Indonesia Game Ecosystem Outlook 2017

INDONESIA GAME DEV
BUSINESS ENVIRONMENT
October 2016

PT INSPIRASI DUNIA MEDIA (IDEA NETWORK) CONFIDENTIAL AND PROPERTIARY
Enables you to spot opportunities that you can take
advantage of
and
Helps you avoid initiatives that are likely to fail
because of factors that you can’t control.

SPEAKER’S PROFILE
RICKY SETIAWAN
CEO of Duniaku.net
 Leading Duniaku.net, the biggest game news portal in
Indonesia.
 Passion in building communities; active as Board of
Trustee of Wikimedia Indonesia
 Avid gamer: Dota 2, Civilization Series, Patrician Series,
Port Royale Series

THE BUSINESS ENVIRONMENT
POLITICALECONOMIC SOCIO-CULTURAL TECHNOLOGICAL
PEST analysis
Francis Aguilar (1967)

INDONESIA ECONOMY IS FAIRLY STABLE

Supported by a stable and stronger
democracy
Better index on:
• Rule of law
• Government effectiveness
• Control of corruption
• Regulatory quality
• Voice and accountability
• Etc
Source: http://theglobaleconomy.com

The number of smartphone user significantly increased
27,4
38,3
52,2
69,4
86,6
103
0
20
40
60
80
100
120
2013 2014 2015 2016 2017 2018

High-profile, bootstrapping Indonesia Game Dev
ICON POP series;
downloaded by more than
11 million download
Popular Game: Tahu Bulat
(Round Tofu), #1 in Google
Play Indonesia on May 2016
Agate, bootstrapping for
7 years, funded by
Maloekoe Ventures in
2016.

VCs who have portfolio in game dev industry in Indonesia.
500 Startups
(Touchten)
Maloekoe Ventures
(Agate)
Discovery Nusantara Capital
(undisclosed)
East Ventures
(Alkemis Games)

MIDDLE CLASS IS GROWING FAST
People are getting richer

Combined with population: Huge Opportunity!

Credit card penetration is very low compared to other ASEAN
Country.

Mobile games revenue
in Indonesia clocked in
at $42 million on 2014
Source: Newzoo (2014)

Indonesian prefer voucher, gift card, or DCB (direct carrier billing).

2017 OUTLOOK: ECONOMY IS GETTING BETTER
Economic growth is increased to 5,5%, making an ideal environment for
business to grow.
The number of mobile user and revenue is increased (source: Newzoo)
Increase in the level of investment. Some investments for game devs will
likely to happen in early 2017.

O&T FROM ECONOMIC CONDITON
Opportunities
Stable growth fuelled by a stronger
democracy
Growing middle class that are ready to pay
online
Strong payment network especially by using
voucher, gift card, or direct carrier billing.
Threats
Although the number is increasing, still
not many VC that invest in Indonesia
game Industry
Low credit card penetration

POLITICALECONOMIC TECHNOLOGICAL
PEST analysis
SOCIO-CULTURAL

WHEN AND WHY PEOPLE PLAY GAMES
Duniaku.net User Statistic
Monthly PV 8.000.000
(Source: Duniaku.net Internal Research)

??? ???
Game “X” from publisher “Y”
Download 500.000 – 1.000.000
(Source: Duniaku.net Internal Research)

5 out of 10 “WORST TRAFFIC ON
EARTH,” according to Waze (2016),
are Indonesian cities:
2. Bogor
4. Denpasar
5. Bandung
6. Surabaya
9 Jakarta

PEOPLE PLAY GAMES TO KILL TIME

Easy and quick games, that they can play while waiting
and commuting.
PEOPLE PLAY GAMES TO KILL TIME

Led by the Indonesia Game Association (AGI), the community grows significantly
in the recent years.
GAME INDUSTRY COMMUNITY IS GROWING

Game Developer Gathering 2015 was attended by more than 1.700 participants in
4 cities

#GameNight, a networking event held by AGI and Duniaku.net on 29 September 2016.
Attended by more than 90 participants.

Game Prime 2016 will be held on 29-30 Nov 2016, targeted to be attended by 4.000 participants.
The government supports 100 booth for local game dev and publisher, and tickets for the participants.

