Microsoft, Apkomindo to promote software

Microsoft, Apkomindo to promote software

Evi Mariani, The Jakarta Post, Jakarta

PT Microsoft Indonesia and the Indonesia Computer Business
Association (Apkomindo) signed on Thursday a memorandum of
understanding (MOU) in order to promote the use of licensed
software in Indonesia, where software piracy reaches 89 percent
of the total sales.

Apkomindo would request its members, which amount to about
1,300 vendors in 15 cities across the archipelago, sell computer
hardware installed only with genuine software, association
chairman Hidayat Tjokrodjojo said.

"If buyers insist on using pirated software, we ask our
members not to assist them in installing the pirated versions.

"The public may know that Microsoft has previously filed
lawsuits against some Apkomindo members for selling computers
installed with pirated software," he said. "With this MOU we hope
we can reduce such incidents."

Law No. 19/2002, that comes into effect in July, bans the use
of pirated software. Those who commit piracy, sell pirated
software or simply allow the crime to take place will face a
maximum jail sentence of five years or a Rp 500 million (about
US$60,000) fine.

Hidayat said the campaign to use genuine software would first
focus on institutional buyers, like companies and schools. It
would be followed by a campaign targeting individual computer
buyers, who account for 15 percent of the country's total
computer market.

Microsoft president director Tony Chen, who represented the
company at the signing, said it did not expect the MOU to have an
instant effect in reducing the sales of pirated software.

"Our aim is mainly to raise awareness of the benefits of using
licensed software," he said. "Using genuine software might appear
to be costly at first. But for companies, in the long term, it
has proven to be beneficial."

The cost of having genuine software is indeed quite steep. For
example, the global price of Microsoft licensed computer systems
Windows98 or WindowsXP for one personal computer is about US$80,
while the price of a complete Microsoft Office package that
includes the popular programs like Microsoft Word, Excel and
Powerpoint, is around US$180.

Tony said that Microsoft was currently developing Indonesian
language software so the company could set Indonesian prices for
the planned software.

"Thus, the price is expected to be much lower," he said.

He added that in order to help small and medium enterprises
wanting to buy licensed software but having financial
difficulties, the company provided a credit service. "We offer
twelve-month credit with zero interest."

Indonesia ranks third after China and Vietnam in software
piracy. Even in the U.S., 25 percent of the software sold is
pirated.

Key points of Microsoft-Apkomindo MoU

1. PT Microsoft Indonesia will provide training about the
benefits and the optimal usage of Microsoft licensed software for
the sales managers of Apkomindo members.

2. In return, Apkomindo will promote Microsoft licensed software
to consumers.

3. Microsoft will provide funds for Apkomindo to hold computer-
related activities such as computer exhibitions. The amount of
the funds depends on how much Microsoft-licensed software
Apkomindo sells.