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Editorial: Monopoly on Movie Distribution Must End

2 September 2011

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Editorial: Monopoly on Movie Distribution Must End

For more than six months, Indonesian moviegoers were deprived of the luxury of watching foreign films, especially Hollywood blockbusters. During that time, the industry came under public scrutiny, revealing some unpleasant truths.

First, film importers were recalcitrant on their taxes. Finance Minister Agus Martowardojo stood his ground and demanded that those overdue taxes be paid before the ministry would discuss a friendlier tax regime for importers.

The fact that film distribution in the country remains a monopoly despite new anti-monopoly laws was also brought to light.

This unfortunate situation has been going on for more than 20 years despite numerous attempts to break the monopoly. In 2009, cinema operator Blitzmegaplex urged the Business Competition Supervisory Commission to take action against Group 21, the company with a monopoly on domestic film distribution, to no measurable effect.

 

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Via The Jakarta Globe

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