The National Collective Management Institution (LMKN) collected Rp77.15 billion in music royalties in Indonesia in 2024. This figure represents a 39.89% increase compared to 2023, when the total was Rp55.15 billion.
LMKN clarified that not all of these royalties were distributed. In 2024, Rp54.24 billion in royalties were distributed.
Based on the distribution breakdown, the largest share went to songwriters, amounting to Rp34.02 billion. This represents a significant 55.91% surge from Rp21.82 billion in 2023.
Royalties were also distributed to producers, totaling Rp10.64 billion in 2024, a 12.74% increase from 2023.
Finally, performers received Rp9.57 billion, a slight increase of only 1.41% from 2023.
LMKN provided several notes regarding the report published on its website. Firstly, the 2024 karaoke logsheet calculations have not yet been distributed to creators. Furthermore, the karaoke logsheet calculations for July-December 2024, along with seminar and bazaar royalties, have not yet been distributed to performers. LMKN also mentioned that unclaimed royalties currently amount to Rp4.12 billion.
The Music Royalty Dispute
Recently, a dispute over music royalties resurfaced. LMKN has been the focus of this debate, as the institution, established under Law Number 28 of 2014, has the authority to collect royalties from commercial users according to the established rates approved by the Indonesian Minister of Law and Human Rights.
According to Katadata, these royalties are then distributed to creators, copyright holders, and owners of related rights through Collective Management Organizations (CMOs).
Based on the Decree of the Minister of Law and Human Rights No. HKI.2.OT.03.01-02 of 2016, the business sectors subject to royalty fees include:
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Airplanes, buses, trains, and ships
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Concerts
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Shopping centers
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Hotels and hotel facilities
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Radio
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Recreation centers
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Cinemas
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Television broadcasting institutions
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Exhibitions and bazaars
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Telephone ringtones, banks, and offices
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Restaurants, cafés, pubs, bars, bistros, nightclubs, and discotheques
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Seminars and national conferences, karaoke
The amount and calculation of royalty fees vary depending on the type or category of the registered business sector.
For restaurants and cafes, for example, the royalty fee is based on the number of seats, with a royalty fee for Copyright and Related Rights of Rp60,000 per seat, payable annually.
(Read: This is the Problem with Indonesia's Music Royalty System According to Citizens)