MUMBAI: Reaction to sudden increases in tax, the Motion Picture Association of America (MPAA) has withdrawn Hollywood films from the Indonesian market. Indonesia‘s president has directed his culture and tourism minister to act.

It is said that in the past, the MPAA paid only $20 per meter of film as against the increase to $43 a meter. Added was 24 per cent import duty tax and an income tax of 10-15 per cent of profits.

Said Indonesian Minister of Culture and Tourism Jero Wacik, "There‘s a complaint from the film industry, asking why the tax was so high… they ask me how the high tax can encourage the local film industry."

However the minister adds by saying, "If necessary I will reduce the tax, but the owners of movie theaters or the film importer has a moral responsibility to build more cinemas. If we subtract the tax they should build more cinemas and add more screens. So there are more jobs for locals."

However, some Indonesians are unhappy with the changes.