Indonesia - Minister Of Finance Issues Rules For Giving Royalties To ASN.

Legal News & Analysis - Asia Pacific - Indonesia - Regulatory & Compliance - Banking & Finance

24 November 2021

Royalties are amounts paid for the use of Intellectual Property, such as Patents and Copyrights to their creators. These creators will be paid royalties when allowing their work to be produced and/or sold. Or for example an author who receives royalties from his book every time a number of copies are sold. Whoever the creator is entitled to this Intellectual Property royalty, including the ASN (State Civil Apparatus).

Through the Regulation of the Minister of Finance (PMK) Number 136/PMK.02/2021 concerning Guidelines for Providing Rewards Derived from Non-Tax State Revenues, Copyright Royalties to Authors, Patent Royalties to Investors, and/or Plant Variety Protection Rights Royalties to Plant Breeders since the date of promulgation on October 5, 2021, the Minister of Finance Sri Mulyani will provide compensation or royalties for Civil Servants (PNS) in government or campus environments. The budget is taken from Non-Tax State Revenue (PNBP) and given to civil servants who include creators, inventors, or plant breeders.

In one of the articles it is stated, " The provision of rewards aims to encourage interest, creativity, skills, expertise, innovation and research of the State Civil Apparatus (ASN) at ministries or institutions and universities, expand the reach of intellectual property use to the economy, and increase PNBP copyright royalties. , patents or PVP rights.”

It aims to encourage interest, creativity, skills, expertise, innovation, and research from ASN in ministries/agencies and universities. In Article 4 paragraph 1 of the Regulation of the Minister of Finance it is explained that, "Creators, inventors, and/or breeders are creators, inventors, and/or breeders whose names are listed in the application for registration/registration of copyrights, patents, and/or PVP rights, or listed in the certificate of copyright, patent, and/or PVP rights, and constitutes the State Civil Apparatus.”

To implement the program, Sri Mulyani stipulates that ASN eligible for royalties are government employees with a work agreement in accordance with the provisions of the legislation, and must meet four criteria, namely:

  1. Only those whose names are listed in the Copyright registration application or have obtained a Copyright certificate;

  2. Copyright owned has obtained a license;

  3. Has generated PNBP Copyright royalties;

  4. PNBP proceeds have been deposited into the state treasury.

Meanwhile, the category of ASN who are entitled to receive royalties, namely civil servants or government employees with work agreements in accordance with the law governing ASN. For civil servants who have entered retirement period, they experience termination of work agreements with respect. or died, royalties can still be disbursed. However, there is a condition that the Intellectual Property created is still within the protection period according to the Act.

As for civil servants who have passed away, the royalties will be given to their heirs. Sri Mulyani also limited only five Copyrights that could be registered to receive the royalties.

The amount of royalties received by civil servants is calculated based on the result of multiplying the basis of calculation of compensation (DPI) with a certain rate of compensation. DPI is the result of multiplication between royalty PNBP and the percentage of approval for use (PP) as determined by the Minister of Finance. This is regulated in article 6 of the regulation.


Meanwhile, the specified rate of return is based on a layer of value with two conditions. First, for layers of DPI value up to Rp 1 billion, a certain reward rate of 30% applies. Second, for layers of value above Rp 1 billion, the tariff is 20%.

There is also an example of the calculation is:

  • Individual

A is a civil servant in one of the R&D (Research and Development) government offices and generates a cumulative value of PNBP royalties for copyrights, patents or PVP rights in 2022 of IDR 1.5 billion. The percentage of PP approved at the institution is 80%.

Then the reward value first calculates the DPI value, then multiplied by a certain reward rate layer. The DPI value is multiplied between IDR 1.5 billion and 80% so that IDR 1.2 billion is obtained. Furthermore, for the first Rp 1 billion value, a 30% multiplication rate will apply so that Rp 300 million is obtained. Then the remaining Rp 200 million will be multiplied by the second layer of tariffs, which is 20% to obtain 40 million. In the end, the civil servant will receive a reward or royalty of Rp. 340 billion.

The calculation provisions only apply to the creator, inventor, or plant breeder who is an individual. If there is more than one creator, inventor, or plant breeder, then the terms of the reward are regulated by the government institution that produces the intellectual property.

  • Group

If A and B are civil servants in one of the R&D offices of a government office and produce a cumulative value of PNBP royalties for copyrights, patents or PVP rights in 2022 of Rp 1.25 billion. A's contribution to the copyright is 60% and B 40%, while it is known that the percentage of PP approved by the agency is 80%. 

So the reward value first calculates the DPI value, then it is multiplied by a certain reward rate layer. The DPI value for both is Rp 1.25 billion multiplied by 80%, resulting in a DPI of Rp 1 billion. This value is then multiplied by each contribution, so that PNS A has a DPI of Rp. 600 million and PNS B of Rp. 400 million.

The final calculation is the same as before, which follows the provisions of a certain reward rate layer stipulated in the regulation. In the end, PNS A will get a royalty of Rp. 180 million, while PNS B is Rp. 120 million.


For further information, please contact:

Annisa Am Badar, S.H., LL.M., Managing Partner, Am Badar & Am Badar

[email protected]