Minister of Law and Human Rights Supratman Intervenes, LMK and LMKN Will Be Audited Regarding Transparency of Music Royalties

Illustration of musical royalties (unsplash)

JAKARTA - Minister of Law Supratman Andi Agtas plans to audit the Collective Management Institutions (LMK) and the National Collective Management Institution (LMKN) regarding the transparency of music royalty payments.

Supratman stated that the audit will first be discussed with the managers of the LMK and LMKN to ensure that royalty payments comply with regulations.

"Specifically for royalties, we are currently collecting data from the LMKN and LMK. We will request an audit of both the LMK and the LMKN," Supratman said at the Parliament Complex in Jakarta, as reported by Antara, Tuesday, August 19.

He emphasized that the audit is not intended to find fault, but rather to determine the most appropriate royalty collection and distribution system.

"The public demands transparency, and that's natural. An audit mechanism can provide us with an overview of the amount of royalties collected and how they are distributed," he said.

Supratman also requested that the LMKN invite all business actors to participate in discussing the royalty collection mechanism. He emphasized that implementing the regulations should not burden small businesses.

"What I want to emphasize is that this shouldn't burden MSMEs. That's the most important thing," he said.

Previously, the Deputy Chairperson of the Commission Member of the House of Representatives (DPR RI) VII, Chusnunia, urged the government to improve the management of music royalties, which have recently become a public controversy. He believes businesses are concerned about the legal risks of playing music on their premises.

Royalty payment regulations are stipulated in Law Number 28 of 2014 concerning Copyright and Government Regulation Number 56 of 2021 concerning the Management of Song and/or Music Copyright Royalties.