September 30, 2025 | 10:36 pm
TEMPO.CO, Jakarta - Amid ongoing debates over the governance of music royalty payments in commercial spaces, the Indonesian Shopping Center Management Association (APPBI) has signed a partnership with digital music platform Velodiva.
The agreement was formalized at Hotel Sultan on Monday, September 29, 2025, in an effort to dispel perceptions that malls are neglecting royalty obligations.
Shopping Centers Reaffirm Commitment to Royalties
APPBI Deputy Chairman Sugwantono Tanto emphasized that shopping centers have long been among the most compliant industries in paying royalties to musicians and songwriters.
He noted that even before this collaboration, APPBI was the first association recognized by the National Collective Management Agency (LMKN) for its compliance.
“We were one of the first associations to work with LMKN and other collective management organizations,” Sugwantono said in a press release on Tuesday, September 30, 2025.
He explained that this commitment reflects the evolving role of malls. Once limited to retail transactions, modern shopping centers now function as multifunctional public spaces that also serve entertainment and educational purposes.
According to him, two issues often fuel disputes in royalty governance: identifying which songs are being played and ensuring that payments are fairly distributed.
“The polemic is not about the rates. The real challenges are, first, accurately determining whose music is being played in malls, and second, making sure the royalties go to the rightful musicians and songwriters,” he added.
Velodiva CEO Vedy Eriyanto said the new partnership addresses these challenges head-on. With Velodiva’s system, he explained, royalty payments will no longer be a contentious issue for the industry.
“Of the roughly 400 APPBI member malls, none need to worry about playing music anymore. Every song is tracked in real time, reports are transparent, and royalties are distributed fairly to creators,” Vedy said.
He added that the system not only guarantees recognition of copyright for musicians but also provides business owners with peace of mind by ensuring legal certainty in royalty payments.
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