Association Of Indonesian Music Promoters Hope Royalty Tariffs Are Cut To 1 Percent

JAKARTA - The Indonesian Music Promoter Association (APMI) proposes that the royalty rate for performing rights for music concerts be reduced by half.

The proposal was conveyed by Novry Hetharia as Head of Advocacy and APMI Licensing at the General Hearing Meeting (RDPU) on Harmonization of the Copyright Bill with the Legislation Body (Baleg) of the DPR RI on Tuesday, November 18.

Meanwhile, APMI is an association that oversees 25 major music promoters in Indonesia, which to become a member must undergo a separate verification process.

Novry said the royalty rate for music concerts, which was originally set at two percent of total ticket sales (paid concerts) or total production costs (not paid concerts), should be reduced to one percent.

He said that the reduction in royalty rates is expected to be able to attract coffers from more event organizers (EO) or music promoters operating in the country.

"How about thousands of EOs or promoters to pay (royalti)? Earlier, I told you at the beginning, instead of paying 2 percent, but only 25 promoters (APMI members) paid, 1 percent better but thousands of promoters paid," said Novry, launching Parliament TV, Wednesday, November 19.

As for the royalty payment system by EO and the promoter, Novry said, it should be done in part before the show starts.

As with tax payments made by depositing a sum of money in the form of deposits, royalty payments can also apply the same method.

Later, EO and the promoter will include evidence of the deposit to the police during the permit processing.

"If in licensing, when the Police or Headquarters (Polri) want to issue a permit, there must be a recommendation, for example from the LMK (Collective Management Institute)," said Novry.

"And we will pay the deposit first. Later the results will finally be paid after the event is held," he added.

Novry sees that synchronizing royalty payments with permits from the police will facilitate the work of the National Collective Management Institute (LMKN) in collecting royalties.

"Because currently, I think there are difficulties, both in LMK and LMKN, to collect these royalties," he said.

"While we, the 25 promoters, feel a little jealous. We pay, but there are thousands who don't pay," said Novry.