LMKN Reveals Potential For Music Royalties To Reach IDR 5 Trillion

LMKN (Ist)

JAKARTA - Commissioner of the National Collective Management Institute (LMKN), Ahmad Ali Fahmi, revealed that the potential for song/music royalties that can be collected reaches IDR 5 trillion.

This was conveyed when LMKN was invited to the General Hearing Meeting (RDPU) of the Legislation Body (Baleg) of the DPR RI regarding the Copyright Bill last week.

Fahmi started his explanation by mentioning that the object of royalties collection was divided into two commercial public service clusters, namely analog and digital,

For the analog realm, some of them are seminars, commercial conferences, restaurants, cafes, pubs, bars, bistros, nightclubs, discotheques, music concerts, airplanes, buses, trains, ships, exhibitions and bazaars, cinemas, telephone waiting tones, banks and offices, shops, recreation centers, television broadcasting institutions, radio broadcasting institutions, hotels, hotel rooms and hotel facilities, as well as karaoke businesses.

Meanwhile, the digital realm refers to the use of song/music works on Digital Service Provider (DSP) platforms, such as YouTube, Spotify, iTunes, Meta, and beyond.

"As long as he publishes songs and he is commercial, yes, it is indeed an object for us to collect," Fahmi said, citing the Parliament TVR YouTube channel, Tuesday, December 2.

When included in the explanation regarding the potential for royalties that can be collected by LMKN, Fahmi said, the potential for royalties from analog objects reached Rp3 trillion.

"Our potential is IDR 3 trillion per year, this is assuming everything is comply," said Fahmi.

"It's a shame, the ratio of our royalty payers is like I said the previous meeting was only 2 to 3 percent," he continued. This is the ratio of royalty payers, different taxes. The tax has reached 8 to 10 percent of the ratio of taxpayers in Indonesia. Our royalties are still 2 percent.

Furthermore, in the digital realm, said Fahmi, the potential for royalties that can be collected reaches IDR 2 trillion.

"Digital potential is also around 1 to 2 trillion actually. Now we only get 100 to 200 billion for digital. But we can optimize it up to 1 to 2 trillion in the future," concluded Fahmi.