Investor Daily, Antara, Jakarta – The debate over collecting music royalties in business venues, such as cafes, restaurants, and hotels, has once again become a hot topic. Business owners are now worried about playing music in their establishments, and a proper solution is needed so that this issue does not drag on.
Deputy Coordinating Minister for Law, Human Rights, Immigration, and Corrections Minister, Otto Hasibuan, explained that the policy of collecting music royalties is intended to protect both the creators and users of songs.
"The government must immediately adapt and amend the law to safeguard the interests of creators as well as performers such as singers and others," he said, as quoted by Antara on Sunday.
According to him, the Copyright Law needs to be updated to align with the times. Adjustments should ensure that every Collective Management Organization and the National Collective Management Organization can adapt and find solutions to the royalty disputes faced by musicians.
"Hopefully, if this amendment to the Copyright Law goes through, it will provide legal certainty. I know there have been court rulings that did not meet public expectations," Otto added.
He also said that several copyright-related cases in court have now received greater government attention, so that new policies can become the solution the public has long awaited.
"Cases in Bali, for example, and also involving Agnez Monica, have drawn the government's attention. Hopefully, with such cases, the government can swiftly adjust the law in the public's interest," he said.
Meanwhile, Creative Economy Minister Teuku Riefky Harsya again reminded creative economy business players of the importance of protecting their intellectual property rights (IPR) through the relevant ministries.
"Intellectual property is crucial for creative works and must be protected," he said.
The minister said he is still coordinating with other ministries and agencies to determine whether cafes or small eateries should be required to pay royalties for the songs they play.
He noted that royalty payments for songs played by medium-to-upper-tier micro, small, and medium enterprises (MSMEs) might be implemented, but for small cafes or eateries, a comprehensive review and careful consideration are still needed. The House of Representatives is currently working on amending the Copyright Law.
"When it comes to small shops that use music, whether the royalties should be paid or not, that's something we need to manage properly," said Teuku.
Building collective awareness
Culture Minister Fadli Zon explained that the royalty regulations are also expected to build collective awareness among all parties about the importance of appreciating creators. The Gerindra politician added that business owners are expected to adapt to the royalty rules in the future, especially since the rates are already based on international standards.
However, Fadli urged that royalty regulations should not burden or scare business owners into avoiding playing Indonesian songs in cafes or restaurants. Therefore, the government will sit down with all stakeholders to find a middle ground in this dispute.
He mentioned that his ministry would soon meet with the Ministry of Law, the National Collective Management Organization, the Collective Management Organization, musicians, and business owners to find the best and fairest solution.
"I think the most important thing will be how the rules are set. We have the National Collective Management Organization, the Collective Management Organization, and the tariff arrangements. The rates, in my opinion, should be affordable but still show appreciation," Fadli explained.
Off target
Chairman of the Jakarta branch of the Indonesian Hotel and Restaurant Association, Sutrisno Iwantoro, said imposing music royalties in public spaces such as hotels and restaurants is off target. Although they play music, hotels and restaurants do not actually commercialize the songs, unlike karaoke venues.
"When suddenly playing songs becomes a criminal offense, of course we are shocked. Hotels do not commercialize music; what they sell are rooms for guests to stay in. Restaurants sell food, not songs, except for karaoke places," he said.
Due to the enforcement of Law No. 28 of 2014 on Copyright, many hotel and restaurant owners and managers in Jakarta have chosen not to play music. "Many have stopped playing music out of fear," he said.
However, Sutrisno admitted he has no objection to paying royalties for music played in his business. He only asked for transparency and a guarantee that the royalties go to the rightful song owners. "We highly value art and culture and are willing to pay, but there must be transparency so that what we pay reaches those entitled to it," Sutrisno said.
The beginning of the issue
This issue began with business owners' concerns over the obligation to pay royalties to the National Collective Management Organization when playing Indonesian musicians' songs in their establishments.
The National Collective Management Organization said royalties would be distributed to songwriters and musicians, while around 20 percent of the total royalties would be allocated for the organization's operational costs. The National Collective Management Organization noted that royalty rates for cafes and business premises would be charged per seat, ranging from Rp 60,000 to Rp 150,000 per year.
The Directorate General of Intellectual Property of the Justice Ministry emphasized that every business that plays music in commercial public spaces – including restaurants, cafes, shops, gyms, and hotels – is required to pay royalties to the creators and related rights holders.
Director of Copyright and Industrial Design at the Law Ministry, Agung Damarsasongko, explained that this rule applies even if business owners have subscriptions to services such as Spotify, YouTube Premium, Apple Music, or other streaming platforms.
He clarified that streaming services are personal-use licenses, but when music is played to the public in a business setting, it falls under commercial use and thus requires an additional license through legal mechanisms.
Agung said that royalty payments are made through the National Collective Management Organization in accordance with Law No. 28 of 2014 on Copyright and Government Regulation No. 56 of 2021 on the Management of Royalties for Songs and/or Music.