Hotel Entrepreneurs In Mataram Restless Of Music Royalty Bills, Threat Of Fines Of IDR 4 Billion

MATARAM - A number of hotels in Mataram City, West Nusa Tenggara (NTB), admitted that they objected after receiving a letter of musical royalty bill from related parties. The bill value varies, ranging from Rp. 2 million to more than Rp. 4.4 million per year, depending on the number of rooms owned by the hotel.

Secretary of the Treasurer of the Mataram Hotel Association (AHM) who is also General Manager of Grand Madani Hotel Rega Fajar Firdaus revealed that several hotels had even received summons because they were considered not to have paid royalties.

"We from AHM have indeed written a bill, some of our friends have even been summoned. The reason may be because they don't want to pay, even though some hotels are already able to pay," said Rega, his statement, Wednesday, August 13.

According to Rega, the amount of the bill for the hotel is based on the classification of the number of rooms. Hotels with a number of rooms below 50 are subject to royalties of IDR 2 million per year, while hotels with 51-100 rooms pay IDR 4.4 million plus VAT 9%. Hotels with more room numbers are subject to higher rates.

"My hotel collection came out at the end of July of Rp. 4 million plus VAT a year. The system will collect again next year in the same month," he explained.

Rega assessed that the royalty calculation method was still problematic. Royalties are worn for every instrument or device that can issue music, including TV in hotel rooms. In fact, hotels that do not have TV in all rooms still get bills.

"He thinks that every room has a TV and TV can issue music that contains copyright. There are hotels that do not have a TV, but are still sent bills. This is the pros and cons," he said.

In fact, continued Rega, Islamic-based hotels that only play murals or religious music are still subject to royalties. "Yesterday the viral sound of birds from YouTube was hit. So he saw the object of the voice, no matter who the singer was," he added.

In the midst of economic conditions that have not yet recovered, the obligation to pay royalties is considered a burden on hoteliers. Moreover, many small-scale hotels have the same bills as middle-class hotels.

"The rules are not calculated based on the grade, but the number of rooms. Even though there are lower-star hotels with more rooms, income is not proportional to high-star hotels," he said.

Rega said that the rules for paying music royalties had been regulated in Law Number 28 of 2014 concerning Copyright and Government Regulation Number 56 of 2021 concerning the Management of Song and/or Music Royalties. However, the socialization is deemed not optimal.

"Why was it only intense this August? This is our question," he said.

He also highlighted the threat of sanctions that were considered too heavy. If you refuse to pay royalties, business actors are threatened with 10 years in prison or a fine of up to IDR 4 billion.

"We entrepreneurs seem to be considered recidivists, even though this is a matter of interpretation of the rules. Many entrepreneurs are worried," concluded Rega.