Key insights and market outlook
Indonesian President Prabowo Subianto has directed the Ministry of Creative Economy and Danantara to develop a new cinema business model to attract local investors and increase the number of theaters in regional areas. Currently, cinemas remain scarce outside major cities. The proposed model aims to create a sustainable business scheme that prevents cinemas from closing after 1-2 years of operation.
President Prabowo Subianto has emphasized the need for a new cinema business model to increase the limited number of movie screens across Indonesia's regions. The initiative, led by the Ministry of Creative Economy and Danantara, aims to attract local investors to develop cinemas in regencies and cities outside major urban centers.
The current cinema landscape in Indonesia is characterized by a significant concentration in major cities, leaving regional areas underserved. Prabowo's directive focuses on creating an attractive investment model for local businesses to fill this gap. Teuku Riefky Harsya, Minister of Creative Economy, explained that the proposed business scheme is still under development, with a focus on creating a sustainable operation model that prevents cinemas from shutting down prematurely.
The Ministry is currently in discussions with Danantara to finalize the business mechanism. The collaboration involves assessing various factors to ensure the long-term viability of cinemas in regional areas. This initiative represents a significant effort to expand Indonesia's entertainment infrastructure and promote cultural development across the archipelago.
New Cinema Business Model Proposal
Regional Cinema Development Initiative