Foreign Investors Eyeing Indonesia’s Movie Theater Industry
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Foreign investors have had their eyes on Indonesia’s movie theater business for quite some time now. According to the information collected, there are investors from South Korea, Germany, Britain, and India that have made approaches; expressing their desire to invest in the industry.
One of said foreign investor is Lotte Group. In 2012, the group made aggressive approaches to the government, with plans to open up to 100 cinemas in Indonesia.
In mid last year, Deutsche Bank and Rothschild Group expressed their interest to provide US$ 100 million for the expansion of Cinemaxx, a cinema network owned by the Lippo Group. Using that fund, Cinemaxx aimed to open 2,000 theaters over the next ten years.
Endah W. Sulistianti, the deputy for Regional Inter-Agency Relations and Creative Economy Agency, confirmed that foreign investors are attracted to Indonesia’s movie theater business. However, the law prohibits the industry from being entered by foreign investors.
“Right now the government is discussing over the possibility of allowing foreign investment in the cinema business,” she said last week.
Hilmar Farid, Director General of Culture, said that the government actually has no problem with foreign involvement in the industry—provided that it poses no harm to national interests. He said it is important to make sure that if foreign investment is allowed, Indonesian cinemas will not only play foreign films.
“There needs to be clear regulations and the sharing scheme must be clear as well,” Hilmar said during his interview.
Questions & Answers
Q.Which specific foreign investors have shown interest in Indonesia's movie theater industry?
Which specific foreign investors have shown interest in Indonesia's movie theater industry?
Investors from South Korea, Germany, Britain, and India have expressed interest. The Lotte Group is mentioned, as are Deutsche Bank and Rothschild Group.
Q.What is preventing foreign investors from entering the Indonesian cinema market at present?
What is preventing foreign investors from entering the Indonesian cinema market at present?
The current law prohibits foreign investors from entering the industry. The government is discussing the possibility of allowing foreign investment in the cinema business.
Q.What specific concerns does the Director General of Culture have regarding foreign investment in the cinema industry?
What specific concerns does the Director General of Culture have regarding foreign investment in the cinema industry?
Hilmar Farid is concerned that Indonesian cinemas might only play foreign films. He also stressed the need for clear regulations and a clear sharing scheme.
Q.Which Indonesian cinema network planned significant expansion with foreign funding?
Which Indonesian cinema network planned significant expansion with foreign funding?
Cinemaxx, owned by the Lippo Group, aimed to open 2,000 theaters over the next ten years, using US$100 million from Deutsche Bank and Rothschild Group.
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