JAKARTA, KOMPAS.com – Ariel, the frontman of the popular Indonesian band NOAH, has weighed in on the increasingly debated topic of direct licensing of performing rights.
Ariel explained that the emergence of direct licensing stems from the disappointment and distrust songwriters harbor towards LMKs (Collective Management Organizations). He cited issues such as a lack of detailed reporting and what some perceive as primitive mechanisms as contributing factors.
“In my opinion, direct licensing is an individual right, but it is not common for many music industry players in Indonesia,” Ariel stated in an Instagram post quoted by Kompas.com on Sunday, March 23, 2025.
“Most importantly, the mechanisms for direct licensing are not yet regulated under the Copyright Law. Its output has not been tested, including the tariffs, and let’s not forget about the tax implications, because royalties are taxable,” he added.
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Regarding the implementation of direct licenses, Ariel emphasized that it should be agreed upon from the outset between the singer and the songwriter, rather than being introduced suddenly once a song gains popularity.
“Direct Licensing towards the original singer (the singer who first performed a song), should ideally be agreed upon from the beginning of the collaboration between the singer and the songwriter,” Ariel said.
“Not suddenly in the middle, after the song has become popular. Because when negotiating prices in the middle, one party has absolute power, namely the songwriter. So the negotiation will tend to be one-sided,” Ariel continued.
Ariel, who is affiliated with Vibrasi Suara Indonesia (VISI), also shared his views on royalties being charged to singers.
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He pointed out that traditionally, royalty payments are made by LMKs to the songwriters.
“But all this time, generally, what we know, what we have been doing for years, is that the event organizers pay the royalties,” he explained.
“This rule is also commonly practiced in the music industry worldwide,” Ariel added.
However, as a songwriter himself, Ariel expressed concerns about the practicality of handling direct licensing independently.
“For me personally, as a songwriter, I feel incapable of carrying out direct licensing as it is currently being discussed,” Ariel stated.
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“I still need an LMK to obtain or manage my rights. Of course, an LMK that is credible and trustworthy,” he continued.
Furthermore, Ariel emphasized that music industry players do not have the authority to establish regulations regarding direct licensing; that role belongs to the government.
“But of all the things that are being debated, we, the music industry players, are not the ones authorized to establish regulations. Therefore, in my opinion, those who make the regulations are the ones who have the right to explain how it should be,” Ariel said.
“As we know, the Copyright Law will soon be revised. Hopefully, all parties will be involved, and a fair solution for everyone will be found. I sincerely hope for positive changes to occur,” Ariel continued.
Ariel hopes for clarity from the government regarding the rules concerning direct licensing, especially before the revision of Copyright Law Number 28 of 2014, to avoid creating confusion among Indonesian music industry players.
“I think the authorities should provide clarity during this status quo period,” Ariel said.
“Do not allow Indonesian music industry players to become confused, afraid, or even treated unfairly in order to be able to sing a copyrighted song,” Ariel concluded.
Ringkasan
Ariel NOAH shared his perspective on direct licensing, highlighting the disappointment with Collective Management Organizations (LMKs) due to issues like lack of detailed reporting. He emphasized that while direct licensing is an individual right, its mechanisms are not yet regulated under the Copyright Law, raising concerns about tariffs and tax implications. Ariel also stressed that direct licensing agreements should be established at the beginning of collaborations between singers and songwriters.
As a songwriter, Ariel feels he still needs an LMK for managing his rights, particularly one that is credible and trustworthy. He pointed out that music industry players are not authorized to establish regulations on direct licensing, urging government intervention to provide clarity, especially before the Copyright Law revision. Ariel hopes for a fair solution that involves all parties and prevents confusion or unfair treatment within the Indonesian music industry.