Music Royalties Don't Be A Burden Of MSMEs And Creative Economy, Members Of The House Of Representatives Ask For An Overhaul Scheme

Cafe illustration (Pixabay)

JAKARTA - Deputy Chairman of Commission VII DPR RI Evita Nursanty, urged that the current music royalties collection scheme be reviewed. He is worried that unadapted schemes can burden Micro, Small and Medium Enterprises (MSMEs), and hinder the development of the creative economy sector.

Evita emphasized that protection of Intellectual Property Rights (HAKI) is indeed important. However, many small and creative business actors do not have sufficient understanding of procedures, tariffs, and institutions authorized to withdraw royalties.

Many creative MSME actors such as small cafe owners, freelance singers, and local event organizers feel anxious. They are afraid of being given royalties suddenly, without a thorough understanding. This can hinder creative activities and small businesses that we should support," said Evita in Jakarta, Thursday, August 7.

Evita said law enforcement in the HAKI sector must still consider the social and economic context, especially for small businesses and the informal sector. According to him, the spirit of protecting works should not turn into a burden for the community.

"The implementation should not burden the people, especially MSME actors. In the midst of an economy that has not fully recovered, a coercive approach can cause fear, not awareness," he said.

The legislator from the Electoral Area of Central Java III assessed that the additional burden in the form of the obligation to pay royalties for songs performed directly without recording or commercialization could cause unrest in the community.

He also encouraged the National Collective Management Institute (LMKN) and the government to open more space for dialogue and socialization so that business actors understand their rights and obligations fairly.

"Don't let the information gap occur. Many of our business actors, especially small ones, do not understand the registration procedures, tariffs, to those who are authorized to collect. In the end, fear arises, not awareness. This must be changed," he explained.

Evita suggested that the royalties classification scheme be rearranged based on business scale, type of song utilization, and form of activities. According to him, small cafe entrepreneurs who only play radio or street musicians who appear without commercialization must be distinguished from major event organizers or commercial media.

He also encouraged the presence of a public spokesman from LMKN who is actively educating the public about the royalty system.

One tariff approach for all cannot be applied. There must be justice and partiality. Moreover, MSMEs are the backbone of our economy," said Evita closing her statement.