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decision by the United States to place Indonesia back on the Priority Watch List due to widespread copyright infringements nationwide may not be without justification, with more than 550 million pirated CDs and DVDs traded on the black market in 2008, causing Rp 1.4 trillion (US$132 million) in losses.

The country was commended in 2006 when a US trade representative removed Indonesia from the Priority Watch List and praised the government's commitment to fighting piracy.

Data at the Indonesian Recording Association (ASIRI) shows the number of CDs and DVDs illegally copied in 2008 was up 25 percent from the nearly 445 million in 2007, causing 27 percent less in potential tax revenues than in 2007.

Last month, the Justice and Human Rights Ministry announced that software piracy alone has deprived the state of nearly $90 million in potential tax revenues in the past few years.

The director general of intellectual property rights at the ministry, Andi Noorsaman Sommeng, blamed poor law enforcement and public awareness for the rampant piracy. "Besides, Indonesia also lacks professionals to deal with the issue," he said at the official opening of the Indonesian Intellectual Property Academy (IIPA) at the University of Indonesia, in Depok, West Java.

Noted songwriter James F. Sundah, who attended the seminar at the ceremony, said the rapid development of information technologies and an ongoing battle among recording companies had exacerbated the situation.

"This is quite ironic because Indonesia has huge amounts of talent but are globally viewed as one of the biggest threats to the arts market," said James, also an executive of the Indonesian Association of Artists, Singers, Composers and Recording Businessmen (PAPPRI).

Andi said the IIPA, jointly established by the director general of Intellectual Property Rights, the University of Indonesia and the World Intellectual Property Organization (WIPO), largely aimed at increasing public awareness of property right issues and of the importance of fighting piracy.

Andi said by encouraging local industries to be more creative, they may be able to combat piracy via a respectful approach.

"Creative people will respect their own products and others' creation," he said.

According to Andi, creative industries should be able to contribute Rp 120 trillion ($11.4 billion) with the growth rate set at 6.8 percent per year, to the country's gross domestic product (GDP). Considering the decline in national economic growth this year, Andi said, this target was definitely achievable.

"President Susilo Bambang Yudhoyono has declared 2009 the *creative year' and intends to show a greater government commitment to the creative industry," he said.

The government has also formed a task force to deal with intellectual rights violations in an attempt to minimize piracy.

The executive director of WIPO, Yo Takagi, said it was not easy to raise public awareness of these issues in huge developing countries like Indonesia.