T

he government has invited the Motion Pictures Association (MPA) to be involved in improving Indonesia’s film industry following the recent resolution of the film import fiasco that resulted in a six-month absence of Hollywood blockbusters at local cinemas.

In a meeting with MPA executives on Monday, Finance Minister Agus Martowardojo said more players are needed in the movie business — both local players and foreign — to be incorporated in Indonesia, as the government seeks to fight monopoly practices in the country.

Indonesia’s foreign movie import industry — from importation to cinema chain — is currently controlled by the 21 Cineplex group.

The country currently has 676 cinemas, more than 500 of which are owned by 21 Cineplex, in 65 out of 498 cities throughout the archipelago.

“For the Indonesian government, what’s important is the spirit to create a healthy and competitive business environment with lawful taxation [compliance],” Agus said in a statement made available for The Jakarta Post on Monday evening.

With a population of 240 million, of whom 36 percent consists of young people between the ages of 15 and 40, “we don’t only need 1,000 screens, as targeted by the government, by 2014. We need five to six times as many,” he added

“This is feasible for us to achieve; with better economic conditions over the coming years, there are possibilities for Indonesia’s economic growth to surpass 8 or 9 percent,” Agus said, adding Indonesia’s per capita income was above US$3,000.

Until a new importer was found last week to screen the final film in the Harry Potter saga, and subsequent Hollywood releases, blockbusters had been nowhere to be seen at local cinemas since January after three movie importers, with exclusive rights to import Hollywood movies, were found owing Rp 30 billion ($3.53 million) in unpaid royalties, as well as hundreds of billions of rupiah in penalties.

The Finance Ministry then revised its import duties regulation, eliminating royalties and simplifying import duties to a payment of Rp 21,450 per minute for each copy of a film brought into the country.

The MPA has expressed its concerns about “the increase in duties” and on import restrictions placed on the troubled importers.

During Monday’s meeting, American MPA vice president Greg Frazier, who oversees worldwide government policy, said he hoped to “find the best long-term solution for the sake of the US’ and Indonesia’s business cooperation, especially in films” and was ready to explain the Indonesian government’s policies to MPA members.

The association’s members comprise Paramount Pictures, Sony Pictures, Twentieth Century Fox, Universal City Studios, Walt Disney Studios and Warner Bros.

“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, theater businesses, movie goers and the entire nation’s film industry stakeholders,” the Finance Minister’s statement read.

Also attending the meeting were the 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.