Films are a major source of entertainment for society today. Aside from being purely entertainment, films in fact also affect the level of intelligence, develops self-potential, shapes morals, and local films in particular, promote Indonesia at a global level.2
As such, business activities supporting the film industry have an important role. As such, Film Distribution and Film Screening, need to be regulated by laws and regulations.
Therefore, in order to provide a deeper understanding of the film industry, particularly in Indonesia, this legal headline will examine several regulations that are related to film distribution and screening in Indonesia.
A. Film Distribution and Film Screening
The area of Film Distribution,3 both for Indonesian films and imported films, is carried out by film distributor businesses4 to film screening businesses5 for commercial film screenings that may be conducted through several types of media, such as projection and non-projection systems with widescreens in movie theaters, non-movie theaters buildings, open plots of land, television broadcasting, and information technology networks.6
Aside from carrying out the business activities as stated above, Law Number 24 of 2019 on Creative Economy, stipulates that film distributors and film screening businesses, specifically as film distributors and movie theaters, also play a role as Intellectual Property Operators, as they commercialize intellectual property which is owned by a third party, usually based on an agreement.7
B. Film Business Permit
As previously explained in point (a) above, film business is carried out by Film Distribution Businesses and Film Screening Businesses. Before they are allowed to carry out their business activities, Film Distribution Businesses and Film Screening Businesses are obliged to obtain a Film Business Permit that is issued by the Ministry of Education and Culture, through the Head of Film Development Unit.8
For business actors that are planning to obtain a Film Business Permit, they can register their business through OSS.9 To obtain such a permit, there are several documents that are required, such as the registering party’s identity, deed of establishment of a legal entity incorporated under Indonesian law with film as its business activity, an investment permit for entities that are wholly or partially owned by foreign parties, a domicile letter, taxpayer identification number, and organization structure of the business.10
C. Cooperation Agreement
Film Distribution that is carried out by Film Distribution Businesses to Film Screening Businesses, as regulated under the Ministry of Education and Culture Regulation Number 34 of 2019 on the Distribution, Screening, Export, and Import of Films (“MoEC Regulation 34/2019”) must be carried out through a Cooperation Agreement. The Cooperation Agreement must provide for several matters including: 11
Moreover, a Film Distribution Business must provide reports on the cooperation result at least once throughout the cooperation agreement via the website portal managed by the Film Development Center of the Ministry of Education and Culture.12(SPA)
 Films are works of cultural art which serves as social institutions and mass communication media made based on cinematographic principles with or without audible sound.
2 Law Number 33 of 2009 on Film (“UU 33/2009”), Introduction.
3 MoEC Regulation 34/2019, Article 3 paragraph (1).
4 Film Distribution Businesses is legal entity incorporated under Indonesian law that distributes Film to Film Screening Businesses.
5 Film Screening Businesses are legal entity incorporated under Indonesian law with business license to organize Film Screening in movie theaters.
6 MoEC Regulation 34/2019, Article 1 paragraph (2) in conjunction with Article 1 paragraph (4).
7 Law No. 24 of 2019, Elucidation of Article 6.
8 Ministry of Education and Culture Number 30 of 2017 on Film Business Permit Registration and Application (“MoEC Regulation 39/2017”), Article 13 paragraph (1).
9 Ministry of Education and Culture Number 25 of 2018 on Electronically Integrated Business Permit of Education and Culture Sector, Article 15 paragraph (1) and (2).
10 MoEC Regulation 39/2017, Article 12.
11 MoEC Regulation 34/2019, Article 3 paragraph (2).
12 MoEC Regulation 34/2019, Article 4 paragraph (2).