A glimpse of hope for IT businesses in Indonesia
Hong Kong, (Tuesday, May 23) – An annual global PC software study released today by Business Software Alliance (BSA), an international association of the world’s leading software developers, shows that the PC software piracy rate of Indonesia remains the same at 87% compared to the previous study in 2004. The independent study was conducted by IDC, the information technology (IT) industry’s leading global market research and forecasting firm.
The study also shows that thirty-five percent of the packaged software installed on personal computers (PC) worldwide in 2005 was illegal, amounting to $34 billion in global losses due to software piracy. In addition, piracy rates decreased moderately in more than half (51) of the 97 countries and increased in only 19. The global rate was unchanged from 2004 to 2005 as large developed markets like the United States, Western Europe, Japan and a handful of Asian countries continue to dominate the software market while their combined piracy rate hardly moved.
Some positive changes could be seen in the rapidly developing countries of Russia, India and China. Russia saw a four point drop in its PC software piracy rate while India’s piracy rate declined two points. China, with one of the fastest growing IT markets in the world, dropped four points between 2004 and 2005. Some improvements in a number of markets indicate education, enforcement and policy efforts are beginning to pay off in emerging economies such as China, Russia and India and in Central/Eastern Europe and the Middle East & Africa.
Commenting at the Asia regional launch was Jeffrey Hardee, Vice President and Regional Director for Asia, “While the average Asia piracy rate increased by 1 point to 54% this year, the piracy rates in six Asia economies declined. China led the way with a four point drop, followed by India, Singapore and Vietnam with two point reductions. The reason for the rise in the average rate for the region lies in the growth of the PC markets in China and India, which grew from a combined 27% of the Asia Pacific market in 2004 to 29% in 2005. Hence, despite the reductions in many Asian economies, including China and India, a higher percentage of PCs shipped into these two countries had the mathematical effect of dragging the Asia Pacific average upward toward the China/India average.”
“The reductions we have seen show that efforts made by governments in addressing software piracy through sound policy initiatives, educational outreach and enforcement programs bear fruit and we think most economies in the region are well-positioned to bring about significant reductions in piracy in the coming years if these efforts are sustained. The IDC Economic Impact Study released in December 2005 clearly illustrates the economic benefits to be gained from reductions in software piracy in terms of job creation, IT penetration, and GDP growth and we are excited about the prospects for the region,” added Hardee.
The study reveals that Indonesia is still in the top 5 list of countries with the highest piracy rates of 87 percent. Despite the high rate of piracy in Indonesia, Farouk Cader, BSA representative believes that there is still hope for IT businesses in Indonesia.
“We are optimistic that there is still hope for Indonesia. We believe the Indonesian Government has taken the piracy issue in the country seriously by forming a National Task Force that will focus its work in fighting piracy in the country. Apart from that the DGIPR and the Police Force have continuously worked hand in hand in reducing the piracy rate in Indonesia through the provision of sound policy initiatives, educational outreach and continuous enforcement,” said Farouk in response to the release of BSA/IDC’s latest study.
“Earlier this year, the Detective Bureau of the National Police (Bareskrim Mabes Polri) successfully raided two well-known malls in Jakarta and confiscated a total of 9250 copies of illegal software as evidence. The efforts of DGIPR and the Police Force are on the right track and we should congratulate them for such achievement. However, much more needs to be done and we should never give up on this and continue to support the government. Because at the end, Indonesian people and local IT businesses will benefit the most,” added Farouk.
“With more than one out of every three copies of PC software obtained illegally, piracy continues to threaten the future of software innovation, resulting in lost jobs and tax revenues. Therefore, stronger intellectual property protection and education and awareness are absolutely critical to stem the growth of piracy around the world. As broadband growth continues and the IT sector expands, the influx of new users and the increased availability of pirated software means continual efforts are required to reduce and keep software piracy down,” said BSA President and CEO Robert Holleyman.
The IDC Economic Impact Study released in December 2005 illustrates the economic benefits to be gained from reductions in software piracy in terms of job creation, IT penetration, and GDP growth. Global losses from software piracy amounted to $34 billion in 2005, an increase of $1.6 billion over the previous year. In Asia region, the average piracy rate increased by 1 point to 54% this year, but the piracy rates in six Asia economies declined. The reductions show that sustainable and continuous efforts made by each government suffering from software piracy.
A previous IDC/BSA study showed that if the global piracy rate were to drop 10 points to 25%, it would create as many as 2.4 million new jobs, $400 billion in economic growth, and $67 billion in tax revenues worldwide.
For more details or for a copy of the study, please visit www.bsa.org/globalstudy.
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About BSA
The Business Software Alliance (www.bsa.org) is the foremost organization dedicated to promoting a safe and legal digital world. BSA is the voice of the world's commercial software industry and its hardware partners before governments and in the international marketplace. Its members represent one of the fastest growing industries in the world. BSA programs foster technology innovation through education and policy initiatives that promote copyright protection, cyber security, trade and e-commerce. BSA members include Adobe, Apple, Autodesk, Avid, Bentley Systems, Borland, CNC Software/Mastercam, Internet Security Systems, McAfee, Microsoft, Minitab, PTC, SolidWorks, Sybase, Symantec, The MathWorks, Trend Micro and UGS. Local members in Asia include Agilent (Taiwan), Altium (China), Andal Software (Indonesia), ARM (Taiwan), Biztrak (Malaysia), Check Point Software (China), Cimatron Technologies (Taiwan), Electric Angels (Malaysia), Justsystem (Japan), Morisawa (Japan), National Instruments (Taiwan), Orbotech (Taiwan), SAP (Taiwan), Software Industry Information Centre (Hong Kong), Syscom Computer (Taiwan) and UBS Corporation (Malaysia).
About IDC
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. Over 850 IDC analysts in 50 countries provide global, regional, and local expertise on technology and industry opportunities and trends. For more than 42 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.
Contact Information
Reza Maulana
APCO Indonesia
Phone: 5296 4611
Fax: 5296 4610
Email: rmaulana@apcoindonesia.com
