12.29.11
Posted in Cablegate, Free/Libre Software at 7:57 am by Dr. Roy Schestowitz
Summary: Folks from MIT (home of the FSF/GNU) were said to be using “open-source software” for an “Intranet [that] would rely on radio and satellite data links to avoid dependence on Iraq’s telecom system” and more
“Gatti said MIT plans to set up the system using open-source software,” claims the following Cablegate cable, which speaks about setting up some communication infrastructure for post-invasion Iraq. Here is the full cable:
C O N F I D E N T I A L ROME 002050
SIPDIS
SECDEF FOR OSD/AJTORRES
JOINT STAFF FOR SYIKE
E.O. 12958: DECL: 05/22/2014
TAGS: EAID [Foreign Economic Assistance], EINT [Economic and Commercial Internet], PREL [External Political Relations], IT [Italy], IZ [Iraq], IRAQI FREEDOM
SUBJECT: IRAQ: SECURITY CONCERNS PUT E-GOV PROGRAM IN LIMBO
Classified By: Economic Minister-Counselor Scott Kilner
for reasons 1.4 (b)(d)
SUMMARY
-------
¶1. (C) Italy's Ministry of Innovation and Technology (MIT) is
ready to send a team to Baghdad to start work on a Euro 11
million project to build an Intranet system for the Iraqi
government. According to an aide to MIT Minister Lucio
Stanca, however, the Italian Foreign Ministry will not
approve the trip because of security concerns. The completed
system would link 20-30 Iraqi government departments to each
other and the Internet using a mix of radio and satellite
links. End summary.
Safety Concerns Delay E-Government Project.
-------------------------------------------
¶2. (C) Stefano Gatti (protect), Diplomatic Advisor to
Innovation and Technology Minister Lucio Stanca, recently
gave Econoff an update of Italy's Euro 10-11 million project
to provide the Iraqi government with a basic Intranet
infrastructure. The MIT has a team ready to go to Baghdad to
conduct an initial survey of the Iraqi Ministries'
requirements; but, Gatti explained with some exasperation,
the Ministry of Foreign Affairs (MFA) is delaying approval of
the trip. Gatti speculated that the MFA was nervous about
sending additional Italian officials to Baghdad given the
unresolved status of three Italian hostages, the death this
month of an Italian soldier in Nasiriyah, and the
assassination of Interim Governing Council President Ezzedine
Salim outside the Green Zone. In this environment, Gatti
said, the GOI is reluctant to send more people to Baghdad.
Gatti said the MIT has pared down the team from eight to four
people in deference to the MFA's security concerns, but the
MFA is still withholding approval.
Need for Iraqi Coordinator
--------------------------
¶3. (SBU) A second problem the project has encountered, Gatti
remarked, is finding an Iraqi agency to coordinate with the
MIT team. He explained that, since the project involves
hooking up several Iraqi ministries to a central Intranet
hub, Italy must find an Iraqi authority capable of overseeing
such a government-wide project. Gatti predicted, however,
that this problem would be overcome once the Ministry has its
own people on the ground in Baghdad.
Background
----------
¶4. (SBU) MIT's proposed Euro 10-11 million Iraqi Government
Intranet project is designed to give the Iraqi government a
basic system for electronically linking ministries and,
possibly, municipal and provincial governments. The initial
budget covers the cost of a central server bank, connections
for 20-30 government departments (each with 20 work
stations), a remote back-up system (possibly located in
Italy), plus training and technical support. The Iraqi
Intranet would rely on radio and satellite data links to
avoid dependence on Iraq's telecom system. In addition to
providing Iraqi officials with basic email and Internet
connectivity, the Intranet network could also be used for
telephone service among government departments. Gatti said
MIT plans to set up the system using open-source software.
(Note: A copy of Italy's proposal for the Iraqi Government
Intranet is available on Rome's Classnet homepage under the
section "Italy Background Notes." Please do not distribute
this document outside the USG. End note.)
Start-up Funding Available from MFA and World Bank
--------------------------------------------- -----
¶5. (SBU) Gatti said the MFA already has Euro two million
available to start the project. The MIT expects to receive
another Euro two million from the World Bank's Development
Gateway Foundation, he said. The MIT, Gatti asserted, is
ready to start the project even though it has yet to secure
the full Euro 10-11 million in funding. Gatti predicted the
additional money would fall into place once the project got
underway. (Note: The GOI is counting this project as part of
its Euro 200 million Madrid pledge. End note.)
COMMENT
-------
¶6. (C) The delay in sending the MIT team to Baghdad
demonstrates how the continuing Italian hostage ordeal and
recent violence around Nasiriyah is creating government
nervousness with negative consequences for reconstruction
work. However, assuming the security situation stabilizes
and there are no more high-profile attacks or kidnappings
that target Italians, we expect that the MIT team will be
cleared to go to Baghdad in coming weeks.
¶7. (U) MINIMIZE CONSIDERED.
Visit Rome's Classified Website:
http://www.state.sgov.gov/p/eur/rome/index.cf m
SEMBLER
NNNN
2004ROME02050 - Classification: CONFIDENTIAL
It is possible that a lot of systems were built with proprietary systems (contractors helping other contractors), but the above is noteworthy nonetheless. █
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Posted in Cablegate, Microsoft at 7:33 am by Dr. Roy Schestowitz
Microsoft wants YOU… in prison!
Summary: Lobbying from Microsoft shows just how far the company is willing to go to criminalise its own end users
YESTERDAY we wrote about Apple's use of blackmail to influence French copyright law. According to the following Cablegate cable from Tel Aviv, Microsoft has been doing the same type of thing and met resistance. To quote: “Microsoft Israel has been the most successful of the interested parties in lobbying for changes in the Copyright Bill. Government Affairs Manager for Microsoft Israel, Shai-lee Spigelman, told EconCouns on July 13 that Microsoft has formed a coalition of foreign and Israeli software development companies to push for changes in the bill. Microsoft’s key concerns center around the provisions for creating back-up copies and the unlimited exemptions granted to public libraries. Anti-piracy manager at Microsoft Israel, Gil May-Tal, told Econoff that he has also pushed the MoJ to define end-user piracy as a crime, but found MoJ’s Afori entrenched in opposition to such a change. While Microsoft wants to see end-user piracy defined as a crime in the legislation, May-Tal deemed it not worth pushing, and thereby risking the positive relationship that Microsoft has built with the Afori. May-Tal said Afori is inclined to consider changes to the back-up copy and library usage clauses as recommended by Microsoft. Microsoft execs report that the drafting of the legislation was influenced by proponents of the EU’s open source movement.”
Here is the full Cablegate cable, which speaks more broadly about Israel’s copyright legislation
null
Carol X Weakley 10/18/2006 02:46:18 PM From DB/Inbox: Carol X Weakley
Cable
Text:
S E C R E T TEL AVIV 04106
SIPDIS
CXTelA:
ACTION: ECON
INFO: IPSC SCI IMO CONS RES POL DCM AMB AID ADM FCS
PD
DISSEMINATION: ECON
CHARGE: PROG
APPROVED: ECON:WWEINSTEIN
DRAFTED: ECON:BMASILKO
CLEARED: ECON: JWITOW
VZCZCTVI955
PP RUEHC RUCPDOC
DE RUEHTV #4106/01 2901552
ZNY SSSSS ZZH
P 171552Z OCT 06
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC PRIORITY 7010
INFO RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
S E C R E T SECTION 01 OF 02 TEL AVIV 004106
SIPDIS
DEPARTMENT PLEASE PASS TO USTR: E.SAUMS AND S.DONNELLY
E.O. 12958: DECL: 10/13/2016
TAGS: ECON [Economic Conditions], ETRD [Foreign Trade], PGOV [Internal Governmental Affairs], KIPR [Intellectual Property Rights], IS [Israel]
SUBJECT: UPDATE ON ISRAEL'S COPYRIGHT LEGISLATION
REF: A. TEL AVIV 03785
B. TEL AVIV 03843
Classified By: Economic Counselor William Weinstein for reasons 1.4 (b)
and (d)
¶1. (S) Summary: Israel is moving forward with legislation to
modernize and unify its existing copyright law. Three pieces
of pending copyright legislation have a direct impact on U.S.
industry. Working-level contacts at Ministry of Justice
(MoJ), who drafted the legislation, display varying degrees
of flexibility in responding to U.S. industry concerns.
While these concerns tend to focus on the specific provisions
of the legislation (as applicable to a given industry), all
of Posts' contacts oppose the legislation's decriminalization
of end-user piracy and its lack of protection for digital
media. Per Washington's request EconCouns has requested that
the Ministry of Industry, Trade, and Labor (MOITAL) engage
with the MoJ to review the draft legislation and begin
immediate consultations with the USG. End Summary.
---------------------
Status of Legislation
---------------------
¶2. (C) Currently, three different pieces of legislation
related to copyrights -- in various stages of completion --
are being circulated. The 2005 Copyright Bill passed a first
reading in the Knesset on July 20, 2005 and is being
considered by the Knesset Economic Committee. The 2006
Copyright Tribunal Bill was published on July 10, 2006 and
has also passed a first reading and been forwarded to the
Knesset Economic Committee. These two bills will likely be
considered together by the Committee. The Ministry of
Justice is the originator and sponsor of the 2005 Copyright
Bill and the 2006 Copyright Tribunal Bill. U.S. industry has
voiced serious concerns over key provisions of these two
draft pieces of legislation. A private bill submitted by
members of the Meretz party on July 17, 2006 -- aimed at
preventing digital piracy -- has not been voted on by the
Knesset.
-------------------
Ministry of Justice
-------------------
¶3. (S) As the drafter of the Copyright Bill and the Copyright
Tribunal Bill, the MoJ has championed the legislation. With
the resignation of Minister of Justice Haim Ramon, pending an
investigation into allegations of sexual harassment, Meir
Sheetrit assumed the position of acting Minister of Justice
in August 2006. In a September 19 meeting with the
Ambassador, Sheetrit promised to look into the pending
copyright legislation (reftel a). In a follow-up-letter and
phone call to the Ambassador, Sheetrit said that the
copyright legislation had already "passed." (Comment:
Technically Sheetrit is correct. The legislation "passed"
the ministerial committee and was forwarded to the Knesset as
a government bill. However, the legislation is far from
becoming law. It appears as if Sheetrit's staff is telling
him that the legislation is being handled by the Knesset
Economic Committee and is out of their hands. However, past
experience with pharmaceutical IPR legislation championed by
the MOITAL indicates that the drafting Ministry has
considerable influence over the Knesset's consideration of
the legislation, especially draft legislation as long and
technical as the Copyright Bill. End comment). Copyright
legislation at the MoJ is the responsibility of Advocate
Tamir Afori, who has been working on the draft legislation
since joining the MoJ six years ago.
-----------------
Industry Concerns
-----------------
¶4. (S) The software, music, and movie industries agree that
while the Copyright Bill is an improvement on existing law --
a mix of British era legislation -- it fundamentally fails to
implement the necessary safeguards for intellectual property
in a digital world. Another concern shared by the majority
of the copyright industries is the failure of the legislation
to designate end-user piracy as a criminal offense. During
the period of the 2006 Special 301 review, Econoff
highlighted these concerns to Afori at MoJ. His response was
explosive and unexpected -- he railed against U.S. industry
wanting to "make everything a crime" and questioned the logic
in designating it as such, given that Israel has no intention
of prosecuting end-users who commit just a single act of
piracy. Afori commented that he was tired of the U.S.
"hinting" at the problem and proposed that the U.S. either
quote the relevant law requiring that end-user piracy be
declared a criminal offense, or drop the matter.
-----------------
Software Industry
-----------------
¶5. (S) Microsoft Israel has been the most successful of the
interested parties in lobbying for changes in the Copyright
Bill. Government Affairs Manager for Microsoft Israel,
Shai-lee Spigelman, told EconCouns on July 13 that Microsoft
has formed a coalition of foreign and Israeli software
development companies to push for changes in the bill.
