest blockbuster so far this year — marked the end of Indonesia’s Hollywood film dry spell appeared to be a worthy conclusion to the long drawn-out saga.

But worries remain that a sequel might be in store.

New Actor

Controversy has surrounded Omega Film, the company largely responsible for bringing Hollywood blockbusters back to Indonesian theaters, from the start.

After the Motion Pictures Association of America and Cineplex 21 announced that no films from major Hollywood studios would be brought into the country from Feb. 17 pending the resolution of a dispute with the government over royalty calculations, the Finance Ministry responded by announcing a ban on three film importers that collectively owed Rp 30 billion ($3.4 million) in import taxes.

It was later discovered that two of the three banned importers were Camila Internusa Film and Satrya Perkasa Esthetika Film, both affiliated with Cineplex 21 and responsible for bringing in MPAA films.

With the ban on the two importers in place, the eventual resolution of the royalty dispute last month failed to bring back Hollywood blockbusters.

When news emerged that a new company, which was named Omega Film and believed to be related to Cineplex 21, had been granted an import license, moviegoers thought they had found their hero.

But as with all good films, the plot quickly thickened.

First, there were questions over why it was the only one of six new companies that applied for a film import license to be granted one.

Susiwijono Moegiarso, a director at the customs office, on Thursday denied allegations of special treatment.

“Yes, there were six companies, including Omega Film, that applied for film import licenses,” he said. “But it needs to be understood that Omega Film applied for an import license in April, and the other five just applied in May and June. So Omega Film got its license earlier.”

Susiwijono added that the license applications of the five others had not been rejected, but rather investigations into the companies were ongoing. “Hopefully, they’ll be done next week,” he said.

Then on July 5, the customs office suddenly froze Omega’s license, saying the company had not fulfilled all requirements. Suspiciously, Omega had the same office address as the five other companies.

But 10 days later, the customs office lifted the ban on Omega, “because they had completed the requirements and explained the company to us — its organizational structure, the directors and commissioners, whether they had the competency or not,” Susi wijono said.

Monopoly fears

Lawmakers have questioned this sudden lift of the ban, alleging something akin to deus ex machina (god out of the machine), the plot device that sees an unexpected power step in to resolve a seemingly hopeless situation.

An alleged relationship to Cineplex 21 and even to the ruling family have been floated as reasons for the positive turn of events in Omega’s way.

Syamsul Lussa, head of the film department at the Ministry of Culture and Tourism, said one of Omega’s directors is Ajay Fulwani, who, according to cinema pioneer and film importer Ilham Bintang, is a nephew of Harris Lesmana, one of Cineplex 21’s big bosses. There were also rumors that lawmaker and Democratic Party secretary general Edhie Baskoro Yudhoyono, the president’s son, was also involved.

Tourism Minister Jero Wacik dismissed all this, and subsequent allegations of a Cineplex 21 monopoly over the film industry.

As long as the names of a company’s directors and commissioners were not similar to those of the cinema company, “then it is not a monopoly,” Jero said.

He acknowledged that 80 percent of Indonesia’s 676 screens were owned by Cineplex 21, but pointed out that this only meant it dominated the industry, not monopolized it.

And he denied rumors of the ruling family’s involvement. “Bringing Cikeas into the Omega Film issue is very cynical. President Susilo Bambang Yudhoyono is very concerned about this,” he said. “I asked Edhie Baskoro and he said no.”

Cineplex 21 spokesman Noorca Massardi could not be reached for comment.

Djonny Sjafruddin, head of the Indonesian Cinema Companies Union (GPBSI), has also defended Cineplex 21 over the monopoly claims.

“The Business Competition Supervisory Commission [KPPU] has already investigated [Cineplex 21] twice and did not find any evidence of a monopoly,” he said.

Tadjudin Noer Said, a commissioner at KPPU, acknowledged that the cinema industry was dominated by one player, but he explained that as long as it did not control prices, then it was not considered a monopoly.

Still, Syamsul has said that “if there is dodgy data about Omega Film, we are going to revoke its business permit.”

If that happens, Indonesia may very well see a sequel to the Hollywood boycott.

After the Tax Drama, Indonesia Outlines New Plan to Boost Local Industry

After the Tax Drama, Indonesia Outlines New Plan to Boost Local Industry

One thing lost in the complex web the Hollywood film boycott has spun is the reason the government gave for wanting to hike taxes on film imports in the first place: to stimulate the local film industry.

Just days after the boycott began on Feb. 17, Tourism Minister Jero Wacik said the president, prompted by a comment from director Hanung Bramantyo in the local media about improving the domestic industry without imposing new taxes, had asked him to review the proposed tax regime.

On Thursday, Jero finally announced the plan to help the struggling industry, outlining a new company that would help fund local projects.

“We are going to establish Indonesian Film Finance to provide low-interest loans to Indonesian filmmakers,” he said. “This way we can help to improve the quantity and quality of Indonesian films.”

Aside from the help with funding, Jero said the Finance Ministry had also agreed to eliminate taxes on the importation of film production equipment. “Film production equipment and materials have always been listed as luxury items and therefore were slapped with high taxes,” he said.

