Prabowo Instructs Danantara To Formulate Cinema Business Model For Industry Revival

Jakarta - A new directive from Defense Minister and elected President Prabowo Subianto has placed state-owned enterprise Danantara at the center of efforts to revive Indonesia's cinema industry. Prabowo has explicitly ordered the company to prepare a comprehensive and innovative business scheme for cinema operations. This instruction marks a notable foray of a defense-related SOE into the cultural and creative economic domain.

The order underscores Prabowo's view that national development encompasses more than traditional security parameters. By mobilizing Danantara, he signals an intent to use state apparatus to directly stimulate and stabilize critical but vulnerable sectors of the economy. The cinema industry, a key pillar of the creative economy, is identified as needing a new operational paradigm to ensure its sustainability and growth.

Danantara, which falls under the auspices of the Defense Ministry, now faces the task of transitioning part of its focus toward commercial public entertainment. This pivot raises questions about the specific model to be adopted. Possibilities include establishing a new state-managed cinema chain, creating a digital distribution network, or providing financing and infrastructure support for independent cinema operators.

The backdrop for this policy is an industry still recovering from severe pandemic-induced losses. Auditorium closures and shifting consumer habits toward streaming platforms have pressured traditional cinema business models. A state-engineered scheme could offer the capital and long-term perspective needed to rebuild audience confidence and industry capacity.

Economic analysts perceive this as a strategic intervention aligned with Prabowo's stated economic policies. It reflects a belief in proactive state involvement to correct market weaknesses and foster strategic industries. The film sector is not only an economic entity but also a vehicle for national culture and soft power, amplifying the rationale for state support.

However, the initiative must navigate complex market dynamics. Its design must avoid distorting competition with existing private cinema networks while genuinely adding value to the ecosystem. Engagement with industry associations, production houses, and independent filmmakers will be critical to formulate an inclusive and effective scheme.

The technical and financial contours of Danantara's plan are now a subject of keen interest. The company will need to balance commercial viability with public policy objectives. Its ability to leverage economies of scale and possibly integrate with other state assets could define the project's ultimate shape and impact.

This directive from the President-Elect provides an early indication of the incoming government's approach to cultural industry policy. By entrusting a defense SOE with this cultural-economic mission, Prabowo is crafting an unconventional policy tool, potentially setting a precedent for how state-owned enterprises might operate across diverse sectors in the future.

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Tag: Creative Economy Danantara SOE Film Business Model Indonesian Cinema Prabowo Subianto Directive