President Joko Widodo issued Government Regulation (PP) Number 56 of 2021 concerning the management of Song and/or Music Copyright Royalties. Jokowi signed this rule on March 30, 2021. One of the provisions in the PP is the obligation to pay royalties for everyone who uses songs and/or music commercially or for public services.
Royalties are paid to the creators or copyright holders of songs and/or music through the National Collective Management Institute (LMKN). Based on article 3 paragraph (1): “Everyone can make commercial use of songs and or music in the form of commercial public services pay royalties by paying royalties to creators, copyright holders, and or related rights owners through LMKN”.
The forms of public services that are commercial in nature are in the form of:
- Commercial seminars and conferences
- Restaurants, cafes, pubs, bistros, nightclubs and discotheques
- Music concert
- Airplanes, Buses, Trains and ships
- Exhibition and Bazaar
- Cinema
- Call waiting tone
- Banks and offices
- shops
- Recreation Center
- Television broadcasters
- Radio broadcasters
- Hotels, hotel rooms and hotel facilities and
- Karaoke Business
The management of royalties is carried out by LMKN based on data that is integrated in the song or music data center. Anyone who uses a song or music in the form of a commercial public service can apply for a license to the copyright holder or related rights holder through LMKN.
royalty payments are made after the commercial use of the song or music. As stated in Article 11 paragraph (1) of PP No. 56 of 2021, royalty rate relief is given to micro, small and medium enterprises (MSMEs) who commercially use songs and/or music. The reduction in royalty rates for micro-enterprises is determined by the minister. LMKN will coordinate to determine the amount of royalties in accordance with the prevalence and justice. The provisions regarding the guidelines for determining the amount of royalties are determined by LMKN and ratified by the minister. As stipulated in article 14, royalties collected by LMKN are used for three things, namely distribution to creators, copyright holders, and related rights owners who have become members of LMKN, operational funds and reserve funds. The royalties that have been collected by the LMKN are then distributed by the LMKN based on the attachment for the use of song and/or music data in the SILM (Song and/or Music Information System).
