2. 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

3. 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

4. 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%

6. LEGITIMATE SALES (by product type) TapesCDVCD 1996:98.99%0.95% 0.05% 2006:71.04%18%10.95% PIRATED SALES (by product type) TapesCDVCD 1996:99.84%0.16% n/a 2006: 5.03%0.48%94.49%

9. LOSS TO NATIONAL INCOME DUE TO PIRACY TapesCDVCD Rp. 1996:99.68%0.32% n/a14.4 bio 2006: 2.09%0.64%97.27%974 bio

11. LOSS TO MUSIC INDUSTRY INCOME DUE TO PIRACY TapesCDVCD Rp. 1996:99.44%0.56% n/a231 bio 2006: 3.27%1.04%95.69%13.3 tri

13. COMPARISON OF LEGITIMATE LOCAL vs INTERNATIONAL PRODUCTS SALES (in units) LocalInternationalTotal Units 1996:84.69% 15.31%77.552.008 2006:82.56% 17.44%23.736.355

15. 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”

16. 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

18. REPRESIVE ACTIONS Consistent anti-piracy raids in cooperation with the National Police Destruction of products collected at the above raids

19. 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

20. CONCLUSION The need for political WILL and ACTION from the government to combat Piracy