Microsoft's key concerns center around the provisions for
creating back-up copies and the unlimited exemptions granted
to public libraries. Anti-piracy manager at Microsoft
Israel, Gil May-Tal, told Econoff that he has also pushed the
MoJ to define end-user piracy as a crime, but found MoJ's
Afori entrenched in opposition to such a change. While
Microsoft wants to see end-user piracy defined as a crime in
the legislation, May-Tal deemed it not worth pushing, and
thereby risking the positive relationship that Microsoft has
built with the Afori. May-Tal said Afori is inclined to
consider changes to the back-up copy and library usage
clauses as recommended by Microsoft. Microsoft execs report
that the drafting of the legislation was influenced by
proponents of the EU's open source movement.
--------------
Movie Industry
--------------
¶6. (C) ALIS, the Motion Picture Association of Israel, has
thus far not commented on the draft copyright legislation.
However, the Cinema Industry Association in Israel wrote to
the Ambassador on September 11 to urge USG support for a
draft proposal submitted by the Meretz Party. The
legislation is aimed at combating digital and on-line piracy.
Among the key provisions of this bill are: prohibiting the
posting of creations on digital networks without the
permission of the creator, prohibiting the listening to or
viewing of pirated copies of creations, and imposing varying
degrees of responsibility on Internet service providers for
the content its users are able to access.
------------------
Recording Industry
------------------
¶7. (S) Some of the most damaging clauses of the Copyright
Bill affect the recording industry. Itshak Sheffer, Managing
Director of the International Federation of Phonographic
Industry (IFPI) Israel, told EconOff that he suspects the MoJ
might be pursuing a discriminatory policy towards the
recording industry in part because IFPI has been successful
in winning several court cases against the MoJ. One of the
industry's main concerns is that the Copyright Bill could
deny foreign sound recordings remuneration for public
broadcast and performance. The recording industry also
expressed concern over the Copyright Tribunal Act --
legislation which will unify the collection of royalties
under one umbrella organization.
----------
Next Steps
----------
¶8. (S) Director of the International Trade Administration at
MOITAL Boaz Hirsch promised EconCouns on October 5 that he
will schedule a meeting including the Director General of the
MoJ and Emboffs to discuss U.S. concerns about the copyright
legislation immediately after the Succot holidays. Post
continues to emphasize with the MOITAL that this legislation
will impact US-Israel trade, and that discussions should not
be confined to MoJ legal staff. The Knesset Economic
Committee is currently led by a Likud MK, and Likud chairman
Bibi Netanyahu has promised to look into the legislation
(reftel b). While Post believes that inclusion of the MOITAL
will broaden discussion of the impact of the legislation on
U.S. industry, concurrent technical consultations between
U.S. legal experts and the MoJ's IPR legal team are essential
to full USG understanding of the legislation. Local analysts
predict that the committee will hold hearings and consider
the legislation section-by-section before recommending any
amendments. During this time the MoJ, if it chooses, will
also be able to recommend changes to the committee.
********************************************* ********************
Visit Embassy Tel Aviv's Classified Website:
http://www.state.sgov.gov/p/nea/telaviv
You can also access this site through the State Department's
Classified SIPRNET website.
********************************************* ********************
CRETZ
Incidentally, for those who are interested in how copyright and patent laws get subverted by the Gates Foundation, we are going to separately post this new video from Max Keiser and Stacy Herbert. █
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Posted in Asia, Cablegate, Free/Libre Software at 6:48 am by Dr. Roy Schestowitz
Summary: Two cables showing the use of Free software in Indonesia “in order to reduce dependence on proprietary systems.”
IN PREVIOUS posts about Indonesia we showed some good news but also a fair deal of mischief from Microsoft. In reverse-chronological order:
According to the following couple of Cablegate cables, “The Head of the Information and Computer Systems Division of Indonesia’s Agency for Technology Research and Application (BPPT) announced that BPPT is developing several computer applications using Free open source Software (FOSS) in order to reduce dependence on proprietary systems. Applications currently in development include e-office (Kantaya), e-learning (Kutahu), and Local Management Information System (Simda) software. BPPT is assisting several local governments (Jembrana, Pekalongan, Banyuwangi, Kuala Kapuas and Sawah Lunto) to implement FOSS-based applications. By 2014, BPPT plans to develop FOSS-based applications for computer driver and kernel technologies, mining data programs, Indonesian language processing, simulation and computerization.” In another cable (the second one) it says that “the international community has developed GIS applications using free open source software for use by countries such as Indonesia. Around 30 participants with key disaster mitigation responsibilities in the Indonesian government took part in the training.”
UNCLAS SECTION 01 OF 04 JAKARTA 001243
SIPDIS
DEPT FOR EAP/MTS, OES/ETC, OES/STC, OES/SAT, OES/PCI
E.O. 12958: N/A
TAGS: SENV [Environmental Affairs], TPHY [Physical Sciences], TBIO [Biological and Medical Science], TRGY [Energy Technology], ENRG [Energy and Power], ID [Indonesia]
SUBJECT: INDONESIA ESTH HIGHLIGHTS: MAY 2008
IN THIS ISSUE
-------------
-- Government Phasing out Large-Scale AC Units
-- Papua Signs USD30 Million Forest Carbon Deal
-- Reclamation for an Integrated New City in Tangerang
-- Oil Palm Threatens Sentarum Lake National Park
-- Orangutans Close to Extinction
-- Rare Javan Rhino Caught on Video
-- Sumatran Tiger Population Critical
-- Legal Reform Initiative Seeks to Protect Habitat for Orangutans
-- Mangrove Planting in Surabaya
-- Lax Enforcement and High Waste Treatment Costs Blamed for
Continued Dumping
-- Mushroom Farmers Switch from Kerosene to Firewood
-- BPPT Developing Open Source Software
-- Nuclear Technology in High School Curriculum
-- Tackling HIV Infection Rates Among Surabaya's Children
-- No Blood Transfusion Facilities in Half of Country
ENVIRONMENT:
Government Phasing out Large-Scale AC Units
-------------------------------------------
¶1. According to Tri Widayati, Director of Ozone Protection of the
State Ministry of Environment (MOE), most operators of
industrial-size chilling/air-conditioning units will have replaced
those units with new ones that use environmentally friendly Freon,
such as hydrochlorofluorocarbon (HCFC) 123 and hydrofluorocarbon
(HFC) 134, by the end of June 2008. The MOE says that only 400
large-scale AC units remain in operation. The Government of
Indonesia (GOI) banned the further importation of chlorofluorocarbon
(CFC) 11 and CFC 12 after January 1, 2008 to meet its obligations
under the Montreal Protocol. This will lead to a gradual phase-out
of older AC units. The MOE is helping to provide soft loans to
companies to finance the replacement of older units. The Ministry
is also working with voluntary associations to disseminate
information to the public about the transition process.
Papua Signs USD30 Million Forest Carbon Deal
--------------------------------------------
¶2. Papua has signed a carbon deal worth up to USD 30 million for
100,000 hectares of forestland. On May 13, Governor of Papua
Barnabas Suebu signed a Memorandum of Understanding with New Forests
Asset Management (NFAM) Pty Ltd. During the following two months,
NFAM and the Papua Provincial Government will do a preliminary
survey to identify three locations for this carbon project. At the
end of 2008, Papua will receive USD 10 million of guaranteed revenue
for the first five years and receive dividends totaling up to USD 20
million over the same period. NFAM is collaborating with Generation
Investment Management, owned by former U.S. Vice President Al Gore.
Tangerang Plans New Integrated City on Reclaimed Land
--------------------------------------------- --------
¶3. On May 15, Head of Tangerang Land Use Office Didin Samsudin
confirmed that Tangerang Regency would reclaim 9,000 hectares of its
northern coastal areas for a planned new "integrated" city. The
Tangerang Regent has already issued Local Regulation (Perda) No. 8
of 2007 on Reclamation. This new development will contain hotels, a
marina, a business center, residential areas, and an integrated
container terminal and port. The new city will cover approximately
8,000 hectares and cost Rp. 20 trillion or USD 1.3 billion.
Tangerang is about 21 km from Jakarta.
Oil Palm Threatens Sentarum Lake National Park
--------------------------------------------- -
¶4. Budi Suriansyah, the Head of Danau Sentarum National Park, says
that the palm oil plantation in the Kapuas Hulu region of West
Kalimantan threaten the 132,000-hectare park's ecosystem, which is
dependent on Betung Kerihun National Park. The development of palm
oil plantations as well as illegal logging is causing water
pollution, and local fishers are finding it increasingly difficult
to find local endemic fish such as jelawat and arwana. There are 11
palm oil plantation companies and 9 subsidiaries of PT Sinar Mas,
operating on 160 thousand hectares in areas bordering Betung Kerihun
National Park.
Orangutans Close to Extinction
------------------------------
¶5. On May 8, the Executive Director of the Center for Orangutan
Protection (COP) stated that, based on a COP study in Central
JAKARTA 00001243 002 OF 004
Kalimantan, orangutans will disappear from the region within 2-3
years. The investigation found 242 palm oil plantations with
activities that having an impact on orangutans and their habitat.
According to COP, these companies include members of the Roundtable
on Sustainable Palm Oil (RSPO), such as Wilmar, IOI and Agro Group.
In 2004, a Population and Habitat Viability Assessment (PHVA)
reported that there were 58,575 orangutans left in Borneo, with an
annual decrease in population of 9 percent leading to extinction by
2015. Darori, Director General for Forest Protection and Nature
Conservation, is skeptical of the investigation's projections, and
emphasizes that the government will not allow the conversion of
natural forest to other purposes such as palm oil cultivation.
Rare Javan Rhino Caught on Video
--------------------------------
¶6. At the end of May, a video recorder installed by Ujung Kulon
National Park and the World Wide Fund for Nature-Indonesia
(WWF-Indonesia) caught footage of the extremely rare Javan
Rhinoceros (Rhinoceros sondaicus). Speaking about the incident on
May 29, Agus Priambudi, Head of Ujung Kulon National Park, said the
recording would help researchers and conservationists learn more
about the Javan rhino's behavior, as well as assist efforts to
reduce threats to the remaining population. The Java rhino is the
rarest among five rhino species in the world. There are only an
estimated 50-60 Java rhinos in Ujung Kulon National Park. The Java
rhino is on the International Union for Nature Conservation's "Red
List" of endangered species.
Sumatran Tiger Population Critical
----------------------------------
¶7. On May 25, the Coalition for Protected Animal Monitoring stated
that there were approximately 250 Sumatran tigers (panthera tigris
Sumatrae) left in the wild. The decrease in this species'
population is due to hunting, conflict with humans, and illegal
logging and land clearing leading to the fragmentation of its
habitat. Poachers hunt the animal for its skin, bones, fang/tooth
and claws. Tiger skins sell for approximately 3-5 million Rupiah
(USD 322-537) apiece in local markets and up to USD 3,300 in
international markets. Although Law No. 5 of 1990 on Natural
Resources Conservation and Ecosystem protects this species,
enforcement of the law is weak.
Legal Reform Initiative Seeks to Protect Habitat for Orangutans
----------------------------------------
¶8. The Orangutan Conservation Services Program (OCSP) and Wildlife
Conservation Society (WCS) launched a media campaign in late May, to
commemorate World Environment Day, in order to draw attention to the
urgency of legal protection for orangutan habitat and to support
survival of orangutans in the wild. WCS is spearheading a policy
reform effort that seeks to protect habitat of endangered species
from conversion to non-forest land uses. In Indonesia today, it is
illegal to kill an orangutan but it is still legal to convert the
little remaining orangutan habitat to non-forest uses. Habitat
conversion effectively eliminates whole populations of orangutans
and other critically endangered species as their habitat becomes
fragmented and deforested.
Mangrove Planting in Surabaya
-----------------------------
¶9. On May 11, people from various organizations planted 8,000
mangroves along the seashore at Wonorejo in eastern Surabaya.
Wonorejo is poised to become a center for mangrove research,
cultivation, and tourism. The Surabaya city government is actively
restoring mangrove forests in eastern Surabaya. Illegal logging has
destroyed at least 40 percent of a total 6,000 hectares of mangrove
forest near Wonorejo. According to the head of Wonorejo Mangrove
Farming Association, various groups in eastern Surabaya have planted
at least 25,000 more mangrove trees this year than last year.
