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Gamers are a tough subset of internet users to regulate.
They typically are more adept at using the internet than most of us, so they can get around a lot of restrictions placed on them by their governments.
Case in point: After Vietnam prohibited the digital gaming platform Steam earlier this year, I asked a founder who was previously an industry insider how the ban would affect the sector. He laughed it off, saying Vietnamese gamers could easily find a workaround if they wanted to.
But in Indonesia, rising protectionism in its local gaming industry may end up creating tough hurdles for local players to get around, as discussed in today’s featured story.
Today we look at:
- Time to hit pause on protectionist polices?
- The edtech startup aiming to cut Indonesia’s youth unemployment rate
- Other newsy highlights such as OpenAI mulling running ads on ChatGPT and Hong Kong fintech firm KPay raising US$55 million
Premium summary
Game off in Indonesia?
Image credit: Timmy Loen
Recent developments indicate that the government may soon become more protective of its gaming market to help local players compete.
However, Indonesian gamers may end up being the party that loses out.
- On hard mode: The country’s game developers are struggling to gain a footing in the domestic billion-dollar gaming market, as local players largely prefer international games. Most local titles are produced by indie developers with limited budgets, leading to reduced quality, says Shafiq Husein, president of the Indonesian Game Association.
- Power up: In February, the government mandated that foreign game publishers must have legal entities in Indonesia or partner with domestic companies. Industry figures like Husein want more help, such as a stipulation that “a certain portion of revenue be invested in the local gaming ecosystem.”
- Bug in the system: However, others fear these protectionist moves could result in bottlenecks and attempts by some players to monopolize the market. There aren’t enough local publishers who distribute and license all the games that players in Indonesia want access to, explains Toge Production CEO Kris Antoni. His company provides marketing services for local and foreign game developers.
Read more: Protectionist policies may backfire on Indonesian gamers
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