Editor’s note: This article was originally created by DotC United Group Overseas Research Institute.Indonesia is the fourth most populous country in the world and the largest economy in Southeast Asia. The population structure is younger, the population of the Internet is growing rapidly, and investment prospects are broad.Based on the huge Internet demographic dividend and the mobile Internet market that is in the fast-developing stage, the Indonesian market has now become a battleground for domestic APP developers and venture capital companies to go abroad.Indonesia is the fourth most populous country in the world. According to statistics, Indonesia has 150 million active Internet users, accounting for 56% of the total population, of which mobile active Internet users are up to 140 million.Indonesia is expected to have 80 million active mobile gamers at the end of 2019, and this number may increase to 100 million by 2020.There are hundreds of ethnic groups in Indonesia, with more than 300 national languages, and the official language is Indonesian.According to a survey, about 77% of Indonesian APP users are accustomed to using the official language Indonesian in terms of language selection and use, and 22% of users are inclined to English. Domestic developers may prefer Indonesian when translating Indonesian localized languages.Indonesia is the sixth largest smartphone market in the world, with approximately 83.91 million smartphone users and a penetration rate of 31.1%. Like India, Indonesia is also the dominant market for Android with a 93% market share.There is a saying that for every three mobile phones sold in the Southeast Asian market, two come from China. According to data, Chinese manufacturers account for 62% of the Southeast Asian smartphone market, of which Huawei, Xiaomi, OPPO, vivo and other domestic smartphone manufacturersLeading position.In Indonesia, OPPO leads the market share of Samsung, Xiaomi, and other brands. OPPO not only maintains a leading position in the Indonesian smartphone market, but also maintains a rapid growth trend. In the next few quarters, OPPO is expected to continue to maintain this market.First place.GAMEMOBA games “Free Fire”, “Endless Showdown” and “PUBG Mobile” easily cut off the top three best-sellers in the Indonesian game app for free. The popularity of mobile gaming in the Indonesian market can be seen.Southeast Asia is one of the fastest growing e-sports regions in the world. The core enthusiasts of e-sports in Southeast Asia are mainly distributed in Vietnam and Indonesia.At present, the development of mobile e-sports in Southeast Asia is still in a booming stage. Although the overall mobile e-sports market still follows the footsteps of China and the United States, the local Singapore SEA company has also made great achievements in mobile e-sports.Fire is the first independently developed game by SEA. Since its launch at the end of 2017, the game has targeted emerging markets, including Brazil, India, Southeast Asia and other countries and regions. In Southeast Asia, the best performing game isThailand and Indonesia.The competition between “Free Fire” and similar product “PUBG Mobile” in Indonesia is fierce. The latter has exquisite pictures, many weapons and large maps, which can give players a more realistic experience. Relatively speaking, the network speed and equipment requirements are relatively low.It is relatively high; the former has slightly poor picture quality, few weapons, and small maps, but it can bring a relatively fast and smooth experience to players. Both games have their advantages.The top free and best-selling lists of Indonesian game app publishers were included by Chinese company Baby Bus and Singapore SEA Company, respectively.Baby Bus is the pioneer of Internet early education in China. Its systematic early education content is the core of their business, and based on the business philosophy, the products provided by Baby Bus are basically free content.The baby bus’s overseas business accounts for about 15% of its total. Based on the differences in language, culture, and social environment, content products targeted at adults will face certain barriers when they go to sea.There is no threshold for the common needs of early childhood education all over the world, which is also an important reason why early childhood education products are more easily accepted by users in different countries and regions.As mentioned earlier, SEA is headquartered in Singapore and is a leading Internet company in Southeast Asia. In addition to games, the company also vigorously develops e-commerce, payment and other fields. Based on the focus and operation experience of the local market, it has established a very strong home court.Advantage.SEA has cooperated with a number of well-known game developers in China to publish games, including Tencent’s “Glory of the King” and many other domestic fairy-tale and palace-themed games, with outstanding results.If conditions permit, domestic developers can also cooperate with the company when conducting business in Southeast Asia.The Indonesian game app free list and best-seller list basically show the main pattern of China + the United States. For the best-seller list, Chinese games occupy an overwhelming position.Indonesia is a game market that is extremely dependent on overseas. Whether it is free or best-selling, Indonesian games account for only a very small market share. According to data, games developed by Indonesia account for only 0.4% of the market.The share is less than 20%.The main reason is the lack of local investment and game development talents, which is also an important reason for the huge opportunities in overseas markets, including Chinese developers in Indonesia.Free games in the Indonesian market are mainly focused on leisure, action and education.Among them, in education games, China has about 81% market share, and in mainstream leisure and action games, Chinese game participation is still low, and there is still huge room for improvement in the future.The best-selling game apps in the Indonesian market are mainly focused on role-playing, strategy and gambling.Chinese games dominate all three major genres.Like India, the gambling industry in Southeast Asia is relatively developed, and the offline industry has given birth to the public’s love of gambling mobile games.Currently, mobile gaming in the Indonesian market is dominated by domino