Jakarta. Indonesia’s music licensing body, Wahana Musik Indonesia (WAMI), has doubled down on its stance that wedding organizers must pay royalties for any live or recorded music played during the celebration, amid mounting public criticism over the policy.

Robert Mulyarahardja, WAMI’s head of corporate communications and membership, said the fee --set at 2 percent of total music production costs-- is a matter of respecting copyright.

“When music is used in a public space, the songwriter’s rights must be paid. That’s the principle,” Robert said on Tuesday.

The royalty rate applies to non-ticketed live performances, such as weddings, and is calculated based on expenses including sound system rentals, musical instruments, and performer fees. Payments are made to the National Collective Management Organization (LMKN), along with the event’s song list, before being distributed to collective management bodies and ultimately to the composers themselves.

WAMI hopes the clarification will boost awareness of royalty obligations, which it says are essential to rewarding artists for their work.

The debate comes as more restaurants, cafés, and other businesses have stopped playing Indonesian music altogether to avoid paying fees, following stricter enforcement of copyright rules in the wake of a high-profile dispute involving the Mie Gacoan restaurant chain. Mitra Bali Sukses, the franchise holder, has paid Rp 2.2 billion ($135,000) in royalties to the Indonesian Music License Center (LMK Selmi), ending a three-year dispute. 

The government has been pushing businesses in the hospitality and retail sectors to comply with Government Regulation No. 56 of 2021, which mandates royalty payments for commercial use of music. While the law has been in place for four years, enforcement has been relatively lax until recently.

Since its early years, royalty collections have jumped from just Rp 400 million ($24,400) to Rp 200 billion annually. Yet some musicians still earn as little as Rp 60,000 ($3.70) per year from the system.

Under the regulation, businesses must obtain a usage license, pay royalties through LMKN, and secure a blanket license covering all registered songs. Fees are calculated based on seating capacity, operating hours, and location, with reduced rates available for micro businesses.

The law also lays out requirements for LMKN to maintain a centralized music database, undergo annual audits, and implement an integrated online licensing system. Unclaimed royalties are held for two years before being transferred into a reserve fund.

Read More: Café and Restaurant Owners Concerned Over Potential Fees for Every Song Played