Music Licensing Compliance in Indonesia
Indonesia’s royalty framework changed in 2025. Understanding what LMKN collects — and what it does not — is the difference between a venue that is licensed and one that believes it is.
The Legal Framework
Three instruments govern commercial music use in Indonesia. Law No. 28 of 2014 on Copyright is the primary statute. Government Regulation No. 56 of 2021 sets out royalty management for songs and music. Minister of Law Regulation No. 27 of 2025, issued in August 2025, implements it — replacing the earlier 2022 implementing regulation, which was widely considered to lack technical certainty.
The 2025 regulation strengthened LMKN’s position as the central collection body, introduced provincial units, distinguished analogue from digital commercial use, and defined 23 categories of analogue use that attract royalties.
LMKN and LMK: How Collection Works
collective rights management in Indonesia runs through a two-tier structure. LMKN — Lembaga Manajemen Kolektif Nasional — is the national body authorised to collect royalties for commercial use. It then distributes to LMK, the individual collective management organisations representing authors and related rights holders, which pay through to their members.
Royalties for commercial use are collected centrally by LMKN rather than negotiated with individual LMK. That centralisation was one of the main changes the 2025 regulation introduced.
Two Rights Covered, Three Not
Collective management addresses public performance. Commercial music engages five rights:
- 1. Public performance of the composition — within collective management
- 2. Public performance of the sound recording — within collective management
- 3. Reproduction of the sound recording — not covered
- 4. Recording and master rights — not covered
- 5. Publishing rights for commercial use — not covered
A venue paying royalties through LMKN has addressed public performance. Reproduction, master rights and publishing rights for commercial use sit with labels, distributors and publishers, and require separate clearance.
Where the Gap Opens
Reproduction is the right most operators never consider. It is engaged whenever a recording is copied — downloaded to a media player, cached by an application, or stored on local playback hardware. Nearly every commercial music system does this in normal operation, because reliability depends on the music being held on site rather than streamed continuously. Reproduction rights are also territorial: a supplier licensed in another country frequently cannot confer valid coverage for use in Indonesia, whatever its agreement states.
Permenkum 27/2025 places the royalty obligation on the event organiser or the business owner — not the performer, and not the supplier. The establishment operating the premises is the responsible party, and that responsibility does not transfer through a subscription agreement.
The Direct Licensing Alternative
MUSICVYBE holds direct licences across all five commercial music rights in a single subscription. The clearance is global, so a venue operating in Indonesia and elsewhere carries one arrangement rather than several.
Because the catalogue is directly licensed and sits outside LMKN and LMK repertoire, our position is that no collective licence is required for the music we deliver. A collecting society’s claim derives from the works it controls — not from the act of playing music generally.
Fairmont Singapore and Swissotel The Stamford moved to this model and eliminated over SGD 43,000 in annual licensing cost across their properties, while removing multi-agreement administration entirely. The saving is a consequence of the structure, not a discount.
Related Pages
| Permenkum 27/2025 Explained | What the 2025 regulation changed, in plain language |
| Background Music Services | All verticals in Indonesia |
| Indonesia | Country hub |
| Music Licensing in Singapore | The equivalent framework in Singapore |
Frequently Asked Questions
What is LMKN?+
Lembaga Manajemen Kolektif Nasional — the National Collective Management Organisation. Established under Law No. 28 of 2014, it is authorised to collect royalties for commercial music use in Indonesia and distribute them to LMK, which pay through to rights holders.
What changed under Permenkum 27/2025?+
It replaced the 2022 implementing regulation, strengthened LMKN’s role as central collector, introduced provincial units, separated analogue from digital commercial use, tightened operational budget limits, and expanded audit scope. It also defined 23 categories of analogue commercial use.
Does paying LMKN cover everything?+
It addresses public performance — the rights within collective management. Reproduction of the sound recording, recording and master rights, and publishing rights for commercial use are separate and sit with labels, distributors and publishers.
Who is legally responsible for royalty payment?+
The event organiser or the business owner. Permenkum 27/2025 states this, and it was reinforced by the Supreme Court in the Agnez Mo and Ari Bias dispute.
Do we need an LMKN licence for MUSICVYBE content?+
Our position is no, because the catalogue is directly licensed and is not part of LMKN or LMK repertoire, so there is no repertoire for a collective licence to cover. Venues remain responsible for assessing any other music they play.
Close the Licensing Gap in Indonesia
Five rights, one subscription, fully managed. Talk to MUSICVYBE.