Measuring the Economic Capacity of the Indonesian Film Industry

Abstract

This paper starts from an old problem that has hampered the Indonesian film industry: the lack of comprehensive data. This is a problem for all film stakeholders, who cannot depend on macroeconomic indicators in running their business. From here, this paper attempts to answer the questions 'how should we correctly calculate the contribution of films, or the film industry, to Indonesia's Gross Domestic Product?' and 'how should we measure the economic impact of the film industry outside of the Gross Domestic Product?'. From there this paper explores several methods to measure the impact of the film economy on Gross Domestic Product, and/or calculate the economic potential of film, as well as highlighting the multiplier effect of this industry in other sectors. In the context of an increasing number of cinema screens, there is a need to see whether the layered effect of Indonesian cinemas is currently having a significant impact, or whether it will have a significant impact in the near future. Another thing to understand is the current state of the industry, and what policies can further support its contribution to the Indonesian economy.