Indonesian Political, Business & Finance News

LMKN affirms data-driven royalty distribution via UPA scheme

| Source: ANTARA_ID Translated from Indonesian | Regulation
LMKN affirms data-driven royalty distribution via UPA scheme
Image: ANTARA_ID

Jakarta (ANTARA) – The National Collective Management Agency (LMKN) has affirmed that data-driven royalty distribution, to be implemented gradually from June 2026, will run in parallel with the Unlogged Performance Allocation (UPA) scheme.

LMKN Secretary-General M. Bigi Ramadha Putra stated that UPA distribution is based on LMKN Decree No. 001.SK.LMKN.IV.2026 on Royalty Distribution for Songs and/or Music for 2026.

According to Bigi, the UPA allocation is set at 20% of royalties collected from users who fail to submit song usage data to LMKN.

“As LMKN uses song usage data from radio, television, and digital platform monitoring as the basis for royalty distribution formulas, UPA is necessary to compensate for songs played but not captured in reference data,” Bigi said in an official statement received in Jakarta on Saturday.

He added that the UPA scheme is implemented in various countries, but Indonesia’s UPA allocation is relatively larger as LMKN’s 2025-2028 period is focused on strengthening data-driven royalty distribution.

“We urge each Collective Management Organisation (LMK) to ensure submitted data is accurate, valid, and verifiable to avoid future royalty distribution issues,” Bigi said.

LMKN aims for future royalty distribution systems to be more accurate, transparent, and based on verified usage data.

LMKN also distributed Rp4,627,077,246 in royalties via the UPA scheme for July-December 2025.

Meanwhile, data-based song usage royalty distribution will be implemented gradually from early June 2026.

Bigi explained that of the total distribution, Rp2,234,449,383 was allocated to 10,074 creators and/or copyright holders who are members of Collective Management Organisations (LMK).

A further Rp1,151,313,932 was distributed to 556 producer members, while another Rp1,151,313,932 went to 1,830 performing artist members.

For creators and copyright holders, distribution is still ongoing at LMKN level.

LMKN is coordinating with Royalty Anugerah Indonesia (RAI) and Karya Cipta Indonesia (KCI) to expedite distribution.

For producers, Sentra Lisensi Musik Indonesia (SELMI) and Anugerah Royalti Musik Indonesia (ARMINDO) have submitted distribution invoices, while other LMKs are still in administrative coordination.

Among performing artists, Performer’s Rights Society of Indonesia (PRISINDO), Protection of Singers and Recording Musicians’ Rights Indonesia (PAPPRI), SELMI, and Citra Nusa Swara (CNS) are awaiting distribution invoices, with other LMKs still in coordination.

To strengthen data-based distribution governance, LMKN has introduced the term “sleeping repertoire” (repertoar tertidur) for member works that do not appear in usage data for two consecutive distribution periods but still receive UPA distributions.

“Works that do not appear in usage data for two consecutive distribution periods can be classified as sleeping repertoire,” Bigi said.

He explained that such works would no longer be considered in future UPA distributions if no verified usage data is recorded over two consecutive periods.

“This policy is implemented to drive royalty distribution based on actual and measurable usage data,” he said.

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