Indonesia’s Consumer Protection Agency Calls for Fair, Balanced Royalty Rules

Jakarta: Indonesia’s National Consumer Protection Agency (BPKN) has responded to the National Collective Management Agency’s (LMKN) policy on the collection and distribution of music royalties. BPKN Chair Mufti Mubarok stressed that the policy must be implemented transparently and accountably to avoid placing an excessive burden on business operators, while still ensuring that songwriters’ rights are protected.

“BPKN supports copyright protection, but regulations must be balanced, they should not overburden consumers or business operators, and they must ensure that songwriters receive their rights in full and on time,” Mufti said, as quoted by Media Indonesia on Wednesday, August 13, 2025.

According to Mufti, royalties are a legitimate economic right for songwriters as mandated by Law No. 28 of 2014 on Copyright. However, BPKN believes there must be clarity in several areas.

These include the scope of royalty collection, as well as clear and publicly understandable payment procedures — particularly for micro, small, and medium enterprises (MSMEs) that use music in their operations.

BPKN also issued several recommendations, including:

* Providing public access to information on royalty rates and the basis for their determination.
* Optimizing digital distribution systems to ensure royalties are sent directly to songwriters without unfair deductions.
* Conducting broad public outreach, especially to affected business sectors.

The new LMKN policy has drawn attention as it is now being enforced more strictly across various sectors, including cafés, restaurants, hotels, public transportation, and event organizers.

Some business operators have voiced concerns over additional costs, while songwriters hope the royalty distribution process will become fairer.