Fri, 13 Jun 2003

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.