Minister's Remarks

The digital transformation has revolutionized how music is created, shared, and enjoyed. A song can now reach millions across continents with a single tap, yet many artists, performers, and producers still receive only a fraction of the income their works generate, even as their creativity sustains the very platforms built upon it.

Indonesia believes that behind every melody, performance, and production lies creative labour that carries human value, passion, and dignity. Every creator deserves fair treatment and transparent recognition for their work. A just and fair royalty system must value creative contributions properly, ensure transparency, and allow opportunities and rewards to flow fairly across borders.

To help achieve this, Indonesia proposes that the international community, under the auspices of WIPO, to work toward a legally binding international instrument on the governance of phonograms and audiovisual royalties in the digital environment. Such an instrument should:

strengthen fairness, transparency, and accountability;
support balanced negotiations between creators, performers, producers, and platforms; and
develop interoperable data systems that respect diverse policies and the interests of stakeholders

This proposal does not aim to standardize artistic expression, but to harmonize justice—so that every song, every performance, and every creative work is valued and respected wherever it is enjoyed.

Indonesia stands ready to work hand in hand with WIPO Member States and stakeholders in shaping a copyright governance system that uplifts all creators and strengthens the future of the global music and audiovisual industries for generations to come.

May the music of our shared creativity always play in harmony with justice.

Minister of Law

Republic of Indonesia

Aide Mémoire

Indonesia’s Proposal for Legally Binding Instrument
on the Governance of Copyright Royalty in the Digital Environment

World Intellectual Property Organization (WIPO)

Standing Committee on Copyright and Related
Rights (SCCR) 47^th Session
1–5 December 2025

Countries around the world have recognised the importance of creative economy development as a pivotal strategy to create jobs and spur innovation, as well as to reduce dependence on primary commodities. In fact, rapid development of creative industries and digital technologies also transforms the cultural and creative sectors into global network that is interconnected.
By pursuing this path, countries can effectively diversify their export profiles and cultivate a robust innovation ecosystem, seamlessly integrating modern economic practices with the preservation of their rich national traditions and cultural identity.
The rapid and continuous advancement of digital technologies has transformed the cultural and creative industries, reshaping the ways in which creative works are created, distributed, and monetized across borders. This digital transition has also redefined the dynamics of audience engagement, fostering new forms of participation and connectivity across cultural sectors.
Streaming services have largely replaced physical media and traditional broadcasts, enabling on-demand access to films, series, and music across various devices. In the music industry, this transformation has introduced new revenue models—including subscription-based services and digital downloads—while also fostering algorithm-driven content discovery and viral trends.
This digital transformation has propelled the global creative economy to new heights. According to UNCTAD, in 2022, the total exports of creative services reached a record US$ 1.4 trillion, while streaming services increased their share of the global recorded music market to 67.3% in 2023. Global phonogram and audiovisual royalties collected in 2023 reach EUR 11.75 billion, growing by 7.6% from the previous year. Digital royalty collections also recorded steady growth of 9.6%, increasing from EUR 4.2 billion in 2022 to EUR 4.62 billion in 2023—representing a 120.7% rise compared to 2019 and accounting for 35% of total collections.
While the digital environment has undoubtedly spurred innovation and opened new opportunities for creative works and global reach, the digital expansion has also intensified structural imbalances in the way creators are compensated and royalties are distributed. Digitalization raises new challenges, such as market concentration, competition-related issues, and asymmetries in bargaining power between large digital platforms and individual creators. The persistent value gap between revenues generated by digital platforms and the income received by copyright holders underscores the need for appropriate policy enhancements. Concerns have also been raised regarding issues of cultural diversity and discoverability within the evolving digital landscape.
Based on our observations, challenges in royalty collection within the current digital music ecosystem stem from four key issues:
1. Lack of transparency, inclusiveness, and accountability, particularly in the governance of cross-border royalty collection and distribution;
2. Absence of a centralized copyright data management system at the global level;
3. Lack of standardized and predictable royalty distribution mechanisms; and
4. Global disparities in the valuation of copyright royalties.
In response to these challenges, we would like to propose the following elements:
1. The establishment of a global governance framework under the auspices of WIPO, with functions including the management of phonogram and audiovisual documentation; facilitation of licensing and royalty collection processes; and strengthening oversight and accountability in royalty distribution;
2. Exploration of alternative royalty payment mechanisms and equitable distribution models aimed at the purpose of supporting emerging artists and incentivizing established creators;
3. Development of accountability mechanisms and minimum global safeguard to ensure equitable treatment for creators and rights holders across jurisdictions, with due regard to the cross-border dimension of copyright royalty management.
To ensure that all creators and copyright holders, in the cultural and creative industries, receive a just, fair, timely, and proportional share of remuneration for the use of their works and to address the cross-border nature of royalty allocation in the digital environment, Indonesia underscores the importance of pursuing an innovative, breakthrough, and legally binding instrument under WIPO. Such an instrument would set global minimum standards without interfering with national sovereignty over rate-setting or cultural policy.
Indonesia intends to formally introduce this proposal and seek the constructive engagement and support of member states at the 47^th Session of the Standing Committee on Copyright and Related Rights (SCCR) of WIPO on 1-5 December 2025.
Indonesia welcomes the views, inputs, and comments of WIPO Member States on this important matter and remain committed to working collaboratively and constructively with the entire WIPO membership to bring forward practical, inclusive, and future-oriented solutions to this pressing global issue.

