Indonesia E-Sports Market Outlook 2030

Indonesia E-Sports Market Overview

• The Indonesia E-Sports market is valued at USD 11.1 million, based on recent market trends. This growth is primarily driven by the rapid expansion of the mobile gaming industry and the increasing number of professional gamers nationwide. With significant improvements in digital infrastructure, the market has seen a surge in domestic and international investments.

• Cities like Jakarta, Surabaya, and Bandung dominate the e-sports landscape in Indonesia. Jakarta, being the capital and economic hub, benefits from advanced digital infrastructure, access to capital, and an established network of gaming communities. Surabaya and Bandung have become major hubs due to their growing populations and active tech communities, which contribute to the burgeoning e-sports environment. Additionally, these cities host major tournaments and events, which attract players and sponsors alike, cementing their position as leaders in Indonesia's e-sports market.
• In 2022, the Indonesian government officially recognized E-Sports as a sport category under the Ministry of Youth and Sports. This landmark decision allowed E-Sports to receive formalized government funding, including investments in player development, infrastructure, and event organization. E-Sports are now part of the national sports program, enabling it to receive similar recognition and funding as traditional sports like badminton and football. The government allocated approximately $5 million in 2023 toward E-Sports development programs, reinforcing its commitment to this growing sector.

Indonesia E-Sports Market Segmentation

By Game Genre: The Indonesia E-Sports market is segmented by game genre into Multiplayer Online Battle Arena (MOBA), First-Person Shooter (FPS), Battle Royale, and Sports Simulation Games. MOBA games, such as Mobile Legends, hold a dominant share due to their massive following and the ease of playing them on mobile platforms, which cater to Indonesias large mobile-first gamer base. Additionally, the popularity of competitive tournaments surrounding these titles, supported by significant sponsorship deals, has solidified MOBA as a top genre in the countrys e-sports landscape.

By Platform: The Indonesia E-Sports market is segmented by platform into mobile, PC, and console. Mobile gaming leads the market due to the widespread availability of affordable smartphones and data plans. As Indonesia has a highly mobile-oriented gaming audience, many competitive players prefer mobile platforms over more expensive PCs or consoles. With titles like Mobile Legends and PUBG Mobile gaining immense popularity, mobile gaming represents the fastest-growing platform in the e-sports market, supported by investments from telecom companies and sponsors.

Indonesia E-Sports Market Competitive Landscape

The Indonesia E-Sports market is dominated by several key players, both local and global. Local teams like EVOS Esports and RRQ (Rex Regum Qeon) have made a significant impact by winning regional and international tournaments, while global brands sponsor many large-scale tournaments, contributing to the industry's growth. This consolidation highlights the influence of major organizations and their ability to shape the competitive landscape.

Indonesia E-Sports Market Analysis

Market Growth Drivers

• Rising Internet Penetration: Indonesias internet user base reached 204 million in 2023, driven by widespread mobile access and government efforts to enhance connectivity. The increasing availability of 4G networks and the planned roll-out of 5G services are set to further enhance connectivity in both urban and rural areas, providing a foundation for the growth of the E-Sports industry. The Ministry of Communications and Information has targeted expanding internet access to over 250,000 villages by 2024, which will foster the growth of online gaming and the E-Sports ecosystem.
• Growing Mobile Gaming Audience: As of 2023, Indonesia had over 114 million mobile gamers, marking a substantial rise from 2022, as mobile devices become more accessible. The affordability of smartphones and cost-effective mobile data plans have played a pivotal role in driving this growth, allowing millions of users to participate in E-Sports. The increasing popularity of mobile-first games like "Mobile Legends" and "PUBG Mobile" indicates a robust market, further strengthened by the engagement of Indonesias youth in mobile gaming.
• Government Support (National E-Sports Strategy, Investments): In 2022, the Indonesian Ministry of Youth and Sports recognized E-Sports as an official sport, paving the way for more structured support. This recognition has led to significant government investments in the development of E-Sports infrastructure, including arenas and training facilities. The "Indonesia E-Sports Presidential Cup," supported by the government, saw participation from over 600,000 competitors in 2023, reflecting the effectiveness of government-backed initiatives in boosting industry growth and fostering professional gaming.

Indonesia E-Sports Market Challenges

• Limited Infrastructure for Professional Gaming Arenas: Despite the growing interest in E-Sports, Indonesia has only a small number of professional-grade E-Sports arenas. This limits the ability to host large-scale tournaments outside major urban centers like Jakarta and Surabaya. In 2023, only 10 such arenas were fully operational, which is inadequate to meet the rising demand in the E-Sports community. Rural areas and smaller cities, where the majority of the population resides, face significant accessibility issues to professional-level gaming spaces, hindering both player development and audience participation.
• Regulatory Hurdles in Online Gambling Related to E-Sports Betting: The Indonesian governments restrictive stance on online gambling creates significant challenges for the E-Sports industry to capitalize on E-Sports betting, which is a major revenue source in international markets. As of 2024, Indonesia maintains a strict ban on online gambling, which limits potential revenue streams and stifles the growth of betting platforms linked to E-Sports tournaments. Enforcement of these laws, primarily by the Indonesian National Police, has kept the legal emergence of E-Sports betting platforms constrained, fragmenting the market and hindering its full development.

Indonesia E-Sports Market Future Outlook

Over the next few years, the Indonesia E-Sports market is poised for significant growth driven by increased investment in digital infrastructure, continued expansion of mobile gaming, and growing support from both government and private sponsors. The government's recognition of e-sports as an official sport has paved the way for further development, with increased funding for training facilities and tournaments. The rise of new streaming platforms and the integration of technologies like AR/VR into gaming will further enhance the competitive landscape, offering new opportunities for players and sponsors.

Market Opportunities:

• Emergence of Women-Centric E-Sports Teams and Leagues: Female participation in E-Sports has seen a rise, with 32 all-women E-Sports teams competing in national leagues in 2023. This increase reflects a larger global trend toward diversity in the gaming sector. The launch of exclusive women-centric tournaments, supported by brands like Unilever and Telkom Indonesia, further amplifies this trend. Women gamers are becoming an increasingly important demographic in the Indonesian E-Sports ecosystem, offering new sponsorship and audience engagement opportunities.
• Growing Influence of Streaming Platforms and Social Media: With over 100 million users of social media platforms like YouTube and Twitch in Indonesia by 2023, streaming has become integral to the E-Sports ecosystem. E-Sports tournaments now attract millions of live viewers on these platforms, driven by influencer marketing and content collaboration. Social media integration has allowed teams and players to directly engage with fans, creating additional revenue streams and enhancing brand loyalty. This trend underscores the growing symbiosis between E-Sports and online content platforms.