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Indonesia’s advantage in video game industry

An online writer who is also an avid geek to automotive, video games, and anime. Have a soft spot for racing games

DreadOut, developed by Indonesian Digital Happiness, is considered as the most famous and the most successful Indonesian game

DreadOut, developed by Indonesian Digital Happiness, is considered as the most famous and the most successful Indonesian game

A kind of interactive media, video game has become the biggest and fastest growing industry. In the US, for example, the industry generated revenue of $56,9 billion, way larger than movie and music industry combined.

As the time goes by, video game has also experienced huge changes. Later generations see changes not only in the development of consoles but also the industry itself. Players entering the industry came not only from countries known for AAA games like the United States and Japan but also developing countries that are somewhat new to the industry such as Brazil and Indonesia.

In Indonesia, video game is a part of creative economy; a concept of leveraging creativity and information in creating marketable goods. The government itself is putting efforts in turning Indonesia’s into a global creative economy player by 2030. And video game is not excluded.

Indonesian game industry is considered the biggest in Southeast Asia. Statista estimated that in 2021, the domestic industry will generate a revenue of $1,49 billion, an increase from USD1,29 billion last year. However, as Southeast Asia Game Industry Report 2021 reported, the industry generated an even larger revenue as much as $1,6 billion in 2020.

Then you get the demographic advantage. Southeast Asia Game Industry Report 2021 showed that 110,3 million internet users are gamers. That number is equivalent to 64% of the population.

The government plays a role in supporting domestic video game companies. Such efforts take forms of supporting policies and funding. The government also regulates video game distribution in Indonesia by establishing the Indonesian Game Rating System (IGRS) that classifies a video game based on contents and players eligible to play such a game.

The nation’s industry is also backed up with talented staffs. Several stakeholders also play prominent role in raising talents to produce quality video game. The demand for skillful video game developers is actually high that push the local industries to put out standardization to sort out capable talents and those that are not.

Indonesian developers are also willing to helping each other. This is visible in developer efforts to procure funding for the others. Example of this is Agate Skylab Fund, a safety net that provides game developers funding support. Another example is Toge Game Fund Initiative, which helps developers to pitch games to publisher and grants $10,000 in funding. While the former is focusing on Indonesian developers, the latter is also available for Southeast Asian developers.

And finally, the achievement of local video game industry. Gamescom 2021 sees Indonesian-made games dominated the world’s largest computer and video game fair. Out of premium indie titles being exhibited in the fair, most of them were made by Indonesian developers. Previously, Swedish YouTuber PewDiePie played and streamed DreadOut, a Fatal Frame-inspired horror game made by Indonesian indie developer Digital Happiness.

To conclude, Indonesia does have the potential in pushing the nation’s video game industry. And with the currently beyond large video game market, video game is an actually promising sector for Indonesia and is expected to significantly push the creative economy sector of the nation.

© 2021 Muhammad Azka Prasetya

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