LMKN Operational Fund Cut, Royalties For Music Creators Will Be Bigger

The commissioner of the National Collective Management Institute (LMKN) for the period 2025-2028 was officially inaugurated. At the same time, the operational funds of this non-APBN government aid agency experienced significant cuts.

The changes are contained in the Regulation of the Minister of Law and Human Rights Number 27 of 2025 (Permenkum 27/2025).

Director General of Intellectual Property, Razilu, said that in the previous regulation LMKN could take a maximum of 20 percent of the royalties raised. However, in the new regulation, only 8 percent can be used as operational funds.

"Inikas yang tadinya dana operasional maksimal ditetapkan 20 persen di peraturan sebelumnya, kini kita set angka pasti, bukan maksimal atau minimum, hanya 8 persen," ujar Razilu di Kantor Kemenkumham, Jakarta, baru-baru ini.

According to him, this policy is expected to improve the welfare of copyright holders. "This means that approximately 12 percent of what will be distributed to rights holders, both creators and other eligible parties," he said.

The newly appointed LMKN commissioner, Dedy Kurniadi, emphasized that his party would manage royalty funds in a transparent manner.

"We will try to make every financial period open. The limit on the use of operational funds has also been clearly regulated in the Permenkum," he said.

There are ten LMKN commissioners for the 2025'2028 period, consisting of five LMKN Creator commissioners and five LMKN commissioners for the Owner of Related Rights.

The LMKN Creator commissioners include Andi Muhanan Tambolututu, M. Noor Korompot, Dedy Kurniadi, Makki Omar, and Aji M. Mirza Ferdinand.

Meanwhile, the Commissioners of LMKN Owners of Related Rights are Wiliam, Ahmad Ali Fahmi, Suyud Margono, Jusak Irwan Setiono, and Marcell Siahaan.