Unfortunately, last year's mangroves were poorly protected. For
example, 4,000 mangroves planted in the Kenjeran beach area in
January had died by the end of May, due to high ocean waves and poor
treatment.
Lax Enforcement and High Waste Treatment Costs Blamed for Continued
Dumping
------------------------------------
¶10. At least 16 companies in East Java have disposed of industrial
waste in the Brantas River through underground pipelines or during
the heavy rainy season through open ditches. The companies have
waste treatment facilities but prefer to cut costs by dumping
untreated waste, according to Purnawan, a lecturer at Brawijaya
University and a member of East Java Walhi, an environmental NGO.
JAKARTA 00001243 003 OF 004
The phenol content of industrial waste these companies are dumping
in the Brantas is dangerously high, according to Purnawan. Just
three hours south of Surabaya in Malang, waste from paper and
cassava-processing plants has reportedly resulted in serious
pollution and a major fish kill in the lake behind the Sutami Dam.
Local media report that Malang's city government is reluctant to
take action as paper factories are a major contributor to regional
revenue.
Mushroom Farmers Switch from Kerosene to Firewood
--------------------------------------------- ----
¶11. Mushroom farmers in Karawang, West Java, are switching from
kerosene to firewood because of the high cost and scarcity of
kerosene. Mushroom farmers use fuel to boil water and use the
evaporated water to regulate the level of humidity required for
mushroom growth. Kerosene's retail cost has increased from 2,310
Rupiah (USD 0.25) to between 2,500-3,000 Rupiah (USD 0.27-0.32),
making the price of firewood relatively cheaper. During a planting
period of one month, the farmers require on average 80-120 liters of
kerosene or three cubic meters of firewood. With the current
kerosene price, the farmers' production costs are between
200,000-300,000 Rupiah, but only 150,000 Rupiah if using firewood.
Besides the shift by many farmers to firewood, others have closed
down their mushroom production houses altogether.
SCIENCE AND TECHNOLOGY:
BPPT Developing Open Source Software
------------------------------------
¶12. The Head of the Information and Computer Systems Division of
Indonesia's Agency for Technology Research and Application (BPPT)
announced that BPPT is developing several computer applications
using Free Open Source Software (FOSS) in order to reduce dependence
on proprietary systems. Applications currently in development
include e-office (Kantaya), e-learning (Kutahu), and Local
Management Information System (Simda) software. BPPT is assisting
several local governments (Jembrana, Pekalongan, Banyuwangi, Kuala
Kapuas and Sawah Lunto) to implement FOSS-based applications. By
2014, BPPT plans to develop FOSS-based applications for computer
driver and kernel technologies, mining data programs, Indonesian
language processing, simulation and computerization.
Nuclear Education in High School Curriculum
-------------------------------------------
¶13. On May 2, Dr. Taswanda Taryo, Deputy Chairman for R&D
Productivity and Public Acceptance of Nuclear Science and
Technology, BATAN (National Nuclear Energy Agency), announced plans
for a program to include education on nuclear technology in school
curricula, especially high schools. Eko Madi, Head of the
Subdivision for Nuclear Energy Science and Technology Dissemination,
BATAN, explained that BATAN and the Ministry of Education would
establish an expert team to begin drafting physics, chemistry, and
biology curricula on nuclear technology. In addition, BATAN is
conducting outreach to educate teachers, students, and NGOs about
nuclear technology. BATAN will also establish three Centers for
Nuclear Education and Information, including one in Jepara (Central
Java), which is close to Muria Bay, the location for a proposed
nuclear plant.
HEALTH:
Tackling HIV Infection Rates Among Surabaya's Children
--------------------------------------------- ---------
¶14. The Surabaya City Health Department announced that 37 babies in
Surabaya contracted HIV/AIDS between January and March 2008. At a
workshop on HIV/AIDS, Surabaya's Vice Mayor, Arief Afandi, confirmed
that HIV/AIDS cases are spreading in all 31 districts in Surabaya.
The Surabaya City government will take a new approach to the problem
by training students to be HIV/AIDS cadre who will provide
information and training to their peers. The Surabaya City
government will also involve more children and students in future
HIV/AIDS workshops. So far, it has selected 10 junior high schools
and 10 senior high/vocational schools in Surabaya as HIV/AIDS test
sites for this campaign.
No Blood Transfusion Facilities in Half of Country
--------------------------------------------- ----
¶15. During a public hearing before the Jakarta regional parliament
on May 12, Dr. Ratna Rosita, Director of Basic Medical Services and
Nutrition of the Ministry of Health, stated that Indonesia lacks
Blood Transfusion Units (UTDs) in 226 regions. Ministry of Health
statistics (2006) show that only 231 of 457 regencies/cities in
JAKARTA 00001243 004 OF 004
Indonesia have UTDs, including those operated by the Indonesian Red
Cross (PMI), provincial governments and hospitals. PMI's Chairman
Mari'e Muhammad and Adang Dorodjatun, Chairman of Indonesia Blood
Donors, also attended the public hearing. PMI currently has 212
UTDs, of which 24 percent are located within hospitals and 76
percent outside of hospitals.
HUME
Here is the second cable.
UNCLAS SECTION 01 OF 03 JAKARTA 003185
SIPDIS
SIPDIS
DEPT FOR EAP/MTS AND OES/ETC
E.O. 12958: N/A
TAGS: SENV [Environmental Affairs], TPHY [Physical Sciences], TBIO [Biological and Medical Science], TRGY [Energy Technology], ENRG [Energy and Power], ID [Indonesia]
SUBJECT: INDONESIA ESTH HIGHLIGHTS: AUGUST - OCTOBER 2007
¶1. Summary: The Indonesian Supreme Court hosted a judiciary workshop
on wildlife crime and prosecution under the ASEAN Wildlife
Enforcement Network (WEN) program in August. The Vice Governor of
Jakarta announced on September 27 that Jakarta could potentially
receive $2 million in funding from developed countries under the
Kyoto Protocol if it can reduce its CO2 emissions. A 2007 survey
found that despite overall decreases in other parts of the island,
Sumatran rhino populations in Bukit Barisan Selatan National Park
and Way Kambas National Park in Lampung increased by up to 30
animals. On September 29, Vice President Yusuf Kalla announced that
starting in 2008, Indonesia would increase its reforestation target
from 1 million to 2 million hectares per year. On September 25, the
Head of Forest Office of West Papua said that the Governors of Papua
and West Papua provinces would release a joint decree to ban log
exports from Papua. The State Ministry of Environment announced on
September 15 that it aims to phase out imports of ozone-depleting
substances by the end of 2007 as set in the Montreal Protocol. On
October 7, Customs officials successfully foiled efforts to smuggle
70 rare animals through Soekarno-Hatta Airport in Jakarta. The
State Ministry for Research and Technology and the United Nations
Development Programme conducted a "Train the Trainer" session on
open-source geographic information system software in Jakarta on
October 22-27. On October 3, the Jakarta provincial government
granted Rp 40 billion ($4.4 million) to improve health and education
services in eight of its satellite cities. At a ceremony to
commemorate World Sight Day, the Ministry of Health (MOH) announced
that it would increase its focus on reducing the numbers of
vision-impaired children. Several residents of Wolotau Village in
the Kota Baru sub-district of the Ende Regency were stricken with
anthrax after eating contaminated buffalo meat in mid-October. The
Anak Krakatau, or "Child of Krakatau" Volcano, began spitting out
flaming rocks and smoke in late October. On October 23, the WWF
Program Coordinator for West Kalimantan Hermayani Putera announced
that poachers had smuggled rare plant species including orchids and
nepenthes (also known as tropical pitcher plants) from Kalimantan to
Malaysia. End Summary
Indonesia Hosts ASEAN WEN Judiciary Training
--------------------------------------------- ---
¶2. The Indonesian Supreme Court hosted a judiciary workshop on
wildlife crime and prosecution under the ASEAN WEN program in August
in Jakarta. The two-day workshop brought together representatives
from Indonesia's judicial sector and focused on prosecution,
investigation, Indonesian laws governing protection of wild animals
and plants, local and trans-national cooperation with other
agencies, and ASEAN-wide initiatives on Mutual Legal Assistance.
Judicial officers from Thailand, Malaysia and the United States
joined the event in order to share best practices and increase
international cooperation to fight trans-national criminals involved
in the wildlife trade. Indonesia plans a follow-up training for the
national police in February 2008.
Jakarta May Be Eligible for Funding for CO2 Reduction
--------------------------------------------- --------
¶3. On September 27, Vice Governor of Jakarta Fauzi Wibowo announced
that Jakarta could potentially receive $2 million in funding from
developed countries under the Kyoto Protocol if it can reduce its
CO2 emissions. To be eligible for the funding, Jakarta would have to
meet United Nations Environment Program (UNEP) certification
requirements. Fauzi stated that the Jakarta administration is
implementing a clean air project to try to meet the UNEP standards.
Dollaris R. Suhadi, Project Manager of the Clean Air Project,
explained that achieving UNEP certification will take up to a year
of research and between $500,000 and $1 million in funding. Jakarta
officials are optimistic that the city will be able to meet UNEP
requirements, citing for example that since the city's bus ways
became operational in 2004-2005, the total number of private
vehicles on the road has decreased by 14%.
Survey Shows Sumatran Rhino Population on the Rise
--------------------------------------------- -----
¶4. A 2007 survey conducted by the Rhino Protection Unit (RPU) and
Yayasan Badak Indonesia found that despite overall decreases in
other parts of the island, Sumatran rhino populations in Bukit
Barisan Selatan National Park and Way Kambas National Park in
Lampung increased by between 24 and 30 animals (to a total of 60 and
85 in each park, respectively). Coordinator of the RPU Arief
Rubiyanto stated the increase was unexpected, considering the many
threats to the rare animals from poachers and territorial
encroachment due to illegal logging and forest conversion
activities. RPU patrolling activities in both parks and the curbing
of poaching contributed to the improved numbers. In recognition of
JAKARTA 00003185 002 OF 003
his efforts, Rubiyanto received the Disney Conservation Award from
the Walt Disney Corporation.
Indonesia Reforestation Target Raised to 2 Million Hectares Per
Year
--------------------------------------------- ------
¶5. On September 29, Vice President Yusuf Kalla announced that
starting in 2008, Indonesia would increase its reforestation target
from 1 million to 2 million hectares per year. Kalla added that the
international community could not blame Indonesia for cutting its
forests in the past, since timber consuming countries such as the
U.S., Japan and Korea invested in the concession business. Note:
Although the central government's sets the target, responsibility
for implementation falls to the regional governments, who may face
difficulty meeting the increased level.
Papua Provincial Government Bans Log Exports
--------------------------------------------- ----
¶6. On September 25, the Head of Forest Office of West Papua
Province said that the Governor of Papua Barnabas Suebu and Governor
of West Papua Abraham O. Atururi would release a joint decree to ban
log exports from Papua. The Papuan administration wants to push
investors to open wood processing facilities in Papua rather than
shipping logs out from Papua. There are currently 25 concessions
within a 4.6 million hectare area, while there is only one wood
processing facility, which is located in Sorong. The Papuan
government will implement the ban incrementally, beginning with a
moratorium on 30 percent of log exports. TIME magazine highlighted
Governor Suebu in October as an environmental hero for his
conservation efforts.
Government to Halt Ozone-Depleting Imports
-------------------------------------------
¶7. The State Ministry of Environment announced on September 15 that
it aims to phase out imports of ozone-depleting substances by the
end of 2007 as set in the Montreal Protocol. The Ministry said that
as of August, imports of chlorofluorocarbons (CFCs) for the year had
reached 193 metric tons, down from 2,331 metric tons in 2006.
Officials stated that the ministry had phased out the use of 1,209
metric tons of CFCs from several sectors in 2006 and would eliminate
use of CFCs from the industrial sector by June 2008.
Indonesian Customs Officials Foil Animal Smugglers
--------------------------------------------- ------
¶8. On October 7, Customs officials successfully foiled efforts to
smuggle 70 rare animals through Soekarno-Hatta Airport in Jakarta.
The Ministry of Finance's Investigation and Enforcement Section
reported that Indonesian citizen Jonathan Leo Nardha had tried to
smuggle the rare animals in speaker boxes. Nardha was transporting
the animals from Malaysia for Indonesian customers in Jakarta.
