The National Collective Management Organization (LMKN) had officially announcement on the total collected amount of royalties for musical performing rights throughout the 2023 fiscal year. The announcement was made during the two-days 2024 Annual Coordination Meeting of LMKN that was held at the Ministry of Laws and Human Rights compound in South Jakarta on January 16-17, 2024.
According to LMKN, in 2023 it managed USD 3,510,134.29 in performing rights royalties. Officials of LMKN however were hopeful that the number was not final as of the date of announcement since the cut-off date for accounting purpose was on December 30, 2023, while royalty collection was actually still ongoing. A further amount of USD 1,321,659.05 is expected to be added to the total number when all collection for 2023 has been accounted for.
Based on the announced amount alone, the year 2023 saw 58% increase in royalty collection revenue as compared to collection made in the preceding year, which amounted to USD 2,227, 899.67. Pursuant to Government Regulation no. 56 of 2021 (PP 56/2021) concerning Management of Song and/or Musical Royalties, collection made by CMOs under LMKN’s coordination is targeted at fourteen sectors of commercial public services, which consists of 1) commercial seminars and conferences; 2) restaurants, cafes, pubs, bars, bistros, night clubs and discotheques; 3) music concerts; 4) airplanes, buses, trains and passenger ships; 5) exhibitions and bazaars; 6) movie theatres; 7) ring back tone for commercial/business numbers; 8) banks and offices; 9) shops; 10) recreation centers; 11) televisions; 12) radios; 13) hotel rooms and facilities; and 14) karaoke.
In 2023 karaoke sector again topped the list by contributing almost half of the revenue with USD 1,436,723.63, experiencing 105% increase from the sector’s revenue in 2022. Biggest jump of revenue for 2023 is however contributed by music concerts with 15,913%; from only USD 1,952.21 in 2022 to USD 312,601.00. Such a gigantic increase is allegedly prompted by post Covid-19 situation as live music events are much more feasible to be held nowadays. Significant increase was however also experienced by banks and offices as well as exhibitions and bazaars with 7,538% and 1,040% respectively.
The LMKN was established in 2015 as mandated by the Law no. 28 of 2014 concerning Copyrights for the purpose of consolidating collection of performing rights for musical copyrights as well as related rights that – prior to its existence – was collected independently by various private collective management organizations (LMKs). As of now, the LMKN claims to represent more than 6,000 rights owners all over Indonesia who gave their collection mandates through 14 LMKs, i.e. KCI, WAMI, RAI, PELARI, SELMI, PAPPRI, ARDI, ARMINDO, SMI, PRISINDO, PROINTIM, LKB, CNS and PKU.
Chair Commissioner of LMKN, Dharma Oratmangun, admitted that his organization is still facing many challenges and obstacles in fulfilling the royalty collection potentials, with even in his own pessimistic estimation should at least reach USD 10 million annually. Among the challenges is to build an IT-based integrated songs and music information system (SILM) as mandated by the PP 56/2021, which would enable users to meet their royalty obligations with more convenience while at the same time facilitate more appropriate distribution to rights owners based on actual usage.