Microsoft still waiting for Net boom in Indonesia

JAKARTA (JP): PT Microsoft Indonesia said rampant software piracy was keeping the company from making gains in the Internet boom in the country.

Marketing director Paul Hardiman said on Friday the company's software sales in Indonesia remained constant despite proliferating operations of Internet-related services since early this year.

He said the software producer suffered millions of dollars in losses because of the piracy.

"Indonesia along with Vietnam ranks number one in software piracy." Paul added that some 97 percent of software sold here was pirated.

However, he said the company estimated 100 percent in sales of its e-commerce related products.

He said the heightened demand for Microsoft's e-commerce software came mostly from large companies willing to invest in sophisticated technology.

According to weekly magazine Swasembada, business groups which have invested heavily in the Internet included the Bimantara Group, Lippo Group, Sinar Mas Group, Bakrie Group and Metrodata Group.

Lippo Group, for instance, plans to invest some Rp 2 trillion (US$250 million) to expand its insurance, banking and retail businesses on the Internet, the magazine said.

Paul said the trend toward e-commerce began in early 2000, after there were few complications from the Year 2000 (Y2K) bug which was feared to cause widespread computer malfunctions.

Internet fever is raging in the country, with dozens of what have been dubbed dotcom companies setting up business in recent months.

Paul said Indonesia was entering the third Internet wave, defined by the increasing adoption of e-commerce and the appearance of website companies.

"Early 2000 could be marked as the entrance of the Internet's third wave into Indonesia," he said.

The first wave of the Internet, he said, was for pure communication and experimental purposes, commonly adopted by universities.

The second wave began with the establishments of Internet access providers that brought the Internet to the general public.

"The real money, however, comes with the third wave." He said it was then that profits were recorded. (bkm)