However, Jero said it was not possible to do away with the value-added tax, either on domestic or foreign films. “So instead of revoking the value-added tax on domestic films, we are going to reduce the tax to a minimum level,” he said.

The country’s film industry has suffered a downturn in recent years. In 2009, only six local films sold more than a million tickets each at the box office. In 2010, only one movie broke the million mark.

Last year, 81 Indonesian films had cinema releases, slightly down from 83 films in 2009, although a significant decline from 91 big-screen releases in 2008. Even without Hollywood blockbusters, 75 foreign films were imported in the first seven months of this year.

The government is hoping to double local film production to about 200 a year by 2014 to equal the number of foreign films imported.

Jero said he wanted that ratio to eventually be 60 percent local films to 40 percent foreign.

In March, the minister also said the government was planning to allocate a special budget to subsidize the production of films that “instill love in the nation, raise patriotism and national defense.” But that plan was quickly panned.

“Filmmakers will try to meet the criteria needed to get the subsidy instead of focusing their creative efforts on producing a quality film,” Joko Anwar, a prominent director, said at the time.

Question Lift of Ban on Film Imports

Question Lift of Ban on Film Imports

Markus Junianto Sihaloho, Arientha Primanita & Elisabeth Oktofani

Although Hollywood blockbusters are expected to be back on Indonesian screens on Friday, the foreign film controversy appears far from over.

Lawmakers weighed into the saga on Tuesday, questioning the government’s decision to lift the ban on a film imports even though its tax issues had yet to be fully resolved.

Ibrahim Sakti Batubara, a National Mandate Party (PAN) lawmaker from House of Representatives Commission X, which oversees sports and tourism affairs, alleged that pressure from foreign movie producers had played a role in the decision.

“I don’t know why the freeze was lifted when so many problems, especially related to the tax issue, were not resolved,” Ibrahim said. He also criticized Tourism Minister Jero Wacik for behaving like the spokesman for foreign film importers. “I will ask the commission to summon the minister to explain this movie import issue,” he said.

The return of Hollywood films was made possible by the Customs and Excise Office clearing newly registered film importer Omega Film to bring in movies.

Omega was given a film import license on May 3, but a freeze was imposed as officials sought to clarify its relationship with Indonesian film giant Cineplex 21.

Cineplex 21 is affiliated with Camila and Satrya, two major film importers banned by the Finance Ministry pending payment of Rp 22 billion ($2.6 million) in back taxes and interest.

Bambang Soesatyo, a lawmaker from Commission III overseeing legal affairs, said the Corruption Eradication Commission (KPK) should investigate whether the so-called tax mafia was involved in the film import industry. He said the sudden revocation of the freeze should raise suspicion that there had been political interference.

Speaking to reporters at the Presidential Palace on Tuesday, Wacik denied “the ruling power” had interfered and rejected claims that Cineplex 21 and Omega were operating a monopoly. “There used to be a monopoly, but we’re in the process of phasing it out, we can’t just do it with a snap of the fingers,” Wacik said.

“If they’ve got 600 buildings, 600 screens, how can we get rid of them all? Previously, if you imported a film, only you could show it. Not any more. If A imports films, it’s legally obliged to allow all other screening companies to show it. But it hasn’t been fully implemented.

“Anyone can be a film importer, the only catch is, can you get the films from Hollywood agents?”

Djonny Sjafruddin, head of the Indonesian Cinema Companies Union (GPBSI), also defended Cineplex 21 over the monopoly claims. “Although the Indonesian cinema industry is dominated by Cineplex 21, the Business Competition Supervisory Commission [KPPU] has already investigated them twice and did not find any evidence of a monopoly.”

Magic Wish Granted: Harry Potter Scheduled to Hit Screens on Friday

Magic Wish Granted: Harry Potter Scheduled to Hit Screens on Friday

Indonesia’s Harry Potter fans will finally get their chance to see the last installment of the hit movie series on Friday, cinema officials said on Tuesday.

“ ‘Harry Potter and the Deathly Hallows: Part 2’ will be screened starting on Friday,” Djonny Sjafruddin, head of the Indonesian Cinema Companies Union (GPBSI), told the Jakarta Globe.

The film will not be exclusively screened by film industry giant Cineplex 21.

Dian Sunardi, head of marketing at Blitzmegaplex, said they had also been informed that the Harry Potter film was scheduled to be screened starting on Friday.

“Unless the distributor changes the screening schedule, ‘Harry Potter and the Deathly Hallows: Part 2’ will be screened by Friday and our first show time will be at 12 o’clock,” she said.

The screening of the boy wizzard’s saga in Indonesian cinemas will mark the return of Hollywood blockbusters to the country more than five months after major American studios began a boycott over a royalty dispute.

“Transformers 3” will likely be screened 10 days later.

“Kung Fu Panda 2” has also passed censors and will be screened.

But Djonny has said that even with Hollywood films back in Indonesian cinemas, GPBSI will prioritize the screening of local films with five due for screening during Ramadan, he said.

