The Reason Why Many Game Companies Localize in Indonesia

Developments in these times, such as the emergence of new games, have become very popular with many people. Due to the proliferation of these games, there is a growing need for game localization. Game localization involves adapting a video game to fit different languages, cultures, target markets, and more. Therefore, the role of Indonesian game localization is crucial, especially for gamers in Indonesia, so they can easily understand the language of the game.

The Relevance of Indonesia in the Global Game World

Indonesia's relevance in the world of gaming is significant. Several factors contribute to the rapidly growing market. The gaming market is currently experiencing rapid development, alongside the increasing growth of the internet and the advancement of gadgets, which allow more people to play games. Considering that Indonesia has a large population, the mobile industry is also developing very quickly. Developers are creating games that are fun and engaging to play, which adds to their appeal.

Development of the Gaming Market in Asia

When a foreign company decides to localize a language in Asia, the languages that are widely used are usually Chinese, Japanese, and Korean because these three countries have high incomes. However, this can cause a problem because not all gamers understand English or these three languages. It is not surprising that the mobile games played by Southeast Asian gamers are games that offer various choices of local language. As shown in the data, the best-selling mobile game in Southeast Asia has at least three Southeast Asian language options in it.

Read More: Diving into Dota 2 Global Appeal: The Importance of Localization

Study Case in Indonesia

Indonesian game localization is an interesting case study. Many game companies do not localize their games in Indonesia, despite Indonesia being the country with the fourth largest population after India, China, and the United States, with a population of 278.6 million people. Even though the internet speed and coverage are still lagging behind other Southeast Asian countries, Indonesia accounts for almost half of the 440 million internet users in the region. The high number of internet users is reflected in the 130 million gamers in Indonesia, making it the third-largest market tracked by Niko Partners, following China and India. Niko predicts that the gaming market in Indonesia could be worth more than $1.5 billion by 2027, growing faster than neighboring countries such as Malaysia and Singapore. The growth rate is significant compared to other developed countries, such as Japan and Korea. Even though gamers from Indonesia still have the lowest revenue per user (ARPU) in Southeast Asia, continued economic growth will make Indonesia grow faster than other Southeast Asian countries and is expected to exceed $10 by 2025.

Mobile Game Market in Indonesia

The gaming market in Indonesia is mostly mobile. This is where most of the localization is done. Of the 20 mobile games in Indonesia, there is an Indonesian language option. Even though mobile devices dominate, Indonesia also has the fastest-growing PC gaming market in Southeast Asia and a growing console market, with significant interest from local players and developers.

This further emphasizes the importance of language localization for gamers in Indonesia and makes Indonesian game localization even more important for companies to enter this huge market. According to a survey conducted by Niko for their market report in 10 Asian markets, localization is deemed crucial by 79% of respondents in Indonesia, with 4 out of 10 gamers stating that local language and characters are the most important aspects of game localization.

Seeing the increase in Indonesian game localization by game developers, publishers, and platform holders, as of August 2023, Valve added support for Indonesian to the Steam Client Beta, which will enable the platform to reach 55 million Indonesian PC gamers. Niko's research also found that Steam is the leading PC gaming platform among Indonesian gamers, with 37.5% of PC games purchased by Indonesian respondents in 2023 coming from Steam, while other platforms still account for less than 20%.

Console Segment Development

In the console segment, Playstation has been a favorite in Indonesia for decades and Sony as the company behind the console is planning to expand the market. Although the console market may seem lacking in Indonesia, we have seen positive growth over the last few years. Sony's announcement that the upcoming Spider-Man 2 game for PS5 will feature Indonesian language localization, along with Thai and Vietnamese, marks the first time a PlayStation studio game will be published in a Southeast Asian language option. Other console games that include Indonesian localization are Genshin Impact and One Piece Odyssey.

Support from the Indonesian Government

The Indonesian government also supports the development of the gaming community. Data from Kominfo, the Indonesian Game Association (AGI), and Niko Partners indicate that the highest revenue for Indonesian game studios comes from PCs, generating $9 billion in 2018. Compared to mobile games, which generated $6 billion in the same year, Steam's addition of the Indonesian language option could help increase the growth of Indonesian PC gamers, especially because Indonesian-made PC games such as Coffee Talk, A Space for the Unbound, DreadOut, and Ghost Parade are also available in Indonesian.

With nearly 150 million gamers in 2007, game localization is crucial for Indonesian gamers. Besides language, efforts to incorporate local characters, events, music, and celebrity collaborations are also essential for reaching gamers in the region. Including local celebrations such as Indonesian independence and Balinese New Year events can enhance a game's reputation in Indonesia. Similarly, Indonesian gamers appreciate characters based on mythology or legends. For example, Kadita in Mobile Legends is inspired by Nyi Roro Kidul, a popular figure in Indonesian folklore. Game companies must conduct thorough research to incorporate elements such as time, lore, characters, designs, and other cultural aspects that resonate well with Indonesian gamers.

To advance game development in Indonesia through Indonesian game localization, various stakeholders need to play a role. Localization is critical considering the increasing and rapidly growing number of gamers in Indonesia. Digital Trans Asia can assist developers or game companies in entering the Indonesian market seamlessly. With high demographics and interest in games, investing in Indonesia for localization services can be promising. Visit Digital Trans Asia for services and more information about game localization. With our experience and expertise in game localization, we are ready to assist in expanding your game into wider markets, especially in Indonesia. Don't hesitate to consult with us; we are here to help you succeed.