Minister of Law and Human Rights, Supratman Andi Agtas, has stressed that music royalties should directly benefit the creators, particularly in the context of digital platforms that have not been optimally regulated under previous laws.

Speaking at the 4th Executive Breakfast Meeting organized by the Alumni Association of the Faculty of Communication, University of Padjadjaran at The Tribrata Dharmawangsa in South Jakarta, on Wednesday, October 8, 2025, Supratman highlighted the need for reform in the management of music royalties.

"My job is to ensure that royalties go to the artists," Supratman said.

He added that the management of royalties in the past had not been efficient, particularly for digital platforms, which were not addressed in the previous Ministerial Regulation.

"Previously, digital platforms were not regulated at all. Now, this includes digital platforms and the phonogram industry, and I have already stated that everything will go through Collective Management Organizations (LMK)," he cited.

He, however, pointed at the lack of transparency in how royalties are managed by LMKs. Some organizations fail to report complete data, such as copies of identity cards (KTP) and tax identification numbers (NPWP) for authorized members, making it difficult to determine who is truly entitled to the royalties.

"Until now, no one has filed a lawsuit. I may suspect, not accuse, that there is something wrong," Supratman said.

To ensure that royalties reach the creators, Supratman introduced a new policy under Law Minister Regulation No. 27/2025. One of the main changes is reducing the operational costs that can be charged by the National Collective Management Organization (LMKN) and LMKs from a maximum of 20 percent to just 8 percent.

"This means that 12 percent should actually go back to the creators," he said.

Supratman added that this policy would be continuously evaluated to ensure transparency and digitalization in the management of royalties by LMK and LMKN.

"Eventually, if we find that transparency and digitalization from LMKs or LMKN are already optimal, we may return it to the previous standard," he said.

Hendri Satrio, Chairman of the Alumni Association of the Faculty of Communication, University of Padjadjaran, welcomed the policy.

"Royalties have been a major issue under President Prabowo Subianto's administration because musicians need income from their works," Hendri, a political communication analyst and Founder of KedaiKOPI Survey Institute, said.

"Therefore, we felt that this issue needed to be discussed at this event," he added.