Harry Potter in Indonesia by End of Month: Minister

Harry Potter in Indonesia by End of Month: Minister

The final Harry Potter installment, Transformers 3 and Kung Fu Panda 2 will be released in Indonesia before the end of the month, Culture and Tourism Minister Jero Wacik said on Thursday.

It appears, however, that it is not all good news for Indonesian movie lovers, with Jero indicating the dispute with Hollywood had not been completely resolved and that ticket prices were likely to rise.

“The two movies are now being censored at the Film Censorship Board (LSF) and if everything is okay then they should be released before [Ramadan],” he told reporters at the State Palace.

The Motion Picture Association of America did not return emails on Thursday seeking comment about Jero's statement.

Jero, in a doorstop interview, said that even though the movies would be screened, it did not mean the tax dispute had been resolved.

Asked about a potential increase in ticket prices, he said the ministry would not impose a limit in any price hike, though he urged movie theaters to avoid extreme increases.

“Because the movies that will be shown are top movies, if there is price rise, then it should only be small.”

Muklis Paimi, the head of Film Censorship Board (LSF), confirmed to the Globe that three Hollywood films were being censored.

“Harry Potter and The Deathly Hallows Part 2, Transformers: Dark of the Moon and Kung Fu Panda 2 are being censored,” he said.

“Hopefully, we will have finished this by tonight.”

The Potter movies have a devoted following in Indonesia, where thousands of fans play the wizard sport of Quidditch on Twitter.

Last month, a new tax regime for foreign films was agreed in response to protests by the Motion Picture Association (MPA) over an attempt to charge studios more to screen films in Indonesian cinemas.

“We hope that there will be no more boycotts like this,” he added.

Sjafruddin said local cinemas would also screen several Hollywood hits that they had missed during the five--month boycott.

Since the studios began boycotting the country, Indonesian movie lovers have missed out on “Black Swan”, “True Grit” and “Pirates of the Caribbean: On Stranger Tides”.

The MPA represents US studios including Warner Bros, Universal Studios and Twentieth Century Fox.

Additional reporting AFP

Magic Date Still Uncast For the Final Harry Potter

Magic Date Still Uncast For the Final Harry Potter

As the world lined up to catch the final Harry Potter movie, Indonesian fans were left to take comfort in an announcement by Cineplex 21 that the film would be screened in Indonesia, just not anytime soon.

It was a dispiriting weekend for Indonesian fans of the boy wizard as “Harry Potter and the Deathly Hallows: Part 2” opened around the world, smashing box-office records as fans camped out and held parties to mark the finale of one of the most successful movie franchises of all time.

The movie smashed the US single-day box office record with a whopping $92.1 million in opening-day sales. That was easily better than the previous record holder, 2009’s “The Twilight Saga: New Moon,” which took in $72.7 million on its opening day.

Industry experts predict Potter and his wizarding friends will set the opening weekend record in the United States. “The Dark Knight,” the last film in the Batman series, hauled in $158 million on its opening weekend in 2008.

“Harry Potter and the Deathly Hallows: Part 2” has now opened in almost all countries. Indonesian screens, however, remain bereft of Potter and other Hollywood blockbusters.

By all accounts, the Hollywood film boycott over a royalty dispute and the subsequent government ban on major film importers that began in February are nearing an end.

Djonny Sjafruddin, head of the Indonesian Cinema Companies Union (GPBSI), told the Jakarta Globe on Thursday that all the issues had been resolved, clearing the way for films to begin arriving here.

“We’re now only dealing with technical issues,” he said, such as films going through censors and having subtitles added.

Over the weekend, Noorca Massardi, a spokesman for Cineplex 21, the country’s biggest cinema chain, told the Globe in a text message that viewers could check the Cineplex 21 Web site to see which Hollywood movies would be playing soon.

In addition to Harry Potter, the Web site also lists “Transformers: Dark of the Moon.”

But Djonny warned fans not to be overly optimistic. “Although they have appeared on the list of movies coming soon, that does not mean they will come very soon,” he said.

“It could be one week, two weeks or even a month before they are screened.”

Djonny said Hollywood films could begin arriving here in as little as 10 days, but he could not yet give an exact date.

“Our priority is ‘Harry Potter and the Deathly Hallows: Part 2’ because of high demand from the audience,” he said.

The boycott, he added, has already led to about a 60 percent drop in cinemas’ revenue.

Shafiq, a member of Indo Harry Potter, an online fan community with 6,000 members across the country, flew to Singapore for the movie’s opening last week. Shafiq told the Globe he was positive that Harry Potter would be screened in Indonesia.

“The only question now is when exactly will it be shown? We are really curious about it,” Shafiq said.

Slowly but Surely, Harry Potter Is Coming to Town

Slowly but Surely, Harry Potter Is Coming to Town

Harry Potter and The Deathly Hallows: Part 2 and Transformers: Dark of the Moon now appear on the Coming Soon movie list on the Cinema 21 website. Does this mean Hollywood films are back in Indonesia?

Noorca Massardi, a spokesman for Cinema 21, Indonesia’s biggest cinema chain, told the Jakarta Globe on Saturday in a text message that viewers can check the Cinema 21 website to see which Hollywood movies will be playing soon.

