Tax Authority Plans Film Industry Tax Incentive

The Directorate General of Taxes (DGT) of the Ministry of Finance is preparing a tax‑incentive scheme for the national film industry. The announcement was made on 23 October 2025 at the Coordinating Ministry for Economic Affairs. The incentive aims to ease the tax burden of domestic film producers.

The initiative follows requests from the Indonesian Film Producers Association (PPFI), the Indonesian Film Producers Association (APROFI) and the Indonesian Film Entrepreneurs Association (APFI). Authorities want to create a level playing field (equal competitive conditions) between local films and imported titles, which are subject to Specific Goods and Services Tax (PBJT) and Value‑Added Tax (VAT). Imported films also face a 10 % import duty and a withholding income tax (Article 22) on copies supplied to cinemas.

Tax Director Bimo Wijayanto said the scheme will be designed with fairness and sustainable economic impact in mind. While details are not yet disclosed, the goal is to lower tax pressure without distorting the market. The measure is expected to strengthen competitiveness and growth of Indonesia’s film sector.