Govt to impose new tariff for imported films

Saturday, June 18, 2011 · Posted in

The Finance Ministry will soon impose a new tariff for imported movies, an official says.

Finance Minister Agus Martowardojo said that he had signed off on the new tariff on Thursday, adding that the revised rate would be implemented pending the final approval from the Law and Human Rights Ministry.

“We will impose between Rp 21,000 (US$2.45) and Rp 21,000 per minute per copy for an imported film,” Agus said on Saturday.

Agus suggested foreign film importers open branch offices in Indonesia and partner with local film distributors to improve the distribution of the businesses.

Agus said earlier that the disruption in the shipment of Hollywood movies to Indonesia was not only caused by the change in import duties, but more due to “monopolistic practices” by the country’s film distributors.

Movie importers, including Camila Internusa Film, Satrya Perkasa Esthetika Film and Amero Mitra Film, which are all affiliated with the Cineplex 21 Group, have stopped importing and distributing new Hollywood movies after the government claimed more than Rp 300 billion in arrears on royalty payments that they were unaware of.

The related parties are currently settling their cases at the tax court and will resume their import activities after they settle their disagreements.

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