But Djonny Sjafruddin, head of the Indonesian Cinema Companies Union (GPBSI), cautioned that the wait may not be over yet. “Although they have appeared on the list of movies coming soon, that does not mean they will come very soon,” he explained.

“It could be one week, two weeks or even one month before the screening,” he said.

“However, as almost all film importation issues are now solved, especially regarding customs, royalties and income tax, we’re now only dealing with technical issues,” he added.

Djonny said Hollywood films might arrive here in as little as 10 days, but he cannot yet give an exact date.

“Our priority is Harry Potter and the Deathly Hallows: Part 2, because of high demand from the audience,” he said.

Shafiq, a member of Indo Harry Potter, an online fan community with six thousand members across the country, told the Globe he is sure that Harry Potter will be screened in Indonesia.

“The only question now is when exactly will it be shown? We are really curious about it,” he added.

Although all film importation issues were resolved, Ukus Kuswara, director general of culture, arts and film at the Ministry of Culture and Tourism, has not been able to confirm when Hollywood films will return to Indonesian cinemas.

“I have not been able to confirm when Hollywood films can be screened, but we will inform the press once everything is really clear,” he said.

Newly registered film importer Omega Film was given a film import license on May 3, but a freeze was imposed as officials sought to clarify its relationship with Indonesian film giant Cineplex 21.

Cineplex 21 is affiliated with Camila and Satrya, two major film importers banned by the Finance Ministry pending payment of Rp 22 billion ($2.6 million) in back taxes and interest.

Omega was the only company given an import license among the six that applied, as four appeared to have the same address as Omega. It was not clear why the fifth was rejected.

Tourism Minister Jero Wacik has said that the Motion Picture Association of America, the umbrella group for six major Hollywood studios that boycotted Indonesia in February over a royalty dispute, only wants to deal with importers it is familiar with, understood to mean Camila, Satrya and the Cineplex group.

Finally, Hollywood Movies May Soon Be Back on Screen

Finally, Hollywood Movies May Soon Be Back on Screen

Elisabeth Oktofani & Dion Bisara

In the clearest sign of hope yet, Indonesian officials signaled on Thursday that Hollywood blockbusters — including the last Harry Potter film — could be back on screens within a fortnight.

Djonny Sjafruddin, head of the Indonesian Cinema Companies Union (GPBSI), told the Jakarta Globe that almost all film importation issues were now solved.

“Particularly the ones related to customs, royalties and income tax,” he said. “We’re now only dealing with technical issues.”

This meant Hollywood films might arrive here in as little as 10 days, he said. “It will still take time for the films to go through customs, censors and adding the subtitles,” he explained.

A key priority is getting “Harry Potter and the Deathly Hallows – Part 2,” he said, which premiered in London last week and began showing in Asia this week, to the chagrin of Indonesian fans.

The turn of events on Thursday was made possible by the Customs and Excise Office clearing newly registered film importer Omega Film to bring in movies.

Susiwiyono, the director of customs and excise information, confirmed the news in a text message but did not explain why.

Omega was given a film import license on May 3, but a freeze was imposed as officials sought to clarify its relationship with Indonesian film giant Cineplex 21.

Cineplex 21 is affiliated with Camila and Satrya, two major film importers banned by the Finance Ministry pending payment of Rp 22 billion ($2.6 million) in back taxes and interest.

Omega was the only company given an import license among the six that applied, as four appeared to have the same address as Omega. It was not clear why the fifth was rejected.

Syamsul Lussa, head of the film department at the Ministry of Culture and Tourism, explained that companies in the film industry were not allowed to have businesses that could create “vertical integration, whether directly or indirectly.”

Vertical integration refers to a company going into businesses that form part of its supply chain or production path.

“So, if there is dodgy data about Omega Film, we are going to investigate it and revoke its business permit if necessary,” he said.

Tourism Minister Jero Wacik has said that the Motion Picture Association of America, the umbrella group for six major Hollywood studios that boycotted Indonesia from February over a royalty dispute, only wants to deal with importers it is familiar with, understood to mean Camila and Satrya and the Cineplex group.

Hey Fans, Fancy Harry Potter And the Flight to Singapore?

Hey Fans, Fancy Harry Potter And the Flight to Singapore?

As London fans bade farewell to the world’s most famous boy wizard at the premiere of the final Harry Potter movie on Friday and worldwide audiences queued for tickets, film-starved Indonesian fans were busy organizing trips to Singapore.

“I followed Harry Potter from the first movie until ‘Harry Potter and the Deathly Hallows – Part 1,’ and I always watched the films several times in the theater,” Shafiq, a coordinator for the 6,000-strong Indo Harry Potter online community, told the Jakarta Globe on Friday.

He said there was no way he wouldn’t watch the eighth and final film of what is arguably the most successful Hollywood franchise on the big screen as well.

And so he and a number of other members of the fan club, ditching original plans for a costume premiere party complete with wands and black robes, will travel to Singapore next week in time for the Thursday premiere of “Harry Potter and the Deathly Hallows – Part 2” in the city-state.

