Cheap original to be sold to curb piracy

Abdul Khalik, The Jakarta Post, Jakarta

Domestic recording business players and distributors announced on Wednesday that they were planning to produce and distribute inexpensive original CDs, VCDs and DVDs directly for local markets in a bid to compete with pirated copies.

Doemoli Siahaan, chairman of the association of Indonesian Recording and Traders, said that they had formed a consortium comprised of producers and distributors to produce and sell original VCDs and CDs at Rp 10,000 and DVDs at Rp 12,500.

"We have invested a certain amount of money for the plan as we believe that we have a huge market for inexpensive original CDs, VCDs, and DVDs," Doemoli told The Jakarta Post when witnessing the destruction of some 900,000 pirated CDs, VCDs and DVDs (see picture) at the city police headquarters on Wednesday.

He said that around 2 million pirated recordings were sold across the country each day at an average price of Rp 3,000 to 4,000 per disc.

Doemoli said that the underground industry could sell pirated CDs at such a low price because it cost them only Rp 200 for the disc and Rp 250 for the cover.

"All in all, it will cost them less than Rp 1,000 to produce a disc," said.

At present market prices, original CDs can cost between Rp 90,000 and Rp 150,000 each, VCDs between Rp 45,000 to 150,000 and original DVDs between Rp 100,000 to Rp 200,000 each.

Doemoli was optimistic that with such a competitive price, at least 50 percent of the people who now buy pirated discs would buy the inexpensive versions of the originals.

"We have researched the market. We are sure that we can make enough profit at the price. Usually, we pay producers Rp 3,000 a piece, and Rp 1,000 for tax, then we will have a margin of Rp 6,000 to Rp 8,500 per disc," he said.

He said that state revenues would increase by Rp 2 trillion a year if they succeeded in replacing the pirated discs from the market.

Doemoli added that at least 60 percent of disc retailers in Jakarta had agreed to distribute the inexpensive CDs, VCDs and DVDs because it offered them a higher margin.

"Pirated CDs only give them Rp 100 to Rp 200 profit a piece while original ones mean a profit of between Rp 2,500 and Rp 3,000 each," he said.