"We are offering 100 percent foreign ownership to support creative industry in Indonesia," the head of Investment Coordinating Body (BKPM), Franky Sibarani, said at an Indonesia Business Forum here on Thursday.
He said Indonesia has the fourth biggest population in the world or 250 million population but the number of cinemas in the country totals only 1,100.
The Indonesian government has revised the list of sectors not allowed for foreign investment and has opened investment opportunity of up to 100 percent foreign ownership in the film industry.
The decision covers film making, distribution and exhibition or cinemas.
When asked about interesting parties Franky said so far only South Korea that has expressed its interest while the US still has yet to study the policy.
Regarding 100 percent foreign ownership he said that although foreign investment opportunity has been opened 100 percent "there is a provision requiring foreign parties to prioritize up to 60 percent national films. It would be better if our films could be exported."
Franky said Indonesian film industry must develop more professionally including in their making and distribution so that they can compete with foreign films.
"We need investors to advance national film industry until it can export," he said.
Chinese film industry is growing quite well with the box office last year increasing 36 percent to US$4.77 billion supported by ticket sales for both domestic and Hollywood films.
According to figures released on January 1 by the State Administration for Press, Publication, Radio, Film and Television Affairs (SAPPRFT) local film production raked US$2.6 billion in 2014.
Although it has contributed successes in terms of production Chinese film production drops.
In 2014 China produced 618 films down from 638 in 2013. From overseas sales their contribution has also declined collecting only US$304 billion last year.
Critics have blamed tight censorship on films considered sensitive politically for reducing the worlds interest in local films.(*)