The massive reproduction and distribution of pirated CDs, DVDs and VCDs is causing Rp 520 billion a month in losses to the state, police said recently.
The police have called on the Industry Ministry to review the existing policy on the issuance of permits for optical disc production and import, saying most discs sold domestically have no tax stickers.
"Disc producers are required to put tax stickers on the products and pay value-added tax to the state," Jakarta Police chief Insp. Gen. Wahyono said following the seizure of 2 million pirated CDs in a raid at the Glodok electronic market.
"This indicates that there's something wrong with the production and import procedures."
He added he had warned police personnel against supporting the sales of pirated CDs, VCDs and DVDs.
He also called on all parties, including record companies, movie producers and intellectual property rights holders, to report police personnel involved in such crimes.
Wahyono said the illegal production of optical media was estimated at 8 million discs a day, with the total losses of Rp 24 million from unpaid VAT, since the tax stickers ranged in price from Rp 2,800 to Rp 5,500.
Tony Tanduk, the Industry Ministry's director for the downstream chemicals industry, and also the coordinator of the ministry's optical media monitoring team, said the government was finding it difficult to clamp down on the massive piracy.
"About 20 to 30 percent of the total production of optical media comes from home industries, using personal computers that are difficult to track down," Tony told The Jakarta Post on Thursday.
He added there were only 33 re gistered optical media producers in the country operating a total of 100 machines, while those unregistered manufacturers numbered in the hundreds.
He said the government had implemented preventive measures in the form of monitoring the imports of polycarbonate, the key ingredient used in the manufacture of optical discs.
"The volume of each polycarbo nate shipment must match the production capacity of the importers," Tony said, adding each producer had to report to his team on their production every three months.
"If we find any violations, we can call for the suspension of the producers' permits for their machines."
He added the government had also handed over the case files on several of illegal optical media producers to the police for prosecution.
Data from the Industry Ministry shows 200 million optical discs are produced each year, using up 3,600 tons of polycarbonate.
Aria Bimo, chairman of the House of Representatives' Commission VI on industry, trade and state-owned enterprises, said his commission had received many complaints from the recording industries, musicians, artists and intellectual property rights holders over what they had called the uncontrolled massive production of pirated CDs, VCDs and DVDs.
"We're working with the House's legal affairs commission to seek coordination with the police, the Industry Ministry and the Attorney General's Office to take strict action against companies churning out these illegal products," he said. (bbs)
