Copyright is one of the key regimes under Intellectual Property Rights (IPR), offering legal protection to creators for their works, including songs and/or music. In business practices, especially in the food and beverage (F&B) sector, music is often played in public areas—such as restaurants and cafés—as part of strategies to create a pleasant atmosphere for customers. However, the commercial use of music without the creator’s or copyright holder’s permission may constitute a legal violation.
One significant case of copyright infringement within a commercial context recently occurred in Bali, where the Director of PT Mitra Bali Sukses—the franchise holder of Mie Gacoan in Bali—was named a suspect by the Bali Regional Police for allegedly infringing music copyrights. The case arose following a report filed by the Indonesian Music Licensing Center (Sentra Lisensi Musik Indonesia/SELMI) in 2024.
This case represents a concrete application of copyright law in protecting the economic rights of songwriters in Indonesia, and highlights the necessity for business operators to fulfil licensing obligations when using copyrighted works for commercial purposes.
The Mie Gacoan Bali Royalty Case
The alleged infringement began with a complaint filed by SELMI on August 26, 2024, concerning the commercial playback of music at several Mie Gacoan outlets in Bali without obtaining licenses or permissions from copyright holders. The police initiated an investigation in early 2025, and after a series of inquiries, the case escalated to formal investigation. On July 21, 2025, the Director of PT Mitra Bali Sukses was officially named a suspect.
Investigations revealed that Mie Gacoan outlets in Bali had been playing music as part of their commercial operations without paying royalties to songwriters. Based on calculations derived from the Indonesian Minister of Law and Human Rights Decree of 2016, royalty tariffs for business premises are set at IDR 120,000 per seat per year. Given the substantial seating capacity of each outlet, the estimated economic loss to the songwriters could reach billions of rupiah.
In this case, investigators invoked Article 113 of the Copyright Law, which stipulates criminal sanctions for violations of creators’ economic rights. Penalties include a maximum imprisonment of four (4) years and/or a fine of up to IDR 1 billion.
The Position of Songwriters in Copyright Infringement Cases
Under Law No. 28 of 2014 on Copyright, songwriters possess both economic and moral rights. Economic rights grant the exclusive authority to derive financial benefit from the use of their work, including its commercial use in public spaces. Moral rights ensure the acknowledgment of authorship and protection of the work’s integrity.
In the Mie Gacoan Bali case, the commercial playback of songs without proper licensing or royalty payments constitutes a clear infringement of the songwriter’s economic rights. This not only results in financial loss for the creators but also reflects negligence on the part of the business operator in fulfilling legal obligations regarding music licensing.
Business operators who utilize music in public spaces are required to obtain the necessary licenses and pay royalties in accordance with applicable regulations. Non-compliance leads to the loss of rightful income for creators and triggers legal consequences for unauthorized users.
Conclusion
The commercial use of music in public spaces without obtaining permission from the copyright holder is a violation of the economic rights protected under Indonesia’s Copyright Law No. 28 of 2014. The Mie Gacoan Bali case demonstrates that unauthorized use of creative works continues to occur in the business sector, especially within the food and beverage industry.
The suspect designation in this case reflects the commitment of law enforcement to uphold intellectual property rights and protect the interests of creators. Business operators must ensure legal compliance through proper licensing and royalty payments, thereby supporting a fair and sustainable creative economy ecosystem.