Indonesia's Draft Copyright Law Seeks to Regulate AI Content Creation and Platform Compensation

Indonesia is preparing significant amendments to its copyright law that would explicitly address the role of artificial intelligence (AI) in content creation, according to a draft bill reviewed by Reuters. If enacted, the legislation would make Indonesia the first country in Southeast Asia to incorporate AI-specific provisions into its copyright framework.

The draft bill, initiated by the Indonesian parliament and currently under government review, introduces several novel rules concerning AI-generated content. Among these, it prohibits the use of AI to imitate a creator’s “distinctive style” and requires creators to disclose when AI has been used in content generation.

Hermansyah Siregar, an official from Indonesia’s Ministry of Law and Human Rights overseeing intellectual property, confirmed the draft’s authenticity and emphasized the need for regulation. “The development of generative AI has disrupted the copyright framework,” Siregar said. “If unregulated, it could kill human creation.”

The bill also addresses the use of copyrighted works for AI training. It mandates that technology platforms pay compensation when they aggregate, republish, or use news content for AI training purposes. These payments would be managed by state-supervised collective management organizations tasked with distributing funds to news publishers.

The scope of the bill covers a wide range of content types, including video games, photography, computer programs, journalism, and films. It stipulates that AI-assisted works may qualify for copyright protection only if they meet certain human involvement criteria, though the draft does not specify the threshold of human contribution required. Fully AI-generated works would be excluded from copyright protection.

Regarding the use of copyrighted materials to train AI models, the draft proposes that such use be subject to fair-use provisions or licensing agreements, aiming to balance innovation with rights holders’ interests.

However, the bill has raised concerns among technology companies. Ari Juliano Gema, an intellectual property and entertainment lawyer, noted that the legislation appears to conflate commercial AI use with research purposes, potentially complicating compliance for tech firms.

Google, a major player in AI and digital content, publicly criticized the proposed overhaul last month. The company warned that “rigid, overbroad mandates” could harm local creators, slow innovation, and isolate Indonesia internationally, ultimately deterring investment critical to the country’s digital development. Google also indicated it would engage with the Indonesian government to discuss the bill’s provisions.

Noncompliance with the bill could lead to sanctions against tech platforms, including revocation of local business permits, underscoring the government’s intent to enforce the new rules strictly.

The timeline for the bill’s passage remains uncertain, as the government continues to solicit input from stakeholders. Nonetheless, Indonesia’s move reflects a growing global trend of governments seeking to update copyright laws to address the challenges and opportunities posed by AI technologies.