Business

Indonesia’s Game Market Potential and How The Government Tries to Help Local Companies Maximize It

By Febrianto Nur Anwari

One of the support is the Archipelageek initiatives that recently participated in Game Connection America 2018. Can it help the local game company to maximize this huge Indonesia’s game market potential?


Indonesia has a huge potential game market. But unfortunately, it hasn’t been maximized by local companies yet. The Indonesian government already tries to give some initiatives, such as Archipelageek that recently went to Game Connection America (GCA) 2018.

Some Indonesia game industry’s stakeholder recently participated in GCA 2018 to discover the new opportunities. Under Archipelageek initiatives from Badan Ekonomi Kreatif (Creative Economy Agency or BEKRAF) and Indonesia Game Association (Asosiasi Game Indonesia or AGI), they try to expand their businesses and seek for the future collaboration with the other companies across the world.

GCA 2018 is a game industry event labeled with “The Deal Making Event“. This is the international event where more than 2,700 developers, publishers, distributors and service providers come to find new partners and/or (in the case of service providers) find new clients. GCA 2018 itself was held in San Francisco, March 19 to 21, 2018.

indonesia's game market

The eight Indonesian game industry’s developers and publishers who exhibited at this event are Assemblr, Lentera Nusantara, Semisoft, Megaxus Infotech, Tinker, Agate, Lyto and Gudang Voucher.

“They have a different mission from each other in this event,” said Cipto Adiguno from AGI as one of the organizers to Gameprime.org. “There is a studio that seeks a deal to publish their game to overseas, another studio seek for investment and publishing, and others seeking for outsourcing clients,” he continues.

Cipto also said that GCA 2018 is their focus although, at the same time, there was also held Game Developer Conference (GDC) 2018 in the same place and the same time. “Some of them also give a visit to GDC 2018, but that’s not the main mission. They only visit the GDC 2018 to open their mind to the US game industry, and compare it with Indonesian game industry,” he continues.

Why choose GCA 2018 to participate in?

indonesia's game market

AGI states that Indonesian game industry is not quite big to compete in product level. So, they have the initiative to start from the business level. “If there’s a profitable business, we can grow further from that,” Cipto said.

As an event labeled as “The Deal Making Event”, GCA 2018 surely a perfect place to start over. As mentioned by Adam Ardisasmita in the previous article, GCA 2018 is an event that can give a great benefit to the ecosystem, at the business level. So that’s why AGI and BEKRAF choose to support Indonesian developers and publishers to participate in this event.

“We hope that from GCA 20178, the developers and publishers can get the investment deal or client that can increase the company’s profit. If the company can make a profit, so it can also help the overall industry to grow. They can attract local talents to create a better product, and also attract local investment too,” Cipto said.

Maximize Indonesia’s huge potential game market

indonesia's game market

As the biggest country in Southeast Asia with more than 200 million people, surely Indonesia has a big potential in the industry, including games. Per the recent survey, Indonesia’s game industry market reach around US$800 million in 2017, with the growth around 25%-30% year-to-year.

But unfortunately, most of this number is enjoyed by foreign industry’s stakeholder. “More than 95% of this market is enjoyed by foreign stakeholder,” said Cipto. “Only less than 1% that goes to the game that developed by local game developers. And If we combined with revenue from developers who did the service business from overseas clients and publishers who publish the overseas game to Indonesia, the share only around 5%,” he continues.

Cipto also said that AGI wants the share for local companies (especially for local game developers) can increase around 10% in the next five years, or around US$182 million. “In the long term, we want to increase this number to 20%, but it’s quite challenging and still so far away,” he ended.

How about the future initiatives?

indonesia's game market

At the end of our conversation, Cipto shared a little bit about Archipelageek’s plan in the future. “We want to support local game company to participate in other game events such as Gamescom in Europe. And also, we will collaborate with other SEA countries to bring B2B events to Indonesia,” he said.

Archipelageek, Growing Game Industry Faster Through a Collaboration with Other Creative Industries

Archipelageek program helps game industry to grow faster through a collaboration with other creative industry, such as comics and toys.

For the next event, there’s some checklist before AGI and BEKRAF decide to participate in. “This must be a strategic event for the industry growth. And also, it has a lot of quality participant that has a big potential for the future collaboration,” he ended.

Photo courtesy of BEKRAF. Edited by Devi

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About Writer


Febrianto is the Senior Editor of Duniaku.net and the Lead Editor of Gameprime.org. He started his career in game industry as a game journalist since 2008, and was one of the initial members of Duniaku.net since 2011. His biggest interest is local game developer scene. Currently, his mission is to spread the news about Indonesia’s game industry to both local and international game and creative industry’s enthusiast.