Agency Behind Music Royalties Launches Its Own Band to Collect Even More Royalties

In a bid to expand its revenue streams, Indonesia’s National Collective Management Agency (LMKN) has unveiled its very own music group—ensuring it now collects royalties not just for others, but also for itself. After obtaining 2.2 billion rupiah in royalties from noodle chain, Mie Gacoan for unpaid royalties from playing local music in their spaces, LMKN's newly formed band, named Royal-Tea, will perform exclusively original songs written and published under the agency’s umbrella. In an unusual twist, all 50 members of the group are drawn from LMKN’s senior management.

According to insiders, every café play, and ringtone featuring Royal-Tea’s tracks will flow directly into the agency’s coffers, bypassing the existing royalty-collection system that traditionally collects royalties on behalf of the local musicians.

"The royalties are cheaper, and their music isn’t that bad. For a government agency, they’ve got surprisingly decent singers"

“This is efficiency,” said an LMKN spokesperson. “Why chase external royalties when we can create and collect from our own music? We’ll still collect royalties on behalf of Indonesian musicians, but for this week only during our nationwide promotional tour, we’re offering special discounts on royalties from our Royal-Tea songs.”

Local cafés and commercial venues, already grappling with rising licensing fees, are weighing their options. One café owner, who requested anonymity, admitted: “Honestly, I’ll probably switch from local musicians to LMKN's music. The royalties are cheaper, and their music isn’t that bad. For a government agency, they’ve got surprisingly decent singers.”