BANNING HOLLYWOOD MOVIES IN INDONESIA

       Shocking news came from the movie business in Indonesia. The world’s largest film industry, Hollywood decided to stop distributing their film production in Indonesia. On 18th of February 2011, information under the MPAA ( Motion Picture Association of America ) is an organization of film producers and distributors in the United States to hold all the movies from the U.S issued a decision to stop their movies because they don’t agree about the Indonesia’s rule on tax rate. Actually all this time, each copy of imported film into Indonesia has been paid the import tax + income tax + value added tax equal to 23,75%. In addition finance ministry always receive income tax at 15% of all imported film calculating in Indonesia. Local Government were also always receive movie taxes ranging from 10% - 15% for each title which are played.

            Now the Government want to decide the new tax rate on Hollywood movies. It creates negative impact firstly, the Government will lose revenue from imported films for 23,75%  of the import duty of goods, 15% income taxes result of exploitation of foreign movies, and local government will lose 10 - 15%. Beside that Cinema with 500 screens will lose their supply hundreds of movie titles each year. With the declining number of viewers imported movie to the cinema  then the existence of cinema industry in Indonesia will be threatened. Not only that, but also 10 thousand employees and their families will be threatened. Beside that manufacture of food and beverage ( cafe/restaurant ) will be affected as well as visitors to the mall / shopping center, parking, etc, it can reduce their income. For national film industry, the situasion is an opportuity to increase the amount of film production although Indonesian film audiences decline.