In a press statement on Thursday Lippo said that the cash would be spent over 10 years to create a 2,000 screen network of theatres spanning 300 locations and 85 cities.
That is an increase from its previously stated ambition of opening 1,000 screens over the next 5 years.
“Cinemaxx plans to develop its network in areas that have yet to be covered by the business,” said Cinemaxx CEO Brian Riady in a statement.
Currently the cinema exhibition business in Indonesia is largely controlled by a single group which operates 600 of the country’s 800 screens. Development of the sector has been hampered by laws which prevent foreign investment in production and exhibition. A second, locally-controlled chain has emerged with backing from Korea’s CJ-CGV, but it has not had the transformational effect that the Lippo move potentially offers.
Lippo is one of Indonesia’s largest conglomerates with interests ranging from property and financial services through to media and communications. The Cinemaxx investment report was first covered in the Lippo-owned Jakarta Globe.
The first Cinemaxx complex is set to open in Palembang, South Sumatra, in September this year. It will include15 cinema screens, making it the largest in the country.
Lippo has also announced others in Manado (North Sulawesi), Medan (North Sumatra), Ponorogo (East Java) and Jakarta through the rest of this year.
The complexes will be located in shopping centers, with each multiplex having an average of seven screens.
The company has ordered 100, Dolby Atmos sound systems to be installed within the next three years. Of these 30 are scheduled before May 2015.