Several hotels in Mataram have been hit with unexpected music royalty bills from the National Collective Management Organization (LMKN), ranging from USD 125 to USD 1,000 per year, depending on the number of rooms.
According to Mataram Hotel Association Chair I Made Adiyasa, hotels with fewer than 50 rooms were billed around USD 125. However, no hotel in Mataram has paid the music royalty invoices so far, even though they confirmed receiving the letters for royalty payment.
So far, three hotels under AHM have reported receiving the royalty demand letters, but their names have been withheld to avoid further scrutiny.
“Three hotels have informed me but asked not to be named to avoid being targeted further,” Adiyasa said, as reported by Detik.
Hotels Question the Logic of the Royalty Fee
The LMKN justified the charges by arguing that televisions in hotel rooms can be used by guests to listen to music.
“That’s their argument—hotels must pay royalties based on the number of rooms,” Adiyasa explained. This is similar to how restaurants or cafes are billed based on seating capacity.
Ni Ketut Wolini, Chair of the Indonesian Hotel and Restaurant Association (PHRI) NTB, criticized the royalty collection system, saying it lacks clear technical guidelines. She referred to the recent legal dispute involving Mie Gacoan in Bali, where the chain was reported for failing to pay a blanket music license.
The Mataram City Government has also voiced concerns. He warned the policy could harm the local entertainment and hospitality sectors.
” Does this really need to be regulated so strictly?” We object to this. Let’s sit down together and find a win-win solution,” said Mataram City Secretary Lalu Alwan Basri.
Rega Fajar Firdaus, General Manager of Grand Madani Hotel Mataram, confirmed his hotel received an LMKN bill in July 2025 for USD 250 per year. He said refusal to pay could lead to penalties of up to 10 years in prison and fines of USD 250,000.
“That’s what makes business owners anxious—why should there be criminal charges?” Rega said, as reported by Kompas.
He argued the calculation method is unfair, especially since in-room TVs are meant as a standard facility, not a commercial entertainment service like karaoke.
Rega noted that some budget hotels without TVs were still billed, with LMKN citing background music in lobbies as the reason. Out of AHM’s 30 members, over a dozen hotels have received invoices, and at least one has been formally summoned for refusing to pay.
The sudden charges have come at a time when the hospitality industry is struggling with reduced budgets.
“In the current economic climate, this is a heavy burden. But we follow the law, of course we will pay. But we need time. If I pay in August this year, it means next August I’ll be billed again ” Rega said, adding that hotels need more time to budget for annual royalty payments,
As of publication, LMKN has not responded to requests for comment regarding the royalty demands sent to hotels in Mataram.
Source: Detik, Kompas
Photo Credit: Getty Images
