Indonesia Games Market Outlook to 2030

Indonesia Games Market Overview

• The Indonesia games market, reaching USD 425 million in valuation, has grown over the past five years, primarily fueled by increased mobile penetration and a rapidly growing young population actively engaging with digital content. The market's upward trajectory is supported by the expansion of digital payment solutions, facilitating in-app purchases and microtransactions, as well as increased investments from both local and international game developers.

• Java, along with other urban regions like Jakarta and Bali, dominates the Indonesian games market due to its dense population and higher internet penetration rates. The large number of smartphone users in these cities and robust digital infrastructure provide an ideal environment for game developers to capture a wide audience and generate revenue through mobile gaming.
• This strategic roadmap, which prioritizes the gaming industry as a key growth sector, includes initiatives for digital skills development, with IDR 1 trillion allocated to training programs for developers in 2024. This is expected to address the talent gap and support a local gaming ecosystem capable of producing high-quality games and platforms.

Indonesia Games Market Segmentation

By Game Type: The market is segmented by game type into mobile games, PC games, console games, browser games, and VR/AR games. Among these, mobile games hold a dominant market share due to Indonesias high mobile penetration and accessibility of smartphones. Affordable mobile internet and a preference for casual, on-the-go entertainment make mobile games the most popular segment.

By Revenue Model: The market is further segmented by revenue model into freemium, paid games, in-app purchases, and subscription-based models. The freemium model dominates due to Indonesia's price-sensitive market, where users are more inclined to engage with free games initially and later make in-app purchases for enhancements. This model attracts a large player base and drives revenue without upfront costs.

Indonesia Games Market Competitive Landscape

The market is shaped by several key players, with strong competition among local and international developers. Companies like Moonton, Tencent, and Garena dominate, leveraging localized content and advanced monetization strategies to capture Indonesian players.

Indonesia Games Market Analysis

Market Growth Drivers

• Increase in Smartphone Penetration: Indonesias smartphone user base has grown to over 160 million in 2024, with nearly 90 million of those users actively engaging in mobile gaming. As smartphone prices become more affordable, particularly in rural and semi-urban areas, a wider audience is adopting gaming as a form of entertainment. This growth in smartphone penetration provides a substantial boost to the mobile gaming sector, allowing developers to tap into a growing user base.
• Rising Investments in Esports: Esports in Indonesia has seen investment injections totaling over USD 50 million from both domestic and international sources in 2024 alone, aimed at promoting tournaments, gaming platforms, and streaming services. These investments are helping to create infrastructure, support professional gamers, and elevate the profile of gaming as a legitimate form of sports, increasing the sector's visibility and attractiveness among younger audiences.
• Improvement in Internet Infrastructure: The governments recent initiative to improve internet connectivity across the nation has led to the installation of over 50,000 new broadband towers in 2024. The upgrade in digital infrastructure has reduced latency and connection issues, making online gaming more accessible and enjoyable for users in both urban and rural areas. The enhanced connectivity has been a crucial factor in the adoption and growth of online gaming.

Market Challenges

• Lack of Skilled Game Developers: The Indonesian gaming industry currently faces a shortage of skilled developers, with fewer than 5,000 trained professionals available in 2024, as per government data. This talent shortage hinders the production of locally developed games, resulting in an over-reliance on foreign-developed games and limiting the sectors capacity to innovate and create region-specific content.
• Challenges with Game Monetization: Despite an active user base, in-app purchases are relatively low in Indonesia, with an average monthly spend per user at only IDR 30,000. The limited spending power of the average gamer challenges developers to find alternative monetization models, which affects the financial sustainability of many gaming companies.

Indonesia Games Market Future Outlook

Over the next five years, the Indonesia games industry is poised for robust growth, driven by the continued expansion of digital infrastructure, increasing affordability of smartphones, and the rise of digital payment solutions.

Future Market Opportunities

• Rise of Subscription-Based Gaming Services: Over the next five years, subscription-based gaming services will see increased adoption, with an estimated 12 million subscribers by 2029. As local telecom companies partner with gaming providers, gamers will benefit from affordable subscription models, which will make premium gaming content more accessible to a wider audience in Indonesia.
• Expansion of Augmented Reality (AR) Games: The popularity of augmented reality gaming is set to rise as smartphone technology advances, with AR-based games expected to capture a significant user base. By 2029, it is estimated that over 20 million Indonesian gamers will actively engage with AR games, supported by investments in AR software and localized content.