“Babies who have a father that loves to play a game in front
of them will someday become boys that neglect study and
school as they will also be addicted to games.”
Mario Teguh
7.700.000 Twitter followers and has his own popular motivational TV
show, “Mario Teguh Golden Ways”
PUBLIC FIGURES GO AGAINST GAME

The Child Protection Commission (KPAI) calling for
ban of games that are considered as inappropriate
for kids (mature games).
Ministry of Communication and Informatics released
Indonesia Game Rating System instead, to protect
game industry.
PUBLIC FIGURES GO AGAINST GAME

OUTLOOK 2017: STRONGER COMMUNITY
Monthly training and gathering in Jakarta megapolitan area and several big
cities (Medan, Depok, Surabaya) lead by AGI, supported by Duniaku.net
and Dicoding dev community.
Change in behavior are unlikely to happen. People will still play games on
their smartphone as they are commuting.

Threats
Although growing, the community of game
developers is still small. Might be hard to find high
quality HR.
Statement from public figures and organization
might discourage people to play games.
Opportunities
Urban Indonesian have time to play game
– during their commuting time.
Game Industry community become
stronger, providing trainings and
inspirations for the future developers
O&T FROM SOCIO-CULTURAL

POLITICALECONOMIC SOCIO-CULTURAL
PEST analysis
TECHNOLOGICAL

90,69%
4,33%
2,10% 0,25% 2,63%
0,00%
10,00%
20,00%
30,00%
40,00%
50,00%
60,00%
70,00%
80,00%
90,00%
100,00%
Android iOS BlackBery Windows Phone Others
Indicated by phone that is used to visit Duniaku.net.
The majority use low-resolution phone.
PHONE AND OS USAGE
The majority use Android.

1 Samsung J5
2 Asus z007 Zenfone C
3 Google Nexus 5
4 Asus T00F
5 Xiaomi Redmi 3
6 Samsung Galaxy Grand Prime
7 Redmi Note 2
8 Lenovo A6000
9 Asus ZenFone 2
10 Galaxy Ace
The majority use entry-mid level phone.
PHONE AND OS USAGE

1 360 x 640 29,50%
2 720 x 1280 8,86%
3 480 x 800 8,64%
4 480 x 854 4,92%
5 320 x 570 4,82%
The majority use low-resolution phone.
PHONE AND OS USAGE

PHONE AND OS USAGE

O&T FROM TECH
Threats
Games with high quality graphics and need
bigger space may find it difficult to find user
base in the country
Opportunities
Opportunity to develop Android games
as the user base is quite big
The number of smartphone user is
huge compared to other ASEAN
countries.

ECONOMIC SOCIO-CULTURAL TECHNOLOGICAL
PEST analysis
POLITICAL

GOVERNMENT STARTS TO SUPPORT
GAME INDUSTRY
Creative Economy Body (Bekraf) Founded
in 2015 to support creative economy,
including game and app development.
Active in supporting events such as:
Bekraf Developer Day, Pop Con ASIA,
and Game Prime 2016, the biggest B2B
event in Indonesia.

GOVERNMENT STARTS TO SUPPORT
GAME INDUSTRY
Some important ministries have not yet
support game dev in their program, such
as Ministry of Trade and Ministry of
Industry.

RELATIVELY UNREGULATED
Regulation is not strict. The Indonesia
Game Rating System has only been
launched in 2016.
Government can change rules in less
than one week. Sometimes make
confusion.

OUTLOOK 2017: MORE GOV SUPPORT
Jokowi approval rate is very high (84%). His program (including Bekraf) are likely to be
continued.
IGRS will be widely implemented.
Trainings and developments from the government, enabling more HR (especially
developer)

O&T FROM POLITICAL AND LEGAL
Threats
Unregulated, might also create confusion and
ambiguity; can be a time bomb
Regulation can change quickly
Opportunities
The government starts to support the
industry
Jokowi government approval rate is high
(84%) ensuring the stability in the near
future.
Regulation is not strict.

THANK YOU

Indonesia Game Ecosystem Outlook 2017

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