Index of /enm/images/dokumen
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 Indonesian Music Industry became legitimate in 1988 by bilateral
agreement with US and European Community
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%
• 1996 – 2006, sale of PIRATED products in units increased by 1,572%
COMPARISON OF DIST RIBUT ION - LEGIT IMAT E vs PIRAT ED
(UNIT S)
600,000,000
500,000,000
300,000,000
200,000,000
100,000,000
08
*
20
07
*
20
- O 06
kt
20
0
Ja
n
20
05
20
04
20
03
20
02
20
01
20
00
20
99
19
98
19
97
19
96
7
-
19
UNIT
400,000,000
YEAR
PRODUK LEGAL
PRODUK BAJAKAN
LEGITIMATE SALES (by product type)
1996:
2006:
Tapes
98.99%
71.04%
CD
0.95%
18%
VCD
0.05%
10.95%
CD
0.16%
0.48%
VCD
n/a
94.49%
PIRATED SALES (by product type)
1996:
2006:
Tapes
99.84%
5.03%
DISTRIBUTION OF LEGITIM ATE PRODUCTS
(UNITS PER PRODUCT TYPE)
80,000,000
UNIT
60,000,000
40,000,000
20,000,000
1996
1997
1998
1999
2000
2001
2002
2003
YEAR
2004
2005
2006
Jan - 2007* 2008*
Okt
KASET
2007
CD
VCD
DIST RIBUT ION OF PIRAT ED PRODUCT S
(IN UNIT S PER PRODUCT T YPE)
600,000,000
500,000,000
UNIT
400,000,000
300,000,000
200,000,000
100,000,000
1996
1997
1998
1999
2000
2001
2002
2003
YEAR
2004
2005
2006
Jan - 2007* 2008*
Okt
2007
VCD
CD
KASET
DVD
LOSS TO NATIONAL INCOME DUE TO PIRACY
Tapes
CD
1996:
99.68%
0.32%
2006:
2.09%
0.64%
VCD
Rp.
n/a
14.4 bio
97.27%
974 bio
YEAR
20
07
*
20
08
*
1,400,000,000,000
1,300,000,000,000
1,200,000,000,000
1,100,000,000,000
1,000,000,000,000
900,000,000,000
800,000,000,000
700,000,000,000
600,000,000,000
500,000,000,000
400,000,000,000
300,000,000,000
200,000,000,000
100,000,000,000
-
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
Ja 2
n 00
-O 6
kt
20
07
RUPIA
ESTIMATE LOSS TO NATIONAL INCOME DUE TO PIRATED PRODUCTS
LOSS TO MUSIC INDUSTRY INCOME DUE TO PIRACY
Tapes
CD
1996:
99.44%
0.56%
2006:
3.27%
1.04%
VCD
Rp.
n/a
231 bio
95.69%
13.3 tri
ESTIMATE LOSS TO INDUSTRY DUE TO PIRATED PRODUCTS
20,000,000,000,000
18,000,000,000,000
16,000,000,000,000
12,000,000,000,000
10,000,000,000,000
8,000,000,000,000
6,000,000,000,000
4,000,000,000,000
2,000,000,000,000
YEAR
2008*
2007*
Jan - Okt 2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
-
1996
RUPIA
14,000,000,000,000
COMPARISON OF LEGITIMATE LOCAL vs INTERNATIONAL
PRODUCTS SALES (in units)
Local
International
Total Units
1996:
84.69%
15.31%
77.552.008
2006:
82.56%
17.44%
23.736.355
COMPARISON OF LEGITIMATE LOCAL & INTERNATIONAL PRODUCTS
100%
90%
85%
80%
83%
75%
69%
70%
70%
73%
68%
66%
72%
86%
73%
64%
PERSE
60%
50%
40%
31%
30%
20%
36%
34%
30%
25%
32%
27%
28%
27%
17%
15%
14%
10%
0%
1996
1997
1998
1999
2000
2001
2002
YEAR
2003
2004
2005
LOKAL
2006
Jan Okt
2007
INTERNASIONAL
LAWS AND REGULATIONS
• Copyright
Regulation No. 19, 2002, compatible with Bern
Convention (rewritten copyright regulation will enter into
force in 2008)
• Optical Disc regulation
• Statement from the Council of Indonesian Moslem Ulamas
(MUI) in 2003 declaring pirated products as “haram”
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
• Introduction and socializing of the anti-piracy logo on all recorded
products
REPRESIVE ACTIONS
• Consistent anti-piracy raids in cooperation with the National Police
• Destruction of products collected at the above raids
DRAWBACKS
• No concrete follow up from the appropriate law enforcement agencies,
resulting in only 20% of the cases being brought to court
• No common perception amongst law enforcement agencies (police,
attorneys and judges) on the conclusion of cases
CONCLUSION
The need for political WILL and ACTION from the
