LMKN assures accurate targeting and transparency in royalty distribution to rights holders
Jakarta (ANTARA) - The National Collective Management Agency (LMKN) has ensured that the distribution of royalties to rights holders continues through the Collective Management Organisation (LMK) mechanism, targeting the correct recipients while prioritising transparency and accountability.
LMKN Commissioner Aji Mirza Hakim emphasised that the agency is committed to ensuring every distribution process is accurate and accountable. “LMKN is committed to ensuring that every royalty distribution process is carried out precisely, transparently, and is accountable to all relevant rights holders,” Aji stated in a briefing in Jakarta on Tuesday.
According to Aji, the current distribution system refers to song usage data and mechanisms in accordance with regulations, including proxy schemes, surveys, Unrecorded Performance Allocation (UPA), and distribution result reports. LMKN also rejects the practice of distributing royalties to LMKs based solely on the number of members without referring to music usage data.
“LMKN rejects any forms of royalty distribution agreements based merely on the number of members. Distribution must refer to song usage data to be fairer and more accountable,” he said.
Furthermore, Aji stated that LMKN is currently conducting an independent audit, not only for the 2025 financial reports but also for the 2024 reports from the previous commissioners’ term. It was added that LMKN has also held dialogues with the Corruption Eradication Commission (KPK) regarding the strengthening of royalty distribution governance to ensure compliance with regulations and to prevent potential corruption in national music royalty management.
In a separate development, protesters have demanded the resignation of LMKN commissioners and the immediate distribution of royalties to songwriters and relevant rights holders. The demonstrators stated that the royalties received by songwriters have not met expectations because they are based on song usage calculations. They also urged LMKN to cancel Circular Letter Number 06/LMKN/VIII-2025 and to restore the function of collecting, gathering, and distributing royalties to LMKs, as mandated by Copyright Law Number 28 of 2014. Additionally, the group requested that LMKN ensure all remaining royalty funds are distributed immediately and that an independent audit of the national music royalty collection and distribution process be conducted.
Throughout 2026, LMKN recorded the distribution of 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 July–December 2025 distribution period, LMKN is in the process of distributing royalties worth Rp36.4 billion. For related rights LMKs, during the July–December 2025 period, distribution has proceeded to Promuri, Armindo, and Citra Nusa Swara (CNS).
LMKN emphasised that royalty distribution is carried out routinely twice a year, covering the periods of royalties collected from January–June and July–December. The distribution process takes place after the verification of usage data 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, the Chairman of LMKN for Related Rights, Marcell Siahaan, emphasised that the steps to reorganise the music royalty system were taken after finding distribution practices that were deemed unsupported by adequate data and lacked a standardised, transparent distribution scheme. It was noted that such conditions have the potential to disadvantage both songwriters and music industry players in Indonesia. “Therefore, the practice of distribution without a clear data basis must no longer occur within the new system built by LMKS,” said Marcell.