Disaster Data Base Training Conducted in Jakarta
--------------------------------------------- -----
¶9. The State Ministry for Research and Technology and the United
Nations Development Programme (UNDP) conducted a "Train the Trainer"
session on open-source geographic information system (GIS) software
in Jakarta on October 22-27. Francis Sarmiento III, Project Officer
for the UNDP's ASEAN Plus Three Sub-regional Node International Open
Source Network, explained that Indonesia needed good, efficient,
effective and fast local and national databases and information
systems to anticipate and manage natural disasters. Sarmiento
explained that database and GIS implementation using closed software
sources is difficult for developing countries due budget
limitations. To address this challenge, the international community
has developed GIS applications using free open source software for
use by countries such as Indonesia. Around 30 participants with key
disaster mitigation responsibilities in the Indonesian government
took part in the training.
Jakarta Grants Funding for Health Services
-------------------------------------------
¶10. On October 3, the Jakarta provincial government granted Rp 40
billion ($4.4 million) to improve health and education services in
eight of its satellite cities. The grant would support efforts to
establish community health centers and reduce the number of
outbreaks of communal diseases. The grant includes the surrounding
cities of Bogor, Depok, Bekasi and Cianjur in West java Province, as
well as Tangerang in Banten.
JAKARTA 00003185 003 OF 003
GOI Seeks to Reduce Vision Impaired Numbers
--------------------------------------------
¶11. At a ceremony to commemorate World Sight Day, the Ministry of
Health (MOH) announced that it would increase its focus on reducing
the numbers of visually impaired children. The MOH has conducted
several programs under this initiative, including preventative
measures through early detection of blindness in community health
centers, provision of vitamin A supplements to combat deficiencies
that raise the risk of blindness, and subsidies for regular exams
and eyeglasses for poorer families. The MOH has established a
national commission to tackle blindness and other sight disorders.
Anthrax attacks villagers in East Nusa Tenggara
--------------------------------------------- ---
¶12. The Head of East Nusa Tenggara (NTT) Sub Office of Veterinary
of Livestock Office, Maria Geong, reported on October 30 that
several residents of Wolotau Village in the Kota Baru sub-district
of the Ende Regency were stricken with anthrax after eating
contaminated buffalo meat. Around 20 villagers were in critical
condition and hospitalized. Geong instructed the Health and
Livestock Offices to isolate the area, and the Ende Health Office
sent medical teams to the village to support the effort. Ende
Regency has been an endemic anthrax area since 1994, where anthrax
spores can live up to 60 years.
Anak Krakatau Volcano Spits Flames
-----------------------------------
¶13. The Anak Krakatau, or "Child of Krakatau" Volcano, began
spitting out flaming rocks and smoke in late October. Saut
Simatupang of Indonesia's Center for Vulcanology and Geological
Hazard Mitigation predicted that the volcano would continue to
rumble for some time but posed little danger to the area. Anak
Krakatau sits in the Sunda Strait between Java and Sumatra.
"Nepenthes" Flies from Kalimantan
---------------------------------
¶14. On October 23, the WWF Program Coordinator for West Kalimantan
Hermayani Putera announced that poachers had smuggled rare plant
species including orchids and nepenthes (also known as tropical
pitcher plants) from Kalimantan to Malaysia. They hunted the plants
in the Meratus Mountain area and the Hampangin Forest, located in
the Katingan Ilir Sub-district of Katinan Regency (approximately 40
miles from Palangkaraya, Central Kalimantan). Demand for these
species has increased in Malaysia, leading to an increase in
poaching in Indonesia. The Indonesian Orchid Association expressed
worry that these activities are threatening the sustainability of
the species. Malaysian consumers allegedly pay local people to
collect the rare and protected plants in Kalimantan's forests for
sale. One pot of Nepenthes is worth Rp 20,000 (approximately
$2.00), and the price for a Black Orchid ranges from Rp 45,000 to Rp
75,000 (approximately $4.80 to $8.10). To minimize the threat of
poaching, the West Kalimantan Natural Resources Conservation Office
has trained local residents to develop nurseries for the endangered
plants.
HUME
The story of Indonesia is an interesting one especially because of Microsoft’s response to ODF and FOSS adoption. It’s not unique to Indonesia and we have some antitrust material to show how Microsoft systematically identifies and then attacks deployments of FOSS. █
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Posted in Asia, Free/Libre Software, Microsoft at 6:34 am by Dr. Roy Schestowitz
Summary: The abusive monopolist is caught trying to (and perhaps succeeding in) sabotage, using “piracy” for propaganda and blackmail
WHEN writing about Microsoft we typically write about a company of sociopaths who do not care about the law, do not respect the right of choice to exist, and work behind the scenes to engineer loopholes, bribe people, intimidate opposition, and sometimes overthrow or overtake positions of power. According to the following Cablegate cable, the Business Competition Supervisory Commission (KPPU) “said that many computers in the GOI were using open-source software…”
The Microsoft MOU would “hand Microsoft a monopoly,” KPPU argued. The cable also says that Microsoft used the “piracy” propaganda to fight against Free/open source software, quite frankly as usual. Here is another piece of propaganda about ‘savings’: “MS offered an 80% discount to put legitimate software on all GOI computers, estimate at 510,000 units. Total cost would be approximately $45 million, a savings to the GOI of $260 million.”
What a joke. For a country in a poor economic state this is still a high cost and Microsoft is just trying to establish more of a monopoly while expelling Free/open source software (While making a profit, too). For background also see:
Here is the full cable which also says that “the Ministry of Information and Communications Technology did not put in a request for funds for the MOU in the 2007 budget, and in March 2007, the Business Competition Supervisory Commission (KPPU) urged the GOI to annul the deal in an advisory, stating it violated the 1999 Monopolies Law.”
VZCZCXRO6802
RR RUEHCHI RUEHDT RUEHHM
DE RUEHJA #1388/01 1360856
ZNR UUUUU ZZH
R 160856Z MAY 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 4748
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHKO/AMEMBASSY TOKYO 0519
RUEHBY/AMEMBASSY CANBERRA 0752
RUEHBJ/AMEMBASSY BEIJING 4086
UNCLAS SECTION 01 OF 05 JAKARTA 001388
SIPDIS
SIPDIS
SENSITIVE
DEPT FOR EB/TPP/MTA, EB/TPP/IPE AND EAP/MTS
TREASURY FOR IA-CIORCIARI
SINGAPORE FOR BAKER
USDOC FOR BERLINGETTE/4430
DEPT PASS USTR DKATZ, WEISEL, BAE
E.O. 12958: N/A
TAGS: ETRD [Foreign Trade], KIPR [Intellectual Property Rights], EINV [Foreign Investments],
ECON [Economic Conditions], EMIN [Minerals and Metals],
KCOR [Corruption and Anti-Corruption], ID [Indonesia]
SUBJECT: USTR FINDS IPR PROGRESS, CHALLENGES IN INDONESIA
REF: A) Jakarta 1212 - New Investment Law;
B) Jakarta 1326 - East Java-China Trade
¶1. (SBU) Summary. Visiting USTR officials Barbara Weisel and David
Katz reviewed efforts related to intellectual property rights (IPR)
protection and enforcement in Indonesia during their May 3-4 visit
to Jakarta. Members of the National IPR Task Force noted that
difficult and ongoing challenges remained to improve policy
coordination by the Task Force, and U.S. business leaders reported
that prosecutions and convictions of IPR pirates remains low, and
dialog with private industry, especially on pharmaceuticals is weak.
The Chairman of the Investment Coordinating Board (BKPM) Muhammed
Lutfi, in response to concerns that foreign investors will need a
letter of recommendation from BKPM to obtain a work visa (and thus a
"backdoor" approval) under the new investment law, said that the
BKPM will set up an immigration office in its headquarters to
facilitate. A garment industry buyer said competition and
transshipments from China are hurting Indonesia's textiles and
garments sector, while a mining industry representative said that
mining is "flat on its back" in Indonesia, despite high
prospectivity, due to the unfriendly business climate. In meetings
with ASEAN, Katz emphasized cooperation between the U.S. Food and
Drug Administration and ASEAN on pharmaceuticals issues. USTR is
also encouraging ASEAN members to attend a Sanitary and
Phytosanitary workshop in Vietnam in July to learn more about
irradiation of tropical fruits to improve access to the U.S. market.
End Summary.
IPR: Progress and Challenges
----------------------------
¶2. (SBU) During a May 3-4 visit to Jakarta, visiting Assistant U.S.
Trade Representative (AUSTR) Barbara Weisel and USTR Director for
Southeast Asia and Pacific Affairs David Katz met with the American
business community, the National IPR Task Force, IPR advisors, ASEAN
officials, a member of Parliament's Commission VI, and a prominent
member of the Indonesian Chamber of Commerce. At a May 3 AmCham
lunch, business representatives gave an update on several issues,
with emphasis on the continuing challenges of intellectual property
rights (IPR) enforcement in Indonesia. The head of the AmCham IPR
Committee noted several problems in the IPR area:
-- The National IPR Task Force still does not have a reliable
budget. It also does not have a forum for dialog and consultation
with the private sector.
-- Customs Law 10/95 was finally amended in November 2006 and allows
for Customs to take action without having to get court permission in
advance. It still requires implementing regulations, however.
(Note: Embassy learned from Customs Human Resources Department Head
and former IPR Division Head Okto Irianto, that Minister Mulyani
will review the draft regulations for further inter-ministry
discussion.)
-- Legal reform overall still lacks transparency, enforcement and
decisions need to be made public. Judges need more training in IPR.
More deterrence is needed for IPR piracy.
National IPR Task Force: Still New
----------------------------------
¶3. (SBU) In a meeting with the National IPR Task Force (TF) on May
4, USTR Weisel congratulated Indonesia on remaining on the Watch
List, and noted that the formation of the IPR TF was big news.
Ansori Sunungan, the Director for Copyrights and Industrial Design,
said that the IPR TF has the goal of coordinating among relevant
agencies, show the seriousness of the GOI, and perform public
outreach and education to support IPR development in Indonesia.
Cooperation among law enforcement agencies remains a huge problem.
There is a view here that "piracy creates jobs," Ansori admitted.
"The high U.S. price for genuine DVDs is also challenging for the
market here," he argued. For Global IP Day on April 26, Indonesia
held a series of seminars and events, including an "integrity
awards" ceremony at which Vice President Kalla was the keynote
speaker. Kalla praised creativity and innovation in his speech, and
spoke of the importance of legal protections.
¶4. (SBU) The National IPR TF plans to meet at least once a month,
and report every six months directly to President Yudhoyono. The
IPR TF has five priorities through 2009, to be carried out by
JAKARTA 00001388 002 OF 005
special working groups:
-- Law enforcement issues (Regulation 2004/29);
-- Review and analyze applicable regulations;
-- Outreach and public relations;
-- Human resources and capacity building;
-- International Cooperation.
¶5. (SBU) The IPR TF also plans to set up a Secretariat. AUSTR
Barbara Weisel asked about the TF's budget. Ansori responded that
the budget is authorized under Presidential Decree No 4/2006 Article
11 "All costs associated with IPR Task Force activities is levied on
the Ministry of Justice and Human Rights budget." The IPR TF has
submitted its budget request to the Ministry of Finance, but has not
yet received its own dedicated funding. The IPR TF is also looking
at other budget sources as well. There will be a Ministerial level
meeting with the IPR TF at least once a year, and three Ministers
are very actively engaged: Coordinating Minister for the Economy
Boediono, Trade Minister Pangestu, and the Minister of Law and Human
Rights. Ministry of Trade's Ambassador Halida Miljani urged U.S.
assistance in improving data collection on IPR violations, better
case management and training of judges in IPR matters. Halida said
her goal is for all police, prosecutors and judges to have the same
level of knowledge on IPR.
