Ministry targets 4% annual growth in local game market

Jakarta (ANTARA) - The Ministry of Creative Economy targets games developed by local developers to increase the valuation of the Indonesian game market, which has grown macroeconomically by four percent on a year-on-year basis.

“We hope that the value generated by our local developers will strengthen both domestic consumption and exports,” Director of Games at the ministry, Luat Sihombing, remarked during an MoU signing with Coda here on Thursday.

Sihombing stated that the valuation of the game market in Indonesia, based on research conducted by the National Research and Innovation Agency (BRIN) together with the Ministry of Communication and Digital Affairs last year, ranges around US$2 billion or the equivalent of Rp34 trillion.

Indonesia has more than 200 million active gamers, which positions the country as one of the largest video game player bases in the world.

Although public spending on games reaches billions of rupiah per day for digital transactions, the market share of local developers is still very minimal.

Sihombing explained that games from local indie developers account for only around 0.17-0.34 percent of the national game market. In addition, local developers enjoy merely 2.5 percent of the national market value.

Indonesian games have also not yet obtained a significant export portion that contributes to state revenue. This situation arises because digital products have not been counted in the state’s financial contributions.

“Investment in the game sector is also not particularly large because the most active investments in the game industry are directed at projects rather than at the companies themselves,” he added.

He explained that through the collaboration with Coda, the export value and domestic consumption are expected to increase.

The infrastructure provided by Coda will also foster domestic businesses in Indonesia and offer facilities for content providers targeting the Indonesian market.

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Translator: Fitra, Kenzu

Editor: Azis Kurmala

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