The Indonesian government has formally tabled a draft bill to amend its 2014 Copyright Law, marking a significant attempt to regulate the digital economy. The proposed 2026 reforms establish new legal frameworks for artificial intelligence, digital assets, platform liability, and royalty collection. These changes follow ongoing discussions between the government, intellectual property owners, and major technology companies, including Google.
How does the bill regulate Artificial Intelligence?
The draft introduces a tiered “human-involvement” test to determine how copyright applies to AI-generated content. Works produced with sufficient human creative direction will qualify for standard copyright protection. In contrast, autonomously generated works that lack significant human input will receive a more limited “related-rights” protection. Under this structure, initial ownership for such works would typically vest in the system’s commissioner or deployer.
Did You Know? The proposed law clarifies that purchasing a Non-Fungible Token (NFT) serves only as a certificate of authenticity for the asset, rather than an automatic transfer of the underlying copyright.
Why are digital platforms facing new liability rules?
The government is moving to hold digital intermediary platforms legally accountable for hosting infringing content, a shift prompted by a Constitutional Court ruling regarding user-generated content. The draft outlines a structured notice-and-takedown regime that requires platforms to follow specific response timelines and maintain detailed record-keeping logs. Platforms that comply with these identification protocols and reporting requirements will be granted “Safe Harbour” protection. The director of Enforcement at the Intellectual Property Office (IPO) stated that these measures are necessary to curb pirated digital content and address concerns raised by the United States Trade Representative (USTR).
What is the goal of the royalty governance reform?
The amendments aim to ensure fair compensation for creators by establishing a National Collective Management Committee to restructure existing Collective Management Organizations (LMKs). Digital platforms that make copyrighted content publicly available will be required to report usage data and fulfill royalty-settlement obligations. This reform aligns with Indonesia’s long-standing support for improved royalty collection, a position the country has previously advocated for in various World Intellectual Property Organization (WIPO) proposals.
Expert Insight: The success of these reforms may ultimately depend on the gap between legislative intent and practical application. While the bill introduces robust frameworks for digital rights, IP owners remain focused on whether these rules will be matched by the consistent enforcement mechanisms that have previously been identified as a challenge by the USTR.
What happens next for the draft bill?
The bill must now move through the parliamentary process, which is expected to take time. During this period, stakeholders—including IP owners and tech platforms—are likely to continue engaging with the government regarding the specific application of these rules. The final version of the law will depend on how successfully the government balances the need for stricter content protection with the operational requirements of digital platforms.
Frequently Asked Questions
What types of digital works will be covered under the new law?
The proposed framework explicitly includes e-books, blogs, digital artwork, virtual and augmented reality works, and blockchain-based media.
How will the bill affect journalists and the press?
The Indonesian Press Council has been a regular advocate for the royalty structures included in the draft, which aim to ensure journalists receive compensation for content used by digital platforms.
Does the draft law apply to all AI output equally?
No. The law distinguishes between works with “sufficient human creative direction,” which receive standard copyright, and autonomous AI works, which receive only limited “related-rights” protection.
How might these changes in intellectual property regulation influence your use of digital content platforms in the future?
