Navigating Global Distribution: Why Indonesian Filmmakers Should Use IFTA Standard Deal Models to Safeguard Their Rights
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The Indonesian film industry is currently experiencing a remarkable global upswing, marked not by conjecture, but by concrete milestones. Its films have earned prestigious awards at international festivals, found enthusiastic global audiences on streaming platforms, and penetrated foreign markets with increasing sophistication.
From International Awards to Global Streaming Success
Starting with festival acclaim, the short film Prenjak was the first Indonesian production to win at Cannes (Leica Cine Discovery Prize, 2016). Feature films like Vengeance Is Mine, All Others Pay Cash (2021) captured the Golden Leopard at Locarno, while 24 Steps of May and Yohanna premiered in major festivals such as Busan and Rotterdam.
On the streaming front, titles like The Big 4 (2022) and Cigarette Girl/Gadis Kretek (2023) have hit Netflix’s Global Top 10—The Big 4 ranking in 65 countries, Cigarette Girl amassing over 29 million viewing hours and top 10 placement in multiple regions. More recently, The Shadow Strays (2024) entered Netflix’s global Top 10 within a week, ranking in 85 countries including the US, UK, Canada, Japan and South Korea.
In domestic cinema, local films are dominating. In 2023, Indonesia registered 55 million cinema-goers, rising to about 78 million by late 2024, with approximately 60 % choosing Indonesian productions. The local hit KKN di Desa Penari sold over 5 million tickets in Indonesia within a week and sold out cinemas in Malaysia and Singapore.
The animation sector is also gaining ground: Jumbo (2025) emerged as Indonesia’s highest-grossing animated film, surpassing Frozen 2 with 9.6 million viewers and USD20 million in revenue. It is set for release in 17 countries, signalling a growing regional footprint.
Together, these developments illustrate real momentum in the Indonesian film industry, across festivals, streaming platforms, theatrical box office, and emerging formats like animation.
Understanding International Legal and Business Challenges in Indonesian Film
The escalating international engagement also brings new complexities, particularly legal and commercial challenges: film producers now face intricate negotiations around international distribution rights, cross-border licensing, streaming exclusivity, and co-production agreements. Ensuring fair compensation, clear licensing terms, and alignment with global partners adds layers of contractual risk that many filmmakers are navigating for the first time.
To navigate these legal complexities, filmmakers and production houses can refer to frameworks developed by the Independent Film & Television Alliance (“IFTA”), which provides standardized deal models and contractual guidelines. These resources are designed to offer legal clarity and commercial structure, particularly for international distribution and co-production agreements.
This ARMA Update will introduces the IFTA framework and the Model International Licensing Agreement (“MILA”), and highlights why Indonesian filmmakers and investors are encouraged to adopt these standards when negotiating international distribution deals.
How IFTA and MILA Can Help
IFTA, a Los Angeles-based trade association, has represented the interests of producers and distributors for over four decades. It has been instrumental in promoting fair business practices and legal protections across the independent film industry. Through the development of standardized contracts and model agreements, most notably MILA, IFTA provides a reliable framework for negotiating cross-border distribution deals which help reduce legal uncertainty, protect producers’ rights, and establish industry credibility.
In this situation, Indonesian filmmakers entering international markets often face with limited access to understanding of a global contracting standard on film distribution. Hence, IFTA’s model agreements offer a practical solution by providing consistent, enforceable terms that are widely recognized across global film markets. For Indonesian producers, adopting IFTA standards can enhance negotiation leverage, ensure legal clarity, and mitigate risk, particularly when dealing restrictive markets such as China.
A Standardized Contract for Cross-Border Film Licensing
MILA is a comprehensive contract template developed by IFTA. It governs how producers license distribution rights to foreign distributors covering crucial elements (e.g., territories, revenue shares, audit rights, etc). Furthermore, MILA brings consistency to cross-border deals. Its modular structure allows the agreement to be tailored to specific media formats (e.g. theatrical, VOD, TV) and distribution territories. This is particularly useful when navigating unfamiliar or complex markets with stringent media regulations, such as China.In addition, MILA is widely used across major global film festivals and markets, including American Film Market (AFM), European Film Market (EFM), and Cannes Marché du Film. Distributors who are familiar with MILA are often more willing to engage transparently, knowing that the agreement reflects industry-accepted norms.
