- 02/06/2021
- Category: Commentaries
The debates surrounding the newly implemented Peraturan Pemerintah (PP) No. 56 on the management of music royalty in Indonesia so far highlight how it is, by price, unfair to certain groups- or too expensive.[i] However, going beyond the amount tagged on the royalty law proponents, the concerns that should be paid attention to may very well go beyond concerns over how expensive it would be. This article will highlight several concerns that should be timely clarified regarding the new music royalty law. In line with various online news publications, these concerns primarily involve: 1) the assurance based on law, on the detailed types of businesses, 2) the transparency of the royalty payment, 3) the participations of music owners and the weight of their position considering LMKN’s (Lembaga Manajemen Kolektif Nasional) role in the regulation enactment.[ii][iii][iv][v][vi]
Firstly, Article 12 PP No. 56/2021 stated that the collecting of royalty does not only apply to music or songs belonging to members of LMK but also applies to those who are non-members.[vii] It is then emphasized in Article 15 of the same PP that LMKN must announce the royalty they collected to the public so that music owners, especially those who are not members of LMK, are aware of this collection.[viii] Article 12, 14, and 15 also highlight that if owners wanted to claim the royalty collected, they should register themselves as members of LMK.[ix] These articles brought concerns over the transparency of royalty collection by LMKN, especially for non-LMK members. How will it be guaranteed that the royalties collected are announced with honesty, especially when some royalties came from unregistered music? The Article 14 and 15 only adds more to this concern. It is stated that if within two years after the collection of music royalty, it is still left unclaimed, the royalty will be then given to LMKN as a free-to-use “emergency fund,” adding to possible motives for any potential misuse of power.[x]
Secondly, Article 3 of the PP No. 56/2021 has yet specified types of businesses subjected to pay music royalty beyond the stated commercial businesses: restaurants, café, pubs, bars, bistros, nightclubs, and hotels.[xi] It becomes confusing, especially when considering how some businesses’ main selling factor is “hospitality” and that music is excluded from their money-making activities. Meaning, even without music, they could still very much profit. These may create biases for certain businesses, those who primarily rely on music for income and those that are not. This issue becomes even more concerning considering the amount of royalty specified for the different types of businesses.[xii] For instance, cafes and restaurants need to pay Rp 60,000/chair a year.[xiii] This may cause biases for small f&b business owners like “warung,” whose food sales may not amount much compared to a famous local restaurant chain.
Thirdly, Article 22 stated that after the effective implementation of PP No. 56 2021, LMKN is required to create the “Sistem Informasi Lagu dan/atau Musik” (SILM) or an information system for songs and/or music.[xiv] This system will act as a database that records all commercial uses of music and songs in Indonesia and is hoped to assist in the collecting, counting and distributing of royalties.[xv] This system is expected to guarantee the transparency of PP No. 56 2021 enactment more effectively.[xvi] However, while this system is expected to be completed at the latest two years after PP No. 56 2021 is enacted, the public is skeptical that SILM will be completed sooner or within the required time frame.[xvii] This skepticism comes from how the music royalty law itself comes considerably late in discussion and implementation.[xviii][xix] Moreover, in early April 2021, the government has announced that the creation of SILM will be put on halt due to COVID19 related reasons.[xx]
Positioning Digital Music in Indonesia’s Music Royalty Law
While the previously stated concerns do not specify digital music, it is vital to take note that one of the main reasons that push the enactment of music royalty law is musicians’ concerns over their music being played for commercial use through digital platforms.[xxi] The PP No. 56 2021 stated that all music, whether they are local or foreign music, whether they are members of LMK or not, are subjected to royalty collection.[xxii] This regulation means that commercially used music, including those played from the internet, are not excluded. However, PP No. 56 2021 did not mention digital platforms that use music for commercial use despite this assurance.[xxiii] The PP mainly highlights the use of music in commercially conventional places and not those “used” commercially in digital platforms.[xxiv] This is expected to be trickier to manage than regulating conventional businesses and may need a separate regulation to be formulated.
For instance, special attention needs to be paid to copyright regulations already enacted in specific platforms such as YouTube and Spotify.[xxv][xxvi] Unlike music albums bought and played through CD players in many conventional businesses, music played through online platforms may make money based on the number it is played on the platform. This music is given to the music owners themselves through different mechanisms based on distinct platforms. YouTube, for example, regulates music profit collection through advertisement, monetization, and user memberships.[xxvii] Spotify also does so similarly.[xxviii] While at this stage, collecting royalty through LMKN from platforms like YouTube and Spotify may be very much profitable for musicians as they may get double the amount of royalty, the process of getting to that may be complicated.[xxix][xxx] Based on platforms, different regulations are established, and based on experience, forcing a national regulation on a platform to enact reforms is difficult, this is. Hence, as most of these platforms are open to the public beyond national borders, such reflects how, so far, Indonesia’s experience on online content is limited to the blocking of content or censorships.[xxxi] Thus, a comprehensive understanding of different companies’ and digital platforms regulations is needed, and thorough regulations based on understanding these distinct regulatory procedures should be specific. To achieve this, collaborations with these platforms are crucially needed. It is also crucial that small musicians are paid attention to in the process, rather than just focusing on big artists or labels. In addition, although it is also noted within Article 16 of the PP that the amount charged for the royalty stated may change upon agreement between the music owner and user and that this may grant room and flexibility for small business owners who made commercial use of music, it still does not deny the need for the government to further elaborate the specification of commercial use as well as transparency responsibilities.
