Low-class movie house on the brink of collapse
Low-class movie house on the brink of collapse
JAKARTA (JP): Around 50 low-cost movie-houses in West Jakarta
are on the brink of collapse because more and more people have
shifted to television or laser discs for entertainment.
"The programs on private television networks and the great
selection of movies available on laser disc have put our business
down," said Abadi Gunawan, one of the movie theater owners in the
area told The Jakarta Post yesterday.
Abadi said that the sharp decrease in the number of movie-
goers has forced him to close eight of the 10 cinemas he owned.
"On Saturday nights those movie-houses are visited by only about
100 visitors," Abadi said.
He said that in that situation he has to cover a deficit of Rp
3 million every month for electricity bills and staff for his two
movie-houses.
Abadi said the expansion of cineplex business under the
monopoly of the 21 Group is not the main cause of his collapse of
his business because the group has a different market share than
his own. The group is owned by noted tycoon Sudwikatmono.
"The movie shown at the 21's cinemas are for middle and upper
class people and the ticket prices are much higher than mine,"
he said, adding that the ticket price sold at the 21 cinemas are
between Rp 5,000 (US$2.3) and Rp 9,000 while at his cinemas only
Rp 1,000 and Rp 3,000.
He said that this year he will convert one of his movie-houses
into a cineplex as an effort to keep his head above water.
"I think it would be better to have one cineplex rather than
ten single cinemas," he said.
He said he needs around Rp 300 million to Rp 400 million for
the project. Abadi added that Subentra Bank, a bank also owned by
Sudwikatmono, has already promised to provide a loan.
Abadi said that as soon as the conversion was completed the
theater would keep showing movies for the less-privileged members
of society. He will sell a fixed price ticket of Rp 3,000.
Currently, out of 50 movie-houses in West Jakarta, there are
only 30 in operation.
Bisnis Indonesia daily reported yesterday that a single cinema
at the Grogol market place had also experienced a similar crisis.
Parlindungan Hutabarat, the chief of West Jakarta Tourism Sub-
Office, said recently that the existence of those movie-houses
should be protected since they a part of the mayoralty's tourism
trade.
The chief said that his office will make a special approach to
the movie-house businessmen to solve their problem.(03)