Indonesia's Film Industry Is Not Just Entertainment, It Can Become a New Economic Engine
Indonesia’s film industry is no longer just about entertainment but serves as a gateway to major business opportunities that can propel the nation’s creative economy onto the global stage. This is evident in the return of the Australia Indonesia Cinema Festival (FSAI) 2026, held in 11 cities across Indonesia.
Deputy Minister of Creative Economy, Irene Umar, emphasised that the film industry has multi-layered economic impacts, ranging from ticket sales to derivative businesses such as merchandise and licensing.
“A film is not just about watching for two hours. From ticket sales, it can expand to licensing, merchandising, and other businesses,” said Irene during the press conference for the opening of FSAI 2026 in Jakarta on Wednesday (22/4/2026).
She assessed that this potential could serve as an entry point for Indonesia to expand its market globally, rather than relying solely on the domestic market. Additionally, Irene highlighted the economic impact of festivals like FSAI, which is not only immediate but also long-term through strengthening human resource capacity in the creative industry.
According to her, over more than a decade, the festival has contributed to the development of Indonesian filmmaking talent, including through various training programmes and exchanges to Australia. This also opens access for industry players to understand global production standards as well as supportive film industry policies in advanced countries.
Irene added that this knowledge exchange is key to elevating the Indonesian film industry and competing internationally. She stated that cross-country collaboration enables the transfer of expertise, both in technical production and business development in the creative sector.
“This knowledge exchange is important, not only from a cultural perspective but also technical. When two strengths are combined, the result will be much stronger, so the spirit of collaboration is there,” she said.
Meanwhile, the Australian Ambassador to Indonesia, Rod Brazier, described the festival as a means to strengthen economic and cultural relations between the two countries, particularly through the creative industry. He noted that last year alone, the number of attendees at FSAI exceeded 6,000.
“The main goal of FSAI is to strengthen relations and open opportunities for creative industry collaboration,” he said.
At the opening of FSAI 2026, the film “Kangaroo”, an Australian family film lasting about two hours inspired by a true story, was screened. The film tells the story of an urban man whose life changes after caring for a baby kangaroo (joey) in the Australian outback.
Through this interaction, he rediscovers the meaning of life, while presenting a heartwarming story close to themes of family and human connection with nature. Although the plot is light and tends to be emotional, the film is considered strong in delivering messages about care for animals and communities.
Meanwhile, FSAI is held in 11 cities: Jakarta, Manado, Semarang, Medan, Bogor, Makassar, Surabaya, Kupang, Banjarmasin, and Mataram. The festival features five Australian films and two Indonesian films: Jumbo and Rangga & Cinta.
In addition, the festival showcases short films by alumni of Australia Awards and holds masterclasses with international filmmakers. All events are held free of charge from 8 to 23 March 2026.