Elasticity of Investment Financing Policy towards the Growth of Film Distribution Networks as an Effort to Redesign the Film Industry

: This research aims to analyze the influence of investment financing policies on the growth of film distribution networks. Investment financing policy is seen from the aspect of setting investment credit interest rates in banking. Meanwhile, the growth of the film distribution network can be seen from the aspect of the number of cinema screens in Indonesia. This research uses several variables, such as: Investment Credit Interest Rates at Bank Persero, Regional Development Banks, National Private Banks and Foreign and Joint Venture Banks. The time range used in this research is from 2014 - 2022. This research uses quantitative methods using multiple linear regression. The explanation of the analysis results uses Keynes and Schumpeter's theoretical approach. Based on the results of data analysis, it was concluded that the investment credit interest rate variable had a significant negative effect on the variable number of cinema screens, especially on the National Private Bank Investment Credit Interest Rate. The results of the coefficient of determination (adjusted R2) show that the influence of the number of cinema screens is 0.9492175. The higher the interest rate on investment credit, the lower the number of cinema screens.

).This means that film business actors and the government need to immediately take strategic steps and place the post-production stage as an important part of efforts to develop the national film industry.
A company from South Korea, CJ CGV Corporation, has become a major player by carrying out massive expansion into Indonesia after the Film Performance Industry was removed from the negative investment list.This is part of the company's expansion agenda into the Asian region.In the period 2015-2019.(R, Elake, & Manggarsari, 2022) In 2023, CGV will have 71 cinemas with a total of 408 screens.In its Annual report, CGV stated that it was still focused on opening new cinemas on the island of Java, which has the strongest economic growth compared to other regions in Indonesia (Saumi, 2023).Apart from CGV Blitz, several foreign investors have also joined the film industry.
PT Nusantara Sejahtera Raya, which is the leading cinema operator in Indonesia for the Cinema 21, Cinema XXI and The Premiere cinemas, signed a contract worth 3.5 trillion Rupiah with the Sovereign Wealth Fund from Singapore, the Government of Singapore Investment Corporation (GIC), in 2016 ( R, Elake, & Manggarsari, 2022).The investment by GIC reflects the investment company's confidence in Indonesia's long-term growth potential.As of March 2023, Cinema XXI has presented 1,235 screens in 230 cinema locations spread across 71 cities throughout Indonesia, and will continue to grow to reach the target of 2,000 screens in the next 5 years.(Saumi, 2023) In 2019, the Mexican company, Cinepolis, acquired 40% of the Lippo Group's Cinemaxx cinema chain for an estimated value of US$110 or around IDR 1.5 trillion.Cinepolis currently operates 691 cinemas in 17 countries and has 5,609 screens.With a history of 50 years, the company is the second largest film network in the world in terms of viewership, reaching 338 million per year.In 2023, Cinepolis will have around 60 cinemas spread across various locations, with a total of around 289 screens.Generally, the locations of Cinepolis cinemas are in malls owned by the Lippo Group.
Apart from these three big players, the Agung Sedayu Group through Agung Sedayu Ritel Indonesia also operates the FLIX cinema.Currently, this Aguan affiliated company operates cinemas in 4 locations in Jakarta, with a total of 25 screens.Not to be left behind, the new issuer is PT Tripar Multivision Plus Tbk.(RAAM) which operates Platinum Cineplex in 11 locations, with a total of around 36 screens.RAAM operates its cinemas in cities which are tier 2 and tier 3 cities in Indonesia.
To strengthen the financing or investment aspect in developing the film industry, President Jokowi has changed the status of the State Film Production Public Company (PFN) to a corporation.The change in PFN's status is stated in Government Regulation (PP) No.42/2023 on 10 August 2023.This change has an impact on changing the PFN business process, which was originally focused on film production, but is now expanding, especially in the financing/investment aspect, to building a viable film ecosystem.known as a capital-intensive cultural industry.
Expansion and increasing the productivity of a company requires proportional capital.Capital is one of the production factors needed in long-term production theory.One alternative business funding that can be used is the use of investment credit by banks.
