Government Institutions Assisting in Representing the Economic Rights of Creators: Is It Necessary?

Abstract

This article evaluates the institutional governance of the Lembaga Manajemen Kolektif Nasional (LMKN) in Indonesia’s music royalty management system, focusing on the principles of transparency, accountability, and information technology integration. LMKN was established as a government-affiliated body to represent the economic interests of creators through a centralized and efficient system of royalty collection and distribution. This study aims to assess the effectiveness of LMKN in fulfilling its institutional mandate and the extent to which good governance principles are applied in practice. The research adopts a normative juridical method with conceptual and statutory approaches to analyze the legal foundation and functional implementation of LMKN based on institutional governance norms. The findings indicate that although LMKN plays a strategic role in streamlining the royalty system, its implementation still faces several challenges, including the lack of an integrated digital tracking system, weak information transparency, and the absence of a fair and verifiable reporting mechanism for creators. These discrepancies fail to achieve distributive justice in royalty distribution. The study recommends institutional reform through the digitalization of the tracking system, increased participation of creators, and the strengthening of transparency and public accountability. These findings underscore the urgency of transforming LMKN into a modern, technology-driven institution as a key prerequisite for sustainable and equitable royalty management in the digital era.