Minister of Creative Economy Discusses Strengthening Music Royalty System with LMKN

Kemenekraf/Bekraf RIJumat, 12 September 2025
Minister of Creative Economy Discusses Strengthening Music Royalty System with LMKN

Jakarta, 12 September 2025 – Minister of Creative Economy Teuku Riefky Harsya met with the newly appointed Commissioners and Board of the National Collective Management Institution (LMKN), inaugurated by Minister of Law Supratman Andi Agtas in August 2025. The meeting focused on sustaining Indonesia’s national music ecosystem, particularly regarding protection of economic rights for creators, rights holders, and creative industry players using music.

Menteri Ekonomi Kreatif, Teuku Riefky Harsya, menerima audiensi jajaran baru Komisioner dan Pengurus Lembaga Manajemen Kolektif Nasional (LMKN), Jakarta, Jumat (12/09/2025).

“Music is one of the strategic subsectors of Indonesia’s creative economy. A healthy music ecosystem can make music a pillar of the national creative economy,” said Minister of Creative Economy Teuku Riefky during the meeting at the Ministry of Creative Economy office on Friday, 12 September 2025.

The Minister of Creative Economy expressed support for LMKN in developing a more efficient system, aligned with the government’s target to strengthen the foundation of globally competitive creative economy governance. The Ministry of Creative Economy will also promote more dialogue with music stakeholders, including creators, labels, and music users in the business sector.

“Collaboration among the government, LMKN, industry, and society must run in harmony. This way, we can ensure that Indonesian music not only develops artistically but also provides fair economic benefits to its creators,” added Minister of Creative Economy Ekraf.

LMKN is an independent institution established under Law No. 28 of 2014 on Copyright and Government Regulation No. 56 of 2021, mandated to collect and distribute royalties from songs and/or music fairly, transparently, and proportionally to creators, copyright holders, and related rights owners.

During the meeting, LMKN Chair for Creators Andi Mulhanan Tombolotutu shared updates on the implementation of the latest royalty distribution mechanism, including plans for digitalization of recording and reporting, as well as improved coordination with Collective Management Organizations (LMKs) across regions.

“Our mission is to ensure that all rights holders receive protection, both moral and economic. The system we plan is digital and real-time, but we cannot succeed alone without cross-ministerial support and stakeholder engagement. We also need to coordinate with regional LMKs, in line with the Ministry of Creative Economy’s mission, which must start from the regions,” said Andi.

Doc. Communication Bureau of Ministry of Creative Economy/Creative Economy Agency.

Furthermore, LMKN Chair for Related Rights Marcell Kirana H. Siahaan emphasized that the institution plays a critical role in ensuring royalty governance runs according to regulations and is accountable. Strengthening the distribution system is key to ensuring that the economic benefits of music works are truly felt by creators and rights owners.

“Our main challenge currently lies in rights distribution. Therefore, we are working to build a transparent system that strengthens accountability for each LMK responsible for distribution. Additionally, royalty calculations must be clear and user-based so that the distribution is transparent and easily understood by all parties,” explained Marcell.

The meeting concluded with a joint commitment to establish a regular coordination forum to monitor policy implementation, resolve practical issues in the field, and develop technology-based service standards in the national royalty system, further advancing Indonesia’s music industry as a key driver of the national economy.

Accompanying Minister of Creative Economy Teuku Riefky were Deputy for Strategic Development Cecep Rukendi, Deputy for Media Creativity Agustini Rahayu, Special Staff of the Minister for Law and Creative Economy Development Prof. Agus Sardjono, Director of Intellectual Property Facilitation Development Muhammad Fauzi, Director of Studies and Strategic Management Agus Syarip Hidayat, and Director of Music Mohammad Amin.

From LMKN, Commissioner for Creators Aji Mirza Hakim and Commissioner for Related Rights Suyud Margono were present.

Kiagoos Irvan Faisal
Acting Head of Bureau of Communication
Ministry of Creative Economy / Creative Economy Agency

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