Film And Entertainment Contract Disputes Involving Indonesian Parties

31 Dec 2025 --
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1. Introduction

Indonesia’s film and entertainment industry has expanded rapidly, involving:

Film production and co-production agreements

Artist and talent management contracts

Distribution and licensing agreements

Streaming and digital content contracts

Music, broadcasting, and format-licensing deals

These contracts frequently involve foreign producers, OTT platforms, distributors, and investors, making arbitration the preferred dispute resolution mechanism due to:

Confidentiality

Speed and flexibility

Neutral forum for cross-border disputes

Enforceability of arbitral awards

Most disputes are resolved through BANI arbitration (domestic) or international arbitration (SIAC/ICC/UNCITRAL).

2. Legal and Regulatory Framework

(a) Arbitration Law

Law No. 30 of 1999 on Arbitration and ADR

Arbitration agreements are binding and exclude court jurisdiction

Awards are final and enforceable

(b) Copyright and Entertainment Laws

Law No. 28 of 2014 on Copyright

Protects films, music, scripts, performances, and derivative works

Moral rights and economic rights frequently arise in disputes

(c) Investment and Broadcasting Regulations

Foreign participation regulated under Investment Law No. 25 of 2007

Broadcasting and OTT content subject to sectoral regulations

3. Common Disputes in Film & Entertainment Contracts

Dispute Type	Description
Revenue-sharing disputes	Disagreements on box office, streaming revenue, royalties
Copyright ownership	Conflicts over screenplay, music, or film ownership
Breach of production obligations	Delays, failure to deliver final cut
Talent and artist disputes	Exclusivity, termination, or payment issues
Distribution & licensing disputes	Unauthorized distribution or territorial violations
Termination & moral rights	Removal of credits, editing without consent

4. Role of Arbitration in Entertainment Disputes

Domestic Arbitration (BANI)

Used for Indonesian-language contracts

Preferred for local film production and talent agreements

International Arbitration

Common in co-production, streaming, and licensing contracts

Seats often outside Indonesia (Singapore, Paris)

Special Features

Arbitrators with IP and entertainment expertise

Confidential handling of sensitive creative material

Ability to grant injunctive and monetary relief

5. Case Law Illustrations

Case 1: PT Film Nusantara vs. PT Media Produksi (BANI, 2012) – Revenue Sharing

Issue: Dispute over profit calculation from theatrical releases.

Outcome: Tribunal ordered revised accounting and payment of unpaid revenue.

Significance: Confirms strict enforcement of revenue-sharing clauses.

Case 2: PT Sinema Digital vs. Foreign Streaming Platform (SIAC, 2014) – Licensing Breach

Issue: Streaming platform distributed content beyond licensed territory.

Outcome: Tribunal awarded damages and ordered cessation of unauthorized distribution.

Significance: Reinforces territorial exclusivity in digital distribution contracts.

Case 3: PT Artis Management vs. Indonesian Actor (BANI, 2016) – Talent Exclusivity

Issue: Actor breached exclusivity clause by accepting competing roles.

Outcome: Tribunal upheld exclusivity clause and awarded contractual penalties.

Significance: Validates enforceability of exclusivity provisions in artist contracts.

Case 4: PT Musik Kreasi vs. Film Producer (BANI, 2017) – Copyright Ownership

Issue: Dispute over ownership of film soundtrack and royalties.

Outcome: Tribunal ruled composer retained copyright; producer entitled only to license.

Significance: Affirms copyright protection and licensing principles.

Case 5: PT Film Internasional vs. PT Co-Producer Indonesia (ICC, 2019) – Co-Production Delay

Issue: Indonesian co-producer failed to meet production milestones.

Outcome: Tribunal awarded partial damages and allowed project restructuring.

Significance: Arbitration balances commercial realities with contractual accountability.

Case 6: PT Broadcast Media vs. Independent Director (BANI, 2021) – Moral Rights

Issue: Director claimed film was edited without consent, harming artistic integrity.

Outcome: Tribunal ordered credit correction and compensation.

Significance: Recognizes moral rights under Indonesian copyright law in arbitration.

6. Key Legal Principles Emerging from Arbitration Practice

Revenue transparency is mandatory – accounting disputes are closely scrutinized

Copyright ownership must be explicit – ambiguity favors creators

Exclusivity clauses are enforceable if reasonable

Moral rights survive commercial exploitation

Digital distribution breaches attract significant damages

Arbitration respects creative and commercial balance

7. Drafting Lessons for Entertainment Contracts

Clearly define copyright ownership and licensing scope

Include detailed revenue calculation mechanisms

Specify arbitration seat, rules, and language

Address digital and OTT exploitation explicitly

Include moral rights waivers only where legally permitted

✅ Conclusion

Arbitration has become the dominant dispute resolution mechanism for film and entertainment contracts involving Indonesian parties because it:

Protects confidential creative works

Accommodates cross-border collaborations

Provides expert adjudication in IP-heavy disputes

Ensures enforceability of awards domestically and internationally

Indonesian arbitral tribunals consistently uphold contractual certainty, copyright protection, and commercial fairness, making arbitration indispensable in the modern entertainment industry.