Warner Bros., the producer of the blockbuster series, is one of six major Hollywood studios under the Motion Picture Association of America whose films have not been screened in Indonesia since Feb. 17, when a dispute with the Indonesian government prompted a foreign-film boycott.

The Finance Ministry has announced a new tax scheme meant to resolve the dispute and head off the drastic slump in ticket sales since the Hollywood film boycott started, but it has maintained a ban on two major film importers — Camila and Satrya — until Rp 22 billion ($2.6 million) in back taxes and interest was paid.

The importers, both under the 21 Cineplex group, have been responsible for bringing in MPAA films. Tourism and Culture Minister Jero Wacik has said the problem now is the MPAA only wants to deal with importers with which it is familiar.

A sign of hope was the recent granting of a license to a new importer, Omega Film, which Jero said was also under the 21 Cineplex group. Group spokesman Noorca Massardi has consistently declined to comment throughout the entire negotiations.

But as it seems a resolution to the long-running problem won’t come in time for Harry Potter’s Indonesian fans to formally bid the series farewell, fans like Shafiq are not taking any chances.

“Watching it once isn’t enough for me, I need to watch it at least three times,” he said, adding that he would wear his Indo Harry Potter T-Shirt in Singapore. “And I also plan to watch another movie there that cannot be seen in Indonesia.” 

Ministries Disagree Over Film Import Priorities

Ministries Disagree Over Film Import Priorities

With major movies still missing from Indonesia’s screens, the Finance Ministry and the Culture and Tourism Ministry are at odds over whether or not the to address the lack of competition in the import of films.

Bambang Permadi Brodjonegoro, the head of fiscal affairs at the Finance Ministry, said the near-monopoly held by the country’s main film importers needed to end.

“Two film importers handle six major studios,” Bambang said. “We should ask the major studios, such as Walt Disney Pictures, Sony Pictures, Paramount Pictures and 20th Century Fox to open a representative office in Indonesia.”

He added that an alternative solution would be to make sure all major studios use a separate local business partner.

The Finance Ministry’s Directorate General of Customs recently granted a new foreign-film importing license to Omega Film. However, that company is believed to be related to major cinema chain 21 Cineplex.

Omega Film is also said to be linked to two film importers banned from bringing Hollywood films to Indonesia after they were ordered by the state to pay a total of Rp 31 billion ($3.6 million) in unpaid taxes. That demand was made shortly after the Motion Picture Association of America decided to stop exporting movies to Indonesia over a dispute on royalty calculations.

Culture and Tourism Minister Jero Wacik said on Wednesday that the specifics of the business model were less important than the problems currently preventing foreign films from entering the Indonesian market.

He added that a wider variety of film importers would not fix the royalty row, and that if a monopoly on importing would give the people access to blockbuster movies, then that option should not be rejected.

In a Bind, Govt Begs Hollywood For Films

In a Bind, Govt Begs Hollywood For Films

Underscoring the fact that the ball was no longer in its court, the government said on Friday that it had asked the Motion Picture Association of America to resume sending films to Indonesia.

“I met with US government representatives three days ago to discuss the import of films from MPAA,” Finance Minister Agus Martowardojo said on Friday.

“We have clarified that Indonesia has nothing against the American government, exporters or producers.”

Films from MPAA members — which include Disney, Paramount, Sony Pictures, 20th Century Fox, Universal Pictures and Warner Bros. — have not been screened in the country since Feb. 17 as a royalty dispute prompted a foreign-film boycott.

The MPAA’s international counterpart, the MPA, had said the decision to include royalties in its import-tax calculation had a “detrimental impact on the cost of bringing a film into Indonesia.”

Last month, the Finance Ministry announced a new scheme that would see importers pay only a “specific tax” on movies, rather than an ad valorem tax, which was based on each film’s ticket sales.

The measure was meant to resolve the dispute and head off the drastic slump in ticket sales since the Hollywood film boycott started.

With two of three accredited film importers refusing to settle unpaid royalties totaling Rp 22 billion ($2.6 million) and locked in a court battle with the state, though, Agus said one recourse was for the MPAA to seek other domestic distributors.

The third company, which deals mainly with small and independent films, has paid Rp 9 billion in back taxes.

Agus said he had set up a special team under the Directorate General of Customs to spearhead the initiative. The directorate has granted a new foreign-film importing license to Omega Film and is considering requests from five other importers.

“There are other importers to work with,” Agus said. “If that can be realized, it will make Indonesians happy and American producers will see good growth.”

Likewise, Ukus Kuswara, a Culture and Tourism Ministry official, said the state should help other import firms to forge deals with Hollywood companies.

“We are helping importers establish [links] and hopefully make agreements with major studios,” he said.

Nine importers are allowed to bring in films, but most of those only distribute second-rate movies.

Elisabeth Oktofani& Dion Bisara

Govt Still Deadlocked In Film Tax Dispute

Govt Still Deadlocked In Film Tax Dispute

A week after a new tax scheme was announced to end the foreign film boycott, there was still no word on when Hollywood blockbusters would again hit the country’s big screens. 

