Though the cinema of Indonesia has a long history, the industry is currently struggling and developing.

The first film made in Indonesia was the 1926 silent film, Loetoeng Kasaroeng, by Dutch directors G. Kruger and L. Heuveldorp. It 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 film industry was supported by the Japanese occupiers during the Second World War as a propaganda tool.

After independence, the Sukarno government used it for nationalistic, anti-Western purposes. Foreign film imports were banned. After the overthrow of Sukarno by Suharto's New Order regime, films 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 film in the 1950s and 1960s.

The industry reached its peak in the 1980s, with such successful films as Naga Bonar (1987) and Catatan Si Boy (1989). Warkop's comedy films, directed by Arizal also proved to be successful. The industry has also found appeal among teens with such fare as Pintar-pintar Bodoh (1982), and Maju Kena Mundur Kena (1984). Actors during this era included Deddy Mizwar, Eva Arnaz, Lidya Kandou, Onky Alexander, Meriam Bellina, Rano Karno, and Paramitha Rusady.

Indonesia (ⁱ/ˌɪndəˈniːʒə/ IN-də-NEE-zhə or /ˌɪndoʊˈniːziə/ IN-doh-NEE-zee-ə), officially the Republic of Indonesia (Indonesian: Republik Indonesia Indonesian pronunciation: [rɛpʊblɪk ɪndɔnɛsɪa]), is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 17,508 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an elected legislature and president. The nation's capital city is Jakarta. The country shares land borders with Papua New Guinea, East Timor, and Malaysia. Other neighboring countries include Singapore, Philippines, Australia, and the Indian territory of the Andaman and Nicobar Islands. Indonesia is a founding member of ASEAN and a member of the G-20 major economies. The Indonesian economy is the world's 17th largest economy by nominal GDP.

The Indonesian archipelago has been an important trade region since at least the 7th century, when Srivijaya and then later Majapahit traded with China and India. Local rulers gradually absorbed foreign cultural, religious and political models from the early centuries CE, and Hindu and Buddhist kingdoms flourished. Indonesian history has been influenced by foreign powers drawn to its natural resources. Muslim traders brought Islam, and European powers brought Christianity and fought one another to monopolize trade in the Spice Islands of Maluku during the Age of Discovery. Following three and a half centuries of Dutch colonialism, Indonesia secured its independence after World War II. Indonesia's history has since been turbulent, with challenges posed by natural disasters, corruption, separatism, a democratization process, and periods of rapid economic change.