Music Royalty Fees in the Culinary Industry: What’s Really Going On?

Lately, businesses in the culinary sector—from cafés to restaurants—have been caught in a heated debate: the obligation to pay music royalties. The figure circulating in public, IDR 120,000 per seat per year, has raised confusion and concern, especially among small and medium-sized business owners. Is it really that much? And what are the actual regulations?

What Are Music Royalties in Commercial Venues?

Music royalties are a form of appreciation and a legal obligation for the use of copyrighted music in public spaces—including business venues like restaurants, cafés, bars, and others. In Indonesia, the collection and management of royalties are coordinated by the National Collective Management Organization (LMKN).

The Official Tariff Regulation

According to LMKN Decree Number: 20160512RKBD/LMKN-Pleno/Tariff Royalty/2016, here are the applicable royalty rates for the culinary service sector:

1. Restaurants and Cafés

   • IDR 60,000 per seat per year (for the creator's copyright)

   • IDR 60,000 per seat per year (for related rights)
     Total: IDR 120,000 per seat per year

2. Pubs, Bars, and Bistros

   • IDR 180,000 per m² per year (creator’s rights)

   • IDR 180,000 per m² per year (related rights)
     Total: IDR 360,000 per m² per year

3. Discotheques and Nightclubs

   • IDR 250,000 per m² per year (creator’s rights)

   • IDR 180,000 per m² per year (related rights)
     Total: IDR 430,000 per m² per year

Payments must be made at least once a year.

Why Are Business Owners Worried?

Despite the regulation being in place since 2016, many business owners—especially SMEs—still claim to lack clarity regarding how the royalty system works. One such example is Rifkyanto Putro, the owner of Wheelsaid Coffee in Yogyakarta, who admitted the information he received was vague.

“Is the IDR 120,000 fee for a single song, a band, or for all the music played? That’s still unclear,” he said.

Due to the uncertainty, some business owners have chosen the safer route: they stop playing music altogether at their venues for now.

🗣 LMKN’s Response

Chairman of LMKN, Dharma Oratmangun, urges business owners not to panic.
"Paying royalties will not bankrupt your business. It’s a form of respect for other people’s work," he stated during an interview at the Constitutional Court, Central Jakarta.

If you’re a culinary business owner, it’s essential to understand your rights and obligations regarding music use in public venues.
💡 Make sure to get official information directly from LMKN or other trusted sources before making decisions. Don’t let misinformation hinder your business growth!

Music royalties should not be seen as a burden, but as a way to value the art that enhances the ambiance of your venue. Still, transparency, education, and two-way communication remain key to ensuring that both creators and business owners benefit fairly.

Let this controversy be a turning point toward improving the system for a healthier creative and business ecosystem.

Satra Sinar Abadi Group
Your Trusted Business Partner & Regulatory Consultant in Indonesia