Wednesday, June 15, 2011

Software piracy in Indonesia

Jakarta research institute IDC reports that the software piracy rate in Indonesia is 87%. The commercial value of unlicensed software installed on computers in Indonesia, according the Business Software Alliance exceeded USD 1.32 billion in 2010. IP Komodo presumes this reflects the legitimate product prices rather than the size of pirates' revenues.

Different types of software piracy exist, from illegal downloads, to business users of unlicensed software to sales of software on pirated CDs in the streets.

Microsoft complained in March how low its Indonesian revenues were due to piracy. But at the same time it pins its hopes on the cloud since delivery of software through a subscription model could make software less accessible to pirates.

Software companies remain optimistic due to the huge market size. The growth in the middle class will lead to greater security concerns and therefore higher demand for legitimate products. Russian anti virus firm Kaspersky has just opened a rep. office citing this reason to ignore the piracy problem.

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