The first movie made in Indonesia was the 1926 silent film, Loetoeng Kasaroeng, by Dutch directors G. Kruger and L. Heuveldorp. The Indonesian Movie was made with local actors by the NV Java Film Company in Bandung and premiered on December 31, 1926 at the Elite and Majestic Theatres in Bandung.Since then, more than 2,200 feature films have been produced.

After its genesis during the Dutch colonial era, the Indonesian movie industry was supported by the Japanese occupiers during the Second World War as a propaganda tool. After independence, the Sukarno government used the movie for nationalistic, anti-Western purposes. Foreign film imports were banned. After the overthrow of Sukarno by Suharto's New Order regime, movies  were regulated through a censorship code that aimed to maintain the social order. Usmar Ismail, a director from West Sumatra made a major imprint in Indonesian movie in the 1950s and 1960s.

The industry reached its peak in the 1980s, with such successful movie as Catatan Si Boy and Blok M (1990). Actors during this era included Onky Alexander, Meriam Bellina, Nike Ardilla and Paramitha Rusady.

However, by the 1990s imports of foreign movie resumed, and the artistic quality of Indonesian movies was reduced due to competition, especially from the US and Hong Kong. The number of movies produced decreased significantly, from 115 movies in 1990 to just 37 in 1993. Rampant counterfeiting and television also contributed to the degradation of Indonesian cinema. The majority of films produced were exploitive, adult-themed B-movies shown in budget cinemas and outdoor screenings or direct-to-video or television.

However, under the Reformasi movement of the post-Suharto era, independent movie maker has seen a rebirth and films that address such previously prohibited topics as politics, race, religion, class conflict and sexuality are being made.

Recent notable movies include What's Up with Love? directed by Rudy Soedjarwo in 2002 and Arisan! starring Tora Sudiro, which was released in 2003. In 2005, Beauty and Warrior, Indonesia's first animated feature film was released. That same year Gie was released, a biopic of Indonesian activist Soe Hok Gie.

Film festivals
The major movies festival of Indonesia is the Jakarta International Film Festival (JiFFest) held every year in December since 1998. The eighth festival began on the December 8, 2006 with Babel, a film starring Brad Pitt and Cate Blanchett. The 9th JiFFest will be held on December 7 - 16, 2007

Another event is the Indonesian Film Festival (Festival Film Indonesia/FFI), which has been held intermittently since 1955. From 1973 to 1992, the festival was held annually and then discontinued until it was revived in 2004. It hosts a competition, which hands out the Citra award.

http://en.wikipedia.org/wiki/Cinema_of_Indonesia
 

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