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Indonesia's movie fans 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, which governs the interests of the American film industry, says they oppose Indonesia's proposed tax plans. What's behind the decision? Let's go to Jakarta for more.
The Motion Picture Association of America (MPAA) is withdrawing Hollywood films from the Indonesian market -- a reaction to sudden tax increases.
In the past, the MPAA paid only $20 per meter of film but now that's increased to $43 a meter, as well a 24% import duty tax and an income tax of 10-15% of profits.
Indonesia's president has directed his culture and tourism minister to act.
[Jero Wacik, Indonesian Minister of Culture and Tourism]:
"There's a complaint from the film industry, asking why the tax was so high... they ask me how the high tax can encourage the local film industry."
The minister says there is room to move on the issue.
[Jero Wacik, Indonesian Minister of Culture and Tourism]:
"If necessary I will reduce the tax, but the owners of movie theaters or the film importer has a moral responsibility to build more cinemas. If we subtract the tax they should build more cinemas and add more screens. So there are more jobs for locals."
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[Terry Putri, Indonesian Celebrity]:
"I hear one of the boycott factors is because here in Indonesia, piracy is uncontrolled. So if they boycott, I think piracy crimes will go mad."
Indonesia's biggest chain of cinemas, 21 Cineplex now can only show Indonesian films, but these are in short supply.
Every year Indonesian cinemas screen 50 to 80 local films, and between 100 to 150 foreign ones.
Indonesian authorities say they will review the tax plan and announce their final proposal at the end of March.
NTD News, Jakarta, Indonesia.
