- Title: INDONESIA: Hollywood threatens to boycott Indonesian cinemas.
- Date: 15th February 2011
- Summary: JAKARTA, INDONESIA (FEBRUARY 21, 2011) (REUTERS) EXTERIOR OF INDONESIA CUSTOMS OFFICE SIGN OF INDONESIA CUSTOMS OFFICE NEWS CONFERENCE (SOUNDBITE) (Bahasa Indonesia) TECHNICAL DIRECTOR OF INDONESIA CUSTOMS HERI KRISTIONO SAYING: "The reason for the new plan of taxation is because local movies pay more tax compared to imported movies in this country." CAMERAMEN FILMING NEWS CONFERENCE (SOUNDBITE) (Bahasa Indonesia) TECHNICAL DIRECTOR OF INDONESIA CUSTOMS HERI KRISTIONO SAYING: "So the royalties that are sent to overseas film producers would be added onto the customs tax of imported goods, in this matter, they are imported films." NEWS CONFERENCE EXTERIOR OF LOCAL CINEMA SIGN OF 21 CINEPLEX MOVIE POSTERS OF INDONESIAN FILMS VARIOUS OF MOVIE POSTERS OF INDONESIAN FILMS (SOUNDBITE) (Bahasa Indonesia) MOVIEGOER AZIZI SAYING: "I think the cinemas will be very quiet later on, because most people do not like watching Indonesian movies. They would only watch good Indonesian movies, but that is very rare." VARIOUS OF FOREIGN MOVIES POSTERS (SOUNDBITE) (Bahasa Indonesia) MOVIE GOER RICKY SAYING: "With the withdrawal of imported films, we would not have competition, so we would not have incentives to be better. It would be easier because the movies would be limited. Now the problem is the tax and we hope that the government would review it again." EXTERIOR OF LOCAL CINEMA WITH FOREIGN MOVIES POSTERS
- Embargoed: 2nd March 2011 12:00
- Keywords:
- Location: Indonesia, Indonesia
- Country: Indonesia
- Topics: Arts / Culture / Entertainment / Showbiz
- Reuters ID: LVADAR1SWTH6VJG43V0QTI6H3O1W
- Story Text: Indonesian moviegoers are facing the threat of a Hollywood boycott, after their government announced plans to raise the import tax for foreign-made movies.
Indonesia's cinemagoers may not get to watch Hollywood movies in the future, as their government's plan for a new import tax on foreign-made movies triggered a boycott threat from the United States.
The Motion Picture Association of America (MPAA), which governs the interests of the American film industry, said they opposed Indonesia's proposed tax plans.
Imported films pay a 23.75 percent excise tax and another 10 percent income tax.
"The reason of the new plan of taxation is because local movies pay more tax compared to imported movies in this country," Technical Director of Indonesia Customs, Heri Kristiono told journalists during a news conference at Indonesia's custom office on Monday (February 21).
"So the royalty that are actually sent to overseas film producers that would be added on the customs value of imported goods in this matter are imported films," Kristiono added.
Local media reported that the Motion Picture Association (MPA), which is the international branch of MPAA, was concerned that the new regulations could force big American studios to stop exporting movies to Indonesia.
Indonesia's biggest chain of cinemas, 21 Cineplex, reported that American producers had temporarily stopped the distribution of upcoming films since February 18.
Academy Awards nominees like "Black Swan" and "127 Hours" are scheduled to be released this weekend but the theater chain have not received a green light to screen the films.
Some Indonesian cinemagoers were critical of the proposed tax.
"I think the cinemas will be very quiet later on, because most people do not like watching Indonesian movies. They would only watch good Indonesian movies, but that is very rare," said moviegoer Azizi.
Every year, cinemas screen 50 to 80 local films, and between 100 to 150 foreign movies.
"With the withdrawal of imported films, we would not have competition, so we would not have incentives to be better. It would be easier because the movies would be limited. Now the problem is the tax and we hope that the government would review it again," another moviegoer Ricky said.
Indonesian government said they would review the tax plan and announce their final proposal by the end of March. - Copyright Holder: REUTERS
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