RRI.CO.ID, Jakarta - Indonesia's commercial music sector is set for a major digital overhaul to replace fragmented, manual outlet-level tracking with an automated nationwide licensing system. The National Collective Management Agency (LMKN) has signed an MoU in Tokyo with USEA Pte. Ltd., a subsidiary of Japan's U-NEXT HOLDINGS, to develop a comprehensive digital background music (BGM) licensing ecosystem across Indonesia.

The initiative addresses long-standing logistical hurdles in Indonesia, where vast geography and rapid regional business growth have historically left local commercial venues relying on manual licensing and administrative frameworks. By introducing automation, the partnership seeks to streamline operations, cut administrative inefficiencies, and foster a fairer environment for creators.

Chairperson of LMKN for Related Rights, Marcell Siahaan, emphasized that the agreement marks a critical turning point for the domestic music industry.

"USEA and LMKN have agreed to explore various aspects of development, from digital licensing administration to industry engagement. Furthermore, this collaboration will include the implementation of pilot projects and technical discussions to strengthen the national music royalty ecosystem," explained Marcell Siahaan in a press release received in Jakarta on Friday, March 22, 2026.

Under this framework, USEA will serve as the trusted technological backbone to modernize operations while strictly upholding LMKN’s statutory authority as Indonesia's official music royalty management body.

The envisioned digital architecture will seamlessly integrate business license registration, automated fee calculations, payment processing, and digital certificate issuance. It will also encompass music monitoring, usage logging, royalty distribution, and broader ecosystem analytics.

To ensure the new framework aligns with global best practices, LMKN officials leveraged their time in Tokyo to study Japan's advanced compliance models. LMKN Commissioner, Suyud Margono, revealed that the delegation held intensive benchmarking discussions with the Japanese Society for Rights of Authors, Composers and Publishers (JASRAC) focusing on systemic transparency and commercial user compliance.

"This collaboration opens up opportunities to utilize music monitoring and audio recognition technology to support more accurate and credible reporting of music usage in commercial spaces," added Suyud Margono, as quoted by Antara.

The partnership also reflects a broader vision of transforming background music from a compliance obligation into a strategic asset for the corporate world. Managing Director of USEA, Jerry Chen, noted that Indonesia possesses massive untapped potential to construct a highly valuable, modernized commercial music ecosystem utilizing the next-generation technological capabilities of U-NEXT HOLDINGS.

"We believe the future of music licensing isn't just about administration and compliance. It's also about how music can be strategically managed to support businesses, strengthen brand identity, enhance customer communication, and create a consistent experience across multiple locations," said Jerry Chen.

Compounding this sentiment, LMKN Commissioner M. Noor Korompot concluded that the collaboration is ultimately geared toward future-proofing the country’s entertainment and hospitality sectors.

By accelerating the modernization of music licensing and royalty distribution, Indonesia's national music governance aims to become significantly more agile, adaptive, and resilient against shifting technological trends and evolving industrial demands. ***