LMKN assures accurate targeting and transparency in royalty distribution to rights holders

Jakarta - The National Collective Management Agency (LMKN) has assured that the distribution of royalties to rights holders is conducted through the Collective Management Organisation (LMK) mechanism with accurate targeting, prioritising transparency and accountability. LMKN Commissioner Aji Mirza Hakim emphasised that the agency is committed to ensuring every royalty distribution process is carried out correctly and can be accounted for. “LMKN is committed to ensuring every royalty distribution process is carried out correctly, transparently, and accountably to all relevant rights holders,” Aji said in a statement in Jakarta on Tuesday. According to Aji, the distribution system currently applied refers to song usage data and mechanisms in accordance with regulations, including through proxy schemes, surveys, Unidentified Performance Allocation (UPA), and distribution reports. The LMKN also rejects the practice of distributing royalties to LMKs solely based on the number of members without referring to music work usage data. “LMKN rejects forms of royalty division agreements based solely on the number of members. Distribution must refer to song usage data to be fairer and more accountable,” he stated. Furthermore, Aji stated that LMKN is currently carrying out an independent audit not only of the 2025 financial reports, but also the 2024 reports which were under the tenure of the previous commissioner board. He added that LMKN has also held a dialogue with the Corruption Eradication Commission (KPK) regarding strengthening royalty distribution governance to ensure it remains compliant and to prevent potential corrupt practices in national music royalty management. During a protest, demonstrators demanded that LMKN commissioners resign and that royalty funds be distributed immediately to songwriters and related rights holders. The protesters stated that the royalties received by songwriters so far have not met expectations because they were based on song usage calculation bases. They also urged LMKN to cancel Circular Letter Number 06/LMKN/VIII-2025 and to return the function of collecting, gathering and distributing royalties to LMKs, as mandated by the Copyright Law Number 28 of 2014. In addition, the crowd demanded that LMKN ensure all retained royalty funds are immediately distributed to rights holders and to conduct an independent audit of the national music royalty collection and distribution process. Throughout 2026, LMKN recorded having distributed royalties worth Rp179.33 billion through various LMKs, consisting of Rp155.12 billion from the digital sector and Rp24.2 billion from the non-digital sector. For the distribution period of July-December 2025, LMKN is in the process of distributing royalties worth Rp36.4 billion. For related rights LMKs, distribution for the July-December 2025 period has proceeded to Promuri, Armindo, and Citra Nusa Swara (CNS). LMKN emphasised that royalty distribution is carried out routinely twice a year, for the collection and accumulation periods of January-June and July-December. The distribution process is carried out after going through the stages of verifying usage data for works and supporting documents from each LMK. LMKN hopes that songwriters, singers, musicians, record producers, and other related rights holders can obtain their economic rights in a more orderly, transparent, and sustainable manner. Previously, LMKN Chairman for Related Rights Marcell Siahaan stressed that the move to reform the music royalty system was made after discovering distribution practices that were deemed not supported by adequate data and lacked a standard, transparent distribution scheme. He said such conditions had the potential to harm songwriters and music industry players in Indonesia. “Therefore, distribution practices without a clear data basis can no longer occur in the new system being built by LMKN,” Marcell stated.