Andy Suryanto, General Chairman of the Indonesian Games Association, expects revenue in Indonesia's online gaming industry to rise at least 12 percent (y/y) to USD $360 million this year. He emphasized that - although the gaming industry has been growing by around an annual 30 percent and contains great potential for further growth as Internet and smartphone penetration are relatively low - there are still relatively few local game developers in Indonesia. Suryanto estimates that there are currently only around 1,000 local game developers active in Indonesia.

Bambang Heru Tjahjono, Director General of Informatics Applications at Indonesia's Ministry of Communication and Informatics, agreed that the online gaming industry is indeed booming in Indonesia but local game manufacturers still play a minor role in this industry. He estimates that local game developers account for about 1.2 percent of the online games that are played in Indonesia. Without providing too much details Tjahjono said the government is currently engaged in the formulation of an online gaming industry road-map in order to support and boost this industry. By 2020 Indonesia's game developers are targeted to account for 50 percent of the market.

One strategy to support the local developers is by reducing the costs it takes to develop a game. It is estimated that it currently requires between IDR 500 million and IDR 1 billion to produce an online game. The government also plans to support local developers by finding ways to promote local games abroad with the hope that a foreign investor is interested in the game for commercial reasons.

Indonesia's Online Gaming Industry Profile:

Internet Users 66 million
Smartphone Users
52 million
Online Game Users 43 million
Average Amount Game Users
Spend to Buy Online Games
USD $13.3 million per year
Revenue in the Online Gaming
USD $321 million

Source: Kontan

Southeast Asia's Online Gaming Industry:

           2013          2014          2015         2016F         2017F
Total Value USD $806 million USD $1.1 billion USD $1.4 billion USD $1.7 billion USD $2.2 billion
Indonesia           16%           17%           18%           19%           21%
Malaysia           19%           20%           19%           19%           18%
Philippines            9%            9%            9%           10%           11%
Singapore           19%           18%           17%           14%           12%
Thailand           21%           21%           21%           22%           22%
Vietnam           15%           14%           14%           14%           14%

Source: Newzoo

Further Reading:

4G Technology Brings Opportunities for Indonesia's Telecoms Tower Companies
E-Commerce Industry Indonesia to Thrive on Smartphone & Internet Penetration Growth
Smartphone Users in Indonesia to Grow Sharply in the Years Ahead
Promising Online Mobile Games Industry in Indonesia as 4G Network Expands