Film importing monopoly 'should be scapped'

By Marselli Sumarno

JAKARTA (JP): In the New Order era, Harmoko, who made quite an achievement by assuming the position of information minister three times, consistently denied the allegation that there were monopolistic practices in the purchase and distribution of imported films in Indonesia.

Today, Minister of Information Muhammad Yunus, having held his position for only two months, made headlines with his statement: "Scrap the monopoly in film imports!"

It is not our business to find out why Harmoko and Yunus are at extreme opposites. What matters most is when the monopoly in film imports will be scrapped and what measures should further be taken after the abolition of this monopoly.

In the 1950s, Indonesian films could hardly breath in the upper level of the market because of the dominance of Hollywood films; while at the lower level they had to compete hard with Indian, Malaysian and Philippine films.

Usmar Ismail and Djamaluddin Malik, two leading national film producers in this period, were also film importers. Of course each had their own preferences. Usmar, an idealist, imported serious films while Djamaluddin usually imported more commercial films.

As for Hollywood films, pursuant to an agreement between the Indonesian government and the Motion Picture Export Association of America (MPEAA), distribution in Indonesia of films produced by members of MPEAA would be permitted.

To this end an agency, called the American Motion Picture Association of Indonesia, was set up to take care of this distribution.

Political turmoil in the mid-1960s had a significant impact on national films and movie theaters. American films were boycotted by a movement supported by the Indonesian Communist Party. The American Motion Picture Association of Indonesia was finally disbanded. This boycott was also applied to films from other countries, particularly from Malaysia, which was then involved in a confrontation with Indonesia. As a result, many movie theaters went bankrupt owing to short supplies of films.

In the New Order era a number of unions of film importers were set up. First was the Association of National Film Importers, Producers and Distributors. This was replaced later by the Film Importers Coordinating Agency. The agency was later changed into the Film Importers Consortium, which in the early 1980s turned into a film importers association.

One roof

These unions of film importers had to take different forms because of among other things: (a) their members were increasing in number; (b) imported film quota was big and (c) it was difficult to have efficient management. Even the final form, the association, has proven to bring about problems too.

In 1985 the Association of Mandarin Film Importers (led by Sudwikatmono as the owner of PT Suptan) merged with the Association of Importers of European/American Films.

Later on, the Association of Importers of Non-Mandarin Asian Films joined this merger. Hence the formation of a monopoly or a "one-roof management" for film imports.

Sudwikatmono is a tycoon who owns the Subentra Group. Suptan, as a film importer, is but one of Subentra' subsidiaries. Suptan became powerful as it got hold of a number of main distribution channels. This was a smart move indeed. The Subentra Group created a network of movie theaters, known as the 21 Group, in a number of major cities. Many long-established movie theaters had to join this group, including the legendary Megaria, which was set up in 1949. Megaria, located in Central Jakarta, had its name changed to Metropole.

As sole importer which also controlled the distribution chain and the movie theaters, Suptan would prioritize the films it imported for movie theaters under its control. In this way, movie theaters outside the 21 Group became helpless. They had no other choice but to screen any film offered by the distributor.

In fact the quota of imported films continued to be cut. In the 1970s the annual quota of imported films stood at some 700 titles with a limit of only two copies each.

This level continued to be reduced to 160 titles, but each title could have as many copies as needed.

The alleged monopoly in film imports, later also in the film distribution sector, became a hot topic of public debate in national film circles.

Eros Djarot and Slamet Rahardjo, two brothers who are both noted film directors and producers, also joined the debate. They claimed that the practices adopted by Suptan had caused a host of serious difficulties to regional distributors, who were in control of hundreds of movie theaters.

In fact, old movie theaters were the right market for national films. Eventually, national films fell victim to the monopoly in film distribution.

This distribution squeeze even made film director Slamet Rahardjo take the case of the distribution of his film Langitku Rumahku (My Sky My Home) to court.

Although the court did not rule in his favor, it was clear that the competition in terms of the distribution of national and imported films was not fair.

In 1991 MPEAA began to distribute films directly to Indonesia. MPEAA later became the Motion Pictures Association of America (MPAA). The Indonesian government permitted MPAA, which has major U.S. film producers as members, to directly distribute its films to Indonesia with the provision that this should be conducted through an importers association.

Crisis

It was no coincidence that the existing importers association was also ready with its own network of movie theaters under the banner of the 21 Group.

Time moved on. Indonesian films sunk deeper into a quagmire of difficulties. Market competition with imported films intensified. New competitors emerged: private television stations. Worst of all, the onset of the economic crisis in July 1997.

The crisis has made virtually all imported products, including films, very costly. Sources have said that beyond the films directly distributed to Indonesia, films imported by Subentra are in short supply because prices have skyrocketed. These non-MPAA films are known as independent films. In the same way, Hong Kong and Indian films have also soared in price.

Now that the development in film imports in Indonesia over different periods has been observed, the following measures, in light of the reform spirit, may be recommended:

First, the monopoly in film imports should be immediately scrapped. Fresh opportunities should be offered to qualified newcomers to act as film importers. In the 1950s, for example, a dedicated film producer could import films. In this way, imported films would be of greater variety.

Second, the monopoly in film imports should abolish monopolistic practices in the distribution of imported films. In this way, movie theaters outside the 21 Group would have the freedom to screen films which in their estimate would be profitable.

Third, the 21 Group should be allowed to continue their movie theater business as long as this is not "collusively" related with the businesses of purchasing and distributing imported films.

This means that the agreement on the distribution of MPAA films through an association of film importers should be replaced with a system which would benefit the development of national films.

In short, film imports, film distribution and movie theaters should be separate businesses. Only in this manner can monopolistic business practices in imported films be avoided.

The writer is a film/TV observer and lecturer at the Film and Television Department of the Jakarta Arts Institute.