The comeback is truly alive and well. After being nearly decimated by the pandemic, Indonesian cinema has bounced back on its feet in recent years. Not only that, it has also ascended new heights that were previously unthought of, even during the good times before the pandemic.

The first feel-good sign emerged in May 2022, when KKN di Desa Penari became the highest-grossing film in post-Reformation Indonesia with 10.06 million admissions. The milestone was followed by the incredible domination of Indonesian films in the national box-office in the year after. 2023 closed with 20 domestic films with more than one-million admissions—a record accomplishment, surpassing the previous record of 15 films in 2019, and a notable increase from 14 films of the previous year. 2024 marked another proud achievement—more than 78 million admissions were recorded for domestic films, making it the most productive year ever in the modern history of Indonesian cinema.

Such a purple patch surely brings expectation. At the moment, nobody in the industry is sure how high the ceiling could be, but most stakeholders agree that the future is upward for Indonesian cinema. At the very least, the first half of 2025 brought lots of promises. In May, Indonesian cinema had a new champion as Jumbo claimed the nation’s highest-grossing film of all time with 10.23 admissions. There are also nine other films that have passed the one-million admission milestone, with 54.12 million admissions and 44% market share for domestic films as per August. Amidst the seemingly endless chaos after the nation elected a former military general into power, the Indonesian cinema more than managed to maintain its appeal on the moviegoing masses.

Fear rules the market. For decades horror has been the mainstay of Indonesia’s box-office, especially so since the pandemic. The success of KKN di Desa Penari naturally set a precedent, which was followed by the next wave of Indonesian horrors such as Sewu Dino (2023, 4.86 million admissions), Di Ambang Kematian (2023, 3.3 million), Siksa Kubur (2024; 4 million), and Badarwuhi di Desa Penari (4.01 million). Dominating the top end of Indonesia’s box-office, these films are connected by their reliance on existing popular IPs. KKN di Desa Penari, Sewu Dino, and Badarwuhi di Desa Penari are all rooted in viral social media posts by an enigmatic user named SimpleMan (@SimpleM81378523) on X, while Di Ambang Kematian is adapted from a viral thread by @jeropoint on the same platform. This trend continues on 2025. Pabrik Gula, also adapted from one of of SimpleMan’s stories, managed to garner 4.72 million admissions while Petaka Gunung Gede, based on a popular podcast, recorded 3.2 million admissions. Amidst the horror wave, Siksa Kubur proved to be somewhat of an outlier. While technically a feature-length adaptation of a short film with the same title, the film’s success owed more to the cult-like fame of its director, Joko Anwar. Released theatrically in April 2024, Siksa Kubur attracted lots of online interactions from its audience, from appreciative posts to threads commenting on the film’s easter eggs, which the director is famous for and would willingly entertain the public with hints and teasers in social media. During its one-month theatrical run, the film succeeded in attracting 4 million admissions, becoming the year’s sixth highest-grossing film.

This shows that the Indonesian market is open to new IPs or creator-led projects, as long as they are backed by big personalities. 2025, which oversaw 130 domestic theatrical releases as per August, played out a similar phenomenon through the films of Yandy Laurens. Widely renowned for his heartfelt and tearjerking stories, Laurens released two films in the period: 1 Kakak 7 Ponakan and Sore: Istri dari Masa Depan. The former is a family drama adapted from a 1990s television series, while the latter is a romance that is told through intriguing time loops, remade from a Youtube series of the same title (also directed by Laurens). Much like Siksa Kubur, both films attracted countless online interaction, generating and spreading interests that enable 1 Kakak 7 Ponakan to gain 1.2 million admissions (10th highest-grossing as per August 2025) and Sore: Istri dari Masa Depan 3.08 million admissions (4th).

On a similar context, Jumbo is even more sensational. Developed for five years, the project intrigued many as Indonesian animation rarely ever grace the domestic theatrical screens. Even when they did, they never made a splash in the box office. For Jumbo, Ryan Adriandhy—a stand-up comedian turned film director—regularly shares every update throughout the process of producing and animating the fantastic children adventure film, which was backed by Visinema Pitcures—one of the emerging big studios. Once the film is finally released theatrically on March 2025, the public was already ‘invested’ enough in the project and flocked to see the film, enabling Jumbo to become the highest-grossing Indonesian film of all time with 10.23 million admissions. Most of them are families and children.

