We all know that the video game industry has become an unexpected new economic force in this era. Over the past few years, we have both witnessed how the tremendous growth of the video game industry has developed and how this growth has brought new opportunities that did not exist in the past. 20 years ago. The video game industry indirectly provides a huge opportunity for countries around the world to be actively involved in the video game industry. This also includes Indonesia, which is the fourth most populous country in the world with a population of 279 million people, and this figure is expected to continue to grow (World Population Review, 2024). With the number of active internet users at 221 million (APJII, 2024), Indonesia becomes a country to consider and has great potential to gain economic benefits from the video game industry.
Indonesia's video game industry is currently developing rapidly and is not only a medium of entertainment for millions of players, but also an economic force driving the country's digital growth. However, the potential of Indonesia's digital economy, such as the video game industry, has not yet been fully explored and could be further researched as it could be an opportunity for the digital economy. In this opinion article, the author explores how the video game industry can be a connecting variable in unlocking the potential of Indonesia's digital economy. With the innovation and creativity of the video game industry, Indonesia has an opportunity to demonstrate its potential to build a more inclusive and dynamic digital economy.
Growth trends of Indonesian video game industry
First of all, you should know that the video game industry is not only entertainment, but also a creative economic opportunity, not only in Indonesia but all over the world. The industry has demonstrated the ability to unlock strong economic growth opportunities, with video games projected to generate $282.3 billion in global revenue by 2024, making it competitive with other media such as film and music. (Statista, n.d.). Even some developed countries such as South Korea, Japan, and the United States have recognized the economic potential of this industry and are taking strategic steps to support the economic growth of this industry.
Indonesia's local video game industry has developed significantly over the past few years, starting with simple hobbyists and then becoming able to develop themselves. History records that the development of local video games began in the early 2000s with funding from foreign investors (VOI, 2022). Then, as time went on, many local developers started joining the video game industry. With the rapid growth of Indonesia's video game industry, the community of gamers and developers has become increasingly large. For example, the Indonesian Gaming Association (AGI) was established with the aim of supporting and accelerating the growth of Indonesia's video industry. .
As the fourth most populous country in the world, Indonesia can naturally take advantage of the video game industry. Indonesia has a large population and is increasingly digitally connected, which could generate a significant market share for the video game industry, which is also in line with the idea of a Golden Indonesia 2045. This is considering that Indonesia has a generation of great creative talent and many local video game developers have demonstrated their capabilities by creating innovative, interesting and well-received video games. Then it is possible. For example, we have brought many world-famous original Indonesian video games to the international market, such as DreadOut, Coffee Talk, Ghost Parade, and Coral Island. By leveraging the local talent of local video game developers, Indonesia can develop video games that can penetrate the global market.
Contributing to the digital economy
The rapid growth of Indonesia's video games industry is accompanied by the industry's contribution to the digital economy, but there are still strategic initiatives and measures in place to optimize the potential of Indonesia's digital economy through video games. I need it. It is known that the revenue of Indonesia's video game industry has reached more than $52.7 billion, more than the film industry and music industry, making Indonesia the 17th largest video game industry market in the world (Wibowo, 2023 Year). Currently, Indonesia has great potential for investment in video games. For example, a game that is currently gaining popularity in Indonesia, namely Mobile Legends: Bang-Bang (MLBB), which is growing very quickly from the players, streamers, and tournaments in this video. Gaming can be an economic opportunity for countries. This could also be supported by Presidential Regulation 19/2024, which includes legal entity status in Indonesia, market equality for the video game industry, and obligations for cooperation and investment (Adipratama, 2024). The entry of the video game industry into Indonesia has created new job opportunities in this field that will impact people's lives, such as animators, media and community managers, YouTubers, game designers, programmers, game testers, consultants, audio engineers, professional gamers, etc. is born in Income in Indonesia.
There are important things to emphasize for the development of the digital economy through this industry, from creating a more diverse and active community to strengthening the local ecosystem of the video game industry and hosting interesting video game events. There are a few things. Collaboration between festivals, stakeholders (developers, publishers, support agencies). If this can be achieved, Indonesia can create an environment that supports the long-term growth of the video game industry. Create a supportive environment for video game developers, including providing access to appropriate information and communication technology infrastructure, financial and educational support for local video game developers, and policies that encourage investment in the industry. Don't forget. These factors are important as they provide a deep understanding of their role and contribution to the growth of this industry.
However, the development of Indonesia's video game industry is not only to generate economic benefits, but also to build strong creative cultural values, introduce Indonesia to the world, and provide inspiration to future generations. It's important to remember that. By promoting the cultural values contained in Indonesia, it is hoped that Indonesia will make a positive contribution to the international community and to Indonesian society itself. Overall, the video game industry has extraordinary potential in the development of Indonesia's digital economy. The presence of the local video game industry and the support of strategic initiatives will bring a bright future to the video game industry and bring significant economic benefits to Indonesia.
challenges faced
The authors are concerned about several challenges, including uneven digital infrastructure, lack of access to capital for video game developers, and delays in enacting regulations that support the growth of the video game industry. Based on data from (UNDP, 2017), the existing technology infrastructure in Indonesia is still in the development process and is not yet complete as the network shows that the challenge is limited number of technology developers. I understand. Coverage and internet speed are still low, which can affect the development process. Indonesian video game industry. Moreover, Indonesia's digital welfare figures are still very low. This is because device dependence remains very high, which also correlates quite closely with Indonesia's still limited digital literacy skills. However, it is known that the Indonesian government is also working to improve education and develop human resources for the next era.
And the lack of access to capital for local developers is causing many negative impacts for Indonesia. The most impressive among them, and the one that the public feels the most about, are the foreign games that still dominate the Indonesian video game industry. It is known that over 99% of foreign games in Indonesia are produced solely by local sources. 1%. This is a threat to Indonesia and could damage the local video game market. Because the number of foreign video games is significantly different from domestic video games, President Joko Widodo has announced a number of measures to accelerate the development of the domestic video game industry, aimed at optimizing the use of the domestic industrial economy. A team of ministers was formed. Governments must foster synergies between stakeholders in development. Industry (Bestari, 2024).
And finally, there are delays in developing regulations to support the video game industry. Since the emergence of the video game industry in Indonesia in the early 2000s, it has taken quite some time for some regulations to be enacted to support the industry. The newly published Presidential Regulation 19/2024 is considered too late as it was only published this year. It should also be taken into account that the programs contained in Presidential Regulation 19/2024 will require more time to be properly implemented in Indonesia. It's a shame, but better late than never.
Conclusion and recommendations
The development of Indonesia's video game industry requires increasing the capacity of human resources through formal education and practical training in the field of technology and game design, as well as support for informal programs related to this industry. Furthermore, governments should provide incentives and active support to gaming companies, including through financial incentives, promoting the industry at national and international levels, and investing in gaming research and development. Inclusion is also important to ensure fair representation and participation of all elements of society in the industry. Continuously encouraging innovation with new technologies such as virtual reality and artificial intelligence will maintain Indonesia's competitiveness in the global market. With a comprehensive strategy and continued support, Indonesia has great potential to lead the global video game industry and bring significant economic benefits to the country and its people.
