Government of Indonesia preparing the rules of online music royalties

Tinuku ~ The Government of Indonesia is preparing regulations for online music download royalties. Indonesian's National Collective Management Agency (LMKN) is preparing a draft on regulatory mechanisms in setting music royalty rates for online music player applications or downloading online.

Tinuku Government of Indonesia preparing the rules of online music royalties

To date, the Indonesian government has a mechanism for fixing music royalty rates for 14 sectors such as karaoke house, hotels, public transport (railways, buses, planes and ships), restaurants, retail spaces and mass media.

"But the rules on music royalty rates in online apps do not yet exist so we prioritize this. The possibility of income base calculation is the same as mass media," said Imam Haryanto, LKMN Commissioner.

The development of the internet has spurred lifestyle changes and technological sophistication must be responded by the regulatory mechanism. These technological developments create new opportunities for the music industry to grow better using royalty.

"For example a spotify application, if no regulation of course will harm music creators, music artists and related rights in it. This is a priority agenda," Haryanto said.

This year the government targets music royalty payments to increase 233.3 percent to 100 billion rupiah. The biggest contribution comes from karaoke, hotels and television media. These three sectors have high economic value compared to others.

"The culture of compliance to pay for this royalty has not been widespread. Currently we are still focusing on large-scale business owners. For example 4-star hotel and above, while 3-star hotel has not been touched," said Haryanto.

The Copyright Act in Indonesia affirms every songwriter or musician, singer, performer, phonogram producer and other associated rights owner must be a member of LMKN so they may gain economic rights to their work.