Understanding Music Royalties in Indonesia
Indonesia has a new, centralized system for music royalty payments. This guide helps you understand your obligations, the process, and how the money flows from businesses to artists.
Am I Affected? The Commercial Use Checklist
If your business is in one of the categories below and uses music, you are legally required to pay royalties. Check your business type to see.
How It Works: The "One-Door" System
The government created a centralized system to simplify royalty collection. All payments go through a single national body (LMKN), which then distributes the funds. Hover over each box to learn more.
Commercial User
(e.g., Cafe, Hotel)
Any business listed in the regulations that plays music commercially. They must obtain a license and pay royalties.
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LMKN
(National Body)
The National Collective Management Organization. The sole body authorized to collect all music royalties from users.
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LMKs
(Collective Orgs)
Collective Management Organizations that represent specific groups of rights holders (e.g., songwriters, performers). They receive funds from LMKN.
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Rights Holders
(Creators, Artists)
The final recipients of the royalties: Songwriters (Creators), Performers, and Phonogram Producers (Record Labels).
The Royalty Journey: From Café to Creator
Use the slider to see how a café's annual royalty payment is calculated and distributed. This is based on the official tariff per seat.
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Annual Payment Breakdown:
Total Payable to LMKN:
Operational Costs (Max 20%):
Net for Distribution:
▶ Creator's Share (Songwriter):
▶ Performer's Share (Singer):
▶ Producer's Share (Label):