Jakarta. Popular noodle chain Mie Gacoan has agreed to settle a three-year music copyright dispute in royalties, even as many hotels, restaurants, and cafés across Indonesia remain wary of the law.

Mitra Bali Sukses, the franchise holder for the popular Mie Gacoan noodle chain in Bali, has paid Rp 2.2 billion ($135,000) in royalties to the Indonesian Music License Center (LMK Selmi), ending a three-year dispute. The payment covers broadcast and public performance rights from 2022 to 2025 and allows the chain to resume playing music at its outlets until year-end.

“This is a positive example of respecting intellectual property rights,” Law and Human Rights Minister Supratman Andi Agtas said on Friday at the Bali regional office of his ministry, where the settlement was signed. He added that he would recommend police drop the ongoing investigation against the company’s director.

While the Bali settlement marks progress, many business owners remain wary of the costs. The Indonesian Hotel and Restaurant Association (PHRI) chapters in Malang and West Nusa Tenggara (NTB) have voiced strong objections to the current royalty scheme, which is calculated by seating capacity and floor space. They argue the system is burdensome, unclear, and poorly socialized by the National Collective Management Organization (LMKN).

PHRI Malang in East Java chairman, Agoes Basoeki, said some restaurants have stopped hosting live music or even playing recorded songs to avoid legal risks. “This is very heavy for businesses, and it also hurts local musicians who rely on live gigs,” he told Beritasatu.com.

NTB PHRI head Ni Ketut Wolini echoed the concerns, citing the absence of local LMKN representatives to explain payment procedures. She warned that fear of prosecution has already led many operators to eliminate music altogether, further hurting the tourism and hospitality sector still struggling after the pandemic.

In contrast, East Kalimantan’s shopping centers have embraced compliance. The Indonesian Shopping Center Management Association (APPBI) in the province said all 14 malls in Balikpapan and Samarinda have been paying royalties since 2015, with annual fees ranging from Rp 15 million to Rp 45 million, depending on floor space. This coverage extends to cafés and restaurants within the malls, ensuring they can continue playing music without interruption.