Policies and Measures that Prevent Piracy and Increase the Collection of Royalties from Cultural Intellectual Property

In the context of preventing piracy and increasing the collection of royalties from cultural intellectual-properties, the followings are several policies of the Government of Indonesia:
1. Law 28 of 2014 on Copyright;
2. Minister of Law and Human Rights Decree HKI.2.OT.03.01-02 of 2016 on Ratification of Royalty Tariffs for the Users Conducting Commercial Use of Creations or Rights Products related to Music and Songs;
3. Law 17 of 2006 on Customs;
4. Government Regulation 20 of 2017 on Control of Imports or Exports of Goods Suspected of Resulting or Originating from infringement of intellectual property rights; and
5. Minister of Finance Regulation 40 of 2018 on Recordation, Restraint, Guarantee, Temporary Suspension, Monitoring and Evaluation to Control Import or Export of Goods Suspected of Resulting or Originating from Infringement of Intellectual Property Rights.

Law 28 of 2014 on Copyright is specifically intended to protect copyrights, which are the exclusive rights comprising moral rights and economic rights, including:
1. License, written permission granted by the copyright holder or owner of related rights to other parties to exercise the economic rights over their works or related rights product under certain conditions;
2. Royalty, remuneration for the utilization of economic rights of works or product of related rights received by the author or owner of related rights; and
3. Indemnity, an amount of money imposed on infringer of economic rights of an author of a copyright holder or a related rights owner under a court decision in a civil or criminal case that is final and binding for the loss suffered by the author, copyright holder or related rights owner.

Law 28 of 2014 on Copyright also mandates the establishment of a National Collective Management Institution (LKMN) to handle the collection of royalties for the use of song and music works in Indonesia. LMKN has the authority to collect royalties on songs or music from commercial users following the tariffs set and approved in the Minister's decision and distribute them to the copyright holder and related rights owner. LMKN has the attribution authority under the Copyright Law to withdraw, collect, and distribute royalties and to manage the interests of the economic rights of the creator and holders of related rights in the field of songs and music.

First established in 2015 to protect the economic rights of musicians, in 2019, the Ministry of Law and Human Rights through Minister of Law and Human Rights Decree M. HH-01.Kl.01.08 of 2019 on the Appointment of National Collective Management Institution Commissioners and the National Collective Management Institution of Related Rights in the Field of Songs and Music, inaugurate ten commissioners of the National Collective Management Institution (LMKN) for the 2019-2024 period.

In line with efforts to prevent piracy and increase the collection of royalties from cultural intellectual-properties, the Ministry of Justice and Human Rights issued the Minister of Law and Human Rights Decree HKI.2.OT.03.01-02 of 2016 on Ratification of Royalty Tariffs for the Users Conducting Commercial Use of Creations or Rights Products related to Music and Songs. The amount of royalty fares is determined proportionally and is based on best practices that have been applied in Indonesia. Royalty rates are the only official valuation collected from users by the Collective Management Institution of the Author and the Collective Management Institution of Related Rights in the field of music and songs, and the rate will be evaluated at least once per year. The royalty rates for commercial use of works or products related to music and songs are classified as utilization:
1. Rates for recreation and karaoke centers;
2. Rates for music concerts, supermarkets, and hotels;
3. Rates for restaurants and cafe, bars and bistros, and others; and
4. Rates for radio and television broadcasts.

According to Law 17 of 2006 on Customs, the Customs and Excise office has the authority to protect intellectual property rights (HKI). Article 54 states that chairman of the commercial court may issue written order to customs and excise officials to temporarily suspend the release of imported or exported goods from customs areas based on sufficient evidence, suspected of resulting from infringement of trademarks and copyright protected in Indonesia. The letter issuance is at the request of the owner or holder of the trademark or copyright. In addition to being stipulated in the Customs Law, the government also strengthens this authority by issuing Government Regulation 20 of 2017 on Control of Imports or Exports of Goods Suspected of Resulting or Originating from Infringement of Intellectual Property Rights. The issuance of government regulations is intended as a basis for law enforcement and control of IPR violations, as well as avoiding misappropriations that can cause losses for IPR holders. Government Regulation 20 of 2017 covers matters of interest concerning control of imports or exports of goods suspected of resulting or originating from the infringement of IPR, including but not limited to trademarks, copyrights and related rights, patents and simple patents, and industrial designs.

Based on Minister of Finance Regulation 40 of 2018 on Recordation, Restraint, Guarantee, Temporary Suspension, Monitoring and Evaluation to Control Import or Export of Goods Suspected of Resulting or Originating from Infringement of Intellectual Property Rights, customs and excise can directly exercise its authority as a border officer in which the area of supervision is the potential point of entry of goods suspected of originating or resulting from infringement of intellectual property rights. It regulates the recordation system, which is the first requirement for owners or holders of IP rights of products to be able to be protected by customs and excise - an ex-officio mechanism. Moreover, the owners or holders of rights can immediately ask for protection of their IPR from the court in this case the Commercial Court to be able to issue the letter of temporary suspension of goods suspected of infringement of IPR in the Customs supervision area - a judicial mechanism.

In general, policies and measures to prevent piracy and increase the collection of royalties from cultural intellectual-properties are intended to contribute to the following achievements of the National Strategy for Culture (see Goal 1, Main Policies and Measures that Contain Strategies and Frameworks for the Development of an Integrated Cultural and Creative Economy Sector):
1. Utilize advancement of culture objects to improve people welfare (Agenda 4); and
2. Strengthen the role of government as facilitator in the advancement of culture (Agenda 7).