The issue of copyright, particularly royalty payment rates for songs and music, has recently sparked lively debate. Legal experts from Universitas Gadjah Mada (UGM) and Charles Darwin University, Australia, conducted a study on the legal and practical implications of copyright royalty management in the digital era, emphasizing the need for a comprehensive understanding of the strategic role of Collective Management Organizations (CMOs).
Professor M. Hawin of the UGM Faculty of Law (FH UGM) stated that Government Regulation (PP) 2021 and the 2025 Minister of Law and Human Rights Regulation need to be revised to reflect the Fair Use provisions outlined in the 2014 Copyright Law.
The 2025 Ministerial Regulation, he explained, should be revised regarding mandatory royalty payments for seminars, hospitals, free performances, small food stalls, and street performers.
Professor Hawin also emphasized that the revision of Article 43 of the Copyright Law should encompass content creation, even for commercial purposes, provided that the content is transformative in relation to the original work.
According to him, CMOs should also refrain from handling synchronization licenses.
“Synchronization should be managed directly with copyright holders to avoid limiting fair use opportunities,” he said during the National Seminar on Unraveling the Problems of Copyright Protection: Royalties and the Role of Collective Management Organizations, held at the Auditorium of Building B, FH UGM, Tuesday (Sep. 23).
Professor David Price of Charles Darwin University, Australia, offered an international legal perspective by comparing royalty management systems in various countries.
He highlighted best practices that Indonesia could adopt, particularly in facing technological disruption and global digital platforms.
“There needs to be minimum standards for music platforms on education, efficient takedown mechanisms, firm sanctions, and simplified claims procedures so that copyright holders can more easily pursue infringements,” he explained.
Dr. Heribertus Jaka Triyana, Vice Dean for Research, Community Service, and Information Systems at FH UGM, emphasized the need for constructive collaboration among academics, practitioners, government, and industry players in developing fairer and more transparent royalty governance.
“The Faculty of Law at UGM contributes to analyzing and mapping future legal development in Indonesia related to copyright,” he said.
Deputy Minister of Law at the Indonesian Ministry of Law and Human Rights, Edward Omar Sharif Hiariej, underscored the government’s strong commitment to protecting the economic rights of creators through adaptive regulations.
He emphasized the importance of synergy among the government, CMOs, and copyright users to ensure the effective implementation of Minister of Law Regulation No. 27 of 2025, thereby delivering real benefits for the welfare of artists.
“We want this regulation to provide tangible benefits for the well-being of artists,” he stressed.
Musician and Member of Commission X of the Indonesian House of Representatives (DPR RI), Once Mekel, also shared critical insights from his dual perspective as an artist and legislator.
He emphasized the importance of professional and transparent governance of CMOs and the National Collective Management Organization (LMKN) to safeguard creators’ rights.
As a legislator, Once Mekel further stressed the need for stronger regulations that practically protect artists’ economic rights.
According to him, there must be a balance between public access to music and the personal rights of music creators. Over the past 34 years, he argued, royalty collection systems have not functioned effectively.
“Two strategic options are either to strengthen LMKN by designating it as the central collection body or to limit CMOs to focus solely on member registration and representation,” he said.
Agung Damarsasongko, Director of Copyright and Industrial Design at the Directorate General of Intellectual Property, outlined the government’s strategic role in supervising CMOs.
He also explained the function of the National Music Database Center (PDLN) as a tool for transparency and accountability in recording works and distributing royalties, as well as the challenges of enforcing copyright law.
Damarsasongko elaborated that royalty management mechanisms include collection, accumulation, and distribution. However, he noted ongoing challenges in implementing fair royalty rate schemes.
“Our main challenges are the unfair royalty rate scheme, low compliance from business users, lack of transparency and accountability in royalty management, and the need for modern distribution systems based on digital data,” he explained.
Author: Lintang Andwyna
Editor: Gusti Grehenson
Post-editor: Rajendra Arya
Photographer: Donnie Trisfian