In the hospitality sector music is more than background sound. It shapes atmosphere influences guest emotion and strengthens brand identity. Hotels restaurants cafés and resorts rely on background music to enhance customer experience and encourage longer stays. However when music is played in a commercial setting it is not merely entertainment. It becomes a public performance under copyright law. This means businesses must understand their legal responsibilities before using music in their premises.
In Indonesia public performance rights are regulated under Copyright Law Number 28 of 2014. The law states that any commercial use of copyrighted music requires permission from rights holders. This applies whether the music is played through speakers in a hotel lobby or streamed in a restaurant dining area. Collective management organizations such as WAMI and KCI are authorized to collect and distribute royalties on behalf of composers and music creators. Their role ensures that artists receive fair compensation when their work is used commercially.
Many hospitality businesses mistakenly believe that personal streaming subscriptions allow them to play music freely in public spaces. In reality most consumer streaming platforms are licensed only for private listening. Using them in a commercial environment without proper authorization can expose businesses to legal claims financial penalties and reputational damage. Compliance is not simply a matter of avoiding fines. It reflects ethical business practice and respect for intellectual property within the creative economy.
Understanding public performance rights is therefore a strategic necessity for hospitality operators. As Indonesia continues to strengthen its creative industry and copyright enforcement businesses must align their operations with legal standards. Proper licensing protects companies from risk while supporting musicians whose work contributes to the ambience guests enjoy. In a competitive market professionalism includes not only service excellence but also responsible and lawful use of creative content.
Sources: Kusumaningtyas, R. F., Roisah, K., Sulistyaningsih, D., & Aritenesa, D. (2025). Pemenuhan hak pencipta lagu oleh pelaku pertunjukan tanpa izin. Jurnal Ilmiah Kebijakan Hukum, 19(2). https://doi.org/10.30641/kebijakan.2025.V19.5309 | Antara News. (2025, December 29). RI Govt mandates music royalty payments in commercial spaces. | SiprConsultant. (2025). Understanding music and song royalty obligations in public spaces in Indonesia.