DKI Jakarta Regional Government Formulates Incentive Regulations for Film Industry
Jakarta — The DKI Jakarta Provincial Government is formulating incentive policies for the film industry to strengthen the creative ecosystem in the capital whilst encouraging the transformation of Jakarta into an inclusive, competitive, and sustainable cinema hub.
The policy formulation involved associations of both film producers and the Indonesian Cinema Operators Association in discussions with DKI Jakarta officials at City Hall on Tuesday, 10 March.
“We hope that the DKI Jakarta Provincial Government can formulate regulations that are acceptable to all parties, whilst promoting an increase in national film production,” said DKI Jakarta Deputy Governor Rano Karno in a statement in Jakarta on Wednesday.
He stated that the legal basis for the incentive policy is regulated under Regional Regulation Number 1 of 2024 concerning Regional Taxes and Levies, which grants local government authorities the power to establish policies including tax relief, reduction, or exemption.
“Furthermore, through Jakarta Governor Regulation Number 27 of 2025, a 50 per cent reduction in principal tax has been established for Certain Goods and Services Tax on arts and entertainment services, including national film screenings in cinemas,” explained Rano.
He emphasised that strengthening the creative sector, including the film industry, is an important factor in increasing regional competitiveness. Therefore, the DKI Jakarta Provincial Government is promoting the development of the creative economy sector through the role of the Jakarta Film Commission.
According to him, collaboration between government and industry players is the key to building a resilient cinema ecosystem that is recognised globally.
“As Jakarta approaches its fifth centenary, we hope this city can produce more quality films, become an attractive production location for filmmakers, and develop as the centre of Indonesia’s cinema industry activities,” he stated.
The tax-cutting policy was formulated by referring to trends in tax revenue from the cinema sector, which has consistently provided significant contributions to the region. Cinema tax revenue reached approximately Rp81 billion in 2023, declined to Rp72 billion in 2024, and increased again to more than Rp84 billion in 2025.