Introduction

Why This Matters

Creative economy as global engine

Cultural and creative industries generate annual revenues of almost US$ 2.3 trillion globally, contributing 3.1% of the global GDP. (UNCTAD, 2024)

The value of global recorded music revenue hit a record US$ 28.6 billion, an overall 10.2% year-on-year increase. (UNCTAD, 2024)

Creative sectors employ millions worldwide and serve as catalysts for innovation and cultural diplomacy.

The rise of streaming economy

The share of streaming revenues increased by 10.4% in 2023, accounting for 67.3% of the total global market. (UNCTAD, 2024)

For the first time ever, digital became the biggest source of royalty collection for creators, accounting for 35% of total collections. (CISAC, 2023)

A shared global challenges

While digitalization and AI expand opportunities, they raise concerns on the digital divide, job shifts, quality control, privacy and consumer protection, copyright, and market monopolization.

The “value gap” between platform revenues and creator remuneration is increasingly recognized as a global issue.

Emerging Global Royalty Gap

Economic scale

Estimated US$55.5 billion in uncollected global music and audiovisual royalties.
Equivalent to 0.08–0.10% of global GDP growth (UNESCO, 2023; World Bank, 2022).

Structural challenges

Fragmented copyright data management systems.
Opaque and inconsistent royalty distribution.
Asymmetrical bargaining power between large digital platforms and individual creators.
Disparities in royalty valuation across markets.

Four Key Issues

Governance of Royalty Collection and Distribution

Limited transparency, inclusiveness, and accountability in copyright royalty governance across jurisdictions.

Copyright Data Management

Fragmented copyright metadata and lack of global interoperability.

Royalty Distribution Models

Continued reliance on the pro‑rata model and insufficient development of alternative, fairer distribution approaches.

Disparities of Copyright Valuation

Uneven valuation of royalties and limited transparency in negotiation frameworks.

A fair world requires a fair chance — and Indonesia stands ready to lead this change

The Proposal rests on three pillars designed to ensure fairness, transparency, and accountability in global copyright royalty governance.

The establishment of a global governance framework under the auspices of WIPO, to:

manage phonogram and audiovisual documentation;
facilitate licensing and royalty collection processes; and
strengthen oversight and accountability in royalty distribution.

Exploration of alternative royalty payment mechanisms and equitable distribution models

Support emerging artists and incentivize established creators with predictable, transparent, and fair allocation methodologies.

Development of accountability mechanisms and global safeguards

Ensure just and equitable treatment for creators and rights holders across jurisdictions, with due regard to the cross‑border dimension of copyright royalty management.

A shared vision for global cooperation

Indonesia believes that fairness in royalty governance transcends geographical boundaries and diverse realities. It is a shared responsibility among all nations to ensure that creativity continues to inspire and sustain communities everywhere.

The Proposal aims to nurture collective trust, enhance data transparency, and meaningful cross‑border collaboration under WIPO’s guiding leadership.

ABOUT INDONESIAN PROPOSAL

Minister's Remarks

Aide Mémoire

Indonesia’s Proposal for Legally Binding Instrument
on the Governance of Copyright Royalty in the Digital Environment

Introduction

Why This Matters

Creative economy as global engine

The rise of streaming economy

A shared global challenges

Emerging Global Royalty Gap

Four Key Issues

A fair world requires a fair chance — and Indonesia stands ready to lead this change

The establishment of a global governance framework under the auspices of WIPO, to:

Exploration of alternative royalty payment mechanisms and equitable distribution models

Development of accountability mechanisms and global safeguards

A shared vision for global cooperation

Download Docs

Contact Us

ABOUT INDONESIAN PROPOSAL

Minister's Remarks

Aide Mémoire

Indonesia’s Proposal for Legally Binding Instrument on the Governance of Copyright Royalty in the Digital Environment

Introduction

Why This Matters

Creative economy as global engine

The rise of streaming economy

A shared global challenges

Emerging Global Royalty Gap

Four Key Issues

A fair world requires a fair chance — and Indonesia stands ready to lead this change

The establishment of a global governance framework under the auspices of WIPO, to:

Exploration of alternative royalty payment mechanisms and equitable distribution models

Development of accountability mechanisms and global safeguards

A shared vision for global cooperation

Download Docs

Contact Us

Indonesia’s Proposal for Legally Binding Instrument
on the Governance of Copyright Royalty in the Digital Environment