USEA and LMKN Support Modernisation of Commercial Music Licensing Through Technology
Jakarta - USEA Pte. Ltd. and the National Collective Management Institute (LMKN) are collaborating to support a more modern, transparent, and technology-based commercial music licensing system in Indonesia. LMKN Creator Commissioner Makki Omar Parikesit stated on Wednesday that this collaboration is part of LMKN’s efforts to modernise the national music licensing ecosystem. “This collaboration is expected to become the foundation for developing a music licensing ecosystem that is more organised, transparent, and relevant to business developments,” Makki said. LMKN views the use of technology as an essential part of strengthening licence administration and reporting of music usage in commercial spaces.
The commitment was marked by the signing of a Memorandum of Understanding (MoU) between Jerry Chen, Managing Director of USEA, and Andi Muhanan Tambolutut, Chairman of LMKN Creators, represented by Makki Omar Parikesit, to explore cooperation in supporting the development of a digital background music (BGM) licensing ecosystem. The MoU signing took place after several meetings and discussions since March 2026. Through this collaboration, both parties will explore licence administration, music usage reporting, pilot implementation, industry engagement activities, and further technical discussions to support the broader development of Indonesia’s music licensing ecosystem. The collaboration also recognises USEA as a trusted partner for the current development phase, while respecting LMKN’s institutional authority to remain open to the involvement of other relevant partners, platforms, or service providers.
The proposed digital ecosystem could support functions such as business licence registration, licence fee calculation, payment administration, issuance and renewal of licence certificates, music monitoring, music usage reporting, royalty reporting, and ecosystem analytics. Beyond licensing administration functions, this ecosystem could also create opportunities for businesses to manage music centrally across multiple locations, strengthen audio branding, and support promotional messages or announcements to customers more systematically. It could also help business operators view music not merely as a licensing obligation, but as part of their operational strategy, customer experience, and brand identity. The collaboration may also explore music usage tracking capabilities to support more credible and accurate reporting in commercial spaces, potentially including tracking devices installed at licensed locations and audio recognition technology, subject to further technical and operational discussions.
Through this MoU, USEA Pte. Ltd., a subsidiary of U-NEXT HOLDINGS, aims to support LMKN as a technology partner by leveraging technology and innovation to explore various digital solutions that can strengthen licence administration, improve music usage reporting, and support transparency across Indonesia’s commercial music licensing sector. USEA Managing Director Jerry Chen stated that Indonesia has a significant opportunity to build a more modern and valuable commercial music licensing ecosystem for all stakeholders. Jerry added that future music licensing is not solely about administration and compliance. “But also how music can be managed more strategically to support business, strengthen brand identity, enhance communication with customers, and create a more consistent experience across various locations,” he said.