Indonesia's Cafes Feel the Blues from Music Royalty Crackdown

Action against unpaid fees spooks businesses, divides musicians and vexes party organisers

- Arlina Arshad

JAKARTA - The hiss of espresso machines has replaced pop hits in Indonesia's cafes and restaurants. Once alive with the sounds of local rock and indie pop, many venues now echo only with clinking cups and subdued chatter.

A recent crackdown on unpaid royalties has spooked business owners, divided musicians, and sparked viral panic among organisers of weddings and birthday parties. From courtrooms to WhatsApp chats, the dispute has shaken the industry — though lawmakers now say a resolution is close.

Under Indonesia's 2014 Copyright Law, venues from concert halls to coffee shops must pay annual royalties to the state-backed National Collective Management Agency (LMKN) for the right to play music. Smaller collective bodies (LMK) then distribute the money to songwriters, singers and producers. For businesses, the royalty effectively doubles as the licence to use music.

Rates vary: cafes and restaurants are charged by seating capacity of 120,000 rupiah (S$9.50) per seat per year; bars and nightclubs are billed by floor area of 360,000 rupiah and 430,000 rupiah per sq m respectively.

Although the law was passed in 2014, enforcement only gained traction in 2021 when the government issued a regulation making royalty payments mandatory for all operators of commercial public spaces. This move aimed to comply with global standards, strengthen creators' rights, boost the creative economy, and adapt enforcement mechanisms to the digital era. Many businesses initially shrugged off the rule, calling the system opaque and an unnecessary cost.

In 2025, oversight has become more stringent. In late July, the Ministry of Law and Human Rights reminded operators that royalties must be paid for all music played in public spaces, including those streamed through digital platforms.