Investment credit can meet a company's financial needs, apart from being able to help meet its financial needs, investment credit can increase development in various sectors and increase the number of goods and services (Kasmir, 2014).This type of credit usually lasts for a medium to long term, depending on the agreement that has been made by both parties.
Investment credit has an important role for individuals or business entities.Therefore, investment credit is able to help entrepreneurs in capitalizing their companies.In addition to companies, investment credit is very important for economic growth and development because banks must formulate strategies to support the distribution of banking credit to the community, especially in the business world.In research (Rosita, Ermani, & D, 2020), results were obtained that partially there was a significant influence of investment credit on economic growth, shown by an R-square score of 0.935.The progress of investment credit and economic growth during the 2006-2016 period experienced a fluctuating increase with an average of 28.34% for investment credit and 6.48% for economic growth respectively.Based on Commercial Bank Reports (LBU), investment credit is long-term or medium-term credit distributed to prospective debtors to finance various capital goods for the creation of new projects, expansion, modernization or renovation, modernization.For example, procurement of various machines, land and buildings for factories where payments are based on business performance.Banks are institutions whose main activity is collecting funds from public sources and returning these funds to the community as well as providing other services (Kasmir, 2014).Banks act as intermediary institutions for issuing credit.Credit is a delay in repayment due from the percentage given now, whether in the form of money, goods or services (Wulandari, 2012) Investment credit is generally used to expand a business or build new projects/facilities for redevelopment.For example, investment credit as financing for building a factory or purchasing machinery will later be used for a longer period of time (Abdullah & Suseno, 2004).Investment credit is provided by banks to purchase capital goods that will not expire in a business circulation, meaning that after several cycles the process is to withdraw cash and return it into cash after going through several cycles (Mulyono, 2001).This data shows that investment interest rates have decreased from 2014 to 2022.The lowest investment credit interest rates are given by foreign banks and joint venture banks, this can be seen in the yellow graph.Meanwhile, the highest investment credit interest rates are provided by Regional Government Banks which are shown in the orange graph.
Interest rates and investment have an inverse relationship, with the assumption that if interest rates rise then investment will decrease.Vice versa, if interest rates decrease then investment will increase.The lower the interest rate, the higher the investment demand will be.With lower interest rates, consumers, especially business people, will tend to make acquisitions or expansion.
This assumption is related to the development of cinema screen growth in the period 2014 -2022 which also has a tendency to increase.Cinema screen growth data can be described as follows: Head of BKPM Franky Sibarani in a press release in Jakarta, 20 July 2016 stated that the Investment Coordinating Board would encourage investment in the film sector, especially for the addition of cinemas or film screens before encouraging the progress of Indonesian films.Investment in additional cinema screens can increase the number of film productions.BKPM itself has received investment interest in the film sector from South Korea, Taiwan, the United Arab Emirates and the United States.
The increase in investment was attributed to the film's removal from the negative investment list.After the repeal, the number of cinema screens almost doubled from 900 screens in 2015 to 1,800 screens in 2018.Deputy Head of the Creative Economy Agency, Ricky Pesik, stated that the growth of cinema screens in the country is also considered to have implications for increasing the number of national film viewers from 16 million in 2015 to 50 million viewers in 2018, an increase of around three times.
This research aims to see the role of investment credit interest rate policies in Indonesia in the period 2014 -2022 on the growth of cinema screens.Investment Credit Interest Rates are grouped based on the type of bank provider into State-owned Banks, Government Banks, National Private Banks, Foreign and Mixed Banks so that it is hoped that we can see a model of the influence of certain types of banking investment credit on the growth of cinema screens.So it is hoped that we can obtain appropriate recommendations to support the economic growth of the film sector in Indonesia.

