Kickstarting growth was a regulatory shake-up in 2016, instigated by Indonesia’s business-friendly president Joko Widodo, which removed the film industry from the country’s so-called “negative list” preventing foreign investment. Foreign investors can now hold 100% stakes in companies involved in production, distribution and exhibition. Indonesia's film industry open for investment.
The changes prompted Korean exhibitor CJ CGV, already present in the market through a joint venture, to start expanding rapidly, competing with a monopoly previously held by Indonesia’s Cinema 21 Group. CJ CGV currently has 47 sites with 300 screens in Indonesia and will soon be followed by rival Korean exhibitor Lotte Cinema, which is expected to open its first site in Jakarta before the end of the year. Indonesia's film industry open for investment.
Local conglomerate Lippo Group is also expanding rapidly through its Cinemaxx brand, which has 45 locations with 226 screens and is aiming to quadruple that number to 1,000 screens within five years. Last month, Mexican exhibition giant Cinepolis announced it had acquired a minority stake in Cinemaxx, which should help it to achieve its goals.
Meanwhile, finance is flowing into local production through local and international film studios, broadcasters, OTT platforms and Indonesia’s rapidly growing technology sector.
Not surprisingly, international studios have started to take notice. While Korea’s CJ E&M has been producing Indonesian-language films since 2014, this year has seen both 20th Century Fox and Ivanhoe Pictures enter the fray. Fox released its first Indonesian-language production, action film Wiro Sableng: 212 Warrior, in late August, while Ivanhoe recently announced a deal to co-produce three films directed by Anwar with CJ and Indonesian production houses Base Entertainment and Rapi Films. Indonesia's film industry open for investment.