The Impact of New Indonesian Regulations on Game Translation

Due to an ever-enthusiastic player base, the Indonesian game industry is increasingly becoming one of the fastest-growing, demanding more localized content. Translating video games into Indonesian has started to become key in the local market, thereby enabling developers and publishers to adapt to new or evolved regulations. It regulates the translation and distribution of the games; therefore, such policies are crucial for a game publisher. Knowledge of these would help the latter avoid possible litigation by not violating any policies.

In this article, we’ll delve into the impact of Indonesia’s latest regulations on game translation and localization. Plus, we will look at what these changes mean for game publishers and offer advice on how to navigate this difficult but attractive market.

Understanding Indonesia’s Game Policies

The Indonesian government has implemented many regulations to restrict digital content, including games. These rules seek to protect consumers, preserve cultural values, and promote fair competition. The following are the important rules affecting the gaming industry:

1. Undang-Undang No. 11 Tahun 2008 tentang Informasi dan Transaksi Elektronik (ITE Law)

This law applies to all electronic information and transactions, including game translation and localization. It ensures that content meets Indonesia's ethical and legal requirements.

2. Peraturan Menteri Kominfo No. 5 Tahun 2020

The law mandates game developers and creators to register their platforms and adhere to particular content criteria, ensuring that their games are culturally appropriate.

3. Undang-Undang No. 7 Tahun 1994 tentang Perdagangan

This regulation has an impact on game distribution since it requires game publishers to conform their content with Indonesian commerce and localization criteria.

4. Peraturan Pemerintah No. 71 Tahun 2019

This regulation is focused on digital ecosystems, requiring game developers to follow data sovereignty and secure localization methods.

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The Impact of Regulations on Game Translation

Indonesian game publishers and international developers targeting Indonesia must carefully consider these laws when producing localized versions of their games. Here’s how the regulations impact the translation and localization process:

1. Cultural Sensitivity in Game Translation

Localizing a game for Indonesia involves more than language translation. It requires adapting content to align with cultural norms and values. For example, games featuring controversial elements such as gambling or explicit material must be modified to meet Indonesian standards. Failure to comply could lead to a ban.

2. Compliance with Registration Requirements

Peraturan Menteri Kominfo No. 5 Tahun 2020 requires game publishers to register their games with the Indonesian Ministry of Communication and Information Technology (Kominfo). This process ensures that all game translation efforts reflect compliance with national guidelines, including text, voiceovers, and gameplay.

3. Data Localization Requirements

The digital infrastructure regulations under Peraturan Pemerintah No. 71 Tahun 2019 mandate that localized games store data on servers within Indonesia. This creates additional costs and logistical challenges for game publishers but strengthens user trust by prioritizing data security.

4. The Role of Professional Game Translators

The demand for skilled translators familiar with Indonesian regulations has surged. Game publishers must collaborate with translators experienced in legal, cultural, and gaming-specific terminologies to ensure compliance.

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Opportunities and Challenges for Game Publishers

Indonesia’s evolving gaming landscape, shaped by new regulations, offers both exciting opportunities and formidable challenges for game publishers. Understanding these dynamics is crucial for developers looking to succeed in this vibrant market.

Opportunities

1. Enhanced Player Engagement through Localization

Localized games that resonate with Indonesian culture and language are more likely to captivate players. This personalization fosters deeper emotional connections, resulting in greater player retention and loyalty.

2. Growing Market Potential

Indonesia is home to one of the fastest-growing gaming communities in Southeast Asia. With millions of active players, it presents a lucrative opportunity for publishers who can navigate the regulatory framework and deliver localized experiences.

3. Increased Brand Trust

Publishers who comply with Indonesian game translation regulations, such as cultural appropriateness and data security requirements, can build trust with players. This trust translates into a strong market presence and a positive brand reputation.

4. Support from Local Partnerships

Collaborating with local translators, voice actors, and distributors familiar with regulatory requirements can streamline the localization process, ensuring both compliance and quality.

Challenges

1. Compliance Costs

Adhering to regulations, such as mandatory registration and cultural content guidelines, can lead to increased costs. For smaller publishers, these expenses may pose significant barriers to entry into the market.

2. Complex Localization Requirements

Translating games for the Indonesian market involves more than linguistic adjustments. Publishers must consider cultural sensitivities, religious values, and local traditions, which require expertise and meticulous attention to detail.

3. Time-Consuming Processes

Ensuring compliance with registration requirements and navigating approval processes can delay a game’s release. Publishers must account for these timeframes when planning their market entry strategies.

4. Technical Challenges

Regulations like data localization, which mandate storing user data on Indonesian servers, may require technical infrastructure upgrades, adding complexity to the localization process.

5. Competition and Market Saturation With the market’s growing popularity, competition among game publishers is intensifying. Balancing regulatory compliance with innovative content is essential to standing out in a crowded space.

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The Future of Game Translation in Indonesia

Indonesia has become a significant market for game developers, driven by a large and tech-savvy population. As of 2023, Indonesia had over 150 million active gamers, cementing its position as one of the largest gaming markets in Southeast Asia. The gaming market reached approximately USD 1.79 billion in 2023 and is projected to grow to USD 2.5 billion by 2025. This growth reflects a compound annual growth rate (CAGR) of about 6.77%.

The government aims to raise approximately USD 40 million annually through a gaming fund system to support research, development, and educational initiatives in the gaming sector. According to Cekindo.com, the esports segment is also expanding with the market valued at around USD 11 million in 2023 and projected to reach approximately USD 16.55 million by 2030.

The demand for engaging and immersive gaming experiences is on the rise, making effective localization essential for success in this market. Furthermore, developers are increasingly recognizing that well-localized games can lead to greater success in both local and international markets. As the Indonesian gaming market continues to grow, game publishers must embrace localization not just as a strategy but as a requirement. Translating games while complying with Indonesian laws will define the industry's trajectory in the coming years. Investing in technology, talent, and partnerships that support compliance will be essential.

Conclusion

The impact of new Indonesian regulations on game translation underscores the importance of aligning content with legal, cultural, and ethical standards. Game publishers must navigate these changes carefully, ensuring their localized games meet the expectations of both players and regulators. To stay ahead in the competitive gaming market, collaboration with localization experts is essential. Digital-Trans Asia offers a comprehensive suite of services, including localization, voice acting, and market insights. If you’re ready to localize your game or business for Indonesia, contact us today, and let’s discuss your project.