Data can be transferred from a picture processing section to an encoding section without necessity of using an external memory. In addition, with internal data transfer having a wider band than an external memory, data can be processed at high speed. An entire picture 41 as an original picture is divided into six blocks of (64×4) pixels each. An enlargement process is performed for each block. Data of blocks are read in the order of blocks 1, 2, 3, and so forth. A size changing section processes a first block and generates picture data of a block 42 of (128×8) pixels. From this picture data 42, macroblocks 43 of (16×8) pixels each are read and encoded. As a result, JPEG data 44 are obtained. A code rearrangement section rearranges the order of the JPEG data 46 in the unit of a block. As a result, JPEG data 48 are generated. When JPEG data 48 are decoded in this order, a decoded picture 49 whose block order matches an area 41 of the original picture is obtained.