Working On Sufficient Budget, LMKN Is Demanded To Be Maximum In Collecting Royalties

The Chairperson and Commissioner of LMKN at a press conference (Ivan Two Putra/VOI)

JAKARTA - The National Collective Management Institute (LMKN) is often the subject of songwriters who feel they do not get the right to royalties of performing rights fairly.

In a VOI interview with Kadri Mohamad some time ago, he admitted that LMKN's performance was not optimal, but this could not be fully blamed on them.

"The system already exists, there is already an LMKN that collects royalties. However, the work is not optimal," said Kadri Mohamad when met in Cirendeu, South Tangerang some time ago.

"I'm not defending LMKN, but indeed the task is very heavy. They are assigned to withdraw royalties from concerts throughout Indonesia, while the officers are at most," said Kadri.

LMKN itself works based on the budget obtained from the collection of royalties they carried out together with 15 Collective Management Institutions (LMK).

Dharma Oratmangun as the Chair of the LMKN said that his party was a non-subsidized government aid agency.

"LMKN is a collective management institution, it is a non-APBN government aid agency," said Dharma Oratmangun during a press conference at the LMKN Office, Kuningan, South Jakarta some time ago.

On the same occasion, Johnny Maukar as the LMKN Commissioner explained how the institution got the budget for its operations.

Of the total royalties collection for a year, LMKN set aside 20 percent as stipulated in the Law. Which LMKN itself only gets 3.2 percent.

"From the distribution of all that was collected, 20 percent was set aside in accordance with the provisions of the Law. What for 20 percent is that? 10 percent is for LMK, LMK operations. Why was it given? He had to rent a building, had to pay for this employee, "said Johnny Maukar.

Then, 10 percent more, 6.8 percent operational costs, financing door-to-door personnel to collect royalties. Thus, 3.2 percent of royalties are the operational costs of LMKN," he continued.

With a total royalties collection of Rp55,151,768,212 in 2023, LMKN is required to work for a year with a budget of Rp1,764,856,582.

"It's not enough, it's enough," concluded Johnny Maukar.

For information, the total collection of royalties by LMKN and LMK in 2022 is IDR 35,005,101,306. The total budget obtained by LMLN to work for a year is IDR 1,120,163,241.

Thus, the budget obtained by LMKN and LMK in working depends on the total royalties they collect.