JAKARTA - The Songwriter Guard (Garputala), a movement that fights for the welfare of songwriters in Indonesia, voiced complaints about the role of the National Collective Management Institute (LMKN) in the management of music royalties.
As is known, LMKN is tasked with collecting music royalties from users. Meanwhile, the Collective Management Institute (LMK) will distribute royalties to songwriters, copyright holders, and related rights.
Meanwhile, Garputala's complaint was conveyed at the DPR RI Legislation Body Meeting (Baleg) on the Copyright Bill some time ago.
Representing Garputala, Suseno, who also serves as Managing Director of Wahana Musik Indonesia (WAMI), voiced critical and sharp views regarding the role of LMKN and the potential loss of Indonesia's digital music royalties which reached trillions of rupiah.
The main concern expressed was the loss of potential royalty acceptance from foreign songs played on digital platforms (DSP) in Indonesia.
Suseno emphasized that the potential for royalties of IDR 5 trillion, called LMKN, at the previous Baleg Meeting, could be achieved, but with one crucial condition: the stipulation of a clear territorial rule in the law.
"This territory is all songs played in Indonesia in digital, it must be collected by LMK in Indonesia," said Suseno.
Currently, many foreign songs are played domestically, but LMK Indonesia has no mandate to withdraw its royalties. "Those who collect are other countries, from Hong Kong, from Australia. Now, we have lost up to trillions of these," he complained.
The problem highlighted by Suseno is the role of LMKN which is considered overlapping and even hinders royalty collection, especially in the digital realm.
Suseno firmly suggested that the DPR RI should consider global common practices. "Because in general practices in this world, LMKN does not exist," he said.
LMK in other countries such as Japan (JASRAC) and Korea (KOMCA) carry out its collection function completely, while the involvement of the state is only a strong regulator.
He suggested that LMKN should act like Bank Indonesia as a regulator, which has the authority to audit, determine tariffs, but not collect.
Suseno explained the case where LMKN wanted to do a digital collection, but the big DSP doubted their mandate. In fact, he revealed the latest scheme from LMKN that is too complicated.
This condition, plus an operational cost burden of 8 percent of the royalties that have been collected and must be divided in two, makes it difficult for LMKs such as WAMI and ultimately harms creators due to additional cuts.
Suseno emphasized that if LMKN is maintained as a body to collect royalties, Indonesia will be considered to be delayed in the past five years, especially in terms of digitization.
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