Food and Pharmaceuticals IPR Issues
-----------------------------------
¶6. (SBU) Pharmaceuticals companies continue to face challenges and
complain there is "no level playing field" as domestic companies do
not have to comply with World Health Organization codes and
standards, while foreign companies do. One AmCham member claimed
there is a nasty pattern of regulatory discrimination against
foreign investors. Other representatives expressed their concern
that the GOI requirement that all branded pharmaceuticals include
the generic name of the medicine on the label at 80% of the size of
the brand name, and in the same font and color as the brand name,
could have a major impact. Expert panels on nutrition do not
reflect the greater body of science. The views of the experts are
often not shared, and industry is not permitted to respond or put
forth a position. It is not clear how "experts" are selected for
the panel: they seem intended to simply create an artificial trade
barrier. One drug company representative said there is "no
transparency" on pricing and labeling issues for pharmaceuticals.
"Not only are the GOI's doors closed, they are locked," she noted.
Halal: Lack of Standards and Certifiers
---------------------------------------
¶7. (SBU) There is no standard or guidance for halal certification
and labeling in Indonesia, and a lack of certifiers, which affects
both the food and drug sectors. The Ministries are not
communicating well with each other. USTR Weisel noted that this is a
global problem, with no agreement between religious groups and no
international halal standard. Industry currently pays a nominal fee
for certifiers, but may eventually have to pay a much higher fee per
unit. ASEAN may need to discuss having at least a regional halal
standard. Currently, there is no consistency across borders.
Weisel noted the importance that the religious standards of halal
are met, but suggested that it would be useful to explore ways to
agree on a regional or international standard of halal to avoid
creating another non-tariff trade barrier.
Optical Discs: More Enforcement Needed
--------------------------------------
¶8. (SBU) One of the Embassy's IPR advisors noted that there are 29
registered Optical Disc (OD) factories in Indonesia with a potential
capacity to produce at least 500 million ODs. Industry estimates
the annual legal requirement domestically at only around 15 million
ODs. Despite Customs efforts and a licensing requirement for
imports of optical-grade polycarbonate, large quantities continue to
be smuggled in each year to support illegal manufacture. When OD
factories were registered and required to engrave Source
Identification Codes (SID) on production line molds, however, many
JAKARTA 00001388 003 OF 005
factories have resorted to obscuring the engraved SID codes using
heat resistant resins and they continue to produce illegal ODs.
Factory inspectors are having difficulties. They have been kept
waiting outside for 30 minutes or more while factories "clean up."
When they finally enter, machines are warm but managers deny they
are active.
¶9. (SBU) The Ministry of Industry representative said the Ministry
lacks sufficient law enforcement support. It has the power of
inspection but not the power to enter the factories, which only the
police can do. The head of the AmCham IPR committee noted that
President Yudhoyono has received the National IPR Task Force report,
but has not yet made any public comment on the report or a statement
on the need for improved IPR enforcement. In a subsequent meeting
on May 5, the Embassy's two IPR advisors and a regional investigator
for the recording industry association (IFPI) said the lack of
continuity and documentation of raids is an ongoing problem. There
is no timeline on what raids will occur where, and no follow-up
through prosecution by the courts. The actions taken thus far by
the GOI have received - deservedly - a lot of recognition and
credit. But we need to measure results by the actual reduction in
the availability of pirated material.
¶10. (SBU) AUSTR Weisel noted with regret that Ratu Plaza, a center
for pirated OD vendors, was back up and running after two weeks of
closure, with a pirated copy of the just-released movie "Spiderman
3" available for $0.45. The IPR advisors said that change to the
high-profile malls must be done incrementally, to gradually change
out pirates with vendors of genuine goods. Gambling, narcotics and
OD piracy had been three major sources of funding for the police.
Now only OD piracy remains. The IFPI investigator believes that OD
pirates have invested $400-500 million in pirated OD production in
Indonesia.
End-User Piracy and Microsoft MOU
---------------------------------
¶11. (SBU) Microsoft representatives lamented that Indonesia has the
third worst software piracy in the world after Zimbabwe and Vietnam.
The Memorandum of Understanding signed in November 2006 had as a
goal for the Government of Indonesia (GOI) to take steps to replace
the estimated 87% pirated software on GOI computers by March 31,
2007. MS offered an 80% discount to put legitimate software on all
GOI computers, estimate at 510,000 units. Total cost would be
approximately $45 million, a savings to the GOI of $260 million.
¶12. (SBU) However, the Ministry of Information and Communications
Technology did not put in a request for funds for the MOU in the
2007 budget, and in March 2007, the Business Competition Supervisory
Commission (KPPU) urged the GOI to annul the deal in an advisory,
stating it violated the 1999 Monopolies Law. Although not as strong
as a formal KPPU ruling, the advisory has shaken the GOI. The
KPPU said that many computers in the GOI were using open-source
software, and that the MOU would "hand Microsoft a monopoly." The
KPPU said the GOI and MS could face sanctions if it pursued the MOU.
¶13. (SBU) Former MICT Minister Sofyan Djalil has subsequently said
MICT would have to review the estimate of 510,000 computers and
asked if the National Bureau of Statistics (BPS) could do it.
Microsoft has countered that if the estimate of 510,000 computers
was too high, it would adjust its price accordingly at the
discounted rate. (Comment: The stalled MOU reflects a lack of
ownership in the GOI for solving pirated software use in the
government. It is unclear which Ministry has the lead. The GOI
does not currently appear to have any alternative strategy to the
MOU.)
Textiles and Garments:
China Challenge
----------------------
¶14. (SBU) A representative of the garment industry noted that there
is not one brand or manufacturer her that does not understand the
challenge of China. Indonesia has a window of opportunity to be
number two, but has to deal with the transshipment problem first
(reftel B). The industry representative reported that growth in
Indonesia-based production of just one international brand was 40%
last year.
JAKARTA 00001388 004 OF 005
Mining: "Flat on Its Back"
--------------------------
¶15. (SBU) A representative of a major mining company noted that the
mining industry is "flat on its back" in Indonesia. The Director
General for Mines recently stated at an international conference
that foreign investors may need to partner with a state-owned
company that will have 51% ownership. The GOI is considering
requiring mining firms to process their ore domestically. Under
current law, they have the option to export ore or process it
domestically. In some cases, illegal miners outnumber legal ones.
Indonesia is in the top ten for geologic prospectivity but near the
bottom as an attractive place to invest, according to a widely
respected industry survey. Data from Chile that poverty has been
alleviated by 40% in areas surrounding mines falls on deaf ears
here. Significant elements of the legislative and executive
branches of the GOI seem to prefer to deal with Chinese, Korean and
politically well-connected domestic investors such as Bakrie. They
are not interested in U.S. investment right now. Mining and other
extractive industries are very concerned about Article 33 of the new
investment law, which criminalizes tax disputes (reftel). This
article was not in the GOI's original draft, but inserted by
Parliament.
Investment Issues: Negative List Pending
----------------------------------------
¶16. (SBU) In a meeting with the Chairman of the Investment
Coordinating Board (BKPM) Muhammad Lutfi, Lutfi said the new
investment law is not necessarily better than what we had in 1967.
Much of Indonesia's current problems with the business climate are
not related to laws or regulations, but implementation at the local
level. "The problem is at the bottom of the pyramid," Lutfi noted.
"We can't control the harassing behavior of the Echelon IV and V
officials." Lutfi said that the new negative list would be very
progressive, but would not give a timeline for its completion. He
criticized Trade Minister Pangestu for asking line ministries for a
wish list for the negative list, stating this would only open it up
for expansion. (Note: There is no love lost between Lutfi and Trade
Minister Pangestu.) On the controversy surrounding the need for a
letter of recommendation for foreign investors to receive employment
visas (reftel A), Lutfi said that there will be an immigration
office in the BKPM itself. Only foreigners who "misbehave" will
have any difficulty. Regarding one-stop shops, eventually they will
be in every province that needs one.
¶17. (SBU) In a meeting with Parliamentary Commission VI (Trade,
Industry, Cooperatives and State-Owned Enterprisses) Chairman Didik
J. Rachbini, he noted that the new investment law will bring three
levels of openness: completely open, open with conditions, and
closed. The composition of the negative list is now in the hands of
the GOI. Some national groups have criticized the new investment
law is too liberal. The issue of natural resources is still under
discussion for implementing regulations. If a sector is located in
one province only, it will be the decision of the provincial
government. If an investment crosses two or more sectors, the
central government will be responsible. However, all FDI will be
managed by the central government. The BKPM will eventually open
provincial offices.
¶18. (SBU) The DPR looked at the investment laws of several other
countries while crafting the law. Rachbini opined that the labor
law amendments were very sensitive, and he was not optimistic about
any near-term progress, though he said there could be some progress
on labor in Special Economic Zones (SEZs) He said that nine or ten
provinces are competing for SEZs. USTR Weisel asked about local
awareness of these investment issues. Rachbini said there is not
much awareness about the investment debates in the capital. When he
travels home, he noted, "There are three things people worry about,
the price of rice, the price of corn and the price of sugar."
ASEAN Issues: Pharmaceuticals and SPS
-------------------------------------
¶19. (SBU) In meetings with ASEAN officials, USTR David Katz focused
on the next steps to follow up the initial contact between U.S. Food
and Drug Administration (FDA) and ASEAN on pharmaceuticals issues.
The FDA suggested working through the Global Cooperation Group (GCG)
of the International Conference on Harmonization (ICH). FDA experts
will participate in a GCG meeting in Japan in the fall and could
JAKARTA 00001388 005 OF 005
potentially meet with ASEAN afterwards. Katz noted that it is rare
for the FDA to engage with international experts outside the ICH
framework, so ASEAN should take advantage of this opportunity. Ms.
Giang Le Chau, the ASEAN Secretariat's Senior Officer of Standards
and Conformance, appreciated the need to follow up but cautioned
about some ASEAN sensitivity with the ICH, which is supported by
multinational corporations. She says that even if the initial
pretext for the FDA to come to the region is the ICH, discussions
with ASEAN should be portrayed as "government-to-government,
regulator-to-regulator" talks. She thought it would be useful to
develop a list of project for which ASEAN needs technical assistance
and provide that to the FDA.
¶20. (SBU) Katz was not certain that such a list of assistance needs
would be a useful way to proceed, thinking that policy discussion
with the FDA, at least initially, would be useful to lay the
groundwork for more technical talks. Katz suggested that if the FDA
and ASEAN were to engage in further discussions, this might improve
the prospects for further collaboration in the future. The initial
key is to get the FDA out to ASEAN. The ASEAN delegation had a
successful visit to the FDA Center for Drug Analysis and Research
(CDER) Forum in Washington in April. USTR and the ASEAN
Secretariat, along with members of the ASEAN Consultative Committee
SIPDIS
for Standards and Quality (ACCSQ) Pharmaceutical Products Working
Group (PPWG), will need to develop next steps for work under the
TIFA on the ASEAN Common Technical Dossier for pharmaceuticals
registration and approvals procedures. Katz also made a pitch for
multinational corporations to be included in the dialogue sessions
with the ASEAN Working Group on Pharmaceutical Products. Giang
noted there have been problems in the past resulting in restrictions
that only permitted ASEAN nationals to attend. However, she thought
the Chairman of the group was showing signs of softening on this
tough position.
¶21. (SBU) On Sanitary and Phytosanitary (SPS) issues, APHIS is
proceeding with the workshop in Ho Chi Minh City, Vietnam in July on
the irradiation of fruits and has sent invitations to all ASEAN
Member Countries except one. Mr. Somsak Pippopinyo, Head of Natural
Resources Unit, said that the ASEAN Secretariat was willing to be
helpful to inform member countries of the event, but was not certain
of its role. They expressed a willingness to inform the ASEAN
Experts on SPS Issues of the seminar, when it meets June 18-19 in
Kuala Lumpur, and asked whether APHIS would like to make a
presentation at the workshop. Katz said APHIS liked the idea of
working at the regional level to be efficient at explaining the
requirements for access to the US market for fresh fruits. However,
he doubted if APHIS had a budget to support an extra trip. He
promised the Secretariat to provide the list of acceptances for the
seminar.
¶22. (U) USTR contributed to and cleared on this message.
