Government to set up special agency for IT

JAKARTA (JP): Coordinating Minister for the Economy Rizal Ramli said on Wednesday a special government agency would be set up next year to speed up the development of information technology (IT) in the country.

Rizal said the agency was urgently needed because Indonesia lagged far behind other countries, including China and India, in the IT sector.

"We have agreed to establish a special committee for IT development," he said following a meeting with senior officials from the Ministry of Communications and the Ministry of Trade and Industry.

"We do not want Indonesia to remain far behind, so the government must take the initiative to speed up IT development."

He added that a presidential decree on the establishment and mandate of the agency would be issued.

Rizal said the government also was considering a fiscal incentive policy to help boost the development of the IT sector.

He explained that developing the IT sector was important for the economy because IT offered lucrative business opportunities, pointing out that IT-related business transactions next year were projected to reach US$253 billion worldwide.

A number of government officials earlier said Indonesia was aiming to capture at least 8 percent of the world's IT market.

Rizal said the export performance of the country's electronic sector was not too bad, reaching approximately $7 billion.

According to him, if the domestic IT sector is properly developed, it has the potential to overtake the textile sector as the country's largest non-oil and gas export commodity.

"We still have enough time to catch up with other nations in the IT fields," he said.

Rizal added that the government was eager to take advantage of the $15 billion loan promised by the Japanese government for the development of IT industries in Asia.

He added that President Abdurrahman Wahid, who recently attended a Southeast Asian gathering on IT development, supported the establishment of the special government agency.

According to the Ministry of Communications, there currently are some 1,200 websites in the country with a total of about 150,000 visitors.

The ministry has forecast the number of visitors will jump to about 250,000 in 2005.

The government currently is preparing a blueprint for the information technology sector, which will be discussed with the House of Representatives.

Experts have criticized the government for its lack of a clear policy and vision in developing the IT sector.

Some have suggested a new ministry be established with a mandate to develop the IT industry. In the current Cabinet the IT industry falls under the portfolios of two different ministries, the Ministry of Communications and the Ministry of Trade and Industry.

Other experts also warned the government of the urgency of a cyber law in Indonesia to anticipate future disputes in the industry. (rei)