This highlights the enduring need for variety on the nation’s silver screens. Admittedly, the market at times feels a bit stagnant with the endless carousel of horror flicks, which has admirably kept the box-office engine humming even during the darkest days of the pandemic. But, as reflected by the films from other genre, the people are willing to embrace more diverse films. It is up to the filmmakers to respond to the demands and offer the necessary breakthrough.

The fiscal reality of modern Indonesian cinema heavily centers on theatrical distribution. Meaning: most feature film productions aim to recoup production and promotional costs primarily through box-office sales, with acquisition fees from streaming services as additional income weeks or months after the theatrical run ends. The initial fund comes from a rotating cast of investors, mostly private or individual investors.

This model, to some extent, provides a degree of predictability for investing in Indonesian film productions as the procedural cycles are principally repeatable. The challenge obviously is the market dynamics, which in Indonesia are subject to the whim of major cinema chains (mainly Cinema XXI) that form and operate the entirety of domestic film distribution. With the box-office success of Indonesian films in recent years, the major cinema chains are more open to giving space to domestic films, but it’s still a luxury that must be shared with imported foreign films. There is also the matter of political chaos after the latest presidential election, which yielded policy shifts and uncertainty that impact cultural and business affairs.

Chaos, fortunately, is not the only thing the state provides. While technically there are no cash rebates or incentives in place yet, some governmental agencies do provide support for production funds, with the most prominent being Dana Indonesiana from the Ministry of Culture. The grants are generally more associated with short film projects, but they also cover support for certain aspects of feature film projects, such as research, post-production, and distribution. Film festivals in Indonesia have also been known to provide production support. Jakarta Film Week has been organizing Jakarta Film Fund (for short film projects) since its first edition in 2021, while Jogja-NETPAC Asian Film Festival has been developing Future Project (for shorts and futures) since 2017. Last year, the latter expanded its program by setting up JAFF Market—the first of its kind in Indonesia—which welcomed and connected 96 film companies from Indonesia and abroad. Several projects presented at JAFF Market had found financing opportunities, with Reza Rahadian’s Pangku being the most reported in the news as the project made its way to Cannes Film Market and other forums. It’s still early days for such film markets in Indonesia, but the signs are promising.

For decades, film distribution has rarely been a prominent concept in the Indonesian film industry. Due to the long-term domination across the archipelago, Cinema XXI for years has been multitasking as exhibitor and distributor for domestic films. Production companies would simply contact Cinema XXI and sort out a deal for the theatrical run in its network, which represents 63% of the market share; filmmakers would receive a 50% share (minus tax) for every ticket sold. Filmmakers also have the option to screen in other major cinema chains, namely CGV Cinema (formerly Blitzmegaplex) and Cinépolis (formerly Cinemaxx), but they would need to work the deal separately.

Rather than film distributors, the Indonesian film industry is more familiar with importers. Even then, that particular field is also dominated by Cinema XXI. Through Omega Film, a subsidiary company, Cinema XXI forges an exclusive partnership with the Motion Picture Association of America, enabling the group to be the sole distributor of Hollywood premium releases in Indonesia. Other cinema chains that want to screen such films must work a deal with Cinema XXI.

That said, compared to a decade ago, there are more stakeholders in film exhibition in Indonesia nowadays. Rivaling major cinema chains such as CGV Cinema and Cinépolis have grown to occupy sizable market shares (19% for CGV Cinema and 13% for Cinépolis), while as per 2024 there have been at least ten local cinema chains that have been popping up in suburbs and smaller cities, such as Platinum, New Star, and Sam’s Studios. This opens up new niches for other importers to exploit as these cinema chains need to differentiate themselves from the market leader. CGV Cinema, for example, makes use of its South Korean connection to showcase the latest releases from the peninsula, from popular genre films to K-pop sing-along shows, while the local cinema chains have shown willingness to open their screens to films from Japan, India, China, and Thailand—other than serving as second-run theaters for domestic films. In recent years, KlikFilm (a subsidiary of Falcon Films, one of the major production houses) has been making big splashes by signing the distribution rights of numerous film festival darlings. Most of these titles are screened on KlikFilm's online platform or its offline showcase (Jakarta World Cinema), but some occasionally find their way to regular screenings in major cinema chains should there be sufficient popular demand.

