LMKN Urges Listed Companies to Comply with Music Royalty Payments

Jakarta – The chairman of the National Collective Management Institution (LMKN) Pencipta, Andi Mulhanan Tombolotutu, has urged listed companies (Tbk) to implement compliance and consistently fulfil their obligations to pay royalties for music and songs played in their retail outlets.

According to Mulhanan, music broadcast in public spaces through television, radio, retail outlets, restaurants, cafés, and hotels is classified as commercial use. Consequently, every business operator is obligated to respect the economic rights of creators through the royalty payment mechanism managed by LMKN.

“Many listed companies (Tbk) broadcast music in public spaces but have yet to fulfil their royalty payment obligations,” Mulhanan stated in an official statement received on Wednesday.

Mulhanan added that the modern retail sector, such as fast-food restaurants and broadcasting companies (television), represents the largest users of music in public spaces. Music is played almost throughout operating hours to create atmosphere, reinforce brand identity, and enhance customer comfort.

However, ironically, not all business operators fulfil this obligation.

Mulhanan believes that listed companies with stricter reporting standards and governance compared to private companies means that lack of awareness about regulations becomes less relevant as an excuse.

He added that the issue of music royalties in public spaces is not merely a legal matter, but also a question of awareness. Many business operators still view music merely as a complementary facility, despite its having genuine economic value.

Under Indonesia’s copyright system, LMKN has a state mandate to collect and distribute royalties from the commercial use of songs and music. The collected funds are then channelled to creators and rights holders through collective management institutions.

Mulhanan assured that LMKN continues to conduct education and adopt a persuasive approach with business operators. However, if necessary, legal enforcement measures will still be pursued.

Moving forward, LMKN hopes that more companies will make royalty compliance part of their commitment to the national creative industry.

“Our approach continues to prioritise education. But legal compliance is mandatory,” he said.