Depok - The Ministry of Law (Kemenkum) initiated the Jakarta Protocol, a legal instrument related to the international management of royalties on digital platforms. This system is expected to foster a more equitable and transparent national and global intellectual property (IP) ecosystem.
Director General of Intellectual Property, Razilu, explained that this initiative was driven by persistent inequalities in the digital music market between developed and developing countries. These disparities have hindered the collection and distribution of royalties in developing nations.
"The Jakarta Protocol reflects the Minister of Law's vision to establish a global framework for managing royalties on digital platforms," said Razilu, at the Jakarta Protocol Focus Group Discussion held at the BPSDM Hukum Auditorium on Thursday (08/28/2025).
According to Razilu, the Jakarta Protocol draws inspiration from three major international IP application systems: the Madrid Protocol for international trademark applications, the PCT (Patent Cooperation Treaty) for international patent applications, and the Hague Agreement for international IP applications related to industrial designs.
Under the proposed mechanism, the World Intellectual Property Organization (WIPO)—a UN specialized agency responsible for global IP protection—would develop a centralized digital platform to collect royalties from various digital services worldwide. These royalties would then be distributed to each country’s Collective Management Organization (CMO) or National Collective Management Institution (LMKN), before finally reaching the creators.
“Whether it is ultimately called the Jakarta Protocol or another name is not the main point. What matters is that this represents a strategic breakthrough—an initiative originating from Indonesia, not just from the Ministry of Law,” Razilu emphasized.
Meanwhile, Andry Indrady, Head of the Legal Policy Strategy Agency (BSK), noted that countries in the Global North currently dominate the online licensing ecosystem through major platforms, distribution algorithms, and subscription-based business models. In contrast, many Global South countries continue to face structural challenges, such as weak legal infrastructure, underdeveloped governance of collective management institutions (LMK), and widespread use of music without fair compensation.
"Indonesia faces similar problems with various issues surrounding transparency in LMK governance, as well as the collection and distribution of royalties," explained Andry when speaking at the same event.
"These problems reflect the broader structural issues experienced by developing countries, where disparities in capital, technological capacity, and bargaining power hinder the equitable distribution of economic benefits," he added.
The Jakarta Protocol discussion brought together a wide range of stakeholders, including the Presidential Special Staff for Creative Economy, the Ministry of Foreign Affairs, the Ministry of Creative Economy, the Ministry of Communication and Digital Affairs, the Ministry of Culture, the Ministry of Cooperatives, the State Secretariat, the Publishing Rights Commission, the Press Council, LMKN, as well as musicians and songwriters.
