Indonesia’s copyright framework lacks clarity on the issue of live concert royalties. Is the performer, the event organiser or the venue responsible? A recent decision by the commercial court ruled that the performer had violated copyright law by performing a song without a proper license. Should the Supreme Court uphold this decision, it could answer some fundamental questions, with far-reaching consequences for all stakeholders involved in the music industry.
For years, songwriters have voiced concerns over inadequate compensation for the use of their works, particularly in live performances. In practice, royalties for live performance are collected and distributed by collective management organisations (CMOs), but disputes often arise over whether these payments are sufficient or correctly allocated. Without clearer legislation, these disputes will only increase.
Under Article 9 of Indonesia’s Copyright Law, authors and copyright holders have exclusive economic rights, including the right to authorise the performance of their works. Any unauthorised performance constitutes copyright infringement.
However, Article 23(5) of the Copyright Law states that anyone can commercially use a copyrighted work in a performance without prior permission from the author, provided that they compensate the author through a CMO. A strict reading suggests that this provision serves as a conditional exception to Article 9(3) of the Copyright Law, which requires direct permission. In effect, it allows users to perform songs without obtaining individual licences, as long as royalties are paid via CMOs.
Additionally, Government Regulation No. 56 of 2021 (PP 56/2021) mandates that users of musical works in commercial settings (eg, concerts, restaurants and entertainment venues) must pay royalties through CMOs. Ministerial Decree HKI.2.OT.03.01-02/2016 establishes standard royalty rates for various uses of copyrighted music, including live performances, as follows:
These tariff structures suggest that event promoters or organisers are responsible for royalty payments, as they control ticket pricing and revenue.
However, neither PP 56/2021 nor the Ministerial Decree explicitly clarifies whether the obligation for live concert royalties falls on the performer, the event organiser or the venue.
This lack of clarity exposes a significant gap in Indonesia’s copyright framework: who is the “user” in live performances? While the law dictates licensing and royalty payments, it does not specify who must ensure compliance. Without clear legal definitions, disputes over royalty obligations will likely persist, creating uncertainty for all stakeholders in the live music industry.
A significant court ruling in January 2025 has provided some clarity on the issue. In a copyright infringement case between Ari Bias and Agnez Mo (Decision No 92/Pdt.Sus-HKI/Hak Cipta/2024/PN Niaga Jkt.Pst), the Commercial Court ruled that the performer, as the one who directly presents the copyrighted work to the public, bears the ultimate responsibility for obtaining proper licensing.
The court found that a famous singer, Agnes Monika (known as Agnez Mo), violated copyright laws by performing the song Bilang Saja, written by Arie Sapta Hernawan (known as Ari Bias), without a proper licence. As a result, Agnez Mo was ordered to pay Rp1.5 billion (about $90,000) in damages, calculated at Rp500 million per unauthorised performance in Jakarta, Bandung and Surabaya.
In 2023, without Ari Bias’s approval, Agnez Mo performed Bilang Saja at three concerts organised by PT Aneka Bintang Gading. Upon discovering this, Ari Bias contacted Agnez Mo’s management and sent formal notices demanding clarity on licensing arrangements. However, no resolution was reached.
Seeking further confirmation, Ari Bias approached Indonesia’s National Collective Management Organisation in March 2024, only to find that no authorisation had been granted for the song’s use at the concerts. This discovery prompted the lawsuit, in which Ari Bias asserted his exclusive rights over the song and demanded compensation.
The Commercial Court considered that Agnez Mo had performed the song for commercial use without obtaining the necessary permission from the songwriter. It emphasised that the Copyright Law states that commercial use of a copyrighted work – including live performances – requires authorisation from the author or copyright holder.
The court also dismissed Agnez Mo’s argument that the concert organiser was responsible for securing the necessary rights. The performer is responsible for obtaining proper licensing, the court insisted.
The case has been appealed to the Supreme Court. If the Supreme Court upholds the lower court’s decision, affirming that the commercial user of a musical work in a live performance is the singer, it could set a legal precedent.
In effect, the burden of licensing and royalty payments is placed directly on the performer, rather than the event organiser or venue. This interpretation could significantly impact how royalties are managed in Indonesia, shifting responsibilities within the live music ecosystem and potentially increasing legal risks for artists.
This ruling has far-reaching consequences for performers, concert organisers and licensing practices in Indonesia’s music industry.
Artists can no longer assume that event organisers will handle all copyright clearances. They should independently verify whether they have the legal right to perform a song in public. If they delegate this responsibility to the event organiser, their contract must explicitly state that the organiser is responsible for licensing and royalty payments.
Without clear agreements, disputes over responsibility may arise and lead to situations where royalties are unpaid. This, in turn, means no valid licence is obtained and the conditional exception under Article 23(5) of the Copyright Law does not apply, making unlicensed performances a legal violation.
Concert promoters and venues must ensure that all necessary rights are secured before hosting live performances to avoid liability. A more stringent approach includes:
This ruling could be used by songwriters as a precedent to pursue the direct licensing mechanism rather than relying solely on CMOs for royalty collection in live concerts. This could lead to greater transparency and potentially higher earnings for songwriters. In some countries (eg, the United Kingdom), an ‘opt-out’ system allows songwriters to bypass CMOs and license their works directly for certain performing rights, including concerts.
However, direct licensing may conflict with the intent of the Copyright Law, which mandates royalty payments through CMOs. Its implementation must also consider the local music landscape and its practical challenges to avoid reverting to the pre-2014 Copyright Law era, when double collecting of performance rights was a widespread issue in Indonesia.
Thus, direct licensing should be established through legislation by amending the law, rather than shaped by court rulings that may create uncertainty.
Ongoing revision of Indonesia’s Copyright Law is more critical than ever. It has already been initiated by the House of Representatives, as calls from the industry strengthen. Last week, 29 performers filed a judicial review with the Constitutional Court, challenging certain articles within the Copyright Law and seeking to clarify the interpretation of Article 23(5), specifically:
The outcome of either proceeding must provide clear, unambiguous regulations on licensing and royalty obligations for live music performances. It must explicitly define whether responsibility lies with the performer, the event organiser, or both. On this issue, the Agnez Mo case can offer guidance.
The case also serves as a wake-up call for stakeholders in Indonesia’s music industry. Copyright compliance in live performances is no longer just a formality – it is a legal necessity that must be prioritised to prevent disputes and uphold songwriters’ rights.
Whatever the outcome of this case, one thing is clear: the goal must be fairness and legal certainty for all parties involved. A well-structured system not only benefits songwriters and performers but also ensures the sustainability of Indonesia’s live music industry.
This article was first published on WTR in March 2025.
