Not long ago, President Jokowi officially signed Government Regulation No. 56 of 2021 concerning Royalty Management for Song and/or Music Copyright.
The regulation that is predicted as an affirmation of the Copyright Law is certainly welcomed by Indonesian musicians because with this regulation there will be legal certainty over the royalty rights of creators and musicians.
Many people also agree with this regulation and consider that the existence of these rules will make creators more appreciated as artists.
However, not a few consider that the imposition of royalties, one of which is for cafes that play musicians’ songs, is too excessive, especially since not all businesses have large-scale businesses.
Then, what exactly is the content of PP No. 56 of 2021 and who are the business actors who must pay royalties according to this PP?
Contract Law will provide an explanation below.
PP No.56
Year 2021
For information, creators and copyright holders have economic rights as part of copyright.
Economic rights are exclusive rights to obtain economic benefits from the work.
A third party or other person can become the owner of related rights to a work and also obtain economic benefits from the work by requesting a license from the creator or copyright holder first.
In the Copyright Law, one of the institutions that help creators, copyright holders, and owners of related rights to obtain their economic rights is the National Collective Management Institution (LMKN).
LMKN is a non-APBN government auxiliary institution that has the authority to attract, collect, and distribute royalties from commercial users, one of which is in the copyrighted work of songs/music.
This is what is then further regulated in PP No. 56 of 2021.
In PP No. 56 of 2021, anyone can make commercial use of songs and/or music in the form of commercial public services by paying royalties to creators, copyright holders, and related rights owners through LMKN.
This means that anyone who wants to use songs and/or music publicly must first pay royalties to LMKN, which has the right to manage the economic interests of creators, copyright holders, and related rights owners.
According to Article 3 of PP No. 56 of 2021, there are 14 types of public services that must pay royalties if using songs/music, including:
- commercial seminars and conferences
- restaurants, cafes, pubs, bars, bistros, nightclubs and discotheques
- music concert
- airplanes, buses, trains, and ships
- exhibition and bazaar
- movie theater
- phone waiting tone
- banks and offices
- shops
- recreation center
- television broadcasters
- radio broadcasting organizations
- hotels, hotel rooms, and hotel facilities
- karaoke business.
Before using the song, the user above can apply for a license to the copyright holder or related rights owner through LMKN.
The implementation of the license must then be reported to LMKN through SILM so that LMKN can also oversee the use of the song/music used.
LMKN will then manage royalties based on integrated data between the song and/or music data center managed by the Directorate General of Intellectual Property (DJKI) and LMKN’s Song and/or Music Information System (SILM).
Royalties that have been collected by LMKN will be distributed to creators, copyright holders, and owners of related rights who have become members of LMK.
Well, KH Friend, that’s the contents of PP No.56
Year 2021 which has just been passed by the Government.
So, later every creator, copyright holder, and owner of related rights is required to submit an application for recording songs and / or music to DJKI.
This is because only songs and/or music that have been recorded in the general list of creations will be included in the Song and Music Data Center.
If you have songs and/or music that have not been recorded in DJKI, you should immediately apply for registration in order to obtain royalty rights when there are commercial users who use your songs and/or music.
KH Contact
Kontrak Hukum can also help KH pals to record the copyright of songs and / or music owned by KH pals.
KH pals do not need to worry about using copyright management services at Kontrak Hukum because Kontrak Hukum has been trusted in solving legal problems.
Furthermore, KH pals can directly visit the
If you have questions about copyright or want to consult about other legal issues, don’t hesitate to contact Kontrak Hukum at the
