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Funding hurdles cloud local game developers despite Nintendo’s entry

The government reported 18.22 percent year-on-year growth in the applications and games subsector in 2025, with locally developed games contributing around Rp 750 billion ($42.2 million) in 2024.

Maudey Khalisha (The Jakarta Post)
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Jakarta
Fri, August 28, 2026

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Deputy Creative Economy Minister Irene Umar visits the Indonesian Games Showcase booth on Aug. 11 during the Nintendo Business Conference in Jakarta. Deputy Creative Economy Minister Irene Umar visits the Indonesian Games Showcase booth on Aug. 11 during the Nintendo Business Conference in Jakarta. (JP/Maudey Khalisha)

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ndonesia’s gaming industry is pushing for greater access to global gaming platforms and development tools as local studios seek to scale overseas, with developers saying the official arrival of major platforms in Indonesia has yet to translate into meaningful implementation on the ground.

Digital Happiness CEO Rachmad Imron said Indonesia’s gaming industry had grown significantly over the past decade, with several local titles achieving millions of dollars in international sales, often with financing and marketing support from overseas publishers.

The government reported 18.22 percent year-on-year growth in the applications and games subsector in 2025, with locally developed games contributing around Rp 750 billion ($42.2 million) in 2024. Much of that value came from overseas consumers, highlighting gaming’s potential as a digital export industry.

“Many local games have surpassed the million-dollar mark, although they still rely on overseas publishers for funding and marketing,” Rachmad told The Jakarta Post on Aug. 18, citing Kuloniku, Riftstorm and Running Train as newer titles showing potential.

For developers, the challenge is less about reaching global markets, but more about competing for consumers’ attention and generating sustainable sales, with limited access to financing remaining a key constraint on established studios’ growth.

“Mass expansion is difficult because access to funding is limited. Developers still largely depend on overseas publishers, with funding generally below US$500,000 to $1 million, while intellectual property valuations cannot yet be used as collateral for bank financing,” he said.

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He said better access to dev kits for platforms such as Nintendo, PlayStation and Xbox could help ease these constraints, as developers without direct access generally have to work through publishers to release games on consoles. This can add porting costs and require developers to give up a significant share of their royalties.

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