SOEs to Collect Film Tax in All Regions

Wednesday, 29 November 2023

SOEs to Collect Film Tax in All Regions

JAKARTA. The Ministry of State-Owned Enterprises (SOE's) plans to change the film tax provisions that apply in all regions. The aim is to encourage the development of the national film industry.

The changes include setting a standard film tax rate that applies equally to all regions. In addition, taxes collected will be collected by SOEs in the film sector, in this case, the State Film Production Company (PFN).

SOE Minister Erick Thohir conveyed this through his social media account on Wednesday (29/11). "That all tax levies, cinema tickets are the same in all regions," said Erick.

To implement the plan, a regulation will be issued in the form of a Presidential Regulation (Perpres). The policy is expected to oversee the entire film ecosystem.

According to Erick, the Perpres will not only regulate the tax aspect. Rather, it includes licensing and funding. 

Based on government records, currently, the film industry is still dominated by domestically produced films with a percentage of 64%. However, if it is not maintained through policy, the portion of national films can fall again as happened in 2014-2015.

For information, recently the collection of film tax has been decentralized in various regions. Both in terms of determining tariff and collection. (ASP)


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