Indonesia Video Game Market Outlook to 2030

Indonesia Video Game Market Overview

• The Indonesia video game market is valued at USD 1.20 billion, driven by the rapid growth in mobile gaming, strong internet penetration, and the increasing number of smartphone users in the country. This growth is propelled by the widespread availability of affordable mobile devices and the rising popularity of gaming among the younger population. In addition, the market is being boosted by in-game purchases and the growing e-sports community, making gaming a mainstream form of entertainment.
• Cities like Jakarta, Surabaya, and Medan lead the video game market in Indonesia due to their advanced digital infrastructure and large population of tech-savvy users. The urban population in these cities enjoys better access to fast internet speeds, contributing to higher adoption rates of online gaming and e-sports. Jakarta, as the capital and economic hub, plays a pivotal role in setting gaming trends, while other cities like Bali also contribute with their emerging gaming communities, driven by a blend of tourism and technology.
• Indonesia has been working to formalize regulations around e-sports and online gaming. In 2023, the government established new guidelines for the operation of e-sports events and player participation. These regulations include rules on prize money distribution, sponsorships, and player contracts to protect both players and organizers. The Indonesian government is also working on anti-cheating regulations and integrity management to ensure fair play in online tournaments. These initiatives make Indonesia one of the more regulated e-sports markets in Southeast Asia.

Indonesia Video Game Market Segmentation

• By Platform: The Indonesia video game market is segmented by platform into mobile gaming, PC gaming, and console gaming. Mobile gaming dominates the market due to the affordability and accessibility of smartphones across the nation. With an increasing number of internet users switching to mobile-based entertainment, titles like Mobile Legends and PUBG Mobile continue to capture the majority of the market. The flexibility of mobile gaming to be played on the go and the ability to reach rural areas without needing a high-end console makes this segment the largest in the country.

• By Genre: In terms of genre, action games lead the Indonesia video game market. This genres popularity is fueled by titles such as Call of Duty and Garena Free Fire, which appeal to competitive gamers looking for immersive and fast-paced gameplay. These games offer strong multiplayer elements that drive engagement and replayability, particularly in the e-sports sector. Adventure and role-playing games follow closely, attracting players interested in story-driven experiences and long-form gameplay.

Indonesia Video Game Market Competitive Landscape

The competitive landscape in the Indonesia video game market is marked by the presence of international giants and local companies that focus on mobile platforms and localized content. Companies like Tencent dominate the mobile game sector with games such as PUBG Mobile, while local developers focus on culturally relevant content. The emergence of local e-sports events and collaborations between gaming companies and telecom operators have further strengthened market competition.

Indonesia Video Game Industry Analysis

MarketGrowth Drivers

• Internet and Mobile Penetration: Indonesia's video game market is supported by growing internet access and mobile penetration. In 2024, over 204 million Indonesians are internet users, and mobile broadband subscriptions reached 176 million. With the government's ongoing investment in digital infrastructure, particularly through the "Palapa Ring" project, the country is expected to enhance its digital connectivity. This infrastructure has significantly boosted online gaming, with mobile gaming as a primary driver. The availability of 4G and 5G networks has also led to an increase in mobile game downloads and in-game purchases.
• Rising Popularity of E-Sports: E-sports in Indonesia has surged in popularity, contributing to the video game market's growth. With more than 52 million active gamers in 2024, Indonesia stands as one of the largest gaming markets in Southeast Asia. E-sports tournaments are gaining traction, with the Indonesia E-Sports Premier League and the inclusion of e-sports in the 2023 Southeast Asian Games fueling enthusiasm. Government support through the Indonesian E-Sports Federation has helped promote the competitive gaming scene, while sponsorships from major brands provide financial backing for events and gamers.
• Increased Spending on Digital Entertainment: Indonesia's consumer spending on digital entertainment, including video games, has steadily increased due to rising disposable incomes and a growing middle class. In 2024, Indonesia's GDP per capita stands at $4,480, reflecting higher purchasing power. Indonesians have shifted their focus toward digital content, with the gaming sector becoming a prime beneficiary. In-app purchases and subscriptions to premium gaming platforms are particularly popular. This trend is also bolstered by the increasing number of mobile payment options such as GoPay and OVO, which simplify transactions for digital content.

Market Restraints

• Government Regulations on Game Content: Indonesia has strict regulations concerning game content, particularly around themes of violence, religion, and culture. The Ministry of Communication and Information Technology actively monitors and restricts games that are deemed inappropriate for Indonesian audiences. In 2023, the government blocked over 100 gaming websites due to inappropriate content, impacting both local and international game developers. These stringent regulations create hurdles for global game publishers looking to enter or expand in the Indonesian market, as they must comply with local content standards. Source: Indonesia Ministry of Communication and Information
• Concerns over Data Privacy and Security: Data privacy and security concerns are becoming a significant challenge for the gaming industry in Indonesia. In 2024, Indonesia recorded over 200 cyber-attacks targeting gaming platforms and users, raising alarms over the vulnerability of user data. Government regulations, such as the Personal Data Protection Law (PDP), are being enforced to protect consumer data, but gaps remain in implementation. With an increasing number of Indonesians spending time on gaming platforms, these concerns are crucial for maintaining user trust and preventing potential losses for gaming companies

Indonesia Video Game Market Future Outlook

The Indonesia video game market is expected to witness significant growth over the coming years, driven by increasing smartphone adoption, government support for e-sports, and the rising number of local developers entering the scene. The integration of advanced technologies like cloud gaming and augmented reality will also fuel market expansion. As mobile data networks improve and more affordable gaming hardware becomes available, the market will continue to diversify across demographics and regions, leading to increased revenue streams from both domestic and international players.

Market Opportunities

• Integration of Virtual Reality and Augmented Reality: The integration of Virtual Reality (VR) and Augmented Reality (AR) technologies presents a significant opportunity in the Indonesian video game market. With VR headset shipments increasing to 650,000 units in 2024, Indonesian gamers are embracing immersive gaming experiences. Government initiatives to enhance tech infrastructure have further spurred innovation in this area. Local developers are also leveraging AR in mobile games, particularly in genres like adventure and simulation, creating unique experiences tailored to Indonesian culture. The potential for AR and VR in gaming is set to redefine consumer interaction with digital entertainment.
• Rising Opportunities in Cloud-Based Gaming: Cloud-based gaming is gaining traction in Indonesia due to advancements in 5G technology and improved internet infrastructure. With over 80 million cloud service users in 2024, cloud gaming is offering gamers access to high-quality games without expensive hardware. Major global platforms like Google Stadia and Microsoft's xCloud are entering the market, while local telecom providers such as Telkom Indonesia are investing in cloud services. The shift toward cloud gaming allows users to stream games on a variety of devices, from smartphones to smart TVs, promoting broader access.