The introduction of Government Regulation No.: 56 of 2021 (“GR No.: 56/2021”) represents a groundbreaking shift in Indonesia’s music industry, particularly in the management of public performance rights. This article delves into the significant impact of Information Technology (IT) systems on revolutionizing these rights, emphasizing the creation of a more transparent, efficient, and trustworthy Collective Management system. This initiative is poised to benefit a diverse group of stakeholders, including not only rights holders but also broadcasters, venues, and various businesses such as hotels, restaurants, and cafes, each of whom plays a crucial role in the music ecosystem.
The regulation marks the beginning of a new era with the introduction of a sophisticated Song and Music Information System and a Central Database. These systems are designed to modernize the management of public performance rights, a critical revenue stream in the music industry. The enhancement of transparency and efficiency in these processes is not just a technological upgrade but a fundamental shift in the industry’s operation, promising fairer practices and more equitable distribution of royalties.
A significant challenge in realizing this vision is the financing of these IT systems. The development and implementation of such technology require substantial investment, which the article argues should be a collaborative effort involving both the private sector and public-private partnerships. This collaboration is not only about pooling financial resources but also about combining expertise and innovation to drive the sector forward.
The integration of IT systems is set to reshape the landscape of trust within the industry. For creators and rights holders, it ensures that their contributions are recognized and compensated fairly. For users of music, including broadcasters, venues, hotels, restaurants, and cafes, a more transparent and accountable management system translates into increased confidence in the system, encouraging them to comply more readily with royalty payments.
However, this technological advancement is not without its challenges. The introduction of IT systems is expected to disrupt the existing structures within Indonesia’s music industry. This disruption, while challenging, also presents a unique opportunity for innovation and growth. It necessitates a rethinking of traditional practices and encourages stakeholders to embrace new, more efficient ways of operating.
So, the journey to fully realize the potential of GR No.: 56/2021 is comprehensive and multifaceted. It requires not just technological innovation but also a shift in mindset among all industry participants. Embracing these changes, adapting to new market dynamics, and fostering a collaborative environment is essential for the successful implementation of these systems.
Ultimately, I have reached the conclusion that the integration of IT systems for managing public performance rights, as initiated by GR No.: 56/2021, is a transformative step for Indonesia’s music industry. This move towards a more transparent, trusted, and equitable system, while fraught with challenges such as financial investment and technological adaptation, is poised to bring about a new era of efficiency and fairness. The benefits, including increased trust, fair distribution of royalties, and enhanced compliance, are set to redefine the landscape of Indonesia’s music industry.