LMKN to Implement Data-Based Royalty Distribution from June 2026

The National Collective Management Agency (LMKN) is strengthening Indonesia’s music industry governance by implementing a phased data-based royalty distribution system from June 2026. The policy will run alongside the Unlogged Performance Allocation (UPA) scheme to ensure fairness for copyright owners.

LMKN Secretary General M Bigi Ramadha Putra explained that UPA distribution is based on LMKN Decision Letter No. 001.SK.LMKN.IV.2026, designed to compensate for music usage not captured in digital monitoring data.

“LMKN uses data from radio, television, and digital platforms to determine royalty distribution. UPA is necessary to account for songs played but not recorded in monitoring systems,” Bigi stated in a press release in Jakarta, cited on Sunday (31 May 2026).

During the transition period, LMKN has allocated 20% of royalties collected from users who fail to submit usage data to UPA. This significant percentage reflects LMKN’s focus on strengthening data-based distribution from 2025 to 2028.

For transparency, LMKN detailed UPA royalty distribution for July-December 2025, totalling over Rp4.6 billion.

To improve data accuracy, LMKN introduced the term ‘sleeping repertoire’ for works by members that did not appear in usage logs for two consecutive distribution periods but still received royalties via UPA.

Currently, royalty distribution processes vary across Collective Management Organisations (LMKs). For creators, LMKN is coordinating closely with RAI and KCI. Among producers, SELMI and ARMINDO have submitted distribution invoices, while performance-related LMKs such as PRISINDO, PAPPRI, SELMI, and CNS are awaiting administrative documents for fund disbursement.

LMKN urges all LMKs to verify member data, as accuracy is key to ensuring future royalty distributions are transparent, accurate, and based on actual usage. This collaboration is part of LMKN’s long-term commitment to modernising Indonesia’s music licensing ecosystem.