Erick Thohir Reveals Jokowi to Issue Movie Tax

TEMPO.CO, Jakarta - Indonesian Minister of State-Owned Enterprises (SOE) Erick Thohir disclosed today, Nov. 29, that President Joko "Jokowi" Widodo intends to regulate the tax on movies. According to the minister, domestic films account for 64 percent of those shown in the nation.

If this trend is not maintained, he argued that Hollywood movies or those produced in the United States (US) will outnumber domestic films, as occurred in 2014-2015. 

“The President will announce a policy that we, as a state, side with the national film industry,” Erick said in a video posted on his official Instagram account @erickthohir, quoted on Wednesday, November 29.

“The government will standardize film taxes for all regions so that all tax levies and cinema tickets are the same in all regions,” the minister added.

He indicated that the tax would be collected later by the State Film Company (PFN), an SOE overseeing the film industry.

“There will probably be a presidential regulation that can cover the entire ecosystem, both in terms of taxation, licensing, and financing,” he said.

This will ensure a clean and clear financial process for film taxes. The PFN also plays a role in assisting filmmakers to seek potential investors.

“Meanwhile, for licensing, other ministries and institutions and I will coordinate to scrap the regulations so film production can be more efficient,” Erick Thohir said.

AMELIA RAHIMA SARI

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