The Government Revises the Copyright Law

JAKARTA: The Government of Indonesia is in the process of revising Law No. 28 of 2014 on Copyright (“Copyright Law”) amid numerous demands regarding the lack of transparency in the collection and distribution of song and music royalties.

From the high-profile civil case of Agnes Monica v. Ari Bias to the criminal proceedings involving Mie Gacoan, Indonesia is witnessing a crescendo of disputes surrounding copyright, specifically, the thorny issue of performing rights royalties. These are the rights triggered when a musical work is played or performed in public for commercial purposes.

On one side of the stage, songwriters and composers are raising their voices, demanding stricter enforcement and greater transparency in how royalties are collected and distributed. On the other, business owners, particularly those running cafés, restaurants, and hotels are pushing back, arguing that the obligation to pay royalties for playing music on their premises imposes an undue financial burden.

The standoff has led to an unexpected cultural shift. Once-vibrant venues, where music sets the mood for meals and conversations, have now fallen eerily silent. The melodic backdrop of guitars and vocals has been replaced by the muted clatter of cutlery and the soft murmur of conversation, cafés that once thrived on ambiance now echo like libraries.

The situation is indeed unfortunate. The music industry operates as an ecosystem where each part depends on the others to function effectively. Songwriters need performers to bring their work to the public. Those songs are then enjoyed across various settings, including live performances in cafés, bars, and restaurants. From such use, songwriters are entitled to royalties, both as recognition of their creative work and as motivation to continue creating.

When one part of this ecosystem fails to function properly, the entire system is affected. Disruptions in the chain, whether caused by mismanagement of royalties or by users failing to fulfill their royalty payment obligations, can ultimately undermine the sustainability of the industry as a whole.

This is why a timely revision of the Copyright Law is urgently needed. The law must keep pace with the evolving landscape of the creative industry and offer clear legal certainty. A modernised framework will help protect the rights of all stakeholders, including songwriters, related rights holders, and users. It will also reduce the risk of disputes that could otherwise stall the industry’s growth. 

Most importantly, it will help create a safe and structured environment where music can continue to be enjoyed in public spaces. When the rules are clear, paying royalties is no longer seen as a burden but as a fair contribution to support songwriters and to keep the music play. (JPK/ADR/NAS-su)