Why Indonesians Who Afford Premium Titles Still Choose Free-to-Play?

Indonesia is the largest SEA country by area and population. Although its game revenue trails Malaysia and Singapore, Statista predicts a 45% industry growth by 2028.

Becoming Indie Powerhouse

Compared to Singapore and Malaysia, Indonesia is more focused on indie development: AAA projects are rarely created there. Local developers usually work as outsourcers or make their own IPs, the most famous of which are DreadOut, Pamali, Potion Permit, Coral Island, Coffee Talk, Troublemaker: Raise Your Gang, and A Space for the Unbound. Interviewees are sure Indonesian studios prefer developing 2D games – it seems a safer approach.

Umar Abdulrahim, Managing Director & Game Developer at GoldLime Studios

It isn’t normal for Indonesia to make AAA games, so when something like Unplug – The Game was introduced here, it became viral.

Previously, the gaming industry was not taken seriously by the Indonesian people but now interviewees see that more and more locals are getting involved in this sector. Each year at least one game originating from Indonesia generates sales between 1-5 million USD. Interviewees believe that the country has a great chance to become a strong indie powerhouse due to the passion of small companies for creating games.

Eka Pramudita Muharram, Project Manager at Toge Productions

Eka is sure that Indonesia is going in the right direction now because a lot of new studios are appearing there. But compared to Malaysia or Singapore which have big branch offices like Bandai Namco and Ubisoft, Indonesia doesn’t have such AAA game companies, it’s more indie. Eka supposes that Indonesia could be an indie powerhouse.

Socialization of Players Via Free-to-Play Games

Interviewees think that Indonesians can play the same mobile games for years. The most popular ones were created more than 5 years ago. It’s quite difficult for Indonesian developers to conquer the local mobile game market because they don’t have enough budget to pay for user acquisition and deal with fierce competition. According to interviewees, starting in 2020 developers began to move toward developing console games. Undoubtedly, console purchasing is still expensive for locals but the country has a fairly developed PlayStation rental scene.

Those developers who mainly focus on mobile games apply a free-to-play monetization model to maintain business profitability. In this case, advertising is the most popular method: 80% of studios leverage in-game ads.

During our interviews, we explored that online free-to-play games have larger user databases than premium games. It allows players to socialize and communicate with other users on an ongoing basis.

Cipto Adiguno, Chief Strategy Officer at Agate International

The important thing is that people treat games as a way to socialize. People can go to school or work and talk about the game with each other. Lots of people play free-to-play games to socialize. Rich people could buy an expensive asset and still play one game with all the other players who are less economically fortunate.

Localize to Gain the Market

Indonesia has a pretty strict branch opening policy. For example, in 2022 the Indonesian government added a regulation about Private Electronic System Providers, according to which both local and foreign tech companies should provide the government access to their user databases. Niko Partners report demonstrates that this regulation can lead to data protection violations or game bans if the content “disturbs public order”.

If a company is ready to comply with the government's terms to open a branch in the country, then localization is required. Most Indonesians don’t speak English: EF EPI is 466, a low indicator compared to other SEA countries like Singapore, Malaysia, and the Philippines. Interviewees suggest using the official language called Bahasa Indonesia to reach the local audience. Developers should also consider different language standards in different Indonesian cities that would allow them to adapt their games in a way where every player understands them.

Bagaskara Firdaus, Co-Founder at Berangin Creative

English literacy is still a problem. Usually people know about pop culture anyway but if your game is very story driven, it will be better to localize it to Indonesian. The most safest option is to use formal language but there’s a risk that it will sound too rigid and not casual.

Want more insights about Indonesia and how it differs from other SEA countries? Download our detailed report How to Conquer the Southeast Asian Game Market? Part 2: Focus On The Countries

Why Rich Indonesians Who Can Afford to Buy Premium Titles Still Choose Free-to-Play Games?

Becoming Indie Powerhouse

Socialization of Players Via Free-to-Play Games

Localize to Gain the Market

Join discussion

Comments 0

You might also like

We need your consent