TEMPO.CO, Jakarta-Vice CEO of PT First Media Irwan Djaja said the company observed that investment in Cinema had been extremely prospective since the last two years. First Media currently owns 16 theaters in 80 cities with 85 screens.
“This year we will possibly add other 40 theaters and 250 screens,” Irwan said Thursday, March 3, 2016.
The capital expense for a cinema ranges between Rp1-2 billion. The company claimed it has several alternative funding sources, namely capital market, a bank owned by First Media, foreign investors, and internal cash flow.
The locations have yet to be set as theater requirements outside Jakarta are quite high. There are many areas in Indonesia that do not have good-quality theaters.
According to Irwan, there are about 5,000 potential theaters in Indonesia. “Currently, Indonesia only has 100 screens.”
Cinema is one of First Media’s investments in the infrastructure sector besides the investment in service and content sectors.
In content sector, First Media invests in channels, production house, and creative agency. Meanwhile, in service sector, the company provides internet, television, and data communication services.
VINDRY FLORENTIN