Ukus Kuswara, head of culture, arts and film at the Ministry of Culture and Tourism, said the next big issue that needed to be resolved was the matter of unpaid royalties to the government. 

The Ministry of Finance announced the new tax scheme last week, with importers now only needing to pay a specific tax on films, providing a simple solution to the long-running dispute over royalties for imported movies. 

But the issue of unpaid royalties over the past two years — totaling about Rp 31 billion ($3.6 million) from three major importers, according to the government — has yet to be resolved. Only one of the three importers has settled its bill and is now allowed to import films, although it deals mostly with small, independent movies. 

Widhi Hartono, head of audits at the Customs Office, said the other two importers had filed appeals against the government’s demands for unpaid royalties. 

“These two are still banned from bringing in films pending a court decision,” he said. 

The two importers are understood to be largely responsible for bringing in the big Hollywood movies. 

But Djonny Sjafruddin, head of the Indonesian Cinema Companies Union, said the issue must be resolved once and for all. “Unless the government solves this problem properly, more than half of Indonesia’s cinemas will be closed within four months,” he said. 

Ukus said the government was working on a win-win solution. “We are having intensive meetings [with importers] to find out what problems they’re facing,” he said. “Once we figure out the problem, we’ll find the solution to bring back films so people don’t have to go abroad to watch them.”

Official Confident of Hollywood Ending in Foreign Film Boycott

Official Confident of Hollywood Ending in Foreign Film Boycott

Indonesia’s despair over the lack of Hollywood blockbusters on the big screen may be over soon, according to a tourism official.

Ukus Kuswara, the director general for culture, arts and film at the Ministry of Tourism, said the government and the Motion Picture Association had negotiated a “win-win solution.”

“Let’s just say it’s not about the tax figure, but the mechanism for its imposition. There’s a difference in perception but that’s been sorted out now,” he told AFP without elaborating.

The dispute centers on Indonesia’s new system of calculating and charging royalties on imported films, which the MPA said had “a detrimental impact on the cost of bringing a film into Indonesia.”

When asked to clarify, Ukus said the ministry wanted US box-office hits — which made up more than half of all movies screened in Indonesia before the boycott began in February — to return as soo n as possible, largely due to the detrimental impact the boycott has had on the cinema industry.

“I have been monitoring the films [being shown] and cinema visitors, and it’s sad to see theaters empty,” he said.

While the Directorate General of Customs and Excise has been resolute about implementing the new royalty computation, the Ministry of Tourism has always maintained that the government is open to negotiations with film importers.

Ukus said that while it was the government’s right to impose taxes and duties, “we need a way of determining import duties that everyone agrees to.”

“We will have one more meeting with the Ministry of Finance [on Monday] regarding the tax scheme,” he said. “Hopefully, in the next one or two weeks, importers can resume bringing in box-office hits to Indonesia.”

Since the MPA stopped distributing films to Indonesia, everyone has been losing except the sellers of pirated DVDs.

“Customers are looking for titles like ‘Fast Five,’ ‘Black Swan’ and ‘Thor’ because they can’t watch them in the cinema,” said Yani, who sells pirated DVDs. “They complain my videos are low quality and they wouldn’t watch them if they had a choice. But I can’t complain, business is good.”

She said sales had jumped 50 percent since the MPA boycott.

Cinemas, which have been trying to fill the gap with local fare and B-grade foreign films dug out of the rejects bin, are almost empty.

Djonny Sjafruddin, the head of the Indonesian Cinema Companies Union (GPBSI), which represents 240 cinemas nationwide, had earlier said that the foreign film distribution boycott had caused a 60 percent drop in the local cinema industry’s income nationwide.

Worse may be yet to come, with “Harry Potter and the Deathly Hallows: Part 2” also likely to be axed, Djonny added.

But if the issue is indeed resolved in the next one or two weeks, as Usuk said, Potter fans might not have to fly to Singapore to see the much-awaited conclusion of the blockbuster series.

Additional reporting by AFP

Show Will Go on for One Film Importer

Show Will Go on for One Film Importer

One foreign film importer has been cleared to bring movies into Indonesia after reportedly paying the government Rp 9 billion ($1.05 million) in back taxes, but it’s not time for film lovers to rejoice yet. 

Agung Kuswandono, the director general of customs, said on Wednesday that the importer, which was not named, had resumed bringing in foreign titles, raising hopes that the country’s cinemas would soon be flush with Hollywood blockbusters. But these hopes were quickly dashed. 

“The importer whose problem has been solved is an importer of foreign independent films, not an MPAA film importer,” said Syamsul Lussa, the director of films at the Culture and Tourism Ministry, referring to the Motion Pictures Association of America. 

Films from MPAA, which includes Walt Disney Pictures, Paramount Pictures, Sony Pictures Entertainment, Twentieth Century Fox Film, Universal Pictures and Warner Bros. Entertainment, have not been shown in the country since Feb. 17, when the studios decided that new local import regulations had “a detrimental impact on the cost of bringing a film into Indonesia.” 

Syamsul said talks were continuing over this issue, which centers on how royalties are calculated and charged. “Hopefully, MPAA films can be brought into Indonesia again,” he said. 

