New Copyright Bill: Rethinking Copyright in Indonesia

Indonesia’s copyright landscape is entering a critical phase of transformation.

The Copyright Bill (the “Bill”) currently under discussion signals a clear regulatory response to rapid technological change, evolving business models, and long-standing concerns around creator protection in the digital economy. From artificial intelligence and automated licensing to the secondary art market, the Bill attempts to recalibrate the balance between innovation, commercial certainty, and creators’ rights.

AI-Based Creations: A New Category of Protected Work

One of the most notable features of the Copyright Bill is its explicit recognition of AI-supported works, referred to as AI Creation. Under the Bill, AI-based creation is defined as content generated using artificial intelligence with human involvement. AI is characterized broadly as technology capable of autonomously or semi-autonomously processing inputs to generate outputs such as content, decisions, or recommendations.

This approach seeks to incorporate the realities of today’s creative and digital ecosystems, where AI-assisted tools are increasingly used by creators. It also reflects regulator’s recognition that the existing copyright regime did not sufficiently address technological advances that could blur lines of authorship.

Key insights:

• The Copyright Bill aims to treat AI-assisted works as copyrightable subject matter, acknowledging that such works can be protected if there is meaningful human contribution.
• The concept of human touch is central but currently lacks a detailed legal standard (e.g., what level of human intervention qualifies). This could create interpretative uncertainty in practice, especially for generative AI content produced with minimal human input.
• Indonesia does not yet have a standalone AI law, and the only existing government normative framework on AI remains high-level. This legislative gap increases the importance of clear intellectual property provisions for AI.
• The distinction matters legally because Indonesian copyright law, like many jurisdictions, has traditionally required human authorship.

Practical implications for businesses and creators:

• Companies using AI tools for content generation should develop documentation practices to evidence human input in creative processes to support future copyright claims.
• The absence of clear thresholds may lead to disputes between creators, platforms, and users over eligibility for protection.
• The Bill may provide international investors and digital platforms with greater legal certainty that AI-assisted content will be recognized and enforceable in Indonesia.

Artist’s Resale Right (“ARR”) for Fine Arts

Another significant development is the proposed introduction of an ARR for visual arts. This concept grants artists a non-alienable entitlement to a royalty when original fine art works are resold, provided that certain conditions are met, including minimum resale price and transaction involvement of professional intermediaries.

Key insights:

• ARR introduces an ongoing economic right for visual artists that extends beyond the initial sale, addressing historic concerns that artists often miss out on economic gains when their works appreciate in value over time.
• This echoes international practices (e.g., droit de suite in several European Union nations) designed to promote fairness in secondary art markets.
• Royalties are calculated as a percentage of the resale price, with maximum royalty caps, and are to be collected through a collective management organization (Lembaga Manajemen Kolektif).

Practical implications for businesses and creators:

• Art market participants, including galleries and auction houses, may need to adjust transaction structures and compliance processes to accommodate ARR obligations.
• For artists, ARR represents a significant expansion of statutory protection into an area that has historically relied on private contractual arrangements.

Smart Contracts as Recognized Intellectual Property (“IP”) Licensing Instruments

The draft Bill also explicitly recognizes smart contracts (a self-execute program on distributed ledger technology) as valid instruments for licensing and/or transferring copyrights.

According to the Copyright Bill, smart contracts could apply to perpetual transfers, automatic licenses, and sale agreements involving creative works such as text, music, and other artistic outputs.

Key insights:

• Smart contracts may enhance transparency, efficiency, and traceability in IP transactions, particularly where automated royalty distribution or usage-based licensing is involved.
• The Bill alludes to the possibility of automated transfers triggered by specific events (such as the death of a creator), although no detailed framework is provided.
• The Bill also hints at “automatic” licensing transfers possibly triggered by certain events (such as the creator’s demise), though it remains unclear how smart contracts must be registered or formalized with the Ministry of Law (as required for certain IP instruments).

Practical implications for businesses:

• Questions around cross-jurisdictional enforcement, data privacy, and platform liability for automated license execution remain unresolved.
• IP owners may benefit from developing capabilities to negotiate and implement blockchain-based licensing mechanisms.

What Comes Next

Indonesia’s new Copyright Bill represents a meaningful step toward modernizing the country’s intellectual property framework in response to technological innovation and evolving creative markets. By addressing AI-assisted creations, automated licensing mechanisms, and long-standing gaps in creator protection such as Artist’s Resale Rights, the Bill signals a broader effort to align copyright law with contemporary modes of creation and exploitation.

For businesses and creators, these developments present both opportunities and areas requiring careful attention. While the Bill opens pathways for greater legal recognition, enforcement, and economic participation, it also leaves several interpretative and operational questions to be resolved through implementing regulations, judicial practice, and market standards. Early engagement with the evolving framework, including reviewing licensing structures, documenting human involvement in AI-assisted works, and monitoring enforcement mechanisms, may help stakeholders navigate the transition more effectively.

As the legislative process continues, ongoing dialogue between regulators, creators, technology providers, and market participants will be essential in shaping a copyright regime that supports innovation while safeguarding legitimate rights.

If you wish to explore how smart contract–based licensing and automated copyright transfers may affect your business model, licensing strategy, or compliance obligations, please reach out to us at mail@bagusenrico.com.