Supporting the Indonesian Film Industry Investment through National Movies


To support the Indonesian film industry investment, national movies are expected to grow. The good news is the Indonesian film industry growth is increasing with the rising number of domestic film production and the sum of viewers. Yes, it’s not Hollywood yet, but it’s not impossible for Indonesia to be dominate Asia’s next big film scene. More and more local cinema and production owners are taking their companies public, which grows the chance of Indonesian film industry investment.

The history of the Indonesian film industry

In Indonesia, movies have been produced since the 1920s. However, early efforts were unwelcome by local audiences due to the Japanese occupiers’ prohibition of film production during World War II. In later years, only films permitted by the government made it to the screen. Most Indonesian movies in the 1950s and 1960s, in result, were uninspired and dogmatic. Only later in the 1980s, the Indonesian film industry began to release successful films.

In 1988, an Indonesian film with the title “Tjoet Nja’ Dhien” became the first Indonesian movie to be screened at the Cannes Film Festival. As the Indonesian film industry began to develop, it was unfortunate that independent filmmaking collapsed again in the 1900s and early 2000s. But the Indonesian film industry started to revolt again with several very popular films like “Laskar Pelangi” (2008), a movie about 10 poor schoolchildren’s struggles in a rural village for example.

The effects of restrictions lifting on foreign investment

In 2015, Indonesian President Joko Widodo declared an initiative to improve Indonesia’s “creative economy” and has since lifted restrictions on foreign investment in local film production. The initiative leads some international corporations to invest in Indonesia’s movie productions, from South Korea’s Lotte Cinema Co. Ltd. to Hollywood’s Twentieth Century Fox. Then in 2018, “Wiro Sableng 212” became the first collaboration between Fox and a local production house.

The collaboration showed such a satisfying result as it earned a respectable $3 million at the box office. However, it’s uncertain if or when Fox will work on another Indonesian project. What’s clear are national movies of Indonesia kept on releasing and getting more attention from viewers. Last year, “Dilan”, a teenage romantic movie, was able to draw up to 6.3 million viewers, and successful to survive on cinema screens for more than a month.

The development and growth of the Indonesian film industry

Indonesia has several popular movies which managed to gain a high number of viewers. It is certainly a very exciting thing for the national film industry, as with it, it is expected that more investors will look at the local film industry. The thing is, essentially speaking, the development and growth of the Indonesian film industry have not been very optimal. There is a reason behind that statement, and it can be easily seen in the film industry’s contribution to the Indonesian economy.

The film industry, in 2015, only contributed not more than 0.16% of Indonesia’s Gross Domestic Product (GDP). Meanwhile, at that time, the average creative industry sector was able to contribute 6.03% of Indonesia’s GDP. So, in order to increase the number of local film viewers through market share enhancement, the Ministry of Education and Culture is ready to sponsor national film actors to work with international film actors in producing quality films that will attract more viewers.

The chances that Indonesian film industry investment grows are big. As filmmakers grow in superiority and appeal the budgets for more sophisticated movies, the business should grow well. Indonesia is the world’s fourth most populous country, with nearly 141 million of its 264 million citizens, by 2020, set to enter the middle class. That’s a lot of eyeballs to win national movies and support the Indonesian film industry.