HEFFERN
Microsoft is abusing its illegally-obtained monopoly, yet not many authorities seem to pay attention and react. This shows a systemic error in regulation. █
Permalink
Send this to a friend
Posted in Asia, Cablegate at 6:09 am by Dr. Roy Schestowitz
Summary: Cables shed light on how Hollywood and a Microsoft front group pressured Indonesian authorities, which had also proposed moving to Free/open source software
We previously covered cables from Indonesia, just shortly after we wrote about ODF there and years after we wrote about a Microsoft MOU. According to the following Cablegate cable, Microsoft’s front group, the BSA, complained about “lack resources to move and properly store cumbersome and sensitive optical disk production machinery seized during raids.” It is in the same cable that we found (in ¶8): “Tanduk provided Katz with an impressive, newly-published handbook titled “Optical Disk Regulation Implementation Guide.” The hard-cover, Indonesian language publication caps a highly successful series of USAID-funded training workshops for the OD factory monitoring team. It includes relevant GOI laws and regulations, color photographs, and detailed technical and procedural guidance for the team. The technical advisor who ran the USAID project, a former Business Software Alliance (BSA) and Motion Picture Association (MPA) local representative, has recently agreed to continue his ODR work with the MOI for another year as a Department of Justice ICITAP senior technical advisor.
Just above that it says: “The heads of several agencies — Trade, Research and Technology, Economic Planning (Bapenas) and the DG for IPR — also pledged to replace pirated software in their agencies computers with open source or legal products.”
As we already know with Cablegate aside, Microsoft used the usual tricks to impede the adoption of FOSS in Indonesia (more on that later). In any event, here is the cable in question:
VZCZCXRO2803
PP RUEHCHI RUEHDT RUEHHM
DE RUEHJA #8114/01 1790836
ZNR UUUUU ZZH
P 280836Z JUN 06
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC PRIORITY 6462
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS SECTION 01 OF 05 JAKARTA 008114
SIPDIS
SIPDIS
SENSITIVE
FOR EAP/MTS; EB/IPE/EAP
COMMERCE FOR GOLIKE/4430
COMMERCE PLEASE PASS USPTO FOR JOELLEN URBAN
DEPT PASS TO USTR DKATZ, JGROVES, RBAE, VESPINEL
E.O. 12598: N/A
TAGS: KIPR [Intellectual Property Rights], ETRD [Foreign Trade],
WTO [World Tourism Organization], ECON [Economic Conditions], ID [Indonesia]
SUBJECT: IPR Update - GOI Making Steady Progress
¶1. (SBU) Summary: At the first meeting of the Indonesian
Government's (GOI) newly-established National Intellectual
Property Rights (IPR) Task Force on June 7 Indonesia
National Police (INP) Chief General Sutanto and Attorney
General Abdul Rachman Saleh pledged to improve IPR
enforcement and Minister of Trade Mari Pangestu outlined the
importance of IPR to the country's economic development.
The Task Force's senior working level committee is drafting
short and medium term plans of action, as well as
coordinating efforts to collect better IPR enforcement data.
The Ministry of Industry (MOI) optical disk (OD) factory
monitoring team has registered 26 factories, provided them
with source identification (SID) codes, and established a
schedule of unannounced factory visits. It is also in the
process of registering the remaining three factories that
have been identified by the intellectual property (IP)
industry. In response to GOI demands, local OD producers
have voluntarily surrendered over 180 OD stampers without
SID codes. Local OD producers and distributors have agreed
with the GOI that, after this year, any optical disk sold
without SID code can be considered a pirated copy. Local IP
industry representatives report that police cooperation has
improved. For the first time, police are conducting vendor
and factory raids on their own initiative. Jakarta district
and national police have promised to continue raids,
particularly against Jakarta's most notorious malls. Police
and prosecutor collaboration remains weak and there is a
large discrepancy between the number of cases police turn
over to the Attorney General's *~cQnzvh-0`eia and Pacific
Affairs Director Disited Jakarta June 20-22 to discuss Indonesia's
current Special 301 OCR with key GOI officials and IP
industry representatives. GOI officials expressed general
disappointment with Indonesia's retention on the Special 301
Priority Watch List in May. They welcomed, though, the U.S.
Government's (USG) decision to conduct a second consecutive
OCR. Katz informed them that the timing of the OCR would
depend on GOI efforts and that it could take place as early
as the end of August or September. He also stressed to GOI
officials and IP industry representatives the importance of
providing regular enforcement data and other information in
support of the OCR.
National IPR Task Force Holds First Meetings
--------------------------------------------
¶3. (SBU) Ministry of Justice Director General of IPR Abdul
Bari Azed informed Katz on June 20 that the GOI's newly-
established National IPR Task Force held its first monthly
senior working level meeting in May and quarterly
ministerial-level meeting on June 7. Bari reported that on
June 7 Indonesian National Police Chief Sutanto and Attorney
General Abdul Rachman Saleh along with other key cabinet
officials pledged to improve IPR enforcement. (Note: Katz
confirmed Bari's account in subsequent meetings with the
MOI, MOT and police. End note.) Minister of Trade (MOT)
Mari Pangestu, vice chair of the Task Force, explained the
importance of IPR protection and enforcement to Indonesia's
investment climate and economic development. The heads of
several agencies -- Trade, Research and Technology, Economic
Planning (Bapenas) and the DG for IPR -- also pledged to
replace pirated software in their agencies computers with
open source or legal products.
¶4. (SBU) According to Bari, General Sutanto promised INP
support for MOI OD factory monitoring team inspections and
continued police raids on pirate OD vendors and factories,
with emphasis on Ratu Plaza and Mangga Dua Mall, two of
Jakarta's most notorious pirate OD markets. Sutanto pointed
out the challenges inherent in conducting aggressive raids
against Harko-Glodok, Jakarta's primary pirate OD
distribution center, noting that it risked social disorder.
(Note: Harko-Glodok is located in an ethnic Chinese majority
area of Jakarta and is thought to have links to organized
crime. A police raid on the area several years ago led to
riots, a fire, and several deaths, with police paying
compensation for some of the damage. End note.)
¶5. (SBU) Bari, who serves as chairman of the Task Force's
JAKARTA 00008114 002 OF 005
senior working level committee, said his group would meet
again in July to agree on text of short and medium term
plans of action. Priorities will include OD Regulation
(ODR) implementation and collecting better data and
information on GOI IPR enforcement efforts, particularly
from Indonesia's major urban centers (greater Jakarta,
Surabaya, Medan, Bandung, Makasar and Denpasar). Bari noted
that members of the senior working level committee met
recently with officials at the Supreme Court to request data
on civil and criminal IPR cases. According to Bari, the
committee is also establishing sub-committees to focus on
specific issues. One subcommittee, led by Ministry of Trade
Senior Advisor Halida Miljani, would liaise with IP industry
representatives and associations, and another with donors
and the diplomatic community. (Note: Miljani on May 30
briefed American Chamber of Commerce IPR Committee members
on the National Task Force. End note.)
OD Factory Monitoring Team Sets Schedule
---------------------------------
¶6. (SBU) MOI Directorate General for Chemical, Agriculture
and Forestry Based Industry Director Tony Tanduk on June 21
told Katz that the MOI has registered 26 OD factories and
distributed SID codes to each of them. It is also in the
process of registering the remaining three OD factories
identified by the IP industry. The MOI has allocated Rp 300
million (approximately USD 30,000) per year to the OD
factory monitoring team. The team, which now includes
members of the INP, has set a schedule of six unannounced
factory visits per month. The first three inspections
occurred on June 13. While all three factories had SID
codes engraved in their moulds and stampers, none were
producing ODs. Tanduk remarked, somewhat sheepishly, that
managers at all three factories claimed that they were
waiting to ensure the accuracy of copyright documentation.
¶7. (SBU) Under an agreement with the MOI, owners of
stampers without SIDs have agreed to turn them in to MOI by
June 15. Tanduk showed Katz one surrendered stamper and
said he has collected 186 to date; he expects to receive
another 100 in the coming weeks. The MOI plans to destroy
the stampers at an IPR public destruction ceremony with the
police sometime in July. The agreement also stipulates
that, after December 31, 2006, the GOI will consider all ODs
sold without SID codes as illegal pirated copies. Some
owners of stampers and factories have delayed using SID
codes, as it requires them to send stampers and molds to
Singapore or Hong Kong for engraving. Katz suggested that
Tanduk send a letter to all registered factories warning
them that all their molds and stampers must include engraved
SIDs codes. Tanduk agreed.
¶8. (SBU) Tanduk provided Katz with an impressive, newly-
published handbook titled "Optical Disk Regulation
Implementation Guide." The hard-cover, Indonesian language
publication caps a highly successful series of USAID-funded
training workshops for the OD factory monitoring team. It
includes relevant GOI laws and regulations, color
photographs, and detailed technical and procedural guidance
for the team. The technical advisor who ran the USAID
project, a former Business Software Alliance (BSA) and
Motion Picture Association (MPA) local representative, has
recently agreed to continue his ODR work with the MOI for
another year as a Department of Justice ICITAP senior
technical advisor.
Police Continue Raids
---------------------
¶9. (SBU) Jakarta Metropolitan Police (Metropolda) Special
Crimes Lieutenant Colonel Police Agus Adriyanto and Chief of
Investigation Umar Surya Fana on June 23 provided Katz with
a spreadsheet detailing 267 IPR raids on pirate OD vendors
that police conducted throughout the greater Jakarta
metropolitan area since the beginning of this year.
According to the report, police seized roughly 1.2 million
pirated ODs, and at least temporarily detained 433.
According to a local MPA representative, these figures do
not include a raid on Ratu Plaza late on June 23, during
which Metropolda police seized roughly 100,000 pirated ODs
and arrested several people. The 267 raids also do not
include West Jakarta Police's seizure on June 1 of 140 DVD
burners and 55,000 pirated ODs and the arrest of two
persons. Metropolda also seized 55 burners and 360,000
pirated ODs and arrested two persons in a separate raid on
JAKARTA 00008114 003 OF 005
April 27. Based on leads from this raid, police raided a
small distribution warehouse where they seized 30,000
pirated ODs and arrested another two individuals.
¶10. (SBU) Umar explained that police had investigated and
referred all 267 cases to the AGO. He also showed Katz a
wall chart indicating that 16 individuals remained in
Metropolda's temporary detention facilities on IPR-related
charges. Umar could not say how many of the 433 individuals
arrested in 2006 were transferred to AGO holding facilities
along with their case files. He complained that once police
sent cases to the AGO, it was very difficult to obtain
information on their outcomes from the AGO or courts. Katz
suggested that joint workshops with the police, AGO and
courts on IPR evidence collection, investigations and
prosecutions might facilitate greater cooperation between
these groups. Both Agus and Umar welcomed the idea.
¶11. (SBU) Katz congratulated Agus and Umar on their
successes and noted that reports of their actions had been
received in Washington. He encouraged them to continue
their efforts, and suggested particular attention be paid to
Jakarta's most notorious malls. Umar said his unit would
remain focused on Ratu Plaza, Mangga Dua and Harko-Glodok,
but added that raids on Harko-Glodok posed risks. On June
22 some Jakarta police ran into physical resistance when
they attempted to conduct a limited raid on Harko-Glodok's
street vendors, located some distance away from its main
wholesale distribution center.
¶12. (SBU) Umar, a son-in-law of Indonesia Anti-Corruption
Chairman Taufikurrahman Ruki, said that support for
Metropolda's efforts came directly to him from General
Sutanto. He provided Katz with a tour of Metropolda's
halls and warehouse filled with growing sacks of seized
pirated ODs and DVD burners. Sometime in July, the police
plan to hold a public destruction ceremony with support from
the Motion Pictures Association (MPA). An investigator for
a local law firm, who works part-time for MPA and supports
Metropolda's raids, has recently accepted a second DOJ
ICITAP one-year senior technical advisor position to support
INP IPR enforcement efforts.
¶13. (SBU) In a separate meeting on June 23, INP Headquarters
Special Economic Crimes Colonel Police Rycko Amelza Danniel
told Katz that INP Police Chief General Sutanto has ordered
his unit to work with North Jakarta police units to develop
a plan for shutting down Harko-Glodok. Rycko added that his
unit would also begin collecting data from police raids,
seizures and arrests from major urban centers across
Indonesia.