In Indonesia, cinemas represent a kind of societal divide. Since the 2000s, cinemas have been mostly located in big cities and, even more specifically, shopping malls—a type of place that often prescribes a certain level of decorum and spending power. This stands in contrast with memories of the older generations, which remember cinemas as a more egalitarian social space as older cinemas were often situated in open-air traditional markets, where various social classes could easily meet and mingle. The divide feels even more imbalanced once the geographical spread is considered. Of the 497 cinemas in Indonesia as of August 2025, 275 are located in Java—the smallest of the five major islands in Indonesia. 155 of them are located in Jakarta and the Greater Jakarta area (Bogor, Depok, and Tangerang), which approximately represent one-third of the total cinemas.

Yet, despite the imbalance, the national cinema admission for domestic films keeps growing in the post-pandemic years: 54.07 million in 2022, 55.23 million in 2023, and 78 million in 2024. These figures are higher than even the best year before the pandemic, that is 51.9 million in 2019, which intriguingly has a similar number of cinemas (508) and screens (2110) compared to this year’s (2145 screens from 497 cinemas). How then should we make sense of this growth?

The answer might be in the intangibles. While the user base might not expand much during the years, at least in terms of number, the habit of the moviegoing public might have transformed during the pandemic, and this could be traced to the success of KKN di Desa Penari. The popular horror film was released after months of strict public activity restrictions, including going to cinemas, generating curiosity among the entertainment-starved public. Once authorities loosened the restriction, the public flocked to the cinema and spread the word about the experience. This drew even more people to come and watch, enabling KKN di Desa Penari to reach 10.06 million admissions in a month and blow other competitions out of the water, including the popular Hollywood releases at the time: Doctor Strange in the Multiverse.

The achievement brought immense pride to Indonesian films. This, in essence, started the habit of repeat viewing for domestic films, and the momentum largely carries on until now. This year, a similar pattern could be seen in the success of Jumbo and Sore: Istri dari Masa Depan—people who watched those two films spread good words about them, which consequently sparked further curiosity and drew even more admissions. In a more general context, this is reflected in how Indonesian films dominate the market share (44%) compared to releases from Hollywood (21%) and South Korea (14%) as of August 2025. This is not an isolated incident, as a similar trend also played out last year, when foreign imported films could only manage 35 million admissions (compared to 78 million for Indonesian films).

The national film industry would certainly benefit from further growth of the theatrical reach, especially in regions outside Jakarta and Java Island in general. But, for now, the positive momentum is good enough to address the imbalance.

Technology has rarely been a primary discourse in the Indonesian film industry. Not that the issue is unnecessary, and certainly not that the industry has been extra accomplished in the field, but simply because there have always been other pressing concerns that directly influence the national film ecosystem, from the struggle against foreign releases, the lack of screen time for domestic films, the imbalance of cinemas across the archipelago, to political challenges toward artistic freedom. At the same time, investing in film technology in Indonesia is hardly a straightforward process, due to the bureaucracy needed to ship, operate, and maintain the technology in the archipelago. This however doesn’t mean that Indonesia is a dead-end for film technology and production services. It’s just highly concentrated on strategic areas in the archipelago.

The capital city, Jakarta, is chockful with reputable film facilities that are experienced in working with national and international clients. There is Jakarta Film Studio, a complex that integrates soundstages and post-production facilities in one area. In addition to that, the complex houses Fourmix (Indonesia’s first Dolby Atmos certified sound lab). and Baracuda Film Gallery (equipment rental). Another prominent name is FOCUSED Equipment that also has a branch in Yogyakarta—another major hotspot for film activities in Indonesia. The company specializes in providing high-end camera, lenses, and lighting equipment along with advising customized production for each client.

Outside Java, there are two standout names. On Batam, a small island just 40 minutes by ferry from Singapore, there is Infinite Studios, which houses two soundstages of 30,000 square-feet and 14,000 square-feet along with a 1-hectare backlot facility. Open for large-scale production with sets and props construction in a natural island environment, Infinite served as the backdrop for Dev Patel’s Monkey Man. Moving onto Bali, a popular tourist destination, there is Bali Movie Studio, an integrated complex located in the cool and leafy highlands of Bangli, Gianyar. Along with providing soundstages and high-end production equipment, the company also offers film permit management, logistical support, props and sets construction, and pre-production groundworks.

