THE HARD FACTS
• The Indonesian Music Industry began in 1955 with the birth of LOKANANTA in Solo
• The first product came into market in 1958 through RRI • The industry established trade association, ASIRI in 1977
• The industry reached its peak in late 1980’s, with sales exceeding 12,000,000 units per month
• The promise of an industry encased with glamour, fame and fortune, has created a continuous growth of outstanding talents
THE GROWING PAINS
• The consistent decline of sales starting 1996 mainly due to the piracy
• The protection of IPR is not rooted in the Indonesian culture
• In Indonesia the violation of IPR is still considered a minor crime
• The birth of new media has significantly knocked out the music industry
LEGITIMATE vs PIRATED
• 1996 – 2006, sale of LEGAL products in units decreased by almost 70%
LEGITIMATE SALES (by product type)
Tapes CD VCD
1996: 98.99% 0.95% 0.05%
2006: 71.04% 18% 10.95%
PIRATED SALES (by product type)
Tapes CD VCD
1996: 99.84% 0.16% n/a
LOSS TO NATIONAL INCOME DUE TO PIRACY
Tapes CD VCD Rp.
1996: 99.68% 0.32% n/a 14.4 bio
LOSS TO MUSIC INDUSTRY INCOME DUE TO PIRACY
Tapes CD VCD Rp.
1996: 99.44% 0.56% n/a 231 bio
COMPARISON OF LEGITIMATE LOCAL vs INTERNATIONAL PRODUCTS SALES (in units)
Local International Total Units
1996: 84.69% 15.31% 77.552.008
LAWS AND REGULATIONS
• Copyright Regulation No. 19, 2002, compatible with Bern
Convention (rewritten copyright regulation will enter into force in 2008)
• Optical Disc regulation
PREVENTIVE ACTIONS
• Permanent teacher at the Center of Criminal Research at the National Police Headquarters as of 2002
• Regular seminars on Intellectual Property Rights, conducted internally and even with other bodies
• Public Service Ad regarding Anti-Piracy on radio and television
• Public campaign and rallies, including artists, on anti-piracy in 2003
REPRESIVE ACTIONS
• Consistent anti-piracy raids in cooperation with the National Police
DRAWBACKS
• No concrete follow up from the appropriate law enforcement agencies, resulting in only 20% of the cases being brought to court
