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Newspapers told to go online to stay ahead of competition

| Source: JP

Newspapers told to go online to stay ahead of competition

JAKARTA (JP): Newspapers in Indonesia must go online to
survive the increased competition resulting from the Internet,
leading newspaper publisher Jacob Oetama of Kompas daily said on
Thursday.

The rapid growth of online media, with all the advantages it
offers -- from faster delivery and simplicity, as well as
interactivity -- poses a serious threat to the survival of the
print media industry, Jacob said during a seminar on the impact
of information technology on the newspaper business.

To survive newspapers must study the online media, including
portal services, and the business opportunities it offers, said
Jacob, who also chairs the Association of Newspaper Publishers.

"Publishers have to see the Internet as an opportunity to
reinvent the newspaper business," he said.

Newspapers, particularly established ones, have the advantage
over non-newspaper companies in plunging into the Internet, he
said. "We can use our databases to supplement the content of news
websites," he said as one example of this advantage.

Jacob, whose Kompas Online is one of the leading providers of
Indonesian news on the Internet, said online publishers must be
creative in producing and presenting their content.

Professional competence remains a key factor in surviving in
the increasingly competitive information business, he said,
adding that journalists would have to work more effectively and
professionally.

Small newspaper publishers should consider merging to survive
the competition unleashed by the Internet, he added.

In entering the Internet, publishers must consider numerous
aspects that could affect their survival, he said.

Competition comes not only from other publishers but also from
nonpublishers, corporations and nonprofit organizations such as
political parties and non-governmental organizations.

In spite of the Internet's robust growth in providing
information, Jacob said newspapers in Indonesia could still count
on their traditional readership for years to come.

"Only one million out of Indonesia's 210 million people have
access to the Internet at the moment. We still have much
opportunity to grow," he said.

The president director of PT Microsoft Indonesia, Richard
Kartawijaya, said the Internet's threat to the newspaper industry
in Indonesia would not be felt until 2003 or 2004.

"So far, 43 percent of Internet users use it to read news.
This proportion will increase," Richard said. (dja)

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