JAKARTA - Anang Hermansyah also encouraged the government and the DPR RI to reform the system for distributing digital music royalties in Indonesia. He believes that a User-Centric Payment System (UCPS) or a user-oriented payment system is a solution.
The musician and council member said that the majority of digital music platforms are currently not optimal with the use of the Pro-Rata system, where all subscription revenue is collected and divided based on the total number of global streams. This system is considered unfair because it causes global artists to dominate the revenue.
"Meanwhile, Indonesian artists, including independent musicians, do not get a proportional share," said Anang in Jakarta, Sunday, May 3.
According to this former member of the Indonesian House of Representatives, if a user only listens to one local artist, his subscription payment should flow entirely to the artist.
"However, in the current system, some of it actually flows to artists who have never been listened to," said Anang.
Based on these conditions, Anang Hermansyah encourages the implementation of UCPS, where every rupiah from users will be directly allocated to the artists they really listen to. Anang refers to a study in Europe which shows that this UPCS system is able to increase the income of local artists by 30-40%.
"The fact in Indonesia today, the income of local Indonesian artists is currently less than 15% of the total royalty pool, more than 50,000 Indonesian artists are registered on digital platforms, the majority of which are independent, and Indonesia has more than 80 million music streaming users," said Anang.
According to Anang, the momentum of the amendment to Law No. 28 of 2014 concerning Copyright, which is currently being rolled out in the DPR, so that it can adopt the UCPS system into the Copyright Law and its derivative regulations.
"The options are to revise the digital royalty regulation to ensure transparency, the obligation to gradually adopt UCPS, the creation of a national clearing house, and the strengthening of the national music copyright data system," he explained.
Anang encouraged the implementation of the UCPS pilot in the next 12 months by encouraging collaboration between the government, digital platforms, and industry players. "Indonesia has market power, a large user base, and a rich music ecosystem. It's time for us to lead the change towards a fairer system," said Anang.
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