Coffee without pop music: Cafes and more react to Indonesia’s clampdown over unpaid royalty fees

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A recent crackdown on unpaid music royalties has spooked some cafes and restaurants into silence.

PHOTO: BLOOMBERG

Summary

• Indonesian cafes now play less local music due to royalty payment fears following enforcement of the 2014 Copyright Law.
• Cafes are switching to foreign songs or instrumental music after a popular noodle chain was reported for failing to pay royalties.
• Lawmakers plan to revise the 2014 Copyright Law to centralise royalty collection under LMKN and improve transparency within two months.

AI generated

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 over 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 Rp120,000 (S$9.50) per seat per year, while bars and nightclubs are billed by floor area of Rp360,000 and