AGO Remains Weak But Interested
-------------------------------
¶14. (SBU) Although he did not provide detailed information,
AGO Acting Deputy Attorney General for Special Crimes Abdul
Hakim Ritonga on June 23 informed Katz that the Jakarta AGO
had prosecuted roughly a dozen IPR cases over the past year.
He admitted that until recently IPR has not been a high
priority. He suggested the AGO could raise the profile of
IPR by including it under the purview of the AGO's newly
created Transnational Crimes Task Force. Katz remarked that
detailed data on IPR prosecutions and convictions throughout
Indonesia would be very useful for the Special 301 decision-
making process. Ritonga said that he could gather such
information, provided the U.S. Embassy formally requested
it.
¶15. (SBU) Katz showed the Ritonga Metropolda's data on
raids, arrests and investigations since the beginning of
this year, and asked if the AGO could tell us what happened
with each case. Ritonga said it was possible, but warned
that, while police have recently referred many IPR-related
case files to the AGO, their cases were often poorly
investigated, lacked sufficient evidence, or were intended
to simply to boost police arrest numbers and impress
superiors. Ritonga said he would support joint workshops
with the police, AGO and courts on IPR evidence collection,
investigations and prosecutions.
Draft Customs Law Includes Ex Officio Powers
--------------------------------------------
¶16. (SBU) Ministry of Finance Directorate General of Customs
IPR Unit Chief Okto Iranto on June 22 told Katz that the
JAKARTA 00008114 004 OF 005
GOI's new draft customs law contained the same ex officio
powers contained in the existing 1995 customs law. The new
customs law, however, is intended to resolve court
jurisdiction issues that held up the issuance of
implementing regulations for the ex officio power. Okto said
that Indonesia Customs is eager to obtain the new authority,
as it will enable customs officers to detain temporarily
suspected shipments of pirate or counterfeit goods. He
added that Customs has consulted closely with local IP
industry representatives on the status of ex officio powers
in the draft law, including the American Chamber of
Commerce IPR Committee on May 2. The issue was also
discussed throughout a May 16-18 USPTO-Indonesia Customs
workshop in Jakarta that included presentations and
participation by senior Customs officials and IP industry
representatives. Okto said that the GOI has set a deadline
by the end of this year to enact the new Customs law and
accompanying implementing regulations.
Other GOI Efforts
-----------------
¶17. (SBU) During their June 21 meeting, Bari informed Katz
of several other ongoing IPR related efforts within his
office. The Directorate of IPR is cooperating with the
Japan International Cooperation Agency (JICA) in conducting
15 IPR public awareness seminars throughout Indonesia this
year for officials, academics, students and the press. DG
IPR also collaborated with the European Commission-ASEAN IPR
Co-operation Program] in holding a May 22-23 workshop in
Jakarta on civil and criminal court proceedings. Lastly, DG
IPR Abdul Bari Azed on June 6 gave opening remarks at the
opening of a BSA representative office in Jakarta.
Amcham Members See Improved Enforcement and Cooperation
--------------------------------------------- ----------
¶18. (SBU) At a June 22 meeting with Katz, Amcham IPR
Committee members were in agreement that police were
improving IPR enforcement and cooperation. An MPA
representative said that, for the first time, police were
conducting raids on their own initiative and were no longer
requiring formal complaints to act. She attributed this to
General Sutanto's December 2005 instruction to district
police chiefs ordering them to step up IPR enforcement
activities, particularly against pirated ODs. The MPA
representative noted that Jakarta police raids on Ratu Plaza
and Mangga Dua Mall, however, stopped after Indonesia was
retained on the Priority Watch List in May, but that police
continued raids at other locations across the city.
¶19. (SBU) A representative of a major U.S. cigarette
manufacturer said that he has received very good cooperation
from police and customs over the last year in seizing large
shipments of counterfeit cigarettes. In these cases,
customs is able to make seizures without ex officio powers
because the counterfeit cigarettes have counterfeit excise
stickers that violate Indonesia's tax laws. He added that
his company was considering a plan to provide equipment and
training to some police units. He noted that one unit he
works closely with in the Riau Islands has 70 officers but
severely lacks other resources: it has only two vehicles,
one telephone line, no internet, and a yearly operating
budget of USD 12,000.
¶20. (SBU) A Business Software Alliance (BSA) representative
added that police also lack resources to move and properly
store cumbersome and sensitive optical disk production
machinery seized during raids. Police are scared that if
the machinery is damaged while under their custody, the
courts may rule that they pay compensation to the owners.
Consequently, police customarily seal OD machinery with
police tape at factories, and it is often just a matter of
days before pirates break the seals move the machinery or
simply begin operating again.
Comment
-------
¶21. (SBU) The GOI continues to make steady progress on
IPR, and high level backing from the Police Chief and
Attorney General bodes well. Closer cooperation between the
MOI, police and AGO will be important for ensuring effective
factory monitoring and greater prosecutions of pirates. Our
new senior technical advisors at the MOI and police, and a
new Embassy resident legal advisor with considerable IPR
JAKARTA 00008114 005 OF 005
experience, should provide valuable new tools for assisting
the GOI with these challenges.
¶22. (U) USTR Director David Katz has cleared this cable.
SILVER
A separate cable says that “[o]ne of the ICT National Team’s stated objectives is to work towards legalizing all government software, regardless of whether it is open source or licensed.” Here is the full cable:
UNCLAS SECTION 01 OF 03 JAKARTA 000475
SIPDIS
SIPDIS
SENSITIVE
FOR EAP/MTS; EB/TPP/IPE JBOGER
COMMERCE FOR 4430/BERLINGUETTE AND PETERS
COMMERCE PASS USPTO FOR URBAN AND FOWLER
DEPT PASS USTR FOR DKATZ, JGROVES, RBAE, CCOLLEY
E.O. 12598: N/A
TAGS: ECON [Economic Conditions], ETRD [Foreign Trade], KIPR [Intellectual Property Rights], ID [Indonesia]
SUBJECT: INDONESIA IPR - ANNUAL SPECIAL 301 SUBMISSION
Ref: a) State 07944; b) Jakarta 00011
¶1. (SBU) Summary: Since Indonesia's upgrade to the Special 301
Watch List in November 2006, the Government of Indonesia (GOI) has
continued to make steady progress towards improving its enforcement
and protection of intellectual property rights (IPR). A National
Intellectual Property (IP) Task Force now holds regular interagency
coordination meetings, and President Yudhoyono (SBY) signed a decree
in November 2006 committing the GOI to legalize all its computer
software. Parliament passed a new Customs Law on November 15 that,
when fully implemented, will provide ex officio powers for Customs
Officials to seize suspected infringing products. Jakarta
Metropolitan Police continue to elicit praise from local and
regional International Intellectual Property Association (IIPA)
representatives for raids on notorious malls, vendors, distributors
and factories. The Ministry of Industry's Optical Disk Factory
Monitoring Team (ODFMT) inspected registered factories in November
2006 and February 2007 and issued initial warning letters to some 12
optical disk (OD) factories. The Ministry of Industry (MOI) plans
to assign full-time staff to the ODFMT, conduct more regular
inspections (including inspections after hours), and begin
sanctioning non-compliant factories. A recent Supreme Court ruling
in favor of the company Intel in a trademark infringement case case
bodes well for future cases.
¶2. (SBU) Summary, continued. Despite these steps, the GOI needs to
further improve the operations of the ODFMT and involve the police
more closely in the ODFMT's operations. It also needs to step up
prosecutions and deterrent convictions of IPR violators and combat
book piracy and pharmaceutical counterfeiting. But the GOI is
steadily taking ownership over the IPR issue, and our interactions
with Indonesia on the issue have grown less confrontational and more
collaborative. To further encourage this important U.S. policy
success, we recommend that Indonesia remain on the Watch List for
the entire 2007 Special 301 regular cycle. End Summary.
¶3. (SBU) In response to Ref A, we reviewed this year's Special 301
submissions from the GOI, IIPA, Intel, PhRMA, and the Phillip Morris
Company. In general, we agree with their data, characterizations,
and assessments of the state of IPR protection and enforcement in
Indonesia. Piracy and counterfeiting rates remain high and,
although improving, enforcement remains weak. At the same time, GOI
engagement and political will continue to improve and are gaining
their own momentum.
National IP Task Force Remains Active
-------------------------------------
¶4. (SBU) According to GOI contacts, The National IP Task Force
continues hold regularly scheduled quarterly working level meetings,
as well less frequent senior and Ministerial-level meetings. At the
working level, the Task Force has developed a national IP strategy
and strengthened data collection and interagency coordination.
However, the lack of a formal budget continues to hamper the Task
Force, and it must rely on limited funding from the Ministry of
Justice Directorate General for IPR. Nevertheless, the Task Force's
regular interagency meetings, particularly those of senior and
ministerial level officials, are encouraging greater GOI focus on
IPR. Following the first Task Force meeting last year, for example,
the Minister of Justice and National Police Chief collaborated in
developing a clever, animated TV spot emphasizing the costs of
piracy on Indonesia's culture and creative arts.
SBY Leads Efforts to Legalize GOI Software
------------------------------------------
¶5. (SBU) There are other recent examples of growing GOI initiative
and high-level political will to improve IPR protection. On
November 13, SBY signed a decree establishing an Information
Communication Technology National Team. The team consists of
academics, business leaders and GOI officials and aims to create an
IT regulatory regime that can contribute to economic growth, job
creation and poverty alleviation. One of the ICT National Team's
stated objectives is to work towards legalizing all government
software, regardless of whether it is open source or licensed.
Further, the Team will also pursue approaches to cracking down on
the use of pirate software in internet cafes, universities and the
private businesses. The ICT team will report directly to President
SBY and work out of an office at the Ministry of Communication and
Information Technology.
¶6. (SBU) Two months after SBY signed the decree, Minister of
Communication and Information Sofyan Djalil signed an MOU with PT.
Microsoft Indonesia, under which the software maker will help GOI
ministries legalize and upgrade their MS Windows products at a
significantly discounted price. Although there has been some public
JAKARTA 00000475 002 OF 003
criticism of the MOU, including by State Minister for Research and
Technology Kusmayanto Kadiman, SBY has stood behind the agreement.
PT Microsoft Indonesia President Director Tony Chen recently told us
he was "astonished" by the GOI's growing commitment to legalize its
software and recommended we encourage the GOI by maintaining
Indonesia on the Special 301 Watch List.
Customs Law Enacted with Ex Officio Powers
------------------------------------------
¶7. (SBU) Parliament passed a new Customs Law on November 15, 2006,
that, when fully implemented, will provide ex officio powers for
Indonesian Customs officials to seize suspected infringing products
without a court order. The new law retains ex officio powers that
existed in the old law, but also clears up court jurisdictional
issues that had blocked their implementation. Indonesia Customs
expects to promulgate the new law's implementing regulations,
including those pertaining to ex officio powers, by the end of
2007.
Jakarta Police Sustaining Enforcement
-------------------------------------
¶8. (SBU) As noted in the GOI's submission, and confirmed by local
IIPA representatives, the Jakarta Metropolitan Police have sustained
enforcement actions against malls, vendors, distributors and
factories of pirated optical discs. Ratu Plaza, Indonesia's most
notorious modern market for pirated ODs, has been the subject of
repeated raids, and one Motion Pictures Association (MPA) regional
representative told us recently that some of Ratu's vendors have
given up or moved to other, less-centrally located malls. That same
MPA representative described the Jakarta Police's continuing police
cooperation as "brilliant" and he too recommended Indonesia remain
on the Watch List. Our EEB-funded senior IPR technical advisor has
been instrumental in training and encouraging the Jakarta Police to
step up their IPR enforcement. Looking forward, the advisor will
work to encourage greater police collaboration with the ODFMT and
prosecutors, as well as greater police enforcement actions beyond
the boundaries of metropolitan Jakarta.
Monitoring Team Yielding Some Results
-------------------------------------
¶9. (SBU) As noted in ref b, the ODFMT, with training and planning
support from our second EEB-funded advisor, conducted monitoring
visits to all registered optical disc factories in November 2006.
