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Jakarta Post

Editorial: A blockbuster balancing act

  • The Jakarta Post

  /   Wed, June 22 2011   /  07:00 am

Indonesian moviegoers will again be able to enjoy blockbusters from the United States, which stopped entering the country in February, after Indonesian authorities last week decided to change the way imported movies are taxed and thereby resolved its standoff with Hollywood.

While the new levy system for imported movies will almost double import tariffs, foreign studios will not likely remove Indonesia from their export list because of the country’s huge market potential with its population of 240 million and rapidly expanding middle class.

The new tax system, announced last Friday, will still give a fair margin to both importers and international studios, with tax burdens low enough for US studios to still profit from exporting films to Indonesia, and yet big enough to discourage the import of low-quality movies.

More importantly, the new system will remove uncer...