In today’s competitive market, background music is more than a pleasant addition as it is a strategic element that influences customer behavior, strengthens brand identity, and enhances the overall business experience. However, as more establishments rely on curated playlists or streaming services to shape ambiance, many overlook the legal framework that governs the use of music in public or commercial settings. The intersection between business and music law is often misunderstood, creating a gap between creative rights and commercial practices.
According to Indonesian copyright law, the act of playing music in a public space such as a restaurant, café, gym, or hotel qualifies as a public performance. This means the music cannot be used freely without authorization from the copyright holder or a collective management organization. The government, through the National Collective Management Organization or LMKN, regulates the collection and distribution of royalties to ensure creators are compensated fairly. Despite these regulations, many businesses remain unaware that a regular music subscription or purchased playlist does not automatically grant them the right to broadcast music commercially.
This lack of understanding has led to notable cases in recent years, including well-known restaurant and retail chains being required to settle royalty fees after years of unlicensed music use. The growing enforcement of these regulations reflects the government’s effort to protect intellectual property and raise industry standards. Yet compliance remains uneven. Many business owners perceive music licensing as complex or burdensome, while others underestimate the potential legal and reputational risks of ignoring it. This ongoing disconnect shows that awareness is still limited, even as regulations become clearer.
For businesses, understanding and complying with music laws should be viewed not as a formality but as a form of integrity. Respecting copyright supports the sustainability of Indonesia’s creative economy, ensuring that artists and composers benefit from their contributions. As the use of background music continues to evolve alongside technology, businesses that take proactive steps to license their music responsibly demonstrate professionalism and social responsibility, values that resonate as strongly as the music itself.
Sources: Music royalties for creators, not the state: Law Ministry. (2025, August 7). ANTARA News. | Gov’t Issues Regulation on Songs, Music Copyright Royalties Management. (2021, April 11). Cabinet Secretariat of the Republic of Indonesia. | Indonesia’s Legal Framework on Music Royalties. (2025, September). IMCOlaw.