Indonesia plans new regulation to end film monopoly

14:05, June 21, 2011      

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The Indonesian government is preparing a rule that could lead to the end of monopoly practices and an advance on the movie business in the country, Finance Minister Agus Martowardojo has said.

The Jakarta Post quoted Agus as saying on Tuesday that with the launch of the new regulation, foreign movie producers would be encouraged to open representative offices in Indonesia so that local companies would no longer need to import them from their respective countries.

With such a policy, the representative offices and local distributors would be allowed to copy the movies in Indonesia, the minister said. By doing so, all theaters can screen the movies as no more exclusive rights are given, Agus said.

"With the new regulation, the people will think that it's secure for them to run a theater business, because supply will be maintained," he said.

Martowardojo declined to disclose the type of regulation, but said it would need up to three months to complete the new rules if there was political support from related ministries, including the Culture and Tourism Ministry and the Investment Coordinating Board (BKPM).

The Culture and Tourism Ministry's film director, Samsul Lusa, did not respond to queries from The Jakarta Post via telephone and text message regarding the government's regulatory plans.

Film theaters in Indonesia have been screening underrated movies since early this year while much-awaited blockbuster films have been nowhere to be seen, as companies that have the exclusive rights to import Hollywood movies were still prohibited from conducting their activities because they were still unable to settle their unpaid taxes.

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