Local film industry takes on 21 group

Joko E.H. Anwar, Contributor, Jakarta

A non governmental organization is compiling evidence to support its allegations that the 21 group, the country's major film distributor and exhibitor, has been engaged in monopolistic practices, but getting anything done about it is proving to be difficult.

Little publicized changes in the local film scene might become one of many things the newly set up non governmental organization Monopoly Watch has to deal with in its efforts to bring down the goliath.

"The 21 group did practice monopoly in the past but not anymore," a keen observer of the Indonesian film scene A. Rahim Latif told The Jakarta Post.

"Today they are merely a well-established company which is just too big for others to compete with," said the former film importer and producer who fought against the group together with well-known names in the film industry like Christine Hakim and Eros Djarot. Then, when then president Soeharto was still in power, they sued the group for not giving the Indonesian film Langitku, Rumahku (My Sky, My Home) enough screening time at the group's theaters. As expected, they lost the court battle.

The group was a product of nepotism by the former president.

In 1986, it managed to control all three associations of film importers -- the Association of Mandarin film importers, the Association of European/American film importers and the Association of non-Mandarin film importers. The group also began to build film theaters throughout the country.

Since the group had all the film importers under its wing, other theaters only got the chance to screen films after they were shown at 21 theaters. In the end, theaters outside those belonging to the group could not compete as most everybody went to the group 21 cineplexes to see the new films.

But changes started to happen after Soeharto stepped down. Former information minister during B.J. Habibie's presidency, Yunus Yosfiah, liquidated the three associations in 1998.

Later, without much fanfare, some independent film importers began to emerge, including past players which had to shut down their businesses during the Soeharto era.

Data from the Film Censorship Board (LSF) shows that today, there are 22 film importing companies in the country -- including five companies which belong to the 21 group.

Some importers also own film theaters like the biggest producer of the local TV soap opera, sinetron, Raam Punjabi, who together with conglomerate Abdul Latief built the luxurious cineplex MPX Grande in Pasaraya shopping center in South Jakarta.

On May 31, 2000, a new, independent Association of Motion Picture Importers (IKAPIFI) was formed. However, there is no rule which says all importers have to join the association.

Today, the association has 14 members including the five companies that belong to the 21 group.

Still, the 21 group is the biggest film importing company which, according to data from LSF imported 118 out of a total of 211 films passed by the board last year. The group also has the rights to import major releases due to their affiliations with major film companies in the U.S.

No doubt the 21 cineplex group still owns most of film theaters in the country although they have been more lenient in sharing their screens to show films which are not one of their imports such as Sylvester Stallone's racing movie Driven last year and many other well-known titles.

But the group's policy of refusing to work transparently with others has made them difficult to deal with.

And Monopoly Watch keeps gathering facts which can back up their allegations. It insists the group is engaged in unfair business practices.

Last month, after completing investigations in five cities -- in Jakarta, Bogor, Bekasi, Depok and Surabaya -- the NGO reported their findings to the antimonopoly watch-dog Business Competition Supervisory Commission (KPPU). The NGO blames the 21 group for the closure of many theaters outside their chain.

Secretary of the NGO's executive board, Samuel Nitisaputra said the group was practicing monopoly by appying barriers for some movies.

"If you are a film producer, and you want to show your movies outside the 21 chain first, they will not allow your movie to be shown at their theaters later," Samuel told the Post.

Samuel also said the 21 group should not be affiliated with major U.S. studios anymore, so as to enable every film importer to directly buy movies.