Indonesia’s hospitality industry is raising concerns as music royalty enforcement by the National Collective Management Agency (LMKN), under the Ministry of Law and Human Rights, begins affecting hotels nationwide. While hotels accept the principle of paying royalties, their main concern is how the law is interpreted and enforced.
The Indonesian Hotel General Managers Association (IHGMA) points to ambiguities in Indonesia’s Copyright Law and Government Regulation No. 56/2021, particularly around “commercial use” and “public space”. LMKN currently considers sounds from guestroom televisions, natural soundscapes, and even religious recitations such as Islamic murotal or adzan as commercial performances, triggering royalty fees. Hoteliers argue that guest rooms are private spaces.
“It shows that LMKN, the Ministry of Law and Human Rights, and industry players all interpret the rules differently,” stated Erick Herlangga, IHGMA’s head of legal affairs.
The impact of this legal uncertainty is evident in the experience of Sutan Bustamar Koto, general manager of Pranaya Boutique Hotel, whose property was penalised for the sound of wild birds.
“LMKN insisted the chirping was recorded and subject to fees, even though we haven’t played background music since 2022,” Bustamar said, adding that he feels unfairly portrayed. “At times, it feels like we’re being treated as criminals, rather than as legitimate businesses seeking clarity on our obligations.”
This example underscores broader legal concerns raised by the industry.
Erick stressed that royalty obligations should be addressed under civil, not criminal, law. “The key question is what legal basis allows a civil matter to be turned into a criminal threat,” he said. He also noted that LMKN’s collection process appeared sudden, with hotels receiving bills and only two weeks to comply before possible legal action. “This approach risks creating uncertainty and pressure for hotels,” he added.
Hotel associations, including the Indonesian Hotel and Restaurant Association (IHRA) and IHGMA, are calling for dialogue with LMKN and the Directorate General of Intellectual Property (DJKI) of the Ministry of Law and Human Rights. They want a narrower definition of commercial use, monitoring systems to ensure royalties apply only to registered works, and disputes resolved through civil law.
“Is it fair to set tariffs by room numbers rather than actual music use, ignoring hotel type or business model?” asked Hariyadi Sukamdani, IHRA chairman. He also recommended digital platforms to track music use and distribute royalties transparently, noting that such tools exist but have not been properly socialised by LMKN.
LMKN has responded to these concerns. Agung Damarsasongko, director of copyright and industrial design at DJKI, explained that royalties are required under both Indonesian and international law. “Streaming services are personal. Playing music publicly in a business counts as commercial use and requires a proper licence,” he said.
The Ministry of Law and Human Rights plans to convene LMKN and industry groups soon to clarify the rules and ensure a fair, understandable approach to music royalties in hotels.
The parliament and government will convene to address the issue through a revision of the Copyright Law. The update will clarify tariffs, collection procedures and oversight, with royalties adjusted according to business type, room size and music duration.
Dewi Asmara, a member of parliament, said the revision aimed to create a fair and transparent system, supported by public education and digitalisation, allowing businesses to play music legally without financial strain while ensuring musicians receive proper compensation, fostering a more sustainable music industry in Indonesia.
