LMKN Teams Up with USEA to Explore Development of a Digital Music Licensing Ecosystem in Indonesia
Big strides toward modernising and increasing transparency in Indonesia’s music industry have begun. The National Collective Management Organisation (LMKN) has entered into a strategic collaboration with USEA Pte. Ltd., a subsidiary of U-NEXT HOLDINGS, through the signing of a Memorandum of Understanding (MoU) to develop a digital Background Music (BGM) licensing ecosystem in Indonesia, on Friday (22 May). This partnership marks a new chapter in the management of commercial music in Indonesia, aiming to be more modern, transparent, and technology-driven.
Under the collaboration, the two parties will explore various key aspects, including licensing administration, reporting of music usage, pilot implementation, and industry engagement activities. While the initial development phase will be entrusted to USEA, LMKN remains open to other platforms or service providers to advance the broader Indonesian music ecosystem.
Digital solution for Indonesia’s vast market: The geographic spread of Indonesia and commercial sectors across many islands is a primary backdrop. Previously, music management across diverse business outlets has been largely manual, leading to administrative complexities as businesses expand. The proposed digital ecosystem is expected to simplify these processes.
The system will integrate functions such as:
Business licence registration and calculation of licence fees.
Payment administration and issuance/extension of licence certificates.
Music tracking and accurate reporting of music usage.
Ecosystem analytics and transparent royalty reporting.
Importantly, the ecosystem is designed not only as a compliance tool but also to enable business operators to centrally manage music across locations. This facility can be used to strengthen audio branding and disseminate promotional messages or announcements to customers systematically. In this way, music will move from a mere licensing obligation to an operational strategy that enhances brand identity.
To ensure credible reporting of music usage in commercial spaces, the collaboration also opens up opportunities for the adoption of audio recognition technology and location-based tracking devices, to be solidified in subsequent technical discussions.
Learning from Japan: As part of these commercial programme, LMKN will travel to Tokyo to meet JASRAC, the Japanese collective management organisation. The meeting, supported by the strong industry ties between JASRAC and U-NEXT HOLDINGS, represents an important moment for LMKN to exchange perspectives. There, LMKN will study Japan’s experiences in licensing music, revenue collection and distribution, compliance with commercial use, and technology-enabled accountability. This pro-active step is being taken as a practical reference to continue improving royalty governance in Indonesia.
Industry leaders’ commitment: Responding to the collaboration, USEA Managing Director Jerry Chen expressed optimism about Indonesia’s potential to build a high-value commercial music ecosystem for stakeholders. ‘We believe that music licensing in the future will not be only about administration and compliance, but also about managing music more strategically to support business, strengthen brand identity, enhance customer communications, and deliver a more consistent experience across locations,’ he said. He hopes innovations from U-NEXT HOLDINGS can deliver tangible contributions as a trusted technology partner for businesses and music copyright holders in Indonesia.
Likewise, LMKN Chair for Related Rights Holders, Marcell Siahaan, said the collaboration forms part of LMKN’s long-term commitment to modernising the national music licensing ecosystem. ‘LMKN continues to promote the development of a more adaptable music licensing administration and royalty distribution system that keeps pace with technology and industry needs. The collaboration with USEA is expected to support administrative efficiency while strengthening governance of the commercial music licensing and royalty ecosystem in Indonesia,’ Marcell added.
Following the MoU, LMKN and USEA will immediately continue more detailed technical and operational discussions to draft a further cooperation agreement ahead of the implementation stage.