The ongoing debate over song royalties has recently drawn significant public attention. Playing music or songs in restaurants and entertainment venues is often considered common practice, with many business owners surprised to learn that playing or performing songs in their establishments requires the payment of annual royalties.
Under regulations on music royalties set out in Law No. 28 of 2014 on Copyright, creators and copyright holders are entitled to compensation when their works are used commercially.
Copyright covers not only songs but also books, paintings, photographs, and other creative works.
Lecturer at the Faculty of Law, Universitas Gadjah Mada (FH UGM), Dr. Laurensia Andrini, explained that, in principle, every creative work carries royalty rights.
She noted that a songwriter is entitled to two rights: first, moral rights, which concern the right to be recognized as the creator.
“That is why someone is entitled to royalties, primarily because they hold copyright over the song they created,” said Dr. Andrini, on Friday (Aug. 22) at UGM Campus.
With moral rights, a song cannot be arbitrarily altered, have its lyrics changed, or be parodied without the songwriter’s consent.
Furthermore, royalties are tied to economic rights.
When a song is played in public or performed, the songwriter is entitled to receive royalties.
The issue that has brought this matter to the public spotlight, however, is that royalties often fail to reach musicians or songwriters.
Resolving the debate on song royalties is not simple.
Since the issue gained attention, there have been updates to copyright regulations.
One Collective Management Organization (LMK) in Indonesia has even sought judicial review.
Additionally, a draft bill has been submitted to the House of Representatives (DPR), and the Ministry of Law and Human Rights has issued Ministerial Regulation No. 27 of 2025 concerning the management of song and/or music royalties.
According to Dr. Andrini, the challenges in resolving this issue stem from two sides: LMKs, which are authorized to collect royalties but lack transparency, and business operators, many of whom lack normative awareness regarding royalty obligations.
“In my view, this is a systemic problem. The lack of transparency may be due to the absence of established mechanisms for transparency. On the other hand, users themselves often do not see this as an obligation,” she explained.
Nevertheless, royalty tariffs have been in place since 2016, along with established payment mechanisms.
Those who use copyrighted works for commercial purposes are required to report the frequency of song plays each month and pay royalties to the National Collective Management Body (LMKN).
“Normatively, business operators are required to report,” said Dr. Andrini.
She further explained that the payment provisions are regulated in Government Regulation No. 56 of 2021.
Once payment is made, LMKN distributes royalties to the relevant LMKs, which represent the musicians.
In practice, however, cases of royalty disputes remain widespread, influenced by Indonesia’s legal culture.
Historically, Indonesia has had a collective communal culture, where ownership is viewed as communal rather than individual.
This is evident in traditional cultural expressions, such as regional dances, which are considered communal property rather than belonging to individual performers.
“In Indonesia, ownership tends to be collective and communal, rather than individual,” Dr. Andrini remarked.
From a legal standpoint, she emphasized that LMKN is obliged to conduct financial and performance audits at least once a year, with the results published in a national print medium and an electronic medium accessible to the public.
Author: Jelita Agustine
Editor: Gusti Grehenson
Post-editor: Lintang Andwyna
Illustration: Freepik