The film importer that paid Rp 9 billion in back taxes was one of three that the government said owed a collective Rp 31 billion in unpaid royalties from the past two years. “Those three importers are big ones, they rule 90 to 95 percent of total market,” Agung said, declining to identify the companies. 

According to Widhi Hartono, head of audits at the customs office, all three importers have filed appeals with the tax court against the government demand for them to pay. “But because one of them paid their import duty while the appeal is ongoing, that importer is allowed to import films,” he said. 

Djonny Sjafruddin, the head of the Indonesian Cinema Companies Union (GPBSI), said this should still be greeted as good news. 

“Although they have only been able to bring in second-class foreign films, which cannot really be sold to the market because they are independent American films, this is better than there being no foreign films in Indonesia cinemas,” he said. 

Djonny had earlier said that the foreign film distribution boycott had caused a 60 percent drop in the local cinema industry’s income nationwide. He said theaters had been making do with second-class foreign films and previously run movies as daily screenings are cut. 

Djonny said a company that specialized in non-MPAA films had movies ready to be screened in local cinemas. 

“There are three foreign films that have been imported by Amero Mitra Film and ready to be screened,” he said. “However, we do not know yet whether the audience will like them.” 

Two of the three films, “The Lost Bladesman,” a Hong Kong historical martial-arts film, and “Source Code,” which stars Jake Gyllenhaal and Michelle Monaghan, are now screening in Jakarta cinemas. 

Additional reporting by Dion Bisara

Cinemas Live the Horror as Film Boycott Slashes Profits

Cinemas Live the Horror as Film Boycott Slashes Profits

While film lovers have been missing catching Hollywood blockbusters on the big screen, cinemas have been missing something more substantial: profit.

Djonny Sjafruddin, the head of the Indonesian Cinema Companies Union (GPBSI), said the foreign film distribution boycott in the country had caused a 60 percent drop in the local industry’s income nationwide.

“Since the Motion Picture Association stopped exporting their films to Indonesia, we, the cinema industry, have begun feeling the effect, especially in small towns such as in Central Java,” Djonny said. 

The boycott that began on Feb. 17 was sparked by disagreement over a new royalty tax computation the government wanted to impose but that the MPA said would have a “significant detrimental impact on the cost of bringing a film into Indonesia.” 

The government had promised a resolution by the end of March, but talks apparently still haven’t concluded as major releases like “Thor” and “Pirates of the Caribbean: On Stranger Tides” aren’t being shown here. 

Syamsul Lussa, the director of films at the Culture and Tourism Ministry, could not be reached for comment on when Indonesia could expect a resolution to the issue as he was attending the prestigious Cannes Film Festival. 

To cope with the diminished source of movies to screen, Djonny said cinemas had been making do with second-class foreign films and previously run movies as daily screenings are cut. 

“The tax-scheme controversy is slowly killing the Indonesian cinema industry, while the government wants to add more screens across the nation,” he said. “But if there is no film, what will be screened in the new screens? Indonesian films have not really been able to attract the market.” 

“Maybe 15 to 20 percent of Indonesian films can attract audiences, such as ‘Tanda Tanya’ by Hanung,” he said. “But other than that, does the audience really want to watch films with the same ghost concept all the time? I guess not, because the audiences are not stupid.” 

Dian Sunardi, the head of marketing at BlitzMegaplex cinemas, testified to the decreased audience-drawing power of the films they had been showing. 

“We still receive some film stock from major studios, including from Hollywood through other distributors,” Dian said. “However, the number of visitors has dropped 15 percent to 20 percent compared with last year.” 

Even the Jakarta administration is feeling the impact. 

“So far, cinemas have contributed 20 percent of the Rp 81 billion ($9.5 million) in entertainment tax collected for the first quarter of the year,” said Iwan Setiawandi, the head of Jakarta Tax Office. “But in previous years, cinemas have contributed as much as 40 percent to 50 percent of the Rp 350 billion entertainment tax collected annually in Jakarta.” 

Industry representatives and moviegoers like Herda Aprillia, a member of the Indo Harry Potter online fan community, can only hope the matter is resolved soon. “Harry Potter and The Deathly Hallows Part 2” — the last installment in the hugely popular series — is due to be released in July. 

“I am actually staunchly against pirated films. But what else can you do? I am not going to wait until the DVD is [officially] released or fly to Singapore only to watch the film,” Herda said.

Tax on Imported Films Joined by New Levy on Digital Movies From Overseas

Tax on Imported Films Joined by New Levy on Digital Movies From Overseas

Camelia Pasandaran & Elisabeth Oktofani

The long-running saga that swept blockbuster Hollywood movies off Indonesian screens took a new twist on Tuesday as the government announced it would impose a new tax on certain imported films.

Under the new proposal, the tax will only be applicable to movies imported in digital format and as such cannot be calculated based on footage, according to Syamsul Lussa, director of films at the Culture and Tourism Ministry.

“We’re living in the digital era but our tax policy is still based on the length of film reels,” he said.

“So we’re going to establish a tax scheme for digital films that will be calculated based on the running time. So for any foreign films entering Indonesia in digital format, the customs officials and importers will not be confused about how to calculate the tax.”

