New Era for Music Royalties: LMKN to Overhaul Manual System into Digital Ecosystem

Managing music copyright and royalties in an archipelago like Indonesia often results in exhausting bureaucratic complexities. A retail chain or café network with hundreds of outlets stretching from Sumatra to Papua, for instance, has had to handle background music (BGM) licensing manually at every single location. This outdated system has been inefficient for business operators and complicated data collection for songwriters entitled to royalties. Spotting this gap, the LMKN has partnered with USEA Pte. Ltd., a Singapore-based technology firm backed by Japanese expertise. Both parties signed a Memorandum of Understanding (MoU) in Jakarta on Wednesday to completely overhaul the manual system into a digital-based commercial music licensing ecosystem. The signing was conducted by USEA Managing Director Jerry Chen and LMKN Commissioner for Creators Makki Omar Parikesit. The cooperation is seen as a strong signal that music governance in Indonesia’s public spaces is ready to transition to more modern and transparent methods. This major plan did not materialise overnight. Prior to the agreement, LMKN and USEA had held a series of intensive discussions since March 2026. At the end of May, the LMKN team even flew to Tokyo to meet JASRAC, Japan’s collective management organisation. Leveraging strong industry networks between JASRAC and U-NEXT HOLDINGS, USEA’s parent company, LMKN studied how Japan utilises technology to monitor commercial music usage, accurately collect royalties, and maintain trust between business operators and artists. This benchmarking served as a concrete reference to be adapted for the Indonesian market. The digital ecosystem currently being designed will cut out all complicated field processes. From business venue licence registration and tariff calculation to the payment system and issuance of official certificates, everything will be integrated into a single electronic platform. Additionally, the technology will include the installation of music tracking devices and smart audio recognition systems in licensed commercial locations. Through these tools, any song played in a café or mall will be automatically recorded and credibly reported directly to the copyright holder.