Ministry to Seek Win-Win Solution for Song Royalty Dispute in Restaurants

  • 04 Agt 2025 06:54 WIB
  •  Voice of Indonesia

KBRN, Depok: Indonesian Minister of Culture Fadli Zon has pledged to find a win-win solution to the growing concern among café and restaurant owners who are reluctant to play Indonesian music due to fears over royalty obligations. Speaking in Tapos, Depok on Sunday, August 3, 2025, Fadli emphasized the need for cross-ministerial coordination to resolve misunderstandings and ensure fair treatment for both business owners and music creators.

“We’ll fix this so there’s a way out that benefits everyone, because there’s been some misunderstanding and fear,” said Minister Fadli, as quoted by rri.co.id.

The issue has gained traction following reports that several establishments, particularly in Tebet, South Jakarta, have stopped playing Indonesian songs altogether. Business owners cite confusion and anxiety over the legal requirements for royalty payments, which are mandated by copyright law.

Fadli stressed that the matter is not solely under the jurisdiction of the Ministry of Culture but must involve the Ministry of Law, especially regarding copyright and intellectual property rights (HAKI).

“We hope Indonesian songs will flourish. But to make that happen, we need to sit down together. This involves multiple ministries and agencies, especially those handling copyright and HAKI,” he added.

In the coming weeks, the Ministry of Culture plans to initiate inter-agency coordination to develop a fair and practical framework that supports both the creative industry and commercial establishments. The announcement has been welcomed by artists and cultural advocates who feel caught between promoting local music and navigating complex administrative requirements.

Minister Fadli warned that allowing business owners’ concerns to fester could hinder the spread and appreciation of Indonesian music. “We must ensure this issue doesn’t set back Indonesian music or make people afraid to play it in public spaces,” he said.

Many restaurants, cafés, and public venues play music to enhance their atmosphere. However, this is considered commercial use, which means they are legally required to pay royalties to the creators or copyright holders of the music.

Some restaurants reportedly have stopped playing Indonesian music altogether due to fear of legal consequences or confusion about royalty obligations. A notable case involved Mie Gacoan in Bali, whose franchise director was named a suspect for playing music without proper licensing.

The legal basis for royalty payments stems from Law No. 28/2014 on Copyright and Government Regulation No. 56/2021, which require businesses to pay royalties through the National Collective Management Institution (LMKN).

According to Agung Damarsasongko, Director of Copyright and Industrial Design at the Ministry of Law, this applies even if businesses use licensed streaming services like Spotify or YouTube Premium. “Streaming services are for personal use. When music is played publicly in commercial spaces, it becomes a commercial use and requires a separate license,” Agung explained.

As the government moves toward a more inclusive and transparent solution, stakeholders across the creative and business sectors are hopeful that Indonesian music will continue to thrive—without legal ambiguity or fear. ***

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