SKC Law at ILUNI FHUI-KOMPAS 2025: IP Rights in Indonesia’s Music Industry

On July 28, 2025, SKC Law participated in the Gelar Wicara talk show hosted by ILUNI FHUI and Kompas Institute, titled “Perlindungan Hak Cipta Lagu, Musik, dan Hak Terkait: Menata Performing Rights dalam Dinamika Perkembangan Industri Lagu dan Musik.” The event brought together legal experts, industry stakeholders, and government representatives to to discuss the current state of performing rights in Indonesia’s music sector.

A Timely Forum on IP Reform

Held at the Kompas Institute in Jakarta, the event gathered over 30 speakers and commentators – including legal scholars, musicians, regulators, and IP practitioners – to address challenges and opportunities surrounding performing rights, royalty management, and direct licensing.

The event was moderated by Nidya Kalangie, leader of SKC Law’s Prosecution & Litigation Team. Keynote speakers included representatives from the Ministry of Law and Human Rights, the Dewan Perwakilan Rakyat (DPR), Universitas Indonesia Faculty of Law, and the Directorate General of Intellectual Property (DGIP), along with renowned Indonesian singers, producers, and composers from Asosiasi Komposer Seluruh Indonesia (AKSI), Vibrasi Suara Indonesia (VISI), Wahana Musik Indonesia (WAMI), Federasi Serikat Musik Indonesia (FESMI), and Asosiasi Promotor Musik Indonesia (APMI). This made the event the right forum for the right discussion.

Nidya guided discussions on the legal interpretation of Pasal 23(5) and Pasal 87(1) of the Copyright Law, bridging theory with real-life practice and raising a ‘more streamlined’ royalty collection. Our associates, Matius Hutabarat and Roy Rinaldo, also contributed, drawing on their work in copyright law and digital rights. Special thanks to our intern, Jose, for his support during the event.

We’re excited to engage in forums and support industry collaboration – especially in areas where legal ambiguity affects commercial outcomes.

Legal Reform, Licensing Models, and Industry Trust

Several themes from the event:

• Legal clarity is needed: The term “Setiap Orang” in Pasal 23(5) remains ambiguous, leading to confusion over who bears royalty payment obligations – performers, promoters, or both.
• Direct licensing is rising: While Indonesia’s system is based on Extended Collective Licensing (ECL), many stakeholders are exploring direct licensing as a response to inefficiencies and trust issues with LMK (Lembaga Manajemen Kolektif).
• Technological advancements: Tested technologies must be reliable, ensuring transparent and accountable royalty management for music and songs. The chosen solution should be carefully selected to meet the needs of all stakeholders in the music ecosystem.
• Trust and transparency matter: Musicians and composers expressed concerns over delayed payments, lack of auditability, and overlapping LMK jurisdictions. Reform proposals included improved data integration, public dashboards, and KPI-based performance measures.

Implications for Clients and Partners

The event highlighted several strategic considerations for businesses operating in Indonesia:

Royalty compliance is evolving

Businesses using music in public spaces — hotels, restaurants, events — must stay informed about licensing obligations and payment mechanisms.

Partnerships matter

Collaborating with trusted LMKs and legal advisors can mitigate risks and ensure compliance in a shifting regulatory environment.

Implementation of new GR

Key points of the Ministerial Regulation implementing Government Regulation No. 56 of 2021 on copyright royalties for songs and music include:

a) the LMKN Secretariat may be assisted by experts;
b) royalties are collected domestically and internationally;
c) event organizers or business owners are responsible for payments in commercial public services;
d) LMKNs may allocate up to 8% of funds for operations; and
e) royalties of unidentified or non-LMK members must be retained and publicly announced for up to two years to allow rightful claims.

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