Discussing The Copyright Bill, The DPR Baleg Proposes LKMN To Be Financed By The State Budget

Member of the Legislation Body (Baleg) of the DPR I Nyoman Parta, proposed that the National Collective Management Institute (LMKN) be financed by the state through the State Revenue and Expenditure Budget (APBN).

The reason is, so far LMKN has become a non-APBN aid institution whose operational costs are obtained from 8 percent of the collected royalty funds or those that have been collected.

This proposal was conveyed by Nyoman in the midst of discussing various articles in the revision of the Copyright Law which was deemed necessary to be strengthened to clarify the position, authority, and work mechanism of LMKN in the national royalty management system.

"How can the state assign an institution, but it is financed by the institution's own business," said I Nyoman Parta at the General Hearing Meeting (RDPU) Discussing the Harmonization of the Bill on Copyright at the DPR building, Thursday, November 13.

According to Nyoman, the status of LMKN which was formed based on the mandate of the law should make the institution obtain funding support from the government. However, if the opposite happens, it must be regulated more clearly regarding LMKN funding in the Copyright Bill.

"The drop (is not funded by the APBN), so this LMKN is widely questioned in the field, because in terms of financing only from the results of its work, therefore the leadership will later improve the law, I think this must be financed like other commissioners," he said.

Nyoman emphasized that the current LMKN funding mechanism is not ideal, because the institution must rely on the results of collecting music royalties and songs from industry players. In fact, he said, LMKN has a strategic function in ensuring that the economic rights of creators and owners of related rights are protected fairly.

"The state must be present and ensure that institutions such as LMKN can work professionally without financial pressure. If they are financed by the state, their independence is guaranteed," said the PDIP legislator.

Apart from Nyoman, a number of Baleg members also agreed to the proposal on the grounds that funding from the APBN will strengthen governance and transparency in royalty management in Indonesia.

"Indeed (if) the state assigns, creates institutions, appoints people, the costs must also be prepared by the state. So that the audit is clear, that's in my opinion," he concluded.