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ASIA	SPOTLIGHT	REPORT	
	
March	2020	
	
Indonesia
2	
Asia	Games	Market	Intelligence:	Asia	Spotlight	Report	
ASIA	SPOTLIGHT	REPORT	
Indonesia	
March	2020	
	
Indonesia	
Indonesia	is	a	dynamic	market	for	digital	games	and	esports,	especially	given	its	ever-increasing	
rate	of	internet	and	smartphone	users.	Its	population	size	and	demographics	combined	with	a	
government	that	supports	the	development	of	gaming	and	esports	let	the	country	into	a	ripe	
position	in	the	industry.	
	
Population	and	statistics	
	
As	the	fourth	largest	country	in	the	world	by	population,	Indonesia	unsurprisingly	also	has	the	
world’s	fourth	largest	number	of	internet	users,	with	more	than	171	million	citizens	connected	
to	the	internet.	The	country	is	also	the	home	of	more	than	83	million	smartphone	users,	60%	of	
its	population	is	currently	between	15-54	years	old,	and	its	GDP	per	capita	(PPP)	is	$14,800	
(comparable	to	Egypt	and	Peru),	all	of	which	set	the	stage	for	the	country	to	be	both	an	
important	market	for	gaming	and	esports	as	well	as	a	rising	player	in	the	industry.	
	
Gamers,	Game	Developers,	and	Esports	are	gaining	mainstream	popularity	
	
While	gaming,	including	esports,	was	seen	in	mostly	negative	tones	in	the	past,	these	past	few	
years	saw	changes	in	the	public	perception	toward	the	gaming	industry	and	culture.	With	the	
rise	of	purchasing	power	and	the	advent	of	accessible	internet,	smartphones,	and	PCs	to	the	
mass	market,	digital	gaming	becomes	a	major	past	time	especially	for	urban	Indonesians.	
Twitter’s	2019	survey	of	around	4,000	Indonesians	found	that	73%	of	Indonesian	Twitter	users	
play	digital	games,	86%	of	whom	play	from	mobile	devices,	45%	from	PCs,	and	24%	from	
consoles	(67%	of	them	play	in	more	than	one	platforms).	Gaming	events	and	community	
gatherings	have	also	seen	a	rise	in	popularity,	with	BEKRAF	Game	Prime’s	attendees	kept	
increasing	every	year	from	700	in	2016	to	23,000	in	2019.	Moreover,	non-endemic	brands	such	
as	food	and	beverages	giant	Indofood	and	the	Indonesian	Railway	Company	(PT	KAI)	are	
sponsoring	gaming	and	esports	activities.
3	
Asia	Games	Market	Intelligence:	Asia	Spotlight	Report	
	
Local	game	developers	also	gained	more	attention	in	recent	years	with	the	international	
publication	of	several	games	including	Agate	Studio’s	Valthirian	Arc:	Hero	School	Story,	Lentera	
Nusantara’s	Ghost	Parade,	and	Toge	Production’s	Coffee	Talk,	with	the	latter	included	in	
Steam’s	top	20	games	for	January	2020.	Internet	cafes	in	the	country	seem	to	see	a	revival	by	
rebranding	themselves	from	run-down	sketchy	establishments	into	clean	and	professional	
facilities	that	support	esports	activities	through	improved	services,	including	better	gaming	PC	
and	equipment	as	well	as	food.	
	
In	terms	of	the	games	played	by	Indonesian	gamers,	a	quick	glance	of	the	most	popular	gaming	
platform,	mobile,	showed	that	the	most	popular	mobile	games	genre	is	Action	with	more	20%	
of	downloads	and	43%	of	revenue.	Esports	games,	which	can	be	categorized	as	action	and/or	
MOBA,	such	as	Free	Fire,	Mobile	Legends,	PUBG	Mobile	are	the	top	3	most	downloaded	and	
most	profitable	games	in	the	country.	Moreover,	Role	Playing	and	Strategy	games,	played	
primarily	by	gamers	who	have	high	disposable	income	rather	than	by	the	mass	market,	only	
accounted	for	less	than	8%	of	total	downloads,	yet	have	a	34%	share	of	revenues	because	of	
the	high	spending	in	these	games.
4	
Asia	Games	Market	Intelligence:	Asia	Spotlight	Report	
Exhibit	1:	Popular	mobile	game	genres	in	Indonesia	in	2019	(Source:	Sensor	Tower)	
	
Genre	 Downloads	 Revenue	
Action	 20.30%	 43.60%	
Casual	 12.60%	 5.10%	
Arcade	 10.80%	 1.10%	
Simulation	 9.30%	 1.80%	
Educational	 7.10%	 0.10%	
Racing	 6.90%	 0.60%	
Puzzle	 6.70%	 1.40%	
Sports	 5.70%	 3.20%	
Strategy	 4.10%	 14.10%	
Adventure	 4.10%	 2.20%	
Role	Playing	 3.50%	 20.60%	
Music	 2.20%	 0.50%	
Board	 2.20%	 0.50%	
Word	 1.50%	 0%	
Card	 1.30%	 1.60%	
Casino	 1.20%	 3.60%	
Trivia	 0.50%	 0%
5	
Asia	Games	Market	Intelligence:	Asia	Spotlight	Report	
With	regard	to	the	developers	and	publishers	of	Indonesia’s	most	popular	mobile	games,	
foreign	developers	and	publishers	still	dominate	the	market,	with	only	1	game	(TTS	Pintar)	
developed	by	an	Indonesian	studio	among	the	top	10	most	downloaded	mobile	games	in	2019.	
	
