Compliance With Royalty Payments Is The Key To A Healthier And Fairer Music Ecosystem

JAKARTA - Socialization and copyright education are the keys to making the national music ecosystem healthier and fairer for all parties. Especially for the benefit of songwriters, which has long been complained about in Indonesia compliance with the mechanism for using songs commercially is a fundamental step.

In this case, the Directorate General of Intellectual Property (DJKI) of the Ministry of Law sees that many business actors do not understand that playing songs in public spaces or holding concerts is a form of commercial use.

"This is not only a matter of paying royalties, but a matter of understanding that every copyright has economic rights that must be respected," said Razilu as Director General of Intellectual Property Razilu, citing the official DJKI website, Thursday, June 19.

Law Number 28 of 2014 concerning Copyright has regulated that every use of songs for commercial purposes requires permission from the creator or copyright holder. However, to facilitate licensing, the Law has mandated to form a National Collective Management Institute (LMKN) as a one-stop intermediary.

Business actors or users of Public Services are Commercial enough to pay royalties once centrally. Then the results will be distributed to creators and owners of related rights (singers, musicians, producers of phonograms) through the Collective Management Institute (LMK).

The obligation to pay royalties has been explicitly regulated in Government Regulation Number 56 of 2021 concerning Royalty Management. Article 9 paragraph (1) explains that anyone who uses songs or music in public services is commercial, must apply for a license through LMKN. This applies to various forms of song utilization, ranging from those played in restaurants, cafes, pubs, discotheques, to music concerts," said Razilu.

The decision of the Minister of Law and Human Rights Number HKI.2.OT.03.01-02 of 2016 has also regulated the amount of royalty rates. For concerts, the royalties that must be paid are 2% of the gross proceeds of ticket sales and an additional 1% for free tickets, or 2% of the production costs for concerts without tickets.

Meanwhile, the responsibility for payment lies with the organizers of the event or the owner of the place of business, not the singer or performer unless they also act as organizers.

DJKI is also committed to continuing to provide education, assistance, and supervision of the use of songs for commercial purposes. This is because copyright compliance is not only a legal protection for creators, but also an ethical foundation that strengthens the national creative industry.

"We want the public and business actors to not only obey the rules, but also really understand why the rules were made. The protection of copyright is a form of real support for the advancement of Indonesian music," said Razilu.