3 days ago
Indonesian firms call for exemptions in royalty charges
'Royalty rates should reflect business scale, turnover and ability to pay, so as not to burden businesses," said Indonesian Employers Association's Ronald Walla. — The Jakarta Post
JAKARTA: As a government agency continues to uphold local music royalty collection rules, businesses are calling for exemptions for small enterprises and ambient background music to ensure a fairer and simpler system.
The issue stems from provisions under the 2014 Copyright Law and Government Regulation No. 56/2021 on music royalties and copyrights, which require royalties for all 'commercial use' and playback in 'commercial spaces'.
'It is still unclear. This rule has been around for over a decade, but its implementation remains vague,' said Ronald Walla, head of micro, small and medium enterprises at the Indonesian Employers Association.
He called for derivative regulations and clear technical guidelines on royalty collection, including business categories, tariff rates and payment procedures, so firms can budget accordingly.
Best practices, he added, would be fair, simple and transparent with incentives and limited exemptions, such as for music used to contribute to a shop's ambiance or for community events, so that 'copyrights could be protected without stifling business activity'.
'Royalty rates should reflect business scale, turnover and ability to pay, so as not to burden businesses.
'I hope small businesses can be exempted because they are still focused on market access and innovation,' Ronald said.
Alphonzus Widjaja, chairman of the Indonesian Shopping Centre Association, said on Monday that shopping malls had complied with the rules, paying royalties to play music aimed at 'providing an atmosphere and comfort for visitors', but that transparency and implementation were still lacking.
'On the other hand, there is still debate over royalties, even among creators, musicians and other parties, indicating shortcomings in the rules,' he said.
Music royalties drew public attention after noodle franchise Mie Gacoan was sued for failing to pay royalties between 2022 and 2025, a case that sparked wider confusion and criticism over how the rules are enforced. — The Jakarta Post/ANN