All in all, concerns and speculations are expected when PP No. 56 2021 has only just been enacted. Thus, it is better to start earlier and freshen up socialization regarding the royalty law to musicians and members of the public. Points emphasizing the necessity of registration in LMK should be made vocal. Mechanisms to claim royalty should also be socialized intimately. The specification of commercial use and information regarding responsibilities for music royalty should be made easily accessible and easy to understand for all public members, which means that possible available consultations should be made more evident. Lastly, digital music regulations should still be touched upon intimately, as the cover of PP No. 56 2021 has yet comprehensively regulated royalty collection on digital platforms.
Author: Mira Ardhya Paramastri
Editor: Sri Handayani Nasution
References
[i] Abdila, R. (2021). Aprindo Nilai Penerapan Royalti Musik Membuat Biaya Operasional Naik. Retrieved from https://www.tribunnews.com/bisnis/2021/04/13/aprindo-nilai-penerapan-royalti-musik-membuat-biaya-operasional-naik
[ii] Mediana. (2021). Segala Penggunaan Lagu dan Musik untuk Komersial Wajib Bayar Royalti. Retrieved from https://www.kompas.id/baca/dikbud/2021/04/10/segala-penggunaan-lagu-dan-musik-untuk-kebutuhan-komersial-wajib-bayar-royalti/
[iii] Kompas.com. (2021). Simak Rincian Tarif Royalti Lagu untuk Kafe, Diskotek, hingga Bazar. Retrieved from https://money.kompas.com/read/2021/04/08/063400326/simak-rincian-tarif-royalti-lagu-untuk-kafe-diskotek-hingga-bazar?page=all#:~:text=Royalti%20lagu%20atau%20musik%20yang,meter%20persegi%20dalam%20tiap%20tahunnya.
[iv] Kompas.com. (2021). Mengenal Apa Itu LMKN yang Punya Wewenang Tarik Royalti Lagu. Retrieved from https://money.kompas.com/read/2021/04/12/174103226/mengenal-apa-itu-lmkn-yang-punya-wewenang-tarik-royalti-lagu?page=all#:~:text=LMKN%20adalah%20lembaga%20yang%20memiliki,Tahun%202014%20tentang%20Hak%20Cipta.
[v] Permatasari, E. (2021). Haruskah Restoran Bayar Royalti Jika Putar Lagu Orang Lain?. Retireved from https://www.hukumonline.com/klinik/detail/ulasan/lt5539b37fd20f8/haruskah-restoran-membayar-royalti-jika-memutar-lagu-orang-lain/
[vi] Gumay, H. (2021). Analisis awal PP 56/2021tentang Royalti Hak Cipta Lagu dan/atau Musik. Retrieved from https://www.antaranews.com/berita/2086842/analisis-awal-pp-56-2021tentang-royalti-hak-cipta-lagu-dan-atau-musik
[vii] Republik Indonesia. (2021). Peraturan Pemerintah Nomer 56 Tahun 2021, Artikel 12. Retrieved from https://www.hukumonline.com/pusatdata/detail/lt606bfe9bcc9b2/node/14/peraturan-pemerintah-nomor-56-tahun-2021
[viii] Republik Indonesia. (2021). Peraturan Pemerintah Nomer 56 Tahun 2021, Artikel 15. Retrieved from https://www.hukumonline.com/pusatdata/detail/lt606bfe9bcc9b2/node/14/peraturan-pemerintah-nomor-56-tahun-2021
[ix] Republik Indonesia. (2021). Peraturan Pemerintah Nomer 56 Tahun 2021, Artikel 12, 14, 15. Retrieved from https://www.hukumonline.com/pusatdata/detail/lt606bfe9bcc9b2/node/14/peraturan-pemerintah-nomor-56-tahun-2021
[x] Republik Indonesia. (2021). Peraturan Pemerintah Nomer 56 Tahun 2021, Artikel 14, 15. Retrieved from https://www.hukumonline.com/pusatdata/detail/lt606bfe9bcc9b2/node/14/peraturan-pemerintah-nomor-56-tahun-2021
[xi] Republik Indonesia. (2021). Peraturan Pemerintah Nomer 56 Tahun 2021, Artikel 3. Retrieved from https://www.hukumonline.com/pusatdata/detail/lt606bfe9bcc9b2/node/14/peraturan-pemerintah-nomor-56-tahun-2021
[xii] Kompas.com. (2021). Simak Rincian Tarif Royalti Lagu untuk Kafe, Diskotek, hingga Bazar. Retrieved from https://money.kompas.com/read/2021/04/08/063400326/simak-rincian-tarif-royalti-lagu-untuk-kafe-diskotek-hingga-bazar?page=all#:~:text=Royalti%20lagu%20atau%20musik%20yang,meter%20persegi%20dalam%20tiap%20tahunnya.
