Gaming is not a game for the government, which has seen its efforts to develop the country’s blossoming industry begin to bear fruit despite the parental and religious concerns that loom in the background.

A key character of this story has been President Joko “Jokowi” Widodo, who conveyed his vision for the industry to become one of the key drivers of economic growth during a presidential debate back in April. During the debate, the President said the industry was valued between Rp 11 trillion (US$774.85 million) and Rp 12 trillion in 2017 with an annual growth rate of 25 to 30 percent.

Jokowi has long promoted the creative economy, which includes the gaming industry, and tourism as new sources of economic growth amid cooling domestic spending, slowing investment and falling exports due to global uncertainties.

Indonesia’s Creative Economy Agency (Bekraf) has also supported the industry by holding Bekraf Developer Day, supporting the establishment of game developers across the country and sending local game creators to international events.

“Bekraf provides Rp 50 million to Rp 100 million to selected start-ups, some of which are game developers,” said Bekraf infrastructure deputy head Hari Sungkari.

However, this mission has not been without its challenges. Some Indonesian parents still see video games as bad for their children, while several religious leaders banning certain games over similar concerns.

Vonny, a 40-year-old mother of two, for instance, told The Jakarta Post that most video games were good only for entertainment and did nothing to help her children develop, and that she had thus decided to limit her children’s access.

To tackle the perception of gaming’s negative image, Bekraf has been in talks with the Communications and Information Ministry, the Presidential Office and the Youth and Sports Ministry to craft a positive video game campaign targeted specifically at mothers.

Following the Christchurch shootings in New Zealand, the Aceh Ulema Council (MPU) issued in June an ambiguously worded fatwa that condemned PlayerUnknown’s Battlegrounds (PUBG), a video game developed by Chinese technology giant Tencent, “and other similar video games” as haram. It also called on regulators to “limit and block any sites and games that contain elements of pornography and violences.”

Such responses pose a risk to the industry’s growth, according to industry players.

“Our people are put at risk of losing media to express themselves or even access to technology,” said Kris Antoni Hadiputra, founder of local indie game developer Toge Productions. He said some stakeholders were concerned the MPU’s edict would trigger bans of other video games, including those produced by the country’s nascent gaming industry.

Game developer Agate International founder Arief Widhiyasa said it would be better if regulators educated the market and reinforced appropriate age ratings for games in accordance with the Indonesia Game Rating System (IGRS).

“Every game in circulation should be registered with the IGRS so the public can be informed about their appropriate usage,” he said.

According to Indonesian Game Association (AGI) records, among the more than 100 companies registered with the association, only 8 percent of video game revenue generated in the country goes to local developers such as Toge Productions, Agate International and Touchten, which leaves significant room for growth.  

Data compiled by state-owned telecommunications giant PT Telkom Indonesia shows that locally made games have a market share of just 0.4 percent in Indonesia, while local gaming companies account for less than 20 percent of the domestic presence.

Dutch mobile analytics company Newzoo valued Indonesia’s video game market last year at $1.13 billion, making it the 17th largest in the world. The global video game market will generate $152.1 billion in revenue this year, an increase of 9.6 percent year-on-year, according to Newzoo.

Newzoo expects the revenue of Indonesia’s video game market to experience a 26.5 percent compound annual growth rate (CAGR) between 2018 and 2022, mostly driven by mobile games.

“To have games banned would most likely affect the rate at which the Indonesian games market will grow,” Newzoo market consultant Guilherme Fernandes told the Post via email. (awa)

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