The game development subsector is one of the creative economy sub sectors that is growing and developing rapidly from year to year. Local youths are creating numerous games, gaining popularity on various platforms, and receiving international recognition. This has led to Indonesia being recognized as Southeast Asia's largest game contributor on the Steam platform by early 2024.

According to the databoks.katadata.co.id, as of January 2024, the number of local games made in Indonesia reached 256 games on the Steam platform. This number is based on the accumulation of local games that have been released, canceled, or postponed and are still in the early stages, as well as games that will be released soon.

The large number of games made in Indonesia that are in the number 1 position on the Steam platform proves that Indonesia has great potential to produce quality games that are competitive internationally. So, it can make a significant economic contribution.

Rapid Growth of Cloud Gaming in Indonesia

The potential for the gaming industry in Indonesia has increased very significantly. Quite a few creative industry players in the local games sector have successfully competed with game developers from abroad. The rapid growth of mobile games and cloud gaming in Indonesia proves this.

It is important to remember again that Indonesia is the third largest mobile game market based on downloads on Google Play, with Indonesian mobile gaming user transactions estimated to reach 0.37 billion US Dollars (around IDR5.6 trillion) or an increase of around 15.6% from 2022 (via in-app purchase or IAP).

Photo: Indonesia's gaming industry is expected to grow by 2024 (Shutterstock/AlessandroBiascioli)

Not only that, based on data from Statista Kompas.id, the total revenue from the gaming market in Indonesia in 2024 is estimated to reach 505.44 billion US dollars, with an average annual revenue growth (CAGR) of 8.74%, or 649.8 billion US dollars in 2027.

Even though the achievements are encouraging, the development and achievements of games in Indonesia do not only reach the mobile games sector. Cloud gaming platforms are predicted to become Indonesia's newest gaming industry trend in 2024.

Cloud gaming is a technology that allows someone to play games without downloading or installing them on a smartphone. While cloud gaming development is still in its early stages, the trend is expected to become increasingly popular in Indonesia in the coming years.

Another interesting fact is that the development of the cloud gaming industry in Indonesia could already be seen last year, especially in some local games that were popular on the Steam platform. According to the Tourism & Creative Economy Outlook 2023/2024, four local games made in Indonesia showed positive performance throughout 2023.

These games include Coral Island, Potion Permit, A Space for Unbound, and Coffee Talk Episode 2: Hibiscus & Butterfly. This local game is estimated to have sold 30,000-150,000 copies with revenues of over 400,000 US Dollars to 3.2 million US Dollars.

It is predicted that the local game industry, particularly the cloud gaming sector, will continue to yield significant results in the future. Thus, it will likely create new opportunities for local game developers, publishers, and investors to continue working to create quality and globally competitive games.

Cover: The local gaming industry's potential in the cloud gaming sector is predicted to grow (Shutterstock/Gorodenkoff).