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Leading U.S. computer firm Microsoft launches local internet portal

| Source: JP

Leading U.S. computer firm Microsoft launches local internet portal

Eva C. Komandjaja, The Jakarta Post, Jakarta

Microsoft officially announced on Friday the launch of MSN
Indonesia, a localized web site of worldwide portal msn.com, the
main Internet rival of Yahoo!.

"Of the 350 million subscribers to msn.com, 306,000 are
Hotmail users and 110,000 are MSN Messenger users from Indonesia,
so we want to make it easier for them by providing a local MSN
site, using the Indonesian language as an interface," said PT
Microsoft Indonesia president Tony Chen on Friday.

Besides Hotmail and MSN Messenger, the new site, msn.co.id,
will offer local news, search engines, online shopping, as well
as electronic dating services -- all services offered by the
original portal.

However, when The Jakarta Post tested the web site, there were
still no local content, the menu was limited and the interface
language was English, not Indonesian.

Shriram Adukoorie, director of MSN South Asia, admitted that
partnerships with local companies in providing local news and
other content were still being negotiated, so the web site was
only partially finished on the launch date.

"We invite local companies to enter into partnerships with us
in running this web site -- for example, partnerships with local
media to provide the latest news for our web site," Shriram said.

Nevertheless, Shriram was confident that the number of local
customers would grow by 100 percent over the next 12 months.

MSN Indonesia will also offer services such as MSN Mobile so
that subscribers can receive e-mail messages, breaking news or
chat with their friends via mobile phone.

Tony said thus far, Indonesian MSN users could not take
advantage of the MSN Mobile facility on msn.com because of the
absence of Indonesian network options, but it would be made
available soon on the newly launched portal.

He said the company was currently negotiating with local
cellular service providers for the MSN Mobile service.

Integrated online-mobile services are booming in Indonesia,
and many local businesses have leapt on the bandwagon. Local
portals like astaga.com and detik.com offer mobile services, most
banks offer mobile banking services, and even newspapers offer
mobile news services via SMS (Short Message Service).

Indonesia, with a total population of over 210 million, is a
land of opportunity for businesspeople offering online services.

Although not many people have Internet access at home, but
many users, including those residing in minor cities, enjoy
Internet facilities through local Internet cafes, or warnet, and
schools.

For eyebox

Microsoft to offer discounts to battle piracy

The eradication of software piracy after the enactment in July
of Copyright Law No. 19/2002 is likely to boost PT Microsoft
Indonesia's revenue by 30 percent this year, said president Tony
Chen.

"We are still fighting software piracy by offering schools and
universities a discount of up to 90 percent for original
Microsoft software," Tony said on Friday.

However, Microsoft Indonesia has not taken any measures to
prevent the local distribution of newly pirated Longhorn
software. The pirated software is already being distributed in
Malaysia. The software, designed to succeed Windows XP, will be
launched officially in 2006.

A report from Business Software Alliance (BSA) states that
Indonesia ranks third in software piracy, inflicting losses of
US$79 million on software producers. The BSA report also states
that 88 percent of all software sold in Indonesia are pirated.

Tony concurred that, while it was difficult to completely
eliminate software piracy, he expected Indonesia's piracy rate
would go down by at least 10 percent by 2006, thereby increasing
the country's IT spending from the present $1 billion to about
$2.4 billion.

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