Uncomfortable With Direct License, Ariel NOAH: Not Regulated By The State And Potentially Causes Tax Problems

Ariel NOAH when speaking at a press conference on the Indonesian Voice Vibration (VOI/Ivan Two Men)

JAKARTA - Ariel NOAH, the song singers who are members of the Indonesian Voice Vibration (VISION), expressed his disapproval with direct license at the royalties of performing rights that are trying to be applied in today's music concerts in Indonesia.

According to him, direct license if you try to force it to be implemented at this time, you have a very big weakness, where the regulations have not been regulated by the state.

"Direct licensing needs to be regulated by the state, while what we are currently implementing and what we dare to do is what the state has regulated," Ariel said during a VISION press conference at SCBD, South Jakarta, Wednesday, March 19.

Jadi, direct license sendiri belum diatur. Memang ada yang mengatakan, 'Kan nggak dilarang. Kalau nggak dilarang ya boleh saja.' Ya memang, tapi aturannya bagaimana? lanjutnya.

The NOAH frontman sees a gap that can actually present other problems. Like royalties obtained by songwriters subject to Value Added Tax (VAT), he said the system where users immediately pay royalties to creators will cause uncertainty about taxes.

There are many that have not been regulated there, including one that is very concerned about my tax problem. If the transaction between people is like that, how about the tax. Because royalties have VAT, while if via LMK (Collective Management Institution) it has been regulated," he said. . So, for me personally, I as a songwriter, I am currently more comfortable so (via LMK), because everything has been arranged, it's written, it's been regulated by the state. The direct license hasn't yet. So, that's what makes me confused.

Ariel also highlighted the songwriters who applied direct license when their songs were known to the public. According to him, the agreement regarding direct license if it really wants to be implemented must go through the approval of all parties when the song is recorded.

"Especially for me personally, (disapproving) that direct licensing was carried out in the middle of the road. At first it wasn't like that. At first, there was an initial agreement, it was already running, then suddenly it didn't become like the beginning, changed the rules of the game. Well, I think that's a little less fair, if for example being shot suddenly," said Ariel.

"It's better if, for example, there are good negotiations, which are fair for both, I think personally (made an agreement) at the beginning. If in the middle, it's also confused. That's why, there was the beginning of confusion. Instead of being confused, it's better if we ask directly to those who make the regulations," he concluded.