Indonesia import woes set to continue

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Getting a steady flow of Hollywood movies back into Indonesia could take several more months, despite the government’s recent announcement of a revised import tax.

The enduring hiatus, which has caused box office to collapse by more than 60%, means that cinemas are unlikely to play the summer’s major releases including Transformers 3, Kung Fu Panda 2 and the final instalment of the Harry Potter franchise.

Last month the government tweaked its plans to impose a new film import tax, a measure partly intended to help local titles, replacing a proposed royalty on the overseas remittance of revenues with a new tax on imported film. This is to be levied according to the duration of the film.

Finance minister Agus Martowardojo new tax should be low enough for Hollywood studios, which have halted new releases since late February, to resume releasing their films in the country.

One outstanding issue facing the new system is that it may take three to four months for the necessary legislation to complete its passage through parliament.

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Via Film Business Asia