The Indonesian music industry was born when record companies began to emerge in Indonesia. These recording companies played a crucial role as the starting point for the development of music in the country over the decades to come.
This article, based on a study titled Creative Economy: National Music Industry Development Plan 2015–2019 written by Dina Dellyana, Fikri Hadiansyah, Adib Hidayat, and Widhi Asmoro, and published in 2014, sheds light on the growth of the music industry in the country.
In the 1940s, “Tio Tek Hong” was a Batavia-based record company that became the pioneer of the recorded music sub-sector in Indonesia. This company recorded songs by Indonesian singers during World War II. Each vinyl record released by Tio Tek Hong carried a watermark reading "terbikin oleh Tio Tek Hong Batavia" ("made by Tio Tek Hong Batavia"). The dominant music genres at the time were keroncong, gambus, and nationalistic songs.
In the 1950s, more record companies began to appear, such as Irama, Dimita, Remaco, Nirwana, TOP, Eterna, and Contessa. Pop music started to find its place alongside keroncong and classical genres. Early artists in Indonesia’s recording industry included Bing Slamet, Titiek Puspa, Rachmat Kartolo, Nien Lesmana, Koes Plus, and Panbers.
In addition to private entities, the government also established a state-owned recording company called Lokananta, based in Solo, Central Java.
Lokananta was founded in 1956 in Solo. Its two main duties were to produce and duplicate vinyl records, and later cassette tapes. By 1958, Lokananta began marketing its records to the public through RRI (Radio Republik Indonesia). The name "Lokananta" roughly translates to “a gamelan from heaven that plays without a musician.”
At the time, Lokananta mainly released regional songs, while Irama focused more on entertainment music. Lokananta was a government-owned entity, responsible for producing and duplicating vinyl records. In 1951, RRI also introduced a popular program at the time called Radio Star Search.
In the 1960s, new recording companies like Hins Collection and Akurama emerged. Western music began to influence Indonesian music significantly. Due to the high price of vinyl records and the low purchasing power of the market, producers sought cheaper and simpler recording formats. The cassette was adopted as a new medium.
While vinyl was still used, many companies switched to two or four-track recordings. One such company was Celebrity Studio, owned by Jack Lesmana and Fajar Menyingsing. Recording technology also improved with the introduction of shift systems and mixing techniques, where mixing was the final step before mass production and distribution.
The 1970s was a transformative decade for Indonesia's music industry. In 1976, more recording studios adopted modern equipment capable of 8 to 16-track recordings, especially for film scoring. Notable early studios included Triple M and Musica Studio, which was formerly Metropolitan Studio, founded by Yamin Wijaya, an electronics store owner. Musica Studio later became one of the country’s largest music companies, producing artists such as Chrisye, Iwan Fals, and Nidji.
Another major change in the 1970s was the popularity of tape recorders, allowing people to record songs from the radio or vinyl. The increasing availability of blank cassettes fueled a “recording culture” among Indonesians.
Musical taste also shifted — pop music dominated public preference. Musicians who resisted mainstream trends saw declining careers and income. Record labels, adjusting to market demands, began relying heavily on producers, which artists felt limited their creative freedom. Musicians like Zaenal Arifin, Yopie Item, Wandi Kuswandi, and Benny Likumahua were affected.
By the end of this era, recording systems advanced to support up to 32 tracks, although Indonesia notably did not sign the Berne Convention for copyright protection in 1971.
In the 1980s, the record label Remaco went bankrupt, while Musica Studio rose by signing long-term contracts with artists such as Chrisye, a pop singer-songwriter known for his distinct soft vocals. His iconic song "Lilin-Lilin Kecil" and five of his albums were included in Rolling Stone Indonesia’s 150 greatest Indonesian albums of all time.
In 1985, Indonesia’s music industry was criticized internationally due to rampant unauthorized compilation of Western music. Bob Geldof publicly condemned the piracy of the "Live Aid" album, a charitable music project for Ethiopia.
This era introduced the concepts of flat pay vs. non-flat pay contracts. In flat pay, the producer or label purchased all rights, with artists receiving only upfront fees or a bonus for strong sales. These often lacked formal agreements, leading to disputes — like those involving BIMBO and Koes Plus — as copyright law was still based on the outdated Auteurswet 1912 until it was replaced by Law No. 6/1982.
High-selling albums in this era included:
Gombloh – Semakin Gila (Nirwana, 1986)
Iwan Fals – Mata Dewa (Airo, 1988)
Rita Sugiarto & Jacky Zimah – Vol. 1 (Insan, 1982)
Dian Piesesha – Tak Ingin Sendiri (JK, 1984)
Betharia Sonata – Hati yang Luka (Musica, 1987)
To prevent further copyright violations, global record companies established direct operations in Indonesia. However, government regulations required them to partner with local companies:
EMI with Aquarius Musikindo
Warner Music with Hemagita Tama Records
Universal Music with Suara Sentra Sejati
Sony Music with Indosemar Sakti
BMG with Musica Studio
Eventually, these companies operated independently. Mergers reshaped the industry: BMG merged with Sony, and EMI closed its Indonesian branch, transferring its catalog to Warner and Universal.
Albums selling over a million copies in the 1990s included:
Nike Ardilla – Biarkan Cintamu Berlalu (Music Plus, 1994)
Yuni Shara – Mengapa Tiada Maaf (Blackboard, 1995)
Junior – Bujangan (Billboard, 1996)
Stinky – Self-titled (Buletin, 1997)
Sheila on 7 – Self-titled (Sony, 1999)
The 2000s witnessed the indie movement grow rapidly, driven by modern tech and a friendly business climate. Indie artists and labels flourished as major labels couldn’t accommodate all genres or artists. Mass media, especially MTV, helped both indie and major artists gain popularity.
A notable indie movement was Indiefest, an indie compilation competition organized by Bandung-based FFWD Records (founded by Helvi S., Marine R., and Didit in 1999). FFWD introduced Indie Pop to Indonesia, first by releasing The Cherry Orchard (UK). They later signed international artists like Edson, Club 8, and Jens Lekman, and supported Indonesian acts like MOCCA and The S.I.G.I.T, who toured abroad. Artists such as Polyester Embassy, Homogenic, RNRM, Hollywood Nobody, and Teenage Death Star also rose from FFWD.
Meanwhile, physical music sales (CDs and cassettes) began transitioning to digital formats. Some albums still achieved high physical sales, like:
Sheila on 7 – Kisah Klasik untuk Masa Depan (Sony, 2000)
Dewa – Bintang Lima (Aquarius, 2000)
Slank – Virus (Program, 2001)
Padi – Sesuatu yang Tertunda (Sony, 2001)
Peterpan – Bintang di Surga (Musica, 2004)
Jamrud – Ningrat (Logiss, 2000)
Ungu – Melayang (Trinity, 2005)
In 2006, digital music consumption rose significantly. The internet made access to music easier via services like Napster and peer-to-peer networks. Digital kiosks popped up in malls.
Mobile phones advanced to support monophonic, polyphonic, and truetone ringtones. A new product, the Ring Back Tone (RBT), became a major income source for musicians. Music was no longer limited to physical formats — digital downloads, merchandise bundles, and mobile content became the norm.
This led to the rise of content providers, and later, content aggregators — companies that distribute music to digital platforms. Local aggregators included Equinox DMD, Musikator, Gotong Royong Musik, and Mistral Musics. Foreign aggregators like Believe Digital, Tunecore, and CD Baby also entered the market, helping Indonesian artists go global.
