LMKN and USEA Forge Partnership to Modernise Indonesia's Digital Music Licensing

The National Collective Management Agency (LMKN) has officially entered into a strategic collaboration with USEA Pte. Ltd., a subsidiary of U-NEXT HOLDINGS, to modernise the background music (BGM) licensing ecosystem in Indonesia. The partnership was marked by the signing of a Memorandum of Understanding (MoU) aiming to create a licensing system that is more transparent, accountable, and technologically driven. The signing was conducted by Jerry Chen, Managing Director of USEA, alongside Makki Omar Parikesit, Creator Commissioner of LMKN representing the Chair of LMKN Creators, Andi Muhanan Tambolutut. This move marks a significant milestone in the transformation of commercial music administration in the country, considering the vast reach of the Indonesian market, which has largely been managed manually. Through this partnership, both parties will explore the development of a digital ecosystem encompassing various administrative and technical functions. The primary focus is to facilitate businesses in fulfilling licensing obligations while providing royalty certainty for music creators. Prior to this agreement, LMKN had conducted a series of discussions since March 2026, including a comparative study visit to JASRAC (the Japanese collective management organisation) in Tokyo in May 2026. The meeting provided valuable perspectives on music licensing governance in Japan, which has utilised advanced technology for commercial use compliance. Managing Director of USEA, Jerry Chen, stressed that music licensing in the future should not be viewed merely as an administrative compliance burden. “We believe music can be managed strategically to strengthen brand identity and enhance customer experience. Together with LMKN, we aim to build an ecosystem that provides added value for businesses while protecting the rights of creators,” Jerry stated. Echoing this sentiment, LMKN Creator Commissioner Makki Omar Parikesit stated that this modernisation is an urgent necessity amidst the rapid expansion of the commercial sector in various regions of Indonesia. Managing outlets manually was deemed inefficient for large-scale businesses. “LMKN views the utilisation of technology as a crucial part of strengthening licensing administration. This collaboration is expected to become the foundation for a more organised ecosystem that is relevant to current business developments,” said Makki. Following the signing of this MoU, LMKN and USEA will promptly proceed with technical and operational discussions to formulate a further cooperation agreement and commence the pilot implementation phase in the field.