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🇮🇩 Indonesia /Culture & Society

Music Rights Group Disputes Indonesian Agency's Royalty Claims, Cites Policy Failures

From Tempo · (6m ago) Indonesian Critical tone

Translated from Indonesian, summarized and contextualized by DistantNews.

TLDR

  • Garputala founder Ali Akbar questions the National Collective Management Institute's (LMKN) claim of distributing Rp 179.33 billion in royalties to songwriters.
  • Akbar alleges that the LMKN's figure is unrealistic, as many songwriters report receiving minimal or no royalties, and that the stated amount represents total royalties collected since January 2025, not distributed funds.
  • He criticizes a recent LMKN circular that removed the authority of Collective Management Institutions (LMK) to collect royalties, claiming it has halted the collection of significant digital royalties and is counterproductive.

The recent announcement by the National Collective Management Institute (LMKN) regarding the distribution of Rp 179.33 billion in royalties has been met with strong skepticism by Ali Akbar, founder of the public copyright advocacy group Garputala. Akbar argues that the LMKN's claim is not only unrealistic but also misleading, failing to reflect the actual financial reality experienced by many Indonesian songwriters and music creators.

If the figure is that much, then the songwriters must surely be happy.

— Ali AkbarAli Akbar expressed doubt about the LMKN's claimed royalty distribution amount, suggesting creators would be happier if the figure were accurate.

According to Akbar, the figure presented by LMKN does not represent funds actually disbursed to creators. Instead, his investigation, based on information from Collective Management Institutions (LMK), suggests this amount is the total sum of royalties collected since January 2025. This distinction is crucial: reporting collected funds as distributed royalties paints a false picture of the LMKN's performance and the benefits reaching the artists. Many creators, Akbar points out, continue to complain about meager earnings or a complete lack of royalty payments, directly contradicting the LMKN's optimistic report.

So, if today LMKN reports that it has distributed royalties of Rp 179.33 billion, it is the same as showing that LMKN's performance from August 2025 until now is zero.

— Ali AkbarAkbar calculated that if the reported amount was total collected funds, then no new royalties had been distributed since August 2025, indicating zero performance.

Furthermore, Garputala is highly critical of a recent LMKN circular that stripped LMks of their authority to collect royalties. Akbar contends that this move is profoundly counterproductive, potentially causing billions of rupiah in digital royalties to go uncollected. He estimates that between Rp 200 billion and Rp 300 billion in digital royalties from 2025 to the first half of 2026 alone have been stalled due to this policy. If the government were to revoke this circular and implement more productive regulations, such as a territorial system, Akbar believes royalty collection could significantly increase, potentially reaching trillions of rupiah.

The impact is very real.

— Ali AkbarAli Akbar described the negative consequences of the LMKN circular that removed LMK's royalty collection authority.

From an Indonesian standpoint, as covered by Tempo, this dispute highlights ongoing challenges in managing intellectual property rights and ensuring fair compensation for artists. The complexity of royalty collection, the role of various collecting bodies, and the potential for bureaucratic hurdles are significant issues. Garputala's stance underscores the need for transparency and efficiency in the royalty system, advocating for policies that genuinely support creators rather than creating obstacles. The call for the Minister of Law to intervene and cancel the LMKN circular is a direct appeal to rectify what is seen as a detrimental policy that harms the music ecosystem.

If the Minister of Law is generous enough to cancel the LMKN SE, God willing, the royalty governance ecosystem will return to normal, even better. We are confident.

— Ali AkbarAkbar expressed confidence that revoking the LMKN circular would restore and improve the royalty management system.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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