Exhibit	2:	Most	downloaded	mobile	games	in	Indonesia	in	2019	(Google	Play	Store	and	Apple	
App	Store)	
	
Game	 Downloads	 Revenue	
Garena	Free	Fire	 35,351,665	 $44,167,039	
Mobile	Legends:	Bang	
Bang	 30,853,543	 $14,021,718	
PUBG	Mobile	 16,709,443	 $11,772,438	
Subway	Surfer	 13,364,024	 $28,863	
Ludo	King	 12,098,476	 $91,286	
Stack	Ball	 11,073,814	 $3,551	
Call	of	Duty	Mobile	 10,757,859	 $1,832,538	
TTS	Pintar	 9,493,687	 $0	
8	Ball	Pool	 9,354,661	 $1,416,644	
My	Talking	Tom	2	 9,055,592	 $25,663
6	
Asia	Games	Market	Intelligence:	Asia	Spotlight	Report	
Continuous	government	support	
	
The	government	of	Indonesia	in	general	seems	to	be	most	interested	and	involved	in	gaming-
related	events,	with	high	level	officials	including	the	Chief	of	Staff	to	the	President,	Minister	of	
Communication	and	Informatics,	and	the	head	of	the	Creative	Economy	Agency	recorded	to	
attend	gaming	events	and	stating	their	support	to	the	development	of	gaming	and	esports	in	
Indonesia.	Notable	moves	from	the	government	in	supporting	the	gaming	industry	are:	
• Inclusion	of	gaming	and	app	development	as	the	top	creative	industries	supported	by	
the	Ministry	of	Tourism	and	Creative	Economy	(formerly	the	Creative	Economy	Agency)	
• State-owned	Telkomsel	joined	the	industry	in	2013	via	its	gaming	arm	Dunia	Games	
• Brought	esports	as	an	exhibition	sport	in	Asian	Games	2018	in	Jakarta	
• Pushed	for	esports	to	be	a	medal	sport	in	SEA	Games	2019	in	Manila	
• Game	development	included	in	Law	No.	24/2019	on	Creative	Economy.	Through	the	
law,	local	governments	can	contribute	by	providing	incentives	to	the	creative	industries,	
including	game	developers.	In	addition,	foreign	investors	are	also	incentivized	to	invest	
in	the	country	as	they	can	also	directly	cooperate	with	local	governments.	
• Ministry	of	Youth	and	Sports	symposium	on	esports	(2019)	
• Integrating	the	Indonesian	esports	association	into	the	National	Olympic	Committee	
• Updating	the	Sports	System	Law	to	include	esports	
• Holding	the	annual	Presidential	Esports	Cup
7	
Asia	Games	Market	Intelligence:	Asia	Spotlight	Report	
Challenges	
	
While	the	country	has	seen	a	growing	gaming	and	esports	market	as	well	as	industry	
development,	several	issues	do	still	exist.	Local	developers	are	relatively	stagnant	in	their	sales	
and	growth.	The	government,	which	tracks	the	number	of	local	game	studios,	stated	that	there	
are	15	“big”	game	studios	(in	the	form	of	limited	liability	companies)	and	135	small	
independent	studios,	which	are	quite	few	for	a	country	of	Indonesia’s	size.	However,	those	
studios	only	represent	a	miniscule	part	in	Indonesia’s	gaming	market.	CEO	of	local	game	
developer	company	Arsanesia,	Adam	Ardisasmita,	stated	that	only	1%	of	the	country’s	spending	
for	gaming	went	into	local	developers.	Another	issue	that	is	also	important	to	note	is	that,	
amidst	all	the	hype	and	support,	the	government	does	not	have	a	coherent	policy	in	supporting	
local	game	developers	to	sell	their	games	in	foreign	markets,	with	countries	such	as	China	
notably	known	to	meticulously	filter	foreign	games	to	be	sold	in	their	country	(only	1	
Indonesian	game	was	approved	by	the	Chinese	government	since	2016).	
	
There	is	also	the	issue	of	a	confusing	stakeholder	landscape.	There	are	a	number	of	
organizations	claiming	to	represent	the	game	industry	and/or	esports	in	the	country	and	not	all	
of	them	interact	with	each	other.	Apart	from	the	previously	mentioned	IESPA,	the	country	also	
has	the	Indonesian	Games	Association	(AGI),	Indonesian	Video	Games	Sports	Association	
(AVGI),	Indonesian	Esports	Federation	(FEI),	and	the	Esports	General	Authority	(PB	Esports).	
	
Lastly,	not	all	parts	of	the	Indonesian	society	see	gaming	and	esports	as	a	positive.	Members	of	
the	older	generations	in	Indonesia	particularly	still	see	the	activity	as	negative	or	damaging.	In	
2019,	the	conservative	province	of	Aceh’s	Ulema	(Islamic	Scholar)	Council	issued	a	fatwa	
(decree)	declaring	PUBG	as	a	forbidden	game.	There	are	also	calls	to	limit	children’s	gaming	
time,	a	la	China	and	South	Korea,	due	to	concerns	of	gaming	addiction.	Research	conducted	by	
the	University	of	Indonesia	in	2018	found	that	at	least	14%	of	teens	(junior	and	senior	high	
school	students)	in	Jakarta	suffered	from	online	gaming	addiction,	further	raising	concerns.	
	
Overall,	Indonesia	is	a	rising	powerhouse	of	the	gaming	market,	both	in	terms	of	consumers	
and	developers.	The	country	has	experienced	a	move	towards	a	more	positive	attitude	on	
gaming	and	esports,	especially	from	the	government.	Challenges	do	still	persist,	however	the	
future	seems	to	be	bright	for	the	industry.

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