THEORETICAL REVIEW
Maynard Keynes' theory introduced a mixed economy, both the state and the private sector have an important role in economic activity.Keynesian theory or Keynesian theory was applied based on economic ideas in England in the 20th century.Keynes's theory states that there are macroeconomic trends that influence individual behavior in microeconomics.Keynes believed that economic problems were complex problems, not special or separate like the previous understanding, namely laissez faire economic theory.Keynes believed that knowledge of economics is not only related to money even though money is a driver of economic activity.It is hoped that government intervention in economic activities can manage consumer demand and supply through issued policies.from National Private Banks, investment credit interest rates from Foreign Banks and Mixture and data on the number of cinema screens.Data analysis was carried out through a combination of descriptive analysis and a quantitative approach through analysis of the influence of investment credit from various banks on the number of cinema screens.In addition, regression analysis is carried out, which is popularly known as pooled time series.This research aims to determine the strong correlation between the type of banking that provides investment credit services and the increase in the number of cinema screens in Indonesia in the period 2014 -2022.
To measure the level of influence of the type of investment credit interest rate on the number of cinema screens, it is formulated using the following equation: Statistical hypothesis testing in this research is measured from the t statistical value, the F statistical value and the coefficient of determination R2.The t test was carried out to see the significance of the influence of the independent variable on the dependent variable individually by assuming that the other independent variables are constant.At the significance level α = 5%, the test used is as follows: H0 is rejected.H1 is accepted if the t statistic > t probability value (p value), which means the independent variable (X) has a significant effect on the dependent variable.
The F statistical test basically shows whether all the independent or independent variables included in the model have a joint influence on the dependent variable.The way to find out is by comparing the F-calculated value with the F-probability value (p value).If the calculated F value is greater than the F probability value (p value), then the alternative hypothesis is accepted, meaning that all independent variables jointly and significantly influence the dependent variable.Hypothesis used: H: β1 = β2 = β3 = 0, H1: there is at least one regression coefficient that is not equal to zero Analysis to measure the model's ability to explain variations in independent variables.The coefficient of determination value is between 0 and 1 (0 < R2 <1), a small value (R2) means that the ability of the independent variables to explain variations in the independent variables is very limited.A value close to 1 means that the independent variable provides almost all the information needed to obtain predictions of variations in the dependent model.The higher the value of the coefficient of determination, the better the ability of the independent variable to explain the dependent variable

RESEARCH RESULT
Based on the results of statistical analysis of multiple linear regression calculations on the independent and dependent variables in this study, it can be described in the calculation results as follows: Multiple R (compound R) is a measure to measure the level (closeness) of the linear relationship between the dependent variable and all independent variables together.In the case of two variables (one dependent variable and one independent variable), the quantity R (usually written in lower case for two variables) can be positive or negative (between -1 -1), but for more than two variables, the quantity R is always a value positive (between 0 -1).A larger R value (+ or -) indicates a stronger relationship.From these calculations, it shows that the Multiple R value is 0.96802834, which means it is positive, close to 1, so that the dependent variable and the independent variable have a high or strong relationship.
R Square (R2), often called the coefficient of determination, measures the goodness of fit of the regression equation; that is, it gives the proportion or percentage of total variation in the dependent variable that is explained by the independent variable.The R2 value is between 0 -1, and the model suitability is said to be better if R2 is closer to 1.The measurement results show that R Square is 0.93707887 or close to 1.So the calculation model is correct.
Adjusted R Square.An important characteristic of R2 is that its value is a never decreasing function of the number of independent variables in the model.Therefore, to compare the R2 of two models, one must take into account the number of independent variables present in the model.This can be done using "adjusted R square".The term adjustment means that the R2 value has been adjusted to the number of variables (degrees of freedom) in the model.Indeed, this adjusted R2 will also increase as the number of variables increases, but the increase is relatively small.Adjusted R Square is 0.87415775, close to 1.

Standard
2016 which was signed by President Joko Widodo on 12 May 2016, the film business began to open to foreign investors starting from the production, distribution and exhibition sectors.Distribution and exhibition aspects are determining factors for the success of a film.Distribution is needed to expand the market and connect the production stage with consumption or connect filmmakers with their audiences (Smits, Higson, Mateer, Jones, & D'Ippolito, 2017

