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The Importance of Presidential Regulation Number 19/2024 for the Local Games Industry

The Importance of Presidential Regulation Number 19/2024 for the Local Games Industry

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President Joko Widodo (Jokowi) has issued Presidential Regulation (Perpres) Number 19 of 2024 concerning the Acceleration of Development of the National Games Industry. As an effort to encourage the golden age of the Indonesian gaming industry, the Ministry of Tourism and Creative Economy/Tourism and Creative Economy Agency (Kemenparekraf/Baparekraf) fully supports and appreciates the ratification of Perpres Number 19/2024.

The ratification of Perpres Number 19/2024 aims to strengthen Indonesia's local gaming ecosystem and industry. The Indonesian games industry is one of the sub-sectors of the creative economy, which is relatively strong, growing rapidly, and has enormous potential.

The potential of Indonesia's local gaming industry should not be underestimated. As per recent data, the number of game players in Indonesia reached 174.1 million in 2022. According to the Ministry of Communication and Information, Indonesia has the highest percentage of game players in Southeast Asia, 43%. This data explains why Indonesia has become the third-largest mobile game market based on downloads on Google Play.

Moreover, citing data from the Tourism and Creative Economy Outlook 2023/2024, local games made in Indonesia have successfully sold 30 thousand to 150 thousand copies, with an average gross revenue of over 400,000 to 3.2 million dollars.

The achievement of local games also looks amazing in the cloud gaming sector. 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. The number of games made in Indonesia that occupy the number 1 position on the Steam platform proves that Indonesia has great potential to produce quality competitive games internationally.

Illustration: Indonesia's online gaming industry is predicted to continue to grow (Shutterstock/Chaikom)

Benefits of Perpres 19/2024 for Creative Industry Players

Nia Niscaya, Adyatama of Tourism and Creative Economy, Main Expert for the Kemenparekraf/Baparekraf, explained that the Indonesian games market is huge. Looking at Statista in 2023, the Indonesian games market is projected to generate revenues of up to 1,117 million US dollars. Of this total, most of it is the online gaming industry, with a market value reaching 343 million US dollars in 2023.

The ratification of Perpres Number 19/2024 can accelerate the development of the games industry in Indonesia. In the long term, it can encourage the games industry to dominate the domestic market while increasing the number of creative industry players in the game development sub-sector to penetrate the global market.

The ratification of Perpres 19/2024 concerning the Acceleration of Development of the National Games Industry is an excellent step in encouraging the growth of the game development sub-sector. In addition, there are many benefits that Indonesian creative industry players can obtain.

At least eight main points must be pursued by players of the game development sub-sector, starting from research development, educational development, funding and financing facilities, infrastructure provision, marketing system development, intensive provision, intellectual property facilities, and protection of creative results.

The eight main points contained in Perpres 19/2024 can encourage the gaming industry in Indonesia to grow even more rapidly in the future, including being able to compete in the global market.

Cover: Many Indonesian games on the Steam platform (Shutterstock/Frame Stock Footage)

Kemenparekraf / Baparekraf
Kemenparekraf/Baparekraf RISunday, March 24, 2024
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© 2024 Ministry of Tourism and Creative Economy / Tourism and Creative Economy Agency