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Indonesian game developers worry over potential losses from local presence rule
The government wants to mandate foreign publishers to establish local presence in the country. Failure to comply would lead local access to their video games blocked by the ministry.
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Stock illustration of a person playing an online video game (Freepik)
I
ndonesian game developers opposed a planned regulation that would require foreign publishers to establish a local presence, citing concerns this could stifle development of the domestic entertainment industry and lead to loss of access to the global market.
The new rule is to be a regulation from the Communication and Information Technology Ministry, and was initially slated to take effect in January.
Foreign publishers that failed to comply with the regulation would find local access to their video games blocked by the ministry, rendering them unable to sell their products to Indonesian customers.
Although the final decision on the new rule is still pending, the planned regulation has ignited debate and raised concerns among stakeholders in the video game industry.
“The regulation would limit the market access of local game developers,” Nikko Soetjoadi, founder of the independent Niji Games Studio based in Jakarta, told The Jakarta Post on Thursday.
Read also: Businesses vigilant as revised digital tech law opens door for govt interference
Publishers have the resources to publish, market and distribute finished games from developers across broad markets, while developers mainly focus on creating games. Some developers have the capacity sell their products independently, albeit with a much narrower reach.