Indonesia has long been perceived as a haven for internet-based businesses. According to the latest report by the Indonesian Internet Service Providers Association, there are approximately 221.56 million internet users in the archipelago as of early 2025, representing a 79.5% penetration rate of the total population. Unfortunately, in the case of streaming business growth, the nation’s massive user base has not provided much. As of 2024, the streamer with the largest user base is Vidio with 4.7 million subscribers, followed by Viu (4.1 million subscribers), Netflix (3.1 million), Disney+ Hotstar (2.6 million), and Max (1.4 million). In total, the top five streaming services only rack up approximately 15.9 million subscribers, which amounts to 5.6% of the population.

The limited growth could be explained partly by the culture of media consumption in the archipelago. The majority of Indonesians are price-sensitive and have been conditioned with public television broadcasts for decades, thus they are highly selective in choosing what kind of content they should pay for. Platforms that offer the most value are preferred, and such mindsets arguably enable Vidio and Viu to compete with their more illustrious rivals. Along with each platform’s curation of Indonesian and Western films and series, Vidio is renowned for offering exclusive live broadcasts of European football and badminton tournaments, while Viu is well-established as the provider of Korean and Turkish content, from serial drama to variety shows. With such a wide breadth of spectacle, both platforms essentially are an agreeable substitute for ‘family television’—a selling point that their competitors painfully lack. Netflix, Disney+ Hotstar, and Max are mostly subscribed to by people loyal to their brands, while more niche platforms such as KlikFilm (festival releases and independent films), Bioskop Online (alternative Indonesian films), and Rangkai (Indonesian films, mostly shorts) are regarded more as luxury or novelty items.

Despite the challenging situation and the lack of regulation by the state, streaming services have more or less established their place in the nation’s film ecosystem. They are known to provide a career path for emerging filmmakers through the production of their original content—next-gen talents like Sidharta Tata and Aco Tenri, for example, build their reputation through their web series for Vidio before going on to direct their first feature. At the same time, streaming services also offer a reliable recoupment route for filmmakers whose films fail or struggle to compete at the box office. The needs are mutual, as the streaming services often utilize those films to further engage with the Indonesian public, especially those who cannot or do not watch during the films' original theatrical run. There are still rooms for further growth.

Indonesian filmmakers are increasingly embracing the idea of cross-border partnerships. While the practice had been sporadically in place years before, the concept was brought to public attention in 2021, in the middle of the pandemic, when two Indonesian films won top prizes in prestigious film festivals: Edwin’s Vengeance is Mine, All Others Pay Cash brought home the Golden Leopard in Locarno, while Kamila Andini’s Yuni secured the Platform Prize in Toronto. Weeks after the victory, producers of each film wrote their experience of co-producing their films with international partners in a major national newspaper, which was corresponded by Hilmar Farid, the then Director-General of Culture at the Ministry of Education, Culture, Research, and Technology. Farid acknowledged international co-production as a legit strategy for cultural diplomacy.

The state indeed adopted the concept as part of its program. During the 2023 Cannes Film Festival, Nadiem Makarim—the then Minister of Culture—proudly announced Matching Fund Dana Indonesiana, in which the government would provide funds to Indonesian filmmakers who managed to establish cooperation with international partners. The government would match the same amount of funds provided by the international partners, up to IDR 2.5 billion (around US$150,000). To date, however, there has been no public record of any beneficiary from the Matching Fund Dana Indonesiana. Outside the state program, Indonesian filmmakers have been actively exploring international co-production opportunities. Of all the figures that regularly attended film markets and pitching forums, KawanKawan Media, a Jakarta-based production house, is one prominent name that has forged a viable career out of such paths. Their track record spans from Carlo Manatad’s Whether the Weather is Fine (co-production with the Philippines, France, Singapore, Germany, Qatar); Amanda Nell Eu’s Tiger Stripes (Malaysia, Taiwan, Singapore, France, Germany, the Netherlands, Qatar); to Chie Hayakawa’s Renoir (Japan, France, Singapore, the Philippines).

These titles are generally considered to be festival releases. At the moment, there have been no standout commercial releases that feature international co-production in Indonesia. However, with the promising growth of the Indonesian film industry in recent years, things could certainly change in the near future.