government to combat Piracy
• 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 Indonesian Music Industry became legitimate in 1988 by bilateral
agreement with US and European Community
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%
• 1996 – 2006, sale of PIRATED products in units increased by 1,572%
COMPARISON OF DIST RIBUT ION - LEGIT IMAT E vs PIRAT ED
(UNIT S)
600,000,000
500,000,000
300,000,000
200,000,000
100,000,000
08
*
20
07
*
20
- O 06
kt
20
0
Ja
n
20
05
20
04
20
03
20
02
20
01
20
00
20
99
19
98
19
97
19
96
7
-
19
UNIT
400,000,000
YEAR
PRODUK LEGAL
PRODUK BAJAKAN
LEGITIMATE SALES (by product type)
1996:
2006:
Tapes
98.99%
71.04%
CD
0.95%
18%
VCD
0.05%
10.95%
CD
0.16%
0.48%
VCD
n/a
94.49%
PIRATED SALES (by product type)
1996:
2006:
Tapes
99.84%
5.03%
DISTRIBUTION OF LEGITIM ATE PRODUCTS
(UNITS PER PRODUCT TYPE)
80,000,000
UNIT
60,000,000
40,000,000
20,000,000
1996
1997
1998
1999
2000
2001
2002
2003
YEAR
2004
2005
2006
Jan - 2007* 2008*
Okt
KASET
2007
CD
VCD
DIST RIBUT ION OF PIRAT ED PRODUCT S
(IN UNIT S PER PRODUCT T YPE)
600,000,000
500,000,000
UNIT
400,000,000
300,000,000
200,000,000
100,000,000
1996
1997
1998
1999
2000
2001
2002
2003
YEAR
2004
2005
2006
Jan - 2007* 2008*
Okt
2007
VCD
CD
KASET
DVD
LOSS TO NATIONAL INCOME DUE TO PIRACY
Tapes
CD
1996:
99.68%
0.32%
2006:
2.09%
0.64%
VCD
Rp.
n/a
14.4 bio
97.27%
974 bio
YEAR
20
07
*
20
08
*
1,400,000,000,000
1,300,000,000,000
1,200,000,000,000
1,100,000,000,000
1,000,000,000,000
900,000,000,000
800,000,000,000
700,000,000,000
600,000,000,000
500,000,000,000
400,000,000,000
300,000,000,000
200,000,000,000
100,000,000,000
-
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
Ja 2
n 00
-O 6
kt
20
07
RUPIA
ESTIMATE LOSS TO NATIONAL INCOME DUE TO PIRATED PRODUCTS
LOSS TO MUSIC INDUSTRY INCOME DUE TO PIRACY
Tapes
CD
1996:
99.44%
0.56%
2006:
3.27%
1.04%
VCD
Rp.
n/a
231 bio
95.69%
13.3 tri
ESTIMATE LOSS TO INDUSTRY DUE TO PIRATED PRODUCTS
20,000,000,000,000
18,000,000,000,000
16,000,000,000,000
12,000,000,000,000
10,000,000,000,000
8,000,000,000,000
6,000,000,000,000
4,000,000,000,000
2,000,000,000,000
YEAR
2008*
2007*
Jan - Okt 2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
-
1996
RUPIA
14,000,000,000,000
COMPARISON OF LEGITIMATE LOCAL vs INTERNATIONAL
PRODUCTS SALES (in units)
Local
International
Total Units
1996:
84.69%
15.31%
77.552.008
2006:
82.56%
17.44%
23.736.355
COMPARISON OF LEGITIMATE LOCAL & INTERNATIONAL PRODUCTS
100%
90%
85%
80%
83%
75%
69%
70%
70%
73%
68%
66%
72%
86%
73%
64%
PERSE
60%
50%
40%
31%
30%
20%
36%
34%
30%
25%
32%
27%
28%
27%
17%
15%
14%
10%
0%
1996
1997
1998
1999
2000
2001
2002
YEAR
2003
2004
2005
LOKAL
2006
Jan Okt
2007
INTERNASIONAL
LAWS AND REGULATIONS
• Copyright
Regulation No. 19, 2002, compatible with Bern
Convention (rewritten copyright regulation will enter into
force in 2008)
• Optical Disc regulation
• Statement from the Council of Indonesian Moslem Ulamas
(MUI) in 2003 declaring pirated products as “haram”
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
• Introduction and socializing of the anti-piracy logo on all recorded
products
REPRESIVE ACTIONS
• Consistent anti-piracy raids in cooperation with the National Police
• Destruction of products collected at the above raids
DRAWBACKS
• No concrete follow up from the appropriate law enforcement agencies,
resulting in only 20% of the cases being brought to court
• No common perception amongst law enforcement agencies (police,
attorneys and judges) on the conclusion of cases
CONCLUSION
The need for political WILL and ACTION from the
government to combat Piracy