Government Firmly Enforces Rules for Royalties for Music, Restaurants to Hotels Must Pay Through LMKN

JAKARTA - The Directorate General of Intellectual Property (DJKI) of the Ministry of Law has taken firm steps to improve the Indonesian music ecosystem related to the use of songs in public spaces.

This policy requires all business actors who use music as a business support to deposit royalties through a one-stop mechanism to protect the economic rights of creators.

This affirmation is contained in the Circular Letter (SE) of the Director General of Intellectual Property Number HKI-92.KI.01.04 of 2025. This step was taken to provide stronger legal certainty for business actors while ensuring that creators, copyright holders, and related rights owners receive the appropriate appreciation.

In this letter, the scope of commercial public spaces is detailed ranging from cafes, restaurants, hotels, shopping centers, entertainment venues, to transportation modes.

Director General of Intellectual Property, Hermansyah Siregar, emphasized that the payment of royalties should not be seen only as an administrative burden or merely a legal obligation.

More than that, this is a form of recognition of the economic value of an intellectual work that also helps enliven the business atmosphere.

"Royalty is the economic right of creators, copyright holders, and related rights owners, not merely a legal obligation. By paying royalties through the right mechanism, business actors also maintain the sustainability of the national music ecosystem," said Hermansyah in his statement, Wednesday, December 31.

He added that the use of music in business activities has proven to provide economic added value, so that the benefits should be fairly shared with the work owners.

This management system places the National Collective Management Institution (LMKN) as the main axis. In accordance with Government Regulation Number 56 of 2021 and the Minister of Law Regulation (Permenkum) Number 27 of 2025, LMKN is the only institution authorized to collect, collect, and distribute royalties nationally.

Later, LMKN will distribute the funds to the Collective Management Institution (LMK) which represents the interests of creators specifically.

LMKN Commissioner, Marcell Siahaan, explained that the implementation of the one-door system (one gate system) aims to cut down on the bureaucracy that has long been complained about by entrepreneurs.

Through a digitized system, payments are expected to be simpler, orderly, and transparent so that there is no longer any doubt about where the money is going.

"Business actors do not need to be confused about who to pay. Just through LMKN, and we ensure that royalties are distributed fairly and transparently to creators, copyright holders, and related rights owners," said Marcell.

This circular also emphasizes that the responsibility for paying royalties is in the hands of the event organizer, promoter, or business owner, not charged to the event organizer or performing artist.

DJKI reminded that payments made outside the official LMKN mechanism are considered invalid and do not waive the user's legal obligations.

Previously, the Minister of Law Supratman Andi Agtas had also strengthened this legal basis through Decree of the Minister of Law and Human Rights No. 27/2025 to ensure the transparency of royalty distribution until it reaches the hands of the creators.

Through this policy, compliance with this rule is not only about avoiding legal sanctions, but also a real contribution to supporting the welfare of musicians and the growth of the national creative industry so that it remains sustainable in the future.