Singaporean GIC penetrates to XXI network

JAKARTA. The domestic cinema business becomes more attractive for foreign investors. After the South Korean Jedang Cheil Golden Village (CJ CGV) Co Ltd, the Singaporean Government Investment Corporation (GIC) penetrated to PT Nusantara Raya Sejahtera. GIC has injected Rp 3.5 trillion funds to the management of the XXI cinema network.

“The investment of GIC reflects the recognition on our business,” said the founder of Nusantara Sejahtera Raya Benny Suherman on a written statement, which was received by KONTAN, Monday (5/12).

GIC is also optimistic with the decision. “The GIC investment reflects our confidence on the potential of Indonesia’s development in a long term period,” said the Head of Direct Investment Group for South East Asia, Private Equity & Infrastructure of GIC Amit Kunal in a written statement.

However, Nusantara Sejahtera has not yet confirmed the business plan after receiving capital injection from GIC. “We will continue the business expansion,” said Corporate Secretary of PT Nusantara Sejahtera Raya Catherine Keng, Monday (5/12).

To date, the penetration of the major foreign investors is effective to boost the domestic cinema business. For an example, as per 30 September 2016, CJ CGV has acquired 22.991% shares of PT Graha Layar Prima Tbk.

After cooperating with CJ CGV, there were only five Blitzmegaplex cinemas in Jakarta. “Until December, the number will increase to 30,” said the President Director of Graha Layar Prima Tbk Bernard Kent Sondakh.

Graha Layar will expand to 20-30 locations in 2017. The cooperation expects to own 500 cinemas under the brand of CGV blits in dozens locations.
However, the owner of Platinum cinema Multivision Plus has not yet set plan to build cooperation with foreign investors. According to the owner, Raam Punjabi, the company is still focusing in establishing the fundamentals of cinema network.

However, Raam will not be surprised if more foreign investors will penetrate to domestic cinema business in the future. To date, the rate of number of cinemas in Indonesia compared with the number of Indonesian population is still low. “I think, Wanda Group from China is potentially to penetrate the (Indonesia’s) market, as they have controlled thousands cinemas in the US,” he said.

According to Raam, in Indonesia, to date one cinema serves 250,000 populations, while in Thailand and Malaysia, one cinema serves 60,000 and 70,000 populations, respectively.

(Muhammad Farid/Translator)