However, most of the movies imported to Indonesia are on film, not digital. The latter format is most commonly used for certain three-dimensional movies.

The current tax policy led to members of the Motion Picture Association deciding to halt exports of films to Indonesia.

At the heart of the issue is the calculation of the customs value of imported films, which was previously based on the physical length of each film reel, with each meter valued at 43 cents. But the government sought tax royalties up front under a 2006 customs law that stipulates that royalties should be included in the import tax.

Culture and Tourism Minister Jero Wacik said he had agreed with the finance minister on the taxation method for digital films, but had not yet decided on how to calculate it.

“It needs to be reported to the president first, because tax issues are under the authority of the president to decide,” he said.

He added that the single tax meant that motion picture importers would only be required to pay once at the customs office.

“There will be no more tax afterward or in the middle [of the movie’s run],” Jero added.

He said the new tax policy would help to protect the local film industry, which is also expected to benefit from a tax break.

Of the around 600 screens at all theaters in Indonesia, only 100 are used for local movies, the minister said, adding that he hoped to increase that number to 200 by 2014.

Indonesian Govt Delays Film Tax Review Decision

Indonesian Govt Delays Film Tax Review Decision

If you have been waiting patiently for the past month, popcorn box in hand, to find out whether there will be any fresh Hollywood films to watch on the big screen anytime soon, you may have to keep on waiting.

The government on Wednesday failed to come out with a promised decision on the tax on imported films, saying negotiations hadn’t concluded yet.

Culture and Tourism Minister Jero Wacik, who had earlier promised that Wednesday would be the day he would reveal a decision on the tax issue that has led foreign film importers to stop bringing in new titles, said the scheme had yet to be finalized.

“We cannot announce the exact film tax scheme yet because it is still being discussed, taking into consideration three regulations, on customs, tax and also films,” Wacik said.

The policy in question led to members of the Motion Picture Association deciding to halt exports of films to Indonesia.

The core of the issue lies in the calculation of the customs value of imported films, which was previously based on the physical length of the film roll, with each meter valued at 43 cents. But the government now wants to tax royalties up front under a 2006 customs law that stipulates that royalties should be included in the import tax.

The government, though, has sent out mixed messages. While the Directorate General of Customs and Excise has appeared resolute about implementing the new royalty computation, the Culture and Tourism Ministry has maintained that the government was open to negotiations with film importers.

“I want to make sure that foreign films are still entering Indonesia,” Jero reiterated on Wednesday. He did not elaborate on the statement, instead announcing that a separate import tax on film production equipment would be scrapped to help give Indonesian film producers a boost.

The Tourism Ministry has previously said boosting the local film industry was the rationale behind the new royalty policy.

“President Susilo Bambang Yudhoyono suggested developing the national film industry by reducing taxes for Indonesian filmmakers, so we are going to apply a zero percent tax on film production equipment,” Wacik said.

He said film production equipment and materials have always been listed as luxury items and therefore were slapped with high taxes.

“Other than that, we are going to reduce the value-added tax to a minimum level,” he said, without elaborating.

Wacik said the country’s current film production levels were not in a position to meet the demands of the 672 screening houses across the nation.

“That is why foreign films are needed, to meet the demand of the screens and also to become references for Indonesian filmmakers to improve the quality of their films,” Wacik said. “We do not want to create a policy that hurts many people, including Hollywood film fans and cinema employees.”

Wacik said the tax regime on imported films was aimed at protecting the national film industry while at the same time not harming foreign film imports.

“We just want to see foreign films enter Indonesia without violating the regulations. So far, the Directorate General of Taxation has decided on a tax scheme, but it has yet to finalize their decision,” he said.

In order to help increase public assess to films, Wacik said his ministry proposed to have dozens of film projection cars available in 2012 to cater to areas without cinemas.

“This idea is basically to bring films to all Indonesian citizens. In that way, films will be a form of entertainment not only enjoyed by city people but also by people from small towns or small villages.” Jero said.

Indonesia Still Waiting to Hear Final Decision on Foreign Film Tax

Indonesia Still Waiting to Hear Final Decision on Foreign Film Tax

Despite previously promising to announce the final foreign film tax on National Film Day today, the Ministry of Culture and Tourism has postponed its announcement because the government institutions involved are yet to reach a conclusion on the matter.

Tourism Minister Jero Wacik said the ministry, Finance Ministry and Directorate General of Taxation were still finalizing the regulation on foreign films.

“We cannot announce the exact film tax scheme yet because it is still being discussed,” Jero said.

“The regulation is aimed at protecting the national film industry without harming foreign film imports. We just want foreign films to enter Indonesia without violating the regulation. So far the Directorate General of Taxation has decided on a tax scheme, but is yet to finalize their decision.”

The customs value of imported films was previously based on the physical length of the film roll, with each meter valued at 43 cents. The government now wants to tax royalties up front under a 2006 customs law that stipulates that royalties should be included in the import tax.

The new tax calculation is behind a recent move by the Motion Picture Association to halt the export of films to Indonesia.