Indonesia is stepping up its efforts to boost its homegrown online gaming industry, aiming for positive outcomes that will bolster the nation’s economy, particularly by enhancing its foreign exchange reserves. President Joko Widodo (Jokowi) has officially endorsed Presidential Regulation (Perpres) No.19/2024, which focuses on accelerating the development of the national gaming sector.
Deputy Minister of Trade (Wamendag) Jerry Sambuaga highlighted the successes of China and South Korea in harnessing the potential of the online gaming market, where revenues have soared to staggering heights, reaching up to US$15 million.
“China and South Korea’s success stems from their ability to offer valuable services that attract consumers,” Jerry remarked during the Ministry of Trade’s 2024 work session on Tuesday (20/2/2024).
He emphasized that Indonesia stands to reap similar benefits if it follows the footsteps of these gaming giants, potentially unlocking substantial revenue streams from the burgeoning online gaming industry.
Recognizing the economic promise of this sector, the government has rolled out the Presidential Regulation to expedite the growth of the national gaming industry. Enacted on February 12, 2024, this regulation aims to fortify the domestic gaming ecosystem and foster its expansion.
To spearhead the rapid development of the national gaming landscape, President Jokowi appointed Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan as the Chairman of the National Gaming Industry Development Acceleration Steering Committee. Meanwhile, Minister of Tourism and Creative Economy Sandiaga Uno was tasked with serving as the Daily Executive Chairman.
The Presidential Regulation encompasses various facets of gaming industry advancement, including research and educational initiatives, financial support mechanisms, infrastructure development, marketing strategies, incentives, intellectual property facilitation, and the protection of creative outputs.
Nia Niscaya, an expert in Tourism and Creative Economy at the Ministry of Tourism and Creative Economy, underscored the immense market potential of Indonesia’s gaming sector. Citing Statista 2023 data, she revealed that the country’s gaming market is poised to generate revenues of up to US$1.1 billion.
“The majority of this revenue comes from online gaming, which alone accounted for US$343 million in 2023,” Nia disclosed during a press briefing on Monday (18/2/2024).
Through the implementation of this regulation, Nia expressed hope for accelerated progress within the national gaming industry. She envisioned Indonesia solidifying its position in the domestic market while fostering the growth of local gaming enterprises to compete on the global stage.
Furthermore, the regulation mandates the formation of a specialized team dedicated to accelerating the development of the national gaming industry. This team will coordinate efforts, devise strategies, and monitor progress to overcome challenges and obstacles hindering industry advancement.
“Additionally, the team will craft comprehensive communication strategies, conduct regular monitoring and evaluations, and provide recommendations for refining the National Gaming Industry Development Acceleration Program,” as stipulated in Article 6 of Perpres No.19/2024.
It is anticipated that monitoring and evaluation processes will be conducted biannually, with findings and progress reports made accessible to the public.
