The Law Ministry's Director General of Intellectual Property Hermansyah Siregar said the rule ensures clarity and protects creators’ economic rights.
“Through this circular, songs and music played to support business activities—such as in restaurants, cafes, hotels, shopping centers, entertainment venues, and even modes of transportation—are categorized as commercial utilization," Siregar said in a statement confirmed here on Monday.
Therefore, commercial public service users must pay royalties via the National Collective Management Organization (LMKN) under copyright regulations.
According to him, royalties are emphasized as the economic rights of creators and rights holders, not merely legal obligations. Proper royalty payments can involve business actors in sustaining the national music ecosystem.
LMKN collaborates with Collective Management Organizations (LMK), which represent creators and copyright owners. The LMK then distributes the royalties to the respective owners whose works were utilized.
LMKN Commissioner Marcell Siahaan explained that this mechanism was created to make the royalty payment process easier and more orderly.
"Business actors do not need to be confused about who to pay. Just go through LMKN, and we ensure those royalties are distributed fairly and transparently to the creators, copyright holders, and related rights owners," Siahaan said.
The Directorate General of Intellectual Property acts as a regulator, ensuring the system operates under the rules. Beyond policymaking, the directorate conducts outreach to raise public and business awareness of copyright obligations.
The circular strengthens Government Regulation No. 56 of 2021 on music copyright royalty management. The government requires commercial users to pay royalties through LMKN to ensure transparency, accountability, and legal certainty.
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Translator: Agatha, Kenzu
Editor: Rahmad Nasution
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