How to Reduce Illegal Music Product?

In this case, I recommend some problem solving which I expect can create a better condition, those are :

•Protect the format
This way is recommended in the form of reducing the supply of illegal goods while I recommend the same things which become the main support of the existence of Illegal Music Product, that is : Advance of Technology. Advance of Technology has already given the huge easiness and opportunity for the supplier to make the copy of the original one in a very easy way but, we can also use Advance of Technology to protect the format of Illegal Music Product which make it can’t be copied by the Supplier of Illegal Music Product so, in my expectation, government and Music Industry can corporate and next time, create the protected-format of Music Product I which, at least, the goods supplied can be reduced and the marginal cost of the suppliers can be higher than before.

•Support the original CD to compete
We can also reduce the quantity of Illegal CD and MP3 sold by reducing the demand of those goods. The only way to reduce the demand for Illegal Music product is to increase the demand for the original Music product that just can be done if Government gives more attention and corporation to the enemy of Illegal CD and MP3, that is : the original one
When the demand for the illegal Music product decrease, automatically, the supply will begin to decrease and we can reduce or even eliminate the existence of Illegal Music Product in Indonesia. As what have been mentioned before, the price of Music Product tend to be expensive because they have to pay royalty, PPN (Pajak Pertambahan Nilai), PPBM (Pajak Penjualan Barang Mewah), seller agent fee, Copyright tax which paid to ASIRI (Sound Recording Industry Association of Indonesia), box and packaging cover cost, retribution cost, production cost ( based on whether the cost is high or not ) and other miscellaneous costs. So, what should be done to make it cheaper which will create the better position for original music product in the competition with the illegal one?
I recommend a shift of focus of government from doing the arrest and seizure to support the original Music product party so, by some agreements ( I assume, Artist can make the agreement of royalty to reduce the piracy, why can’t it be done by government ?) between those two parties ( can be in the form of subsidy or reducing the tax ), they can begin to reduce the cost and create a lower-price Original Music Product.

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