Music royalties in Indonesia now stand at the center of discussions among artists, rights holders, and businesses. In 2025, collective management bodies such as LMKN and WAMI improved transparency, while DJKI tightened its enforcement of royalty rules. As a result, commercial music users must follow clear payment guidelines, and artists enjoy more reliable income streams.
1. Royalty System in Indonesia: New Rules in Action
Under Government Regulation No. 56 of 2021, the government created LMKN as the primary body to manage music royalties nationwide. DJKI emphasizes that businesses using music—whether from Spotify, YouTube Premium, or other platforms—must pay royalties through LMKN.
Furthermore, MSMEs can qualify for reduced fees or exemptions depending on venue size, visitor capacity, and the frequency of music use. This approach encourages compliance while supporting small businesses.
2. Royalty Rates: Clear Numbers for Every Sector
The Minister of Law and Human Rights set royalty tariffs under Decree No. HKI.2.OT.03.01-02/2016. For example:
- Seminars pay Rp 500,000 per day.
- Telephone hold music costs Rp 100,000 per line per year.
- Banks and offices pay Rp 6,000 per m² per year.
- Cinemas pay Rp 3,600,000 per screen per year.
These rates ensure fair compensation for artists and allow LMKN to calculate royalties based on actual usage.
3. Innovations Driving Transparency in 2025
WAMI launched new systems in 2025 to improve royalty distribution accuracy and strengthen education about copyright. These upgrades give artists clearer reports and faster payouts.
At the same time, PRISINDO expanded its annual royalty distribution to hundreds of Indonesian musicians, focusing on performing rights. Large-scale festivals like Pestapora 2025, scheduled for September 5–7, will comply fully with royalty obligations, guaranteeing fair rewards for all participating artists.
4. Positive Impact on the Industry and MSMEs
Royalty payments go beyond legal obligations—they also reflect respect for creative work. By following the system, businesses strengthen their brand image and maintain good relations with artists.
In addition, reduced rates for MSMEs prevent small businesses from feeling overburdened. With transparent processes from LMKN, WAMI, and PRISINDO, royalty revenue could potentially reach trillions of rupiah annually, driving growth in the creative economy.
Conclusion
In 2025, Indonesia’s music royalty landscape delivers more fairness, stronger enforcement, and greater transparency. Artists gain well-deserved recognition and income, while businesses benefit from legal certainty. This balance fuels both cultural growth and economic opportunity—ensuring that music creators receive the credit and payment they deserve.
