Jakarta – The Indonesian government has proposed an international legal instrument on royalty governance through the World Intellectual Property Organization (WIPO). The proposal, titled 'The Indonesian Proposal for a Legally Binding Instrument on the Governance of Copyright Royalty in the Digital Environment,' is a joint initiative by the Ministry of Law, the Ministry of Foreign Affairs, the Ministry of Culture, and the Ministry of Creative Economy.
Minister of Law Supratman Andi Agtas stated that the initiative aims to strengthen the global music ecosystem and ensure that creators receive fair economic benefits from their work. The proposal also includes provisions on publisher rights for journalistic works.
"We are advancing this initiative to strengthen our music ecosystem. If creators cannot gain fair economic value from their work, we cannot expect new creations to continue emerging," said Supratman during a virtual meeting with Indonesian ambassadors and representatives abroad on Tuesday (October 14, 2025).
Supratman explained that the proposal from the Indonesian government will not conflict with the existing legal frameworks in other countries. On the contrary, it would complement and support WIPO member states that already implement royalty distribution systems.
"I am confident this will succeed. It will not create friction with major countries or their industries. On the contrary, our proposed instrument aims to establish fairness," said Supratman from his office.
He added that with the proposal and ongoing reforms to the management of LMK and LKMN, several industries and the countries where those industries originated have begun engaging in discussions with the Ministry of Law.
The Minister, who hails from Sulawesi, emphasized that the success of Indonesia's proposal depends on diplomatic efforts at the multilateral, regional, and bilateral levels. Therefore, he called on Indonesian representatives abroad to play an active role in promoting the initiative.
"The Ministry of Law is acting as a driving force. We will provide the technical framework, but the key role lies with our diplomats. That's why we need strong support, and today's meeting is a concrete step toward that goal," he explained.
Supratman further underscored that the initiative represents not only the Ministry of Law but the entire Government of Indonesia. It embodies cross-sectoral collaboration aimed at developing a fairer and more transparent global music ecosystem.
"This is not merely a Ministry of Law initiative. It reflects the Government of Indonesia's commitment to ensuring fair royalties for our musicians, composers, and all stakeholders in the national music industry," he affirmed.
Head of Law Policy Strategy Agency Andry Indrady elaborated that the proposal is built on three main pillars. The first focuses on royalty governance through WIPO's global framework, including the management of phonograms and audiovisual documentation, the facilitation of licensing and royalty collection, and enhanced oversight of royalty distribution.
"The second pillar introduces an alternative royalty distribution system based on user activity, or a user-centric payment system. This proposal also opens up space for other innovative systems that ensure proportional incentives," Andry said.
"The third pillar aims to strengthen the governance of Collective Management Organizations by standardizing their systems across WIPO member states under a legally binding framework, while also promoting cross-border royalty."
According to Andry, the Indonesian proposal seeks to address inequality in the global intellectual property system by breaking down structural barriers. It encourages the adoption of an international legal framework that is fair, transparent, inclusive, and sustainable.
On the same occasion, the Vice Minister of Foreign Affairs, Arif Havas Oegroseno, reaffirmed the Ministry of Foreign Affairs' full support for the initiative, emphasizing that diplomatic engagement will be key to its success.
"We are ready to support the Ministry of Law through all possible diplomatic strategies," he said.
Similarly, Minister of Creative Economy Teuku Riefky Harsya expressed his support for the proposal, noting that reforming royalty governance is essential to ensuring fairness for creators and stakeholders in the music industry.
"This proposal promotes a fair distribution of digital economic benefits and ensures proper recognition for creators, rights holders, and stakeholders in the music industry," said Riefky.
