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Local games only 5% on ID’s booming game market, minister says

Indonesia’s gaming industry is valued at around Rp33.6 trillion (US$2 billion), making it the largest in Southeast Asia, according to Minister of Creative Economy Teuku Riefky Harsya.

Despite this growth, locally developed games only account for 5% of the market share.

Harsya shared this during the launch of the 2025 Google Play x Unity Developer training program in Jakarta on April 21.

Indonesia has 148 million active gamers and ranks 12th in the world for developer communities on Google Play, with 10,400 developers.

Since 2023, the Google Play and Unity collaboration has trained 1,300 local developers and aims to train 500 more this year. The updated curriculum now includes AI modules and career advancement opportunities.

In partnership with the Indonesian Game Association, the program also offers internships and job placements to help participants enter the industry.

🔗 Source: Katadata


🧠 Food for thought

1️⃣ Mobile-first market creates a high barrier for local developers

Indonesia’s gaming market exhibits a significant imbalance: while it represents 45.8% of Southeast Asia’s gamers with a $1.79 billion market value in 2023, local developers capture only 5% of this economic opportunity 1.

This disparity is particularly stark in the mobile gaming sector, which accounts for 52% of Indonesia’s gaming revenue and dominates the market 2.

International developers with established mobile game engines, larger marketing budgets, and economies of scale have secured dominant positions, making it difficult for local studios to compete despite having cultural knowledge advantages 2.

The gap between having the 12th largest developer community on Google Play (10,400 developers) and such a small market share highlights the challenges of monetization and distribution that local developers face 3.

2️⃣ Cultural localization represents the strongest competitive advantage for Indonesian developers

Indonesia’s diverse cultural landscape, with 88% Muslim population and numerous regional dialects, creates unique opportunities for game developers who can authentically incorporate local elements 1.

Successful examples like Mobile Legends demonstrate how games that incorporate Indonesian characters, traditions, and cultural references can achieve significant player engagement and loyalty 4.

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