direct speech --> indirect speech

Hi there,

John said, "this is a good movie."<------- direct
John said that that was a good movie.<------ indirect

Your sentence is absolutely right.
Actually the first " that" in the sentence is optional.

In British English, we often use the word " that" with some verbs
like " think" , " suggest" and " say".

1) I think THAT you will have to..............................

2) I suggest THAT you should .......................
3) He said THAT he was a .............................

Note:
The word" that" is optional as well.

( It is just that we use " that" here to link up a following clause usually.)


Hope I've cleared your doubts.
:)
Bye for now.

Yes, it is correct.


But you can ignore the "that" so that it will not be so confusing.

i.e.,

John said THAT that was a good movie.


the capitalised "that" can be cancelled.