Microsoft signs agreement with PC manufacturers

JAKARTA (JP): Microsoft, a leading United States software company, signed up four Indonesian computer manufactures yesterday to preinstall its software in their computers for domestic distribution.

The agreement, signed at the Grand Hyatt hotel here, was witnessed by American Ambassador J. Stapleton Roy and the director general of metal, machinery and chemical industries, Effendi Sudarsono.

Joachim Kempin, Microsoft's senior vice president for original equipment sales, and John Lauer, Microsoft's director for Southeast Asia, said the agreement would increase business opportunities for Indonesian-based personal computer manufacturers, and would help combat piracy of intellectual rights.

"I am encouraged by the strong show of support by these four strategic companies for their vision and foresight in getting on board with a global information technology market that puts proper emphasis on protection of software intellectual property," Kempin said.

The four Indonesian-based computer makers that signed the agreement are PT Multicom Persada International which produces of Mugen computers, Galva Technologies Corporation which produces GTC computers, PT Zeuscom Indonesia which makes Kronus and Zeuscom computers, and PT Zyrexindo Mandiri Buana which produces Zyrex computers.

Genuine Windows 95 software will be installed in the computers manufactured by the four companies before they are sold.

Sudarsono said the government would encourage the development of the computer industry by lowering or eliminating tariffs on computers and computer-related products.

He praised the agreement as a measure to combat piracy. The government has introduced laws to protect intellectual property rights, but policing the laws has proved almost impossible.

Kempin told The Jakarta Post that anyone buying the computers made by the four companies would get a Windows 95 manual in Indonesian.

Microsoft will give the four computer manufacturers technical assistance to make their computers suitable for Windows 95. Microsoft will also certify their products and promote them through seminars.

Kempin would not say how much the companies were paying for Microsoft's software. He said the price was such that the companies would "still be competitive against international brands".

The four companies computers are about 15 percent cheaper than branded computers, he said.

There are hundreds of computer makers in Indonesia, but many of them use pirated software to compete against branded computers.

Between 400,000 and 500,000 computers are sold in Indonesia each year. More than 50 percent of these are made by domestic manufacturers, said Oki Widjaja, president of PT Galva Technologies Corporation. (jsk)