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(Ayu & Yunita, 2013), 2009)edit is influenced by the credit interest rate (base lending rate), where there are several calculation components including the cost of funds and other costs such as overhead costs, risk factors, spreads and taxes(Sawitri & Wicaksono, 2009).The Central Bank is an institution that has influence in determining interest rates as a reference in the money market.In Indonesia it is known as the Bank Indonesia Interest Rate (BI Rate).Changes in the BI interest rate (BI rate) are followed by changes in deposit interest rates and credit interest rates with movements in the same direction or positive(Ayu & Yunita, 2013).In investment credit distribution, the determination of the basic interest rate or minimum interest rate is stipulated in Bank Indonesia Circular Letter number 13/5DPNP dated 8 February 2011 concerning Transparency of Information on Basic Credit Interest Rates (SBDK).Based on Bank Indonesia data, investment credit interest rates are grouped based on the type of provider bank into state-owned banks, government banks, national private banks, foreign and joint venture banks.In the period 2014 -2022 there are fluctuations related to investment interest rates from these banking sources.The description is as follows: ISSN: * Corresponding Author: Widharma Raya Dipodiputro Volume 07 Issue 03 March 2024 Available at: www.ijcsrr.orgPage No. 1804-1813

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Error.It is the standard error of the estimate of the dependent variable (in our case demand).This figure is compared with the standard deviation of demand.The smaller the standard error number compared to the standard deviation number of demand, the more accurate the regression model is in making predictions.Standard Error 0.13627773.If we look at the ANOVA table, it shows that the value of the regression model formed is suitable for use because the Significance F or P-Value is close to 0. So by using a significance level of 5%, the existing sample provides the conclusion that the resulting model is adequate and can be used.Next, it is necessary to look at the parameter hypothesis test which aims to test whether the predictor variable has a significant effect on the response variable.From these data it shows that the variable with the P-Value closest to 0 is the National Private Bank, while other variables have a P-Value that is more than 0. So H0 is accepted in other words, for the variables State-owned Bank, Regional Government Bank and Foreign Bank and Bank Mixan there is no significant influence between the intercept value and the variable number of cinema s.So it needs to be taken out and re-formulated and calculated with a focus on taking the National Private Bank variable directly linked to the number of cinema s.The results of the recalculation are as follows: , it shows that Multiple R, R Square, and Adjusted R Square are close to 1. Apart from that, the standard error is also close to 0 so the model is correct.Then, if you look at the ANOVA table, the significant F value after separating variables that do not have a significant effect shows a value that is much smaller and smaller than alpha.Based on the table, it shows that the P-Value is 0.0002093 (close to 0) so that using a significance level of 5%, the existing sample concludes that there is a significant influence between National Private Bank Investment Credit Interest Rates on the number of cinema screens in Indonesia.So the correct regression equation is as follows:Y = 1.05762003 --0.9492175SXiWhere every additional 1 unit in the credit interest rate will reduce the number of screen in the cinema by 0.9492175.This means that there is an inverse relationship between Investment Credit Interest Rates at National Private Banks.Likewise, if there is a 1 unit decrease in the National Private Bank credit interest rate, it will reduce the number of screen in cinemas by 0.9492175.DISCUSSIONBased on the results of multiple linear regression calculations on the influence of investment credit interest rates at Bank Persero, Regional Development Banks, National Private Banks, Foreign and Mixed Banks, the correlation with the strongest significant influence is on the National Private Bank variable.Thus, the role of national private banks is more dominant in supporting the growth of cinema screens in Indonesia in the period 2014 -2022.According to the OJK, National Private Banks are banks with most or all of their shares owned by the national private sector.Some examples of national private banks are BCA, CIMB Niaga, Permata Indonesia, Bank Muamalat, Bank Danamon and etc.The cinema industry's interest in investment interest rates from National Private Banks is demonstrated by corporate policies regarding investment plans to be carried out.The issuer that manages the CGV cinema network, PT Graha Layar Prima Tbk.(BLTZ) signed a credit facility agreement with PT Bank KB Bukopin Tbk.(BBKP) worth IDR 160 billion.Graha Layar Prima Director Park Seong Ho in his official statement on December 4 2023, said that the term loan facility from BBKP has a tenor of 1 year until December 2024.The collateral document for obtaining this loan facility is a corporate guarantee from CJ CGV Co. Ltd, as the ISSN: * Corresponding Author: Widharma Raya Dipodiputro Volume 07 Issue 03 March 2024 Available at: www.ijcsrr.orgPage No. 1804-1813