Indonesia's new copyright royalty systems

The 2014 Copyright Law created a framework for collecting societies to operate in Indonesia. See here for the previous ad hoc ones that operated. Now a Ministry of Law and Human Rights Regulation No. 29 of 2014 on the Guidelines of Application and Issuance of Operational License and Evaluation of Collecting Management Society provides the detail.  

The Copyright Law expressly allows authors, copyright holders and performers to be members of collecting societies in order to manage and collect royalties from the commercial use of their copyright and neighbouring rights. It states that collecting societies should be non-profit and must be licensed by the Ministry. The new Regulation governs the license process. It sets minimum numbers of members and specific authorizations relating to collection of royalties to be obtained from the authors, copyright holders and performers using Powers of Attorneys.

Two specific National Collecting Societies are to be set up as the parent organizations covering music rights - one to represent authors' interests, the other to represent performers. As well as all the other rules, National Collecting Societies have additional obligations to devise ethics codes, supervise members and to provide guidelines for the licenses for their member collecting societies as to collection, royalty rates and distribution and also to mediate disputes. The Ministry appointed a number of commissioners to oversee these National Collecting Societies.