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Advertisement for, the first produced in what is now Indonesia The first showing of films in the was in 1900, and over the next twenty years foreign productions – generally from the United States – were imported and shown throughout the country. Domestic production of had begun in 1911 but were unable to compete with imported works. By 1923 a local production spearheaded by the Middle East Film Co. Was announced, but the work was not completed.
The first domestically produced film in the Indies was in 1926:, a silent film by director L. This adaptation of the was made with local actors by the NV Java Film Company in and premiered on 31 December 1926 at the Elite and Majestic Theatres in Bandung. The following year, – who had served as a technician and cinematographer for Loetoeng Kasaroeng – released his directorial debut (the second film in the Indies),. Owing to Loetoeng Kasaroeng 's limited release, Kruger was able to advertise his film as the colony's first. A year later, the second novel to be adapted to film in Indonesia,, was produced. Directors and producers, capitalising on the success of films produced in, China, became involved in the colony's cinema beginning in 1928, when completed.
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Although the Wongs went on hiatus, other ethnic Chinese became involved in film. Several Chinese owned start-ups are recorded from 1929 on, including Nancing Film with (1928) and with (1929).
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By the early 1930s Chinese-owned businesses were the dominating force in the country's film industry. After the reached the Indies, production slowed tremendously: the Dutch East Indies government collected higher taxes and cinemas sold tickets at lower prices, ensuring that there was a very low for local films. As a result, cinemas in the colony mainly showed productions, while the domestic industry decayed., who had made his debut in 1931 with, was the only producer able to release films during 1934 and early 1935: his low budget but popular films were mainly inspired by or martial arts, and although aimed at ethnic Chinese proved popular among because of their action sequences. Poster for, one of three films credited with reviving the Indies' failing film industry In an attempt to show that locally produced, well-made films could be profitable, the Dutch journalist, who had no formal film experience, produced in 1935 in collaboration with Nelson Wong and his brothers. Though the film, costing 20 times as much as most contemporary productions, was an ultimately failure, it affected The Teng Chun's directorial style; the latter took less traditional stories. Balink's next attempt,, was released two years later. Unlike Pareh, Terang Boelan was a marked commercial success, earning 200,000 (then equivalent to 114,470 ) in two months.