Southeast Asia’s largest gaming market
With a young, internet-savvy population and broad institutional support for gaming – the national government hosts annual nationwide esports tournaments – Indonesia is a fast-growing market of opportunity for mobile game publishers looking to tap into a gaming population of over 116 million users and growing.
Bahasa Indonesia is Indonesia's official and most widely used language, unifying over 700 indigenous local languages. Publishers looking to succeed in this market must consider building Bahasa Indonesia language options into their offerings. Indonesia’s developing network infrastructure also means many Indonesians use entry-level smartphones – for publishers, this means building “lite” versions of apps can be a winning strategy.
of the top 15 grossing mobile applications in Indonesia are offered in Bahasa Indonesia.
of the customer support inquiries received by Codashop are in Bahasa Indonesia.
As a mobile-first country, 76% of all Indonesian internet users use a mobile device to buy something online each month – outperforming the global average by 38% and even China by 2%.
Coupled with more consumer-friendly data prices, improving infrastructure and extensive government support, Indonesia is well-positioned for ongoing growth in the mobile market industry. The top 2 game genres are MOBA and MMORPG, with an average order value per gamer of about US$1.50.
Mobile gaming market size
in 2020
In July 2020, Indonesia began levying a 10% VAT on imported digital services supplied by non-residents. As of April 1, 2022, the VAT has been increased to 11%. Publishers unfamiliar with Indonesian tax policies may consider working with a registered third party to facilitate smoother processing. For example, Coda is registered to manage tax obligations on behalf of its partners, acting as the merchant of record (MOR).
The payment landscape in Indonesia is evolving, with emerging trends that may provide opportunities for digital content providers. Currently, 52% of the population does not have a bank account, with only 6% of adults having access to credit cards. However, 70% of the population has a smartphone, and trends in user behavior show that Indonesians are rapidly adopting digital payments for their transactions.
This gap in traditional payment infrastructure combined with trends in mobile technology use suggests that Indonesia may grow to be an e-wallet-first economy, with the use of e-wallets leapfrogging that of traditional credit cards.
DANA
GO-PAY
OVO
LinkAja
ShopeePay
Doku Wallet
Telkomsel
Indosat
Tri
XL
Smartfren
All local banks
Indomaret
Alfamart
-
Kredivo
QRIS
Visa
Mastercard
E-wallets are preferred among young adults as a mobile and convenient way to make purchases. With 80% of Codashop Indonesia users between the ages of 18-34, we see approximately 44% of transactions processed through e-wallets, followed by bank transfers and carrier billing. Payment type also impacts the average value per transaction, with an overall average value of US$1.50 per e-wallet transaction compared against an average order value of US$15 for bank transfers.
These insights can be helpful for publishers looking to determine the payment methods that make the most sense for their audience and business model.
Pricing matters. Over 90% of all individual Codashop Indonesia transactions are under US$5 – and over 60% are under US$0.99.
In this price-sensitive market, consumers will seek out the best value available. Digital content publishers can tap into these insights and price their content accordingly.
Codashop Lucky 7 Anniversary
The Codashop Lucky 7 Anniversary campaign for Codashop Indonesia was driven by dedicated support from multiple payment channel partners, who provided exciting customer offers like the GoPay 90% cashback and bonus skins incentive for Mobile Legends: Bang Bang diamond top-ups. The four-day campaign saw a 109% increase in average TPV, with revenue over US$100,000 daily.
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