Indonesian Hotel and Restaurant Association in Bali has confirmed that restaurants and cafes playing natural sounds such as birdsong or flowing water are still required to pay royalties.
Secretary of the Association’s, Perry Markus explained that these natural sounds are considered recorded works and are therefore subject to royalty regulations when played in public spaces.
“This includes music, natural sounds, animal sounds, birds, and so on. Because they are recorded, there is a process involved. As long as they are played in public spaces, they are subject to the regulations,” said Perry Markus, Tuesday (August 5, 2025), as reported by DetikBali.
He stated that information regarding royalty payments had already been conveyed during a meeting with the National Collective Management Organization.
“We have already held a briefing with National Collective Management Organization regarding music and song royalties. If you play music or songs, you must pay royalties according to the law,” he added.
Perry also offered advice to business owners who do not want to deal with royalty payments:
“If you don’t want to pay, don’t play music or songs. It’s as simple as that,” he emphasized.
Currently, royalty payments follow a blanket license system, meaning a flat payment is required regardless of how much of a song is played.
“Whether you play a little or a lot, if it’s in a public space, you’re still subject to royalties. That’s how the calculation works,” he explained.
However, a new system called SILM (Song and Music Information Center) is expected to be implemented in the future, allowing royalties to be calculated based on the actual songs played.
“Once that’s in place, it might be similar to karaoke—what you play is what you pay for,” said Perry.
Requests Transparency
Badung office of Indonesian Hotel and Restaurant Associatio’s Secretary I Gede Ricky Sukarta expressed support for the regulation but called for transparent and fair implementation.
“We support the regulation, but we hope National Collective Management Organization and related parties ensure transparency in its implementation. That’s important to maintain harmony, especially in Bali,” Ricky stated.
He also urged the government to be more proactive in educating business owners about the regulation.
Vague Rules Burden Local Businesses
Chairperson of West Nusa Tenggara’s association, Ni Ketut Wolini, criticized the lack of clarity in royalty regulations, which she believes place an added burden on local businesses.
She pointed to the legal case involving Mie Gacoan restaurant in Bali as an example of how businesses could face criminal charges due to confusion over royalty laws.
“Local businesses have not received official information about royalty collection procedures. As Chairperson in West Nusa Tenggara, I’ve never been invited to discussions with relevant local authorities,” Wolini said.
She questioned the lack of technical guidelines:
“We haven’t been consulted in the regions. Where are we supposed to go for guidance?” she added.
Wolini also criticized the weak communication between central’s Hotel and Restaurant Association and its regional offices, which she said relies mostly on ineffective long-distance phone calls.
“Central Hotel and Restaurant Association is fine, but on the ground, things are difficult. You can’t manage this just via phone—it’s not optimal,” she said.
According to her, royalty payments only add to the already heavy tax burdens placed on businesses.
“Hotels and restaurants are overwhelmed. We already face central and regional taxes, and now royalties too. Even minor violations come with criminal threats. Everything seems criminal now,” she stressed.
Hotel and Restaurant Association in West Nusa Tenggara is calling for a revision of Law No. 28 of 2014 on Copyright, which they believe is unfair.
“We hope Hotel and Restaurant Association will push for a revision. It’s just too burdensome. One business—like a restaurant or hotel—already pays high local and national taxes. Now there are royalties on top of that,” she emphasized.
Royalty Rates Among the Lowest
Chairman of National Collective Management Organization, Dharma Oratmangun reminded businesses that playing foreign songs also requires royalty payments, as Indonesia has international licensing agreements.
“If you play foreign music, you still have to pay. We are in international partnerships, and we also pay other countries,” he explained.
He asserted that royalty fees in Indonesia are among the lowest in the world and should not be a burden.
“Our rates are the lowest globally. Paying royalties means obeying the law. If you avoid it, you break the law. That’s the simple truth,” Dharma stated.
Working for Fair Solution
Indonesia Minister of Culture Fadli Zon stated that the government understands the concerns of business owners and will work toward a fair solution through inter-agency coordination.
“We will work toward a win-win solution. There’s a lot of confusion and concern out there,” Fadli said in Depok on Sunday (August 3, 2025). “We hope Indonesian songs will grow in popularity. It’s just a matter of working together across ministries, especially those involved with copyright, intellectual property, and the Ministry of Law and Human Rights,” he concluded.
Sources: Detik Travel, Kompas.com
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