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FILM AND TELEVISION INDUSTRY CONTRIBUTES USD$845.1 MILLION TO INDONESIA’S ECONOMY

Study Reveals Industry’s Potential for Growth & Employment

  • 13Jun 2012

Singapore/Jakarta – The Indonesian film and television industry contributed USD$845.1 million (Rp7,675 billion) to the country’s economy and created more than 191,000 jobs in 2010, generating USD$86.5 million (Rp785 billion) in tax revenues, according to a study by Oxford Economics, a leading global forecasting and research consultancy.

Presented by the Motion Picture Association (MPA) to representatives of the Indonesian film and television community at a press conference on the sidelines of the MPA ICAD Film Workshop held in grandkemang Hotel, the Economic Contribution of the Indonesian Film and Television Industry is the first of its kind to comprehensively measure the direct, indirect and induced economic impacts made by its indigenous film and television industry.

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“A vibrant screen industry is valuable to our country both culturally and economically. This report will provide an important foundation for identifying our industry’s areas for potential growth,” said renowned producer Shanty Harmayn. “We’d like to acknowledge the Motion Picture Association for supporting the publication of this report and take this opportunity to celebrate the creativity and commercial endeavor of all those who contribute to the screen community in Indonesia.”

Fellow respected filmmaker, Mira Lesmana, said, “This report also reveals how the film and television industry stimulates a range of service industries and significant employment in other sectors. Our industry helped generate an ‘indirect’ GDP contribution of USD$1.23 billion (Rp11,204 billion) in 2010 and supported a further 158,900 jobs. This is a considerable contribution and one worth promoting.”

“The findings highlight the potential role of the Indonesian film and television industry as an economic driver, and studies such as this are an important stepping stone to the development of a flourishing creative industry,” said Mike Ellis, President and Managing Director MPA Asia Pacific. “Indonesia has long been known as a place of creativity and its film community has a growing pool of innovative talent. This report further highlights that there are good economic reasons to continue to nurture this sector.”

Taking into account the direct, indirect and induced transactions, the film and television industry’s total economic contribution to GDP in 2010 was USD$2.98 billion (Rp27,074 billion) - 0.43% of economy-wide GDP.

The industry supported 491,800 jobs overall (0.45% of national employment) and generated tax revenues of USD$310.3 million (Rp2,818 billion) - 0.39% of total revenues.

However, despite these strong figures, the report indicates clearly that Indonesia is yet to achieve its potential to provide an appropriate number of cinema screens for local audiences. The report showed that only 675 cinema screens are currently catering to the country’s 245 million population.

“We are a movie-loving nation,” said Chand Parwez, one of the top Indonesian producers and representative of PPFI (Indonesian Motion Picture Producers’ Association). “However we’ve yet to develop our screen industry to its potential. In Malaysia, for example, in 2011 639 screens catered to a population of 28 million. More screens would benefit both audiences and local producers. We’d all love to see more local movies with bigger budgets being seen by more Indonesians.”

Key findings from the Oxford Economics Report on the economic contribution of the film and television industry in Indonesia 2010 include:

  • Direct economic contribution of USD$845.1 million (Rp7,675 billion)
  • 191,779 jobs in film and television
  • Direct tax revenues of USD$86.5 million (Rp785 billion)
  • Total economic contribution USD$2.98 billion (Rp27,074 billion) (0.43% of economy-wide GDP)
  • Supported a total of 491,800 jobs overall (0.45% of national employment)
  • Total tax revenues of USD$310.3 million (Rp2,818 billion) (0.39% of total revenues).


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    About the MPA: Promoting & Protecting Screen Communities in Asia Pacific

    The Motion Picture Association (MPA) and the Motion Picture Association International (MPA-I) represent the interests of the six international producers and distributors of filmed entertainment. To do so, they promote and protect the intellectual property rights of these companies and conduct public awareness programs to highlight to movie fans around the world the importance of content protection. These activities have helped to transform entire markets benefiting film and television industries in each country including foreign and local filmmakers alike.

    The organizations act on behalf of the members of the Motion Picture Association of America, Inc (MPAA) which include; Paramount Pictures Corporation; Sony Pictures Entertainment Inc.; Twentieth Century Fox Film Corporation; Universal City Studios LLC; Walt Disney Studios Motion Pictures; and Warner Bros. Entertainment Inc. The MPA and the MPA-I have worldwide operations which are directed from their head offices in Los Angeles and Washington, D.C. and overseen in the Asia Pacific by a team based in Singapore. For more information about the MPA, please visit www.mpa-i.org.