Indonesia Copyright Law Update:

Constitutional Court Reshapes Royalties and Enforcement for Commercial Performances

On 17 December 2025, the Indonesia’s Constitutional Court issued Decision No. 28/PUU-XXIII/2025, fundamentally reshaping how royalties are paid and how copyright disputes arising from public performances are enforced.

The decision partially invalidates key provisions in Law Number 28 of 2014 on Copyright (“Copyright Law”) citing legal uncertainty and constitutional protections under Articles 28D (1) and 28G (1) of the 1945 Constitution of the Republic of Indonesia.

Why this matters:

The ruling delivers long awaited clarity for event organizers, promoters, creators, and users of copyrighted works, reducing legal ambiguity, standardizing royalty payments, and limiting criminal exposure for performance related disputes.

Event Organizers Confirmed as Responsible for Royalty Payments

Relevant Provision: Article 23 paragraph (5)

What changed

Previously, the law stated that "Every Person" could commercially use a work in a performance without prior authorization, provided they paid royalties through a Collective Management Organization (LMK). This wording led to uncertainty over whether performers or event organizers bore the payment obligation.

The Constitutional Court has now confirmed that “Every Person” must be interpreted to mean commercial performance organizers.

What this means for you

• Event organizers and promoters are clearly responsible for ensuring royalties are paid.

• Performers are relieved from uncertainty and potential exposure.

• The ruling eliminates conflicting interpretations that previously complicated compliance.

Government Set Tariffs to Define “Reasonable Remuneration”

Relevant Provision: Article 87 paragraph (1)

What changed

While the Copyright Law allowed creators to collect "reasonable remuneration" for the use of their work in commercial public services, the absence of a legal benchmark led to inconsistent and disputed payment rates.

The Constitutional Court ruled that "reasonable remuneration" must now be interpreted based on official mechanisms and tariffs set by government regulations, developed with stakeholder participation.

What this means for you

• Authors and users benefit from clearer, standardized royalty benchmarks.

• Disputes over payment amounts are expected to decrease.

• Businesses can plan costs with greater certainty and predictability.

Criminal Liability Removed for Unauthorized Public Performances

Relevant Provision: Article 113 paragraph (2) in relation to Article 9 paragraph (1) letter f

What changed

Previously, unauthorized commercial performance of a work (Article 9(1)f) could trigger criminal charges, including imprisonment and significant fines.

The Constitutional Court has removed "letter f" - performance related infringement from the list of criminal offenses under Article 113 paragraph (2) of the Copyright Law.

What this means for you

• Performance related copyright disputes will now be resolved through civil or administrative channels, such as compensation claims or mediation.

• The Court reaffirmed the principle of ultimum remedium, reserving criminal law as a last resort.

• While criminal risk is reduced, contractual compliance and royalty arrangements remain essential.

Key Takeaways

This landmark ruling delivers greater legal certainty by:

• Clearly allocating royalty payment obligations to event organizers.

• Introducing regulated, transparent royalty standards.

• Shifting performance related disputes away from criminal prosecution.

Next steps:

Businesses involved in commercial performances should review their royalty payment structures, contracts with LMKs, and dispute resolution strategies to ensure alignment with this new legal framework.

How We Can Help

Our team regularly advises event organizers, promoters, creative industry business, and digital platforms on copyright compliance, royalty structures, and dispute resolution following regulatory and judicial developments.