Indonesia Updates Copyright Law – Copyright
The Indonesian government has formally introduced a draft bill to overhaul Law No. 28 of 2014, signaling a significant modernization of the nation’s copyright framework to address the complexities of the digital economy. The proposed 2026 amendments target four primary areas: artificial intelligence (AI) regulation, the scope of digital assets, platform liability, and the governance of royalty collection.
Did You Know? The proposed copyright amendments explicitly clarify that the purchase of a Non-Fungible Token (NFT) serves only as a certificate of authenticity and does not grant the buyer ownership of the underlying copyright.
How the bill regulates AI and digital assets
The draft introduces a tiered “human-involvement” test to determine how AI-generated works are protected. According to the proposal, content created with significant human creative direction will qualify for standard copyright, while works produced autonomously with minimal human input will receive only “related-rights” protection. In the latter case, rights typically vest in the system’s deployer or commissioner.
The legislation also expands the definition of protected works to include modern digital assets. This list explicitly covers e-books, blogs, digital artwork, virtual and augmented reality media, and blockchain-based assets.
What the changes mean for digital platforms
Following a previous Constitutional Court ruling regarding user-generated content, the draft establishes clear legal accountability for digital intermediaries. Platforms may be held liable for hosting infringing content unless they adhere to a new structured notice-and-takedown regime. Compliance, which includes mandatory response timelines and strict record-keeping, will grant platforms “Safe Harbour” protection. The director of Enforcement at the Intellectual Property Office (IPO) recently emphasized that addressing pirated digital content is essential to mitigating trade-related concerns with the United States Trade Representative (USTR).
Expert Insight: The transition toward a formal notice-and-takedown regime represents a high-stakes balancing act for Indonesia. By aligning local platform liability with international norms, the government aims to satisfy USTR requirements while simultaneously incentivizing digital intermediaries to police their own ecosystems, potentially shifting the burden of enforcement from the state to the private sector.
How royalty collection will be reformed
The bill seeks to restructure Collective Management Organizations (LMKs) by establishing a National Collective Management Committee. This body is intended to ensure more transparent compensation for creators. Under the proposed rules, digital platforms that make copyrighted material publicly available will be subject to mandatory usage-data reporting and royalty-settlement obligations. These measures align with long-standing proposals Indonesia has submitted to the World Intellectual Property Organization (WIPO).
What happens next
The draft bill must now progress through the Indonesian Parliament before becoming law. IP owners and major technology firms, including Google, have already held meetings with the government to discuss the proposed amendments. Observers are closely monitoring whether the final legislation will be paired with the rigorous enforcement mechanisms that have previously been a point of contention for international stakeholders.
Frequently Asked Questions
Who owns the copyright for AI-generated works under the new bill?
If there is sufficient human creative direction, the human creator holds the copyright. If the work is generated autonomously with minimal human input, the system’s deployer or commissioner holds the initial “related-rights.”
Does buying an NFT grant me the copyright to the digital art?
No. The bill clarifies that purchasing an NFT serves only as a certificate of authenticity and does not result in the transfer of the underlying copyright.
How will the bill affect digital platforms?
Platforms will be legally responsible for hosting infringing content but can secure “Safe Harbour” status by following a new mandatory notice-and-takedown process, which includes specific timelines and record-keeping requirements.
What impact do you believe these regulatory changes will have on the growth of Indonesia’s digital creative sector?