LogInLet's take a closer look at the scale and constraints of one of the most dynamic gaming markets in the Asia-Pacific region: Indonesia.
The global gaming industry is larger than film and music combined, valued at more than $187 billion. Yet when the conversation turns to Asia-Pacific, countries like China, South Korea, and Japan tend to dominate the headlines. That focus overlooks one of the most dynamic markets in the region: Indonesia.
The scale of opportunity
Indonesia has become the largest gaming market in Southeast Asia, worth around $1.9 billion, or roughly Rp 30 trillion. With 148 million active gamers, it is both a consumer market and a developer hub. Despite this scale, local developers capture only 2.5% of revenue, leaving foreign publishers with 97.5% of the market. For global studios, this imbalance is not a warning sign but an opportunity.
The story of Indonesia is not just about market size. It is about untapped growth, low acquisition costs, evolving payment ecosystems, and a regulatory landscape that can be navigated with the right partner. For publishers, it is a market that is both promising and complex, deserving close attention and careful planning.
Indonesia’s place in the regional hierarchy is clear. Per NewZoo, Indonesia leads Southeast Asia in gaming revenue and ranks 15th worldwide. The growth is being driven primarily by mobile gaming, which generates around $1.38 billion annually, compared to $270 million for PC and $134 million for consoles.
Mobile penetration is deep. Over 83% of Indonesian gamers play on smartphones, compared to 34% on PCs and 21% on consoles. This mobile-first identity mirrors regional peers like Vietnam and the Philippines, where affordability and accessibility shape the landscape.
In the first eight months of 2024 alone, Indonesia accounted for more than 46% of Southeast Asia’s mobile game downloads, growing 10% year over year. By comparison, Thailand, its closest competitor, saw 12% growth but generated less total volume.
Projections for the coming years are even more ambitious. Revenue in Indonesia’s gaming industry is expected to rise from $450 million in 2023 to nearly $650 million by 2027, according to Statista estimates. At the same time, Indonesia is part of a larger Southeast Asian boom, with the regional gaming market projected to grow steadily through 2030.
Comparing the region: lessons from APAC
Indonesia’s growth is part of a wider trend in Asia. In South Korea, a mature market worth more than $7 billion annually, government investment and esports culture have created a global hub. In China, the largest market in the world, strict regulations and licensing requirements have reshaped how publishers operate. Hong Kong, while smaller, benefits from strong connectivity, affluent consumers, and cross-border trade. Cambodia, like Indonesia, faces fragmented payments and regulatory hurdles, but it shows how local solutions can unlock underserved audiences.
What these examples show is that no two APAC markets are the same. Success in one does not guarantee success in another. Each has unique strengths, obstacles, and regulatory frameworks. Indonesia fits squarely in the middle: large enough to be globally significant, but still developing in terms of monetization and infrastructure.
Payments: the heart of the challenge
One of the defining features of Indonesia’s gaming economy is how people pay. Cash remains a major force in everyday transactions, but the digital shift is undeniable. Around 39% of gaming payments are made through e-wallets, 27% through bank transfers, 17% by cards, and 11% still in cash.
E-wallets like GoPay, OVO, and Dana, along with services such as ShopeePay and LinkAja, dominate the landscape. These platforms are central to daily life, used not just for gaming but for transport, shopping, and bills. For developers, integrating local wallets is not optional; it is essential.
Card penetration is relatively low, especially compared to markets like Hong Kong or South Korea. While Visa and Mastercard exist, domestic schemes and prepaid options are more common. For publishers, failing to support these methods risks alienating the majority of potential players.
The complexity of this payment ecosystem creates barriers. Monetization is already difficult because average spending is low. The average consumer in Indonesia spends about $42 per year on recreation and culture, and only $5 on games. That number is offset by scale: millions of players spending small amounts can still generate meaningful revenue. But only if they can pay in the ways they are comfortable with.
Indonesia's game-selling constraints
Regulation and compliance
Regulation in Indonesia is evolving quickly. Authorities monitor and block games with content deemed inappropriate, particularly in areas relating to violence, religion, or culture. This requires publishers to adapt content to meet local standards.
More significantly, the government has introduced rules requiring foreign publishers to establish a local presence. Regulation 2/2024 from the Ministry of Communication and Information Technology obliges companies to open a subsidiary or joint venture to operate legally. For publishers unfamiliar with the region, this can be daunting.
Data privacy is another growing focus. The Personal Data Protection (PDP) Law places strict requirements on how companies collect, store, and use player data. For studios that lack in-house compliance teams, meeting these obligations can slow expansion.
Taken together, these regulations highlight the need for local expertise. A misstep in content or compliance can close off the market entirely.
Infrastructure and funding
Connectivity in Indonesia is improving, but unevenly. In urban centers, internet access is strong. In rural areas, unstable connections can hurt the experience, especially in multiplayer or competitive titles.
Funding is another bottleneck. Many local developers work with limited budgets, which restricts their ability to build high-quality games. This leaves room for international studios to fill demand but also underscores the need for collaboration. Partnerships between foreign publishers and local developers could help strengthen the ecosystem, as seen in Vietnam, where small studios have produced globally successful titles.
Why publishers should care
Indonesia is a market of contradictions. It is vast but fragmented, young but heavily mobile-first, fast-growing but challenged by low spending. For global publishers, these contradictions create opportunity. The average spending on in-app purchases is a low IDR 30,000 monthly; however, the scale of the player base, combined with one of the lowest acquisition costs in the world (around $0.10 per mobile user), makes Indonesia attractive for growth.
Reaching this audience requires adaptation. Payment localization, compliance with regulations, and cultural sensitivity are not side issues. They are the foundation for success.
Xsolla's role
For publishers looking at Indonesia, the barriers are real, but they can be lowered. Xsolla operates as a Merchant of Record (MoR), handling the complexities of payments, compliance, taxation, and risk. This allows studios to focus on their games rather than infrastructure.
Xsolla’s coverage includes around 80% of Indonesia’s payment methods, from leading e-wallets to local bank transfers and domestic cards. By offering players familiar options, publishers can expand reach and improve conversion.
Beyond payments, Xsolla’s ecosystem provides tools for distribution, user acquisition, and monetization. The same support that has helped studios succeed in China, South Korea, and Vietnam is available in Indonesia, adapted to the local context.