ASIATODAY.ID, JAKARTA — Indonesia’s film industry is facing growing concerns over its ability to compete in its own domestic market as foreign entertainment content continues to dominate audience preferences.
Despite having abundant creative talent and one of Southeast Asia’s largest consumer markets, the country risks becoming merely a marketplace for imported content rather than a producer of globally competitive cultural products.
The warning came from Lamhot Sinaga, Deputy Chairman of Commission VII of Indonesia’s House of Representatives (DPR), during a parliamentary hearing on the National Film Creativity and Distribution Working Committee (KDFN) in Jakarta on Monday, June 22, 2026.
According to Lamhot, Indonesia has increasingly become a consumer of foreign entertainment trends, from Latin American telenovelas in previous decades to the current dominance of Korean dramas and Chinese dramas.
“We have become a film market. First it was telenovelas, then Korean dramas, and now Chinese dramas. Meanwhile, our own industry is not growing,” he said.
Lamhot argued that the challenge goes beyond foreign competition. He criticized the narrow thematic focus of many domestic productions, which are often dominated by horror stories and infidelity-related plots, while overlooking Indonesia’s vast cultural, historical, and tourism potential.
“Films should also serve as instruments for promoting tourism and strengthening national culture,” he said.
He pointed to the lack of major productions featuring national heroes such as Prince Diponegoro and Sisingamangaraja XII, as well as the limited number of films showcasing world-renowned destinations such as Raja Ampat, Labuan Bajo, and Lake Toba.
Lamhot noted that advanced film industries have long used cinema as a tool for cultural diplomacy and tourism promotion. Hollywood productions, for example, frequently choose iconic global locations to enhance international visibility and stimulate tourism.
Korean and Chinese Dramas Tighten Their Grip on Indonesian Audiences
Recent audience trends appear to validate lawmakers’ concerns. South Korean dramas, widely known as K-dramas, and Chinese dramas have built massive fan bases in Indonesia, while a new wave of short-form Chinese “micro-dramas” is rapidly reshaping viewing habits among younger consumers.
Industry surveys show that approximately 69% of Indonesian streaming users regularly watch South Korean content. Korean dramas have become one of the most dominant forms of entertainment on digital platforms, often outperforming local productions in audience engagement and loyalty.
The average Indonesian K-drama viewer reportedly watches Korean content four times a week, spending nearly three hours per viewing session. Romantic comedy remains the most popular genre, followed by romance, action, crime thrillers, and fantasy dramas.
At the same time, Chinese dramas are experiencing explosive growth. Downloads of applications specializing in short-form Chinese drama content have surged by more than 300%, fueled by the popularity of mobile-first storytelling formats.
Indonesia has emerged as Southeast Asia’s largest market for Chinese micro-dramas—vertical-format series featuring episodes as short as one to two minutes. Industry projections estimate that Indonesia’s micro-drama segment could generate around US$66 million in revenue and expand to more than US$300 million by 2030.
Unlike conventional television dramas, micro-dramas rely on rapid plot twists, cliffhangers, and highly addictive storylines designed to maximize viewer retention. Many viewers are initially drawn in through short clips distributed on social media before migrating to dedicated applications to watch full episodes.
The trend is particularly strong among Generation Z and millennial audiences, who increasingly consume entertainment through digital streaming platforms rather than traditional television.
Major platforms such as Netflix and Viu remain key destinations for Korean drama fans, while WeTV has become one of the leading distributors of full-length Chinese dramas in Indonesia. Meanwhile, dedicated micro-drama applications such as DramaBox and ReelShort are rapidly expanding their footprint in the country.
For policymakers, these trends underscore the magnitude of the challenge facing Indonesia’s domestic entertainment industry. As foreign platforms continue to attract viewers and capture digital revenues, local producers are under increasing pressure to develop content capable of competing in an increasingly crowded marketplace.
Distribution Remains the Weakest Link
Members of Commission VII believe the core issue is not a shortage of creative talent but rather a weak distribution ecosystem. Limited access to screens and audiences often pushes producers toward commercially safer projects, reducing incentives to develop culturally significant or educational content.
As a result, films highlighting Indonesia’s heritage, history, and tourism assets struggle to secure adequate exposure.
The parliamentary working committee has therefore recommended that the government position the film industry as a strategic instrument for cultural promotion and economic development.
Proposed measures include distribution subsidies, special incentives for productions that showcase local cultures, and mandatory assessments of the economic multiplier effects generated by film activities in regional economies.
Lawmakers also urged the government to develop adaptive regulations addressing the growing impact of artificial intelligence (AI) on the creative sector, taking lessons from global film industries such as Hollywood.
Talent Is Growing Faster Than Market Access
During the same hearing, Cinema Poetica presented findings indicating that Indonesia’s film ecosystem suffers from an imbalance in investment priorities. While production financing has expanded, investment in distribution networks and audience development remains significantly underfunded.
The organization, which was commissioned by National Development Planning Agency to evaluate Indonesia’s film ecosystem in 2024, found that the country still lacks clear benchmarks for measuring cinema’s contribution to tourism promotion and regional economic growth.
Meanwhile, PT Rangkai Kreativitas Indonesia highlighted what it described as a clear supply-demand mismatch. New creative talents continue to emerge, but opportunities for distribution and audience reach remain limited.
The company, which operates a local video-on-demand platform across 20 Indonesian provinces, called for stronger support for domestic streaming platforms as they compete against increasingly dominant global services.
Without comprehensive reforms to distribution, incentives, and content development strategies, lawmakers warned that Indonesia could remain one of Asia’s largest consumers of foreign entertainment while failing to unlock the full potential of its own film industry as a driver of culture, tourism, and the creative economy. (AT Network)
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