Government killing film industry with tax burdens<\/p>\n
Tony Hotland, The Jakarta Post, Jakarta<\/p>\n
Horror movie actress Suzanna was perhaps one of the few
\nreasons why the Indonesian film industry stayed in business in
\nthe 1990s after producers and film activists turned their eyes to
\ntelevision soap operas.<\/p>\n
In her films, Suzanna often took on role of a devilish long-
\nhaired woman with a bleeding hole on her back and snakes on her
\nhead, who always triumphed in her revenge against evildoers at by
\nend of the movie.<\/p>\n
While some people considered her movies tasteless, the fact is
\nthat they cost little to make, but paid off quickly and well.<\/p>\n
It is an overused lamentation that it costs a lot to produce a
\nquality film. Still, the budget remains the biggest factor for
\nproducers, even with a wittily penned screenplay and everybody's
\nfavorite actors.<\/p>\n
Yes, you can shoot a movie using cheaper digital equipment
\nthat flares flat pictures inside a garage furnished with a few
\ndifferent backgrounds. Throw in a couple of smooches and
\nartificial conflicts, and you get a movie you may brag about.<\/p>\n
Or spend a few billion rupiah more to shoot on the celluloid
\nand produce real life pictures, pick a few compatible locations
\nand have a bit of serious brainstorming to come up with playful
\nplots and thoughtful dialogs.<\/p>\n
Success is not guaranteed though in either case.<\/p>\n
Analysts mostly blame the low productivity of the nation's
\nfilm industry on the scarcity of fine scripts and visionary
\ndirectors. However, the costly raw materials and the numerous
\ntaxes imposed on the industry are also factors behind the
\nsituation.<\/p>\n
There are around nine steps in making a film that are taxed,
\nstarting from a 5 percent import duty and another 10 percent of
\nvalue added taxes for the celluloid, which the government
\nconsiders a luxury item and taxes accordingly.<\/p>\n
The next steps include editing, dubbing, optical transfer,
\ncopying and distribution, all of which are taxed from 5 percent
\nto as high as 30 percent.<\/p>\n
In total, a standard film usually takes between Rp 4 billion
\n(US$421,052) to Rp 5 billion out of a producer's pocket.<\/p>\n
Producers have insisted that since film-making is a creative
\nthing, the industry needs support from the government, rather
\nthan the heavy tax burden.<\/p>\n
The taxes are so burdensome considering the fact that
\nequipment rental fees are already high and that producers have to
\ncarry out the post-production process abroad because Indonesia
\ndoes not have adequate facilities.<\/p>\n
A request to cut down or abolish the taxes will not be welcome
\nby the cash-strapped government, but there are indeed some things
\nthat the government can do to assist the resurrection of the
\nindustry.<\/p>\n
Disappointed producers have lashed out at the government for
\nfailing to return even a small portion of the revenues generated
\nfrom the industry to turn it into a leading, rather than a
\nsupporting, actor in the country.<\/p>\n
Blockbuster Ada Apa Dengan Cinta? (What's Up With Cinta?)
\nreportedly grossed Rp 25 billion. While only a small portion went
\nback to the producers, the majority was spent on production and
\npayments to theater owners and the government.<\/p>\n
Producer Mira Lesmana said she ended up paying over Rp 5
\nbillion in taxes to the government.<\/p>\n
That was just one film! There have been over 50 movies
\nreleased since 2000 -- the so-termed year of the resurrection of
\nIndonesian film.<\/p>\n
Meanwhile, the government allotted, in the 2004 state budget,
\nRp 504 billion for the Office of the State Minister of Culture
\nand Tourism.<\/p>\n
The office's deputy for arts and film, Sri Hastanto, said he
\ndid not know how much was set aside to support the film industry,
\nbut in the past it was about 30 percent of the total.<\/p>\n
For what? Almost for nothing, according to film activists and
\nproducers.<\/p>\n
Worse, film organizations have also failed to live up to the
\nexpectations of the nation's new film idealists because the
\norganizations did not even try to take breakthrough measures to
\nrevive the films during the industry slump, but switched
\ndirections and went to the television industry instead.<\/p>\n
The situation, Mira said, should be reciprocal given the
\nenormous amount of revenue that the film industry contributes to
\nthe government.<\/p>\n
Among good things that the government could give back to the
\nindustry are, the establishment of educational facilities to
\nboost film-making activities, provision of film technologies that
\ncan reduce post-production costs and the promotion of Indonesian
\nfilms internationally.<\/p>\n
This way, while the taxes paid by producers remain
\nirritatingly high, at least there would be more incentive.<\/p>\n
And by these incentives, the industry might discover the
\nsolution to such issues as the shortage of bright screenplay
\nwriters and directors who are capable of thinking outside the box
\nand bringing the local film industry to a new, respected level.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-killing-film-industry-with-tax-burdens-1447893297",
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"sponsor": "Okusi Associates",
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