Indonesia moves to modernize copyright law for user-generated content

30 October 2025

Indonesia moves to modernize copyright law for user-generated content

Indonesia is planning to reform its copyright law to strengthen protection for creators and close loopholes allowing unauthorized use of copyright works on user-generated content (UGC) platforms and through AI-generated content.

In 2025, the Indonesian government and the House of Representatives began discussions to amend the 2014 Copyright Law, which is among the priority bills in the House’s 2025-2029 legislative agenda. The move comes after the Indonesian Constitutional Court in February 2024 ruled that Articles 10 and 114 of the copyright law must cover user-generated content platforms. 

In the Constitutional Court case, the petitioners – including music publishers, record labels and prominent musicians – argued that Articles 10 and 114 do not adequately protect creators or provide effective sanctions, especially technologies that make it easy to share and distribute copyrighted works.

The issue arose when the petitioners found their copyrighted songs had been uploaded to UGC digital platforms, such as Bigo Live and Likee, without their permission. Under Article 10, however, UGC-based platforms are not covered, leaving creators and copyright holders with little legal recourse. 

 

Outdated copyright law

The Constitutional Court ruled that the interpretation of Article 10 was too narrow and therefore unconstitutional, as it only covered physical marketplaces and excluded digital service platforms based on UGC. This gap failed to address the growing role of online services in facilitating the distribution or reproduction of copyrighted works, leaving creators under-protected in the digital environment.

The Constitutional Court clarified that Article 10 should be interpreted to include UCG-based platforms: “Managers of marketplaces and/or digital service platforms based on User Generated Content (UGC) are prohibited from allowing the sale, display, and/or reproduction of goods resulting from copyright and/or related rights infringements in the marketplaces and/or digital services they manage.”

The ruling highlighted that parts of the copyright law no longer align with technological developments and the evolving ways copyright can be violated online.

Because Article 10 was so narrowly defined, enforcing the sanctions under Article 114 – including a fine equivalent to US$6,000 – has been difficult, especially against copyright violators on UGC-based digital platforms. Article 114 states: “Any person who manages a place of trade and knowingly allows the sale and/or reproduction of goods resulting from copyright and/or related rights infringement in that place, as referred to in Article 10, is subject to a maximum fine of IDR 100,000,000 (one hundred million rupiah).”

As Article 10 does not cover digital service providers, these violators are effectively outside the reach of Article 114, leaving copyright holders with limited protection.

The Constitutional Court’s decision took effect immediately through its binding interpretation of the two provisions. Following this ruling, the government and the House of Representatives have begun interpretation. A broader revision is also underway to make the law more adaptable to the digital era. 

 

Proposed amendments

The initial amendments to the copyright law have developed into a draft for a much more comprehensive revision, as greater reform has become necessary. The drafting team involves multiple stakeholders, including law faculties from Indonesia’s top universities, the Indonesian Music Publishers Alliance and its Executive Board, the Directorate General of Intellectual Property, intellectual property law consultants and other institutions. So far, only general outlines of the proposed changes have been released, including the points outlined below.

Expansion of ‘works’

The draft law will likely recognize digital creations, such as multimedia works, video games, databases and computer programs, as distinct forms of creative work deserving protection. Currently, the copyright law only covers works in science, art and literature that are produced through inspiration, intellect, imagination, ingenuity, skill or expertise, and expressed in a tangible form.

AI-generated content

The draft amendments will address AI-generated works. According to the stance of the Directorate General of Intellectual Property, content created with human involvement will be eligible for copyright protection, whereas works produced entirely by AI without human input will not.

Fair use rights

Fair use will continue to apply for education, research, parody, news reporting and access for people with disabilities. Special provisions are also introduced for digital content, including metadata, digital rights management, watermarking and blockchain.

Introduction of public domain

Currently, Articles 58-63 of the Copyright Law set copyright protection at 50-70 years, counted from the first publication or the author’s death. While it is generally understood that works enter the public domain after this period, the copyright law does not explicitly state this widely held principle. The draft bill plans to incorporate it.

The current discourse and proposed amendments indicate Indonesia is moving toward a digital transformation in intellectual property protection. The planned recognition of AI-generated content and digitalization of music royalty management demonstrates the government’s efforts to align the law with technological progress and strengthen creator protections in the digital age.


About the author

 Norma Mutalib

Norma Mutalib

Norma Mutalib is a partner at Makarim & Taira S. She has more than 21 years of experience in Indonesia’s fast-paced legal industry, with broad experience in market entry, regulatory issues and best practices. Personable and professional, she excels in building loyal relationships, understanding clients' needs and delivering value in solving their legal problems. Mutalib has extensive expertise in franchising and hotel management arrangements, including in intellectual property, employment, foreign investment and corporate and commercial matters. She is an active contributor to prominent franchise law publications. Working seamlessly with her team, her deep understanding of the unique nature of Indonesian legal work allows her to provide highly practical and commercially sound advice after thorough examination of each client’s situation.  

 Aliya Ilysia Irfana

Aliya Ilysia Irfana

Aliya Ilysia Irfana is an associate in the corporate and commercial practice group at Makarim & Taira S. She has been involved in various merger and acquisition transactions, foreign investment, and general corporate matters. Her work includes conducting due diligence, drafting transaction documents, reviewing commercial documents, assisting clients for signing and closing work, etc. She has also been advising clients on matters related to intellectual property and franchising. Her clients include companies from various industries, including financial technologies, hotels and tourism, manufacturing, etc. 

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