Film Industry: A New Driver for Jakarta’s Economic Growth

The Bank Indonesia (BI) Representative Office for Jakarta views the film industry as a potential new source of economic growth for both Jakarta and Indonesia.

This can be monetized and generate revenue

Bank Indonesia Representative Office for Jakarta Head, Iwan Setiawan stated that this potential arises alongside the continuous rise of the creative and digital economies, particularly among the younger generation who now dominate Jakarta’s population.

He noted that the rise of Over-the-Top (OTT) platforms and digital content consumption presents a massive opportunity for the cinematic industry. According to him, public viewing habits have shifted, with the younger generation increasingly accessing films via smartphones and digital platforms.

City Government Ready to Support the Film Industry

"Demographically, over 50 percent of Jakarta’s population consists of young people. It will only continue to grow. Young people today watch everything on their phones, and short movies are expanding rapidly. This can be monetized and generate revenue. It represents a distinct industrial opportunity capable of absorbing a significant workforce," he explained, Thursday (5/7).

According to Iwan, the film industry has a broad multiplier effect because it creates employment across various sectors. It does not only involve filmmakers and actors but also writers, editors, cinematographers, production crews, and vendors, as well as other supporting sectors that move in tandem with the industry's growth.

"The film industry provides vast employment opportunities—from filmmakers, writers, and cameramen to the crew and an extraordinary supporting system," he remarked.

He explained that this potential was initially identified through an academic study conducted by BI Jakarta during last year’s Jakarta Economic Forum. The forum brought together academics, industry players, media, and the youth to produce policy recommendations regarding potential economic sectors for Jakarta.

"We found that one highly potential source of endogenous growth is the creative economy, and one of its most promising branches is the film industry," he explained.

Further, he highlighted that the film industry is inherently resilient as it is based on creativity and does not rely on finite natural resources. Additionally, the development of digital platforms gives the industry high scalability, allowing it to reach a global market.

He mentioned that the Indonesian film industry has shown a positive trend over the last few years. Domestic production is rising, the national film market share continues to grow, and Indonesian local content is increasingly in demand on global platforms.

"Domestic productions are doing an incredible job of projecting a positive image of Indonesia to the world. This is something truly remarkable," he continued.

He added that Indonesia possesses significant capital to develop its film industry, supported by a wealth of culture, history, and diverse natural locations. According to him, this potential must be maximized to strengthen the national creative industry.

"We have an extraordinary history, a magnificent culture, and beautiful locations," he noted.

Iwan further explained that the collaboration between BI Jakarta and the Jakarta government is being strengthened to accelerate the development of the film industry as part of the vision to establish Jakarta as a "Global Cinema City." This initiative has also received support from the Vice Governor Rano Karno, who is recognized for his extensive experience in the film industry.

"With the Jakarta government's support, our collaboration will be a powerful force in driving the growth of this film industry," he concluded.