The MOI subsequently sent 12 warning letters to factories observed
to have irregularities. However, the letters highlighted only minor
infractions, and there has been little ODFMT follow-up. Although
the visits revealed weaknesses in the ODFMT's capacity and security
procedures, they also gleaned useful baseline data on the capacity
and activities of registered optical disc factories. More
importantly, the visits allowed the ODFMT to collect forensic
exemplars from a majority of the known production machines in
Indonesia's registered factories. The International Federtion of
the Phonographic" Industry (IFPI) continus to analyze tthese
exemplars in its forensic laboratory in London, and already they are
yielding important information.
¶10. (SBU) The ODFMT still requires considerable institution and
capacity building to be fully effective. The ODFMT does not have
full-time monitors, and relies largely on MOI and Police officials
temporarily seconded from other positions. t needs direct support
from the police, particulrly if it is tt c"n*duct visits at night
and to wlll guarded factories. The ODFMT also needs to impe ment a
more credible system of warning and sanctioning factories in
violation of laws and regulations.
¶11. (SBU) MOI Director General for Downstream Chemical Industries
Benny Wahyudi told us on February 20 that the ODFMT visited seven
factories on February 17, and inspected the five that were open and
operating. He promised to provide us with the results of those
visits as soon as they were compiled. Wahyudi agreed that the
Monitoring Team needs at least one full-time staff member. He
noted, though, that this person might have to be a contractor, as
the MOI did not have a specific budget and position set aside to
staff the ODFMT. Wahyudi also agreed that the MOI would need to
work closer with the police and develop a more effective system of
warning and sanctions. He suggested that the Embassy senior advisor
for the ODFMT would be instrumental in helping the MOI address these
challenges.
Glimmer of Hope in Intel Case
-----------------------------
¶12. (SBU) The Supreme Court's February 1 ruling in favor of Intel in
JAKARTA 00000475 003 OF 003
the Intel Jeans case is also a favorable development. In the case,
the court cancelled the trademark of a local brand of jeans, Intel
Jeans, and ruled that Intel is entitled to trademark protection as a
well known brand. The ruling bodes well for the Supreme Court's
upcoming decision in the appeal of Intel's Panggung case (the
Indonesian firm PT Panggung produces a number of electronics
products under the registered trademark "Intel"). While the
Commercial Court's previous rulings against Intel in the Panggung
case have been setbacks, Intel's legal counsel recently described
the case as an aberration in the Commercial Court's otherwise
respectable record in handling civil IPR cases, particularly those
involving trademarks.
Significant Concerns Remain
---------------------------
¶13. (SBU) Despite the clear momentum on IPR issues, there are
remaining concerns. Indonesia's record on IPR prosecutions remains
poor. Frequent prosecutor rotations, lack of transparency, and
corruption make this a daunting task; and high level political will
and support will be critical to making headway on IPR convictions
and prosecutions. Pharmaceutical counterfeiting and book piracy
also remain largely unchecked. GOI officials tell us frequently
that they consider pharmaceutical counterfeiting to be a serious
health concern for the country, as well as a potential rallying
point for greater public support for IPR protection and enforcement.
Key GOI officials have endorsed a University of Indonesia study
revealing alarming pharmaceutical counterfeiting rates and its high
cost to the Indonesian economy. The GOI, however, has yet to
effectively engage the pharmaceutical industry on these issues.
Book piracy remains rampant in universities and local bookshops.
Indonesia has yet to develop an association or other means through
which publishers and authors can collect and distribute book
royalties. The GOI would very likely welcome U.S. technical
assistance in this area.
Watch List is the Best Option
-----------------------------
¶14. (SBU) Over the past two years, the combination of a
reform-minded government in Indonesia and five regular or
out-of-cycle Special 301 reviews has done much to change our
interactions with the GOI on IPR issues. GOI leaders are pursuing
initiatives to promote IPR that were a only short time ago beyond
our expectations. At the same time, our relationships with working
level contacts have become much more collaborative, particularly
following Indonesia's removal from the Priority Watch List last
November. Four months later, although much work remains, the GOI is
moving forward on IPR issues largely under its own steam. With the
GOI taking increasing ownership of the issue and steadily improving
its IPR enforcement and protection, we believe a third consecutive
OCR would be counterproductive. Accordingly, Embassy Jakarta
recommends strongly that Washington agencies retain Indonesia on the
Special 301 Watch List for the 2007 regular Special 301 cycle, with
no OCR.
HEFFERN
We will cover some more Indonesia cables in a separate post. █
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Posted in Asia, Cablegate, Free/Libre Software, GNU/Linux, IBM at 5:48 am by Dr. Roy Schestowitz
Summary: A diplomatic cable about IBM, Linux and Free/open source software
The following Cablegate cable talks about IBM and Linux. It also states that “[t]he use of an open source code Linux is another area of focus for IBM India. The company formed an IBM Linux Competency Center and Linux Solution Center in Bangalore to establish product standards, further Linux R&D as well as to localize products for an increasingly global customer base with local content requirements. State governments in India are big customers as they prefer open source code that enables development of local language fonts.”
Here is the Cablegate cable in full:
VZCZCXRO6031
RR RUEHBI RUEHCI
DE RUEHCG #2571/01 3260727
ZNR UUUUU ZZH
R 220727Z NOV 06
FM AMCONSUL CHENNAI
TO RUEHC/SECSTATE WASHDC 0443
INFO RUEHNE/AMEMBASSY NEW DELHI 2087
RUEHBI/AMCONSUL MUMBAI 4907
RUEHCI/AMCONSUL CALCUTTA 0647
Hide header
UNCLAS SECTION 01 OF 03 CHENNAI 002571
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: ECON [Economic Conditions], EINV [Foreign Investments],
EINT [Economic and Commercial Internet], IN [India; Andaman Islands;
Lakshadweep Islands; Nicobar Islands]
SUBJECT: IBM INVESTS BIG IN INDIA: HUMAN RESOURCES
ARE KEY
REF: CHENNAI 1187
¶1. (U) Summary: Riding the crest of a $6 billion
investment, IBM India plans to expand its Bangalore
research and development (R&D) operations and in
doing so will unleash a new human capital thrust in
already talent-hungry south India. The company
anticipates its Indian workforce will triple in the
next five years. An expanding market in India for
U.S. manufactured mainframes and network software
services presents an opportunity the company does not
plan to miss. Increasing demand for remote management
of global client networks is another revenue stream
for IBM India. Simultaneous investments in open
source software protocol and capacity building
spearhead the companyQs effort to market e-governance
solutions in the Indian market. To meet its expanded
human resource requirements, IBM plans to initiate
in-house staff training programs, marking a notable
shift from its past strategy of hiring employees away
from competitors. Indian software companies, already
experiencing a human capital crunch, are now
struggling to quickly respond and prevent attrition,
fearful of losing skilled employees to their
competitors. End summary.
-----------------
All bets on India
-----------------
¶2. (U) On June 6 Sam Palmisano, IBMQs Chairman,
announced investment plans in India of $6 billion
over a five year period (reftel). The company
remains reluctant to disclose the details of its
investment strategy, but during a recent meeting in
Bangalore with visiting New Delhi DCM Pyatt, Inder
Thukral, Director Strategy and Business Development
at IBM India told post that emphasis will be on
research and development of telecommunication and
netware solutions for IBM operations worldwide. The
desire to leverage even further IndiaQs large highly-
skilled labor force led to this investment move,
Shankar Annasamy, Managing Director IBM India told
us. The company expects to triple its workforce from
the current 47,000 employees at 25 locations in the
next five years.
-----------------------------------------
India: IBMQs research and development hub
-----------------------------------------
¶3. (U) IBM India, with $2 billion in current
investments, is the proverbial Q800-pound gorillaQ of
IT research and development in the country. The
companyQs India-based teams account for over 30% of
IBMQs global R&D on network and communications
solutions. With its latest investment, the company
has rapidly diversified to meet its R&D needs: The
IBM Innovation Center in Bangalore provides an
institutional platform for software service suppliers
and is a critical testing ground for new products in
both the Indian and global market. IBMQs India
Software Lab, with facilities in Bangalore and Pune,
also develops and supports IBM software products for
worldwide operations. In addition, the high-
performance On Demand Lab develops specialized
software to automate and virtualize the complex
information technology infrastructure of clients
located in the south Asian region. To further
hardware development, the Engineering and Technology
Services Center designs advanced chips, cards and
systems to meet customer requirements across Asia.
------------------------------------------
India: A big market for US made mainframes
------------------------------------------
¶4. (U) IBMQs U.S. manufactured main frames have
captured the booming Indian main frame market. The
company holds an 80 percent share of IndiaQs
estimated $250 million market for main frames. The
market is currently growing at 55 percent, with much
of the growth coming from mid-sized Indian
businesses. Main frames offered to the Indian market
are pre-positioned at the companyQs Bangalore-based
Innovation Center to enable potential customers to
experience the computing power and capabilities of
the machines. IBMQs service oriented architecture
that facilitates communication between different
business segments located in various locations has
CHENNAI 00002571 002 OF 003
found favor in India and helped IBM secure a $100
million deal with Bharti-Airtel, one of IndiaQs
largest mobile phone service providers.
-------------------------------------------
Open source products spearhead E-governance
-------------------------------------------
¶5. (U) The use of an open source code Linux is
another area of focus for IBM India. The company
formed an IBM Linux Competency Center and Linux
Solution Center in Bangalore to establish product
standards, further Linux R&D as well as to localize
products for an increasingly global customer base
with local content requirements. State governments
in India are big customers as they prefer open source
code that enables development of local language
fonts.
--------------------------------
IBMQs BPOs transform outsourcing
--------------------------------
¶6. (U) Leveraging IndiaQs large talent pool of
network managers, IBM India services clients around
the world via satellite and fiber optic networks from
its global operations hub in Bangalore. IBM Daksh, a
back office unit which the company acquired in 2004,
accounts for nearly 50% of the companyQs staff in
India and is expected to contribute over half of the
company revenues in the next five years. Similar to
other BPO operations such as local giants Infosys and
Wipro, Daksh provides services for clients involved
in retail, technology, banking, mortgage, energy and
life insurance. The range of services includes
application processing, account maintenance, data
conversion services, logistics management, claims
processing, email support and financial services.
According to IBM executives, this line of business
registered some of the fastest growth rates for IBM
in recent history.
----------------------------------------
In-house training to meet in-house needs
----------------------------------------
¶7. (U) IBMQs recent investment spike comes at a time
when a fiercely competitive hiring climate is forcing
top leadership to rethink its human resource
strategy. In the past the company notoriously
QpoachedQ experienced individuals from local firms.
Looking for new HR capacity building vehicles,
company executives are emphasizing university
recruitment to attract and train new waves of fresh
engineering graduates, or Qfreshers.Q Yet this may
be a tall order in a time when A-list tech firms are
vying for talent, and freshers with experience under
their belt are job-hopping for bigger and better
packages. Nonetheless, IBM executives are betting on
a combination of higher salaries and their global
brand equity to ensure a steady talent pool.
¶8. (U) Strategic partnerships with elite Indian
technology institutions are also enabling IBM India
to further leverage local human capital expertise.
IBMQs Center for Advanced Studies, for example,
maintains a close relationship with prestigious
institutions such as the Indian Institute of
Technology (IIT) Chennai that leads directly into
software R&D. The company has a similar program with
the Indian Institute of Science in Bangalore and
plans to expand its partnerships with other high-
caliber institutions across India.
--------------------------------------------- --------
Expansion plans leave Indian software companies
scared
--------------------------------------------- --------
___
¶9. (U) Comment: IBMQs investment announcement sent a
minor wave of anxiety through the Indian software
industry, which is already struggling to control
costs. InfosysQ Human Resource Director told us his
company is trying to preempt potential attrition by
offering a 30% salary hike. Mindtree Consulting, a
medium sized software development company, plans to
tap bright talent as early as the secondary school
level. The company hopes to partner with U.S.-based
universities to offer recruits a degree in
CHENNAI 00002571 003 OF 003
engineering at the end of a five year stint.
Whatever strategy adopted, representatives of both
Infosys and Mindtree told us that IBMQs investment
plans will dramatically alter IndiaQs software
business landscape and long-term human capital
strategy. End comment.
¶10. (U) This message was coordinated with Embassy New
Delhi.
HOPPER
In later cable we are going to see some more evidence of warming up to FOSS. █
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