- How MILA Protects You: Key Clauses You Should Know
MILA contains a set of clearly structured provisions that safeguard the producer’s legal and commercial interests at each stage of the distribution process. The following key clauses illustrate how MILA offers clarity, accountability, and enforceability in international deals:
- Territory and Rights Definition – MILA sets clear boundaries on where (territory), how (type of media), and for how long (term) the distributor is allowed to exploit the film. For instance, ensuring a distributor licensed only for Southeast Asia or VOD platforms does not wrongly claim global or broader rights.
- Minimum Guarantees (MGs) and Payment Schedules – MILA ensures producers receive guaranteed payments upfront, giving the producer financial security early in the deal. It also sets out clear payment deadlines, provisions for late payments, and legal remedies in case of default that protecting the producer from vague or unrealized revenue promises.
- Reporting & Audit Rights – Distributors must provide regular, detailed reports on sales and expenses. MILA gives producers the contractual right to audit these records, helping them detect improper deductions or undisclosed income that may reduce their share of revenue.
- Term and Rights Reversion – The agreement specifies a fixed term and includes clear conditions for the rights to revert to the producer, especially if the distributor fails to meet key obligations. This ensures that rights do not remain indefinitely with a non-performing partner.
- Delivery Requirements and Technical Standards – MILA will include detailed delivery requirements (e.g., format specifications, metadata, subtitles, closed captions) that the producer must meet and that the distributor must accept, ensuring the film is ready for distribution and avoiding disputes or delays over deliverables.
- Marketing and Promotion Obligations – MILA may outline the distributor’s obligations to market and promote the film in the licensed territory. This ensures that the distributor actively works to maximize the film’s exposure and commercial potential, rather than passively holding the rights without effort. The clause may also give the producer approval rights over key marketing materials.
- Arbitration under IFTA Rules – MILA includes an international arbitration clause under the IFTA Arbitration Rules, administered by the International Centre for Dispute Resolution (ICDR). The outcome of this process can be legally enforced in over 170 (one hundred seventy) countries, making it a practical and dependable way to resolve disputes in international deals.
- Practices When Negotiating with International Distributors
To reduce risk and strengthen your negotiating position, producers should keep the following practices in mind when dealing with international distributors:
- Confirm whether the agreement follows IFTA MILA or a similar industry-standard template – Producers should inquire whether the distributor is willing to use the MILA or adapt its terms, since using a recognized model ensures the deal includes basic protections and avoids one-sided terms.
- Be cautious of vague language, unclear expense deductions, or exclusivity – Many disputes arise from unclear definitions of “gross receipts,” unclear expense deductions, or sweeping exclusivity. MILA helps mitigate these, but producers must still review each clause carefully.
- Always insist on regular reporting and clear audit rights – As per MILA standards, a reporting should be requested, with the ability to audit records. This allows you to monitor revenue accurately and identify any underreporting or improper deductions.
Conclusion
Indonesian filmmakers are gaining global recognition, with stories that resonate far beyond local audiences. As they expand into international markets, it becomes increasingly important to protect their rights with legal standards that are recognized and enforceable across jurisdictions.
The IFTA MILA offers a proven, transparent, and balanced framework that safeguards producers’ interests while enabling fair and effective distribution. Both filmmakers and investors should prioritize contracts based on MILA, or at minimum, agreements that reflect its core principles, to protect their creative and financial stakes.
ARMA Law is committed to helping Indonesian filmmakers and rights holders navigate the complexities of international deals. We strongly encourage producers to seek legal guidance before signing any distribution agreement and to advocate for the use of trusted, industry-standard contracts like MILA to ensure long-term protection and success in the global market.
Disclaimer:
This client update is the property of ARMA Law and intended for providing general information and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. ARMA Law has no intention to provide a specific legal advice with regard to this client update.
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