[xiii] Ibid.
[xiv] Republik Indonesia. (2021). Peraturan Pemerintah Nomer 56 Tahun 2021, Artikel 22. Retrieved from https://www.hukumonline.com/pusatdata/detail/lt606bfe9bcc9b2/node/14/peraturan-pemerintah-nomor-56-tahun-2021
[xv] Republik Indonesia. (2021). Peraturan Pemerintah Nomer 56 Tahun 2021, Artikel 1. Retrieved from https://www.hukumonline.com/pusatdata/detail/lt606bfe9bcc9b2/node/14/peraturan-pemerintah-nomor-56-tahun-2021
[xvi] Yuniarto, T. (2021). Royalti Hak Cipta Lagu dan Musik. Retrieved from https://kompaspedia.kompas.id/baca/paparan-topik/royalti-hak-cipta-lagu-dan-musik
[xvii] Republik Indonesia. (2021). Peraturan Pemerintah Nomer 56 Tahun 2021, Artikel 22. Retrieved from https://www.hukumonline.com/pusatdata/detail/lt606bfe9bcc9b2/node/14/peraturan-pemerintah-nomor-56-tahun-2021
[xviii] Yuantisya, M. (2021). SILM Terpaksa Ditunda, Kemenkumham Sebut PP 56 Tahun 2021 Sebagai Penegasan UU Hak Cipta. Retrieved from https://www.pikiran-rakyat.com/nasional/pr-011746572/silm-terpaksa-ditunda-kemenkumham-sebut-pp-56-tahun-2021-sebagai-penegasan-uu-hak-cipta?page=2
[xix] Kumparan. (2021). Pemerintah Tegaskan Youtube hingga Spotify Juga Harus Bayar Royalti Lagu. Retrieved from https://kumparan.com/kumparanbisnis/pemerintah-tegaskan-youtube-hingga-spotify-juga-harus-bayar-royalti-lagu-1vWEMYZOc7i
[xx] Yuantisya, M. (2021). SILM Terpaksa Ditunda, Kemenkumham Sebut PP 56 Tahun 2021 Sebagai Penegasan UU Hak Cipta. Retrieved from https://www.pikiran-rakyat.com/nasional/pr-011746572/silm-terpaksa-ditunda-kemenkumham-sebut-pp-56-tahun-2021-sebagai-penegasan-uu-hak-cipta?page=2
[xxi] Tribuana, L. (2021). Hari Musik Nasional, Bens Leo Ingatkan Musisi Pentingnya Hak Cipta. Retrieved from https://celebrity.okezone.com/read/2021/03/09/205/2374830/hari-musik-nasional-bens-leo-ingatkan-musisi-pentingnya-hak-cipta
[xxii] Republik Indonesia. (2021). Peraturan Pemerintah Nomer 56 Tahun 2021, Artikel 14. Retrieved from https://www.hukumonline.com/pusatdata/detail/lt606bfe9bcc9b2/node/14/peraturan-pemerintah-nomor-56-tahun-2021
[xxiii] Republik Indonesia. (2021). Peraturan Pemerintah Nomer 56 Tahun 2021, Artikel 3. Retrieved from https://www.hukumonline.com/pusatdata/detail/lt606bfe9bcc9b2/node/14/peraturan-pemerintah-nomor-56-tahun-2021
[xxiv] Ibid.
[xxv] YouTube. (2021). Hak Cipta. Retrieved from https://www.youtube.com/howyoutubeworks/policies/copyright/#enforcing-copyright
[xxvi] Spotify. (2021). Copyright Policy. Retrieved from https://www.spotify.com/dk-en/legal/copyright-policy/
[xxvii] YouTube. (2021). Hak Cipta. Retrieved from https://www.youtube.com/howyoutubeworks/policies/copyright/#enforcing-copyright
[xxviii] Spotify. (2021). Copyright Policy. Retrieved from https://www.spotify.com/dk-en/legal/copyright-policy/
[xxix] Kumparan. (2021). Pemerintah Tegaskan Youtube hingga Spotify Juga Harus Bayar Royalti Lagu. Retrieved from https://kumparan.com/kumparanbisnis/pemerintah-tegaskan-youtube-hingga-spotify-juga-harus-bayar-royalti-lagu-1vWEMYZOc7i/full
[xxx] Kusuma, H. (2021). Musisi Minta Pemerintah Kejar Royalti Musik ke YouTube-Spotify. Retrieved from https://finance.detik.com/berita-ekonomi-bisnis/d-5527195/musisi-minta-pemerintah-kejar-royalti-musik-ke-youtube-spotify
[xxxi] Freedom House. (2020). Indonesia. Retrieved from https://freedomhouse.org/country/indonesia/freedom-net/2020
Image Credit: Music photo created by freepik – www.freepik.com
