Abstract
AbstractThe Indonesian software industry is still in its infancy. The software exporting industry is very small. However, at least a small number of software exporters do exist and there is a potential for such an industry to develop. Characteristics of the domestic Indonesian demand: One of the highest piracy rates in the world prevent any clear market estimation; One large project by a large Corporation or Government organization has high impact on the entire market; Some sectors have excellent IT facilities and software expertise, while other are still working under “pre‐historic” conditions; Most demand is satisfied by established international software producers in tandem with international management consulting firms. A national strategy for the development of the software export industry is being formulated, but its implementation is likely to take some years to show impacts. The Indonesian Ministry of Trade and Industry is in charge of formulating the national software export policy with the following objectives: Strengthen the Internet based application infrastructure; Strengthen the IT infrastructure; Develop the local software industries; Enable Institution Capacity Building. As Indonesia is till recovering from the 1998 Asian Financial Crisis, the Government has put software export issues further down the list.
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