11 November 2019 (closed)
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Jakarta Composite Index (6,148.74) -29.25 -0.47%
Growing Internet penetration does not only give rise to a thriving online dating business but also to an expanding online gaming industry in Indonesia. Netherlands-based Newzoo, a global market research and predictive analytics firm (with a main focus on the gaming industry), said revenue in Indonesia's online gaming industry rose 77 percent year-on-year (y/y) to USD $321 million in 2015 from USD $181 million in the preceding year. This year the online gaming industry of Indonesia is expected to grow 12 percent (y/y).
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|
|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|
Southeast Asia's Online Gaming Industry:
|Total Value||USD $806 million||USD $1.1 billion||USD $1.4 billion||USD $1.7 billion||USD $2.2 billion|
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