Urip Hudiono, Jakarta – A recent deal between the government and US software giant Microsoft on the software used in state institutions is "inappropriate" as it potentially sidelines other solutions, the country's monopoly watchdog says.
The Business Competition Supervisory Agency (KPPU) said Friday in Jakarta that the agreement was inappropriate due to the fact that Indonesia had also been promoting the use of open-source software in state institutions and enterprises.
"After evaluating the case, we have conveyed our opinion to the government that the agreement – even though it is non-binding – is inappropriate," KPPU member Syamsul Maarif was quoted as saying Thursday by the detikcom news portal.
Syamsul further said that the KPPU had advised the government not to proceed with the deal as it had not taken into consideration the use of open-source platforms.
The Information and Communications Ministry signed a memorandum of understanding (MoU) with Microsoft Indonesia in November last year for the granting to government institutions of a total of 35,496 licenses for the Microsoft Windows operating system, and 177,480 licenses for the Microsoft Office productivity suite.
The agreement, estimated to be worth Rp 377 billion (US$41.9 million), provides long-term warranties for the new software investment and ensures free upgrades for a period of three years.
The MoU is supposed to be converted into a contract following a full assessment of actual software licensing needs, with initial payments falling due in June.
The deal has, however, come under fire, including from the House of Representatives, with critics arguing that it will create a monopoly for Microsoft, and undermine the government's own "Indonesia Goes Open Source" (IGOS) program, which encourages the use of free and open-source software in the public sector.
KPPU chairman Faisal Basri was among those who criticized the deal for its monopolistic tendencies, although the government has denied that it poses the threat of a monopoly.
Microsoft Indonesia has said that the deal was initiated as part of the government's own efforts to reduce software piracy, and the desire to secure proper licenses for the software used by government institutions.
The government also pointed to the slow development and adoption of the IGOS platform as one of the factors considered when signing the MoU. However, free and open-source proponents have denied this, arguing that IGOS is already being used by a number of ministries and agencies.
There has recently been a growing trend around the world to use free and open-source software for various reasons, including antimonopoly sentiment, transparency, cost efficiency and national security. Microsoft and other proprietary software developers do not disclose the source codes of their products.