cards, Texas Hold’em and slot machines.As mentioned earlier, the number of local products in the Indonesian market is relatively small. These products are mainly concentrated in light, medium and heavy types such as simulation, leisure, music and gambling, and heavy games still rely entirely on overseas markets.With the development of Indonesia’s mobile Internet and the attention of local governments and game industry organizations, Indonesian local developers may continue to rise.The main themes of Indonesia’s best-selling game apps include magic, war, solitaire, and slot machines.In addition, the themes with Chinese characteristics, such as the court, the Three Kingdoms, and Xianxia, have a certain market share in Indonesia and the entire Southeast Asian market.In terms of overseas game themes for domestic developers, in addition to the aforementioned mainstream themes, these themes with Chinese characteristics can be considered especially.No matter in the free list or the best-selling list, MOBA games dominate the Chinese games on the Indonesian market.Mutong Technology ’s “Endless Showdown” and Tencent ’s “PUBG Mobile” have no suspense charts.In Southeast Asia, the competition and grievances between “Endless Duel” and “Glory of the King” have become hot topics in the industry for several times, but “Endless Duel” ultimately relies on its own strong competitive and social features, as well as rich offline activities and events.And other operations, it has become a phenomenal MOBA game in Southeast Asia.In addition to head companies such as Baby Bus, Tencent, Mutong Technology, and IGG, Chinese game app publishers on the Indonesian market, products from small and medium-sized companies such as Zenjoy, LVYMOBILE, and Hua Weiwei, which specialize in light games, also perform well.Has its own place in the Indonesian market.Among Indonesia’s free game apps, Chinese games are predominantly games of education, gambling and elimination.Among them, the baby bus company almost monopolized China’s educational game market in Indonesia. Educational games such as “Fashion Little Princess”, “Wonderful Flower House” and “Baby Supermarket” basically hovered in the TOP 100 free list in Indonesia with great results.Among the best-selling game apps, Chinese games are mostly based on role-playing, strategy, and gambling.Except for the MOBA games that are monopolized by the head, China still mainly plays mainstream role-playing and strategy games in the Indonesian market.The main themes of the best-selling game app in Indonesia are basically the same. Domestic developers in the Indonesian market focus on themes such as magic, war, and card.In addition, as mentioned earlier, the palace, three kingdoms, and fairy game games with Chinese characteristics are also quite marketable.The NON-GAME Indonesian non-game app free list and best-seller list are social media Facebook and game social application Hago.Thanks to a younger demographic and a rapidly growing number of Internet users, Indonesia has a good media environment.At present, Indonesia is one of Facebook’s four largest markets worldwide, with nearly 150 million users, leading the entire social media market.Hago is a casual game aggregation social application that integrates multiple real-time games, chat rooms, K songs and other functions under the Huanju era.As the first stop in Southeast Asia, Hago performed best in Indonesia and Vietnam.Hago’s success in the Southeast Asian market is mainly due to its platform’s rich social scenes and content, and friend matching based on the AI algorithm of the Happy Age.Facebook, with its social media Facebook and its lightweight version of Facebook Lite, and the messaging app Facebook Messenger and its lightweight version of Facebook Messenger Lite ’s near-monopoly status in the Indonesian market, has helped Facebook to cut off Indonesia ’s non-game app publishers for freeChampions.With the outstanding performance of its social gaming Hoga, live social BIGO LIVE, short video social Likee, and voice social Hello Yo in its respective fields, Huanju Times has become the most profitable non-game APP developer and publisher in the Indonesian market.Outside of Indonesia, the era of Happy Gathering has basically established the product matrix of its social media platform from game social networking, live social networking, short video social networking and voice social networking throughout the Southeast Asian market.Chinese products dominate the Indonesian non-game app free list and best-seller list, followed by US and Indonesian local products.Compared to the best-selling list, Indonesian local products have performed well in the free list. Based on local natural advantages, Indonesian users’ e-commerce, travel, and financial products used daily are basically from home.Non-game free apps in Indonesia are mostly in tools, finance and photography.Among the tools and photography products, the number of Chinese products dominates, while in the financial type, the number of Indonesian local products accounts for more than 90% of the market share.Based on the uneven supply of finance, the low level of financial inclusion, and the rapid development of Internet technology, Indonesia’s financial technology sector has experienced rapid development in the past few years.At present, Indonesian fintech companies focus on loans and payments. Their lending and payment-related businesses together account for nearly 70% of the entire fintech market, and their APP market also dominates lending and payments.Indonesia’s non-selling APPs are mostly video social, tools, and dating products. Among these three types of apps, Chinese products rank first, especially in the video social field, which accounts for nearly 60% of the market.Chinese video social products headed by BIGO LIVE, Yome Live, TOYA Live, Boom Live, etc. are much loved by young Indonesians.Compared with game apps, in non-game apps, Indonesian products are basically involved in all types, including finance, tools, e-commerce, books and news magazines.In addition to the financial sector mentioned earlier, Indonesia has also made great achievements in e-commerce.With the development of the Internet, like most markets around the world, Indonesian consumers ’consumption patterns are also shifting to online purchases. According to data, the Indonesian e-commerce market will grow to 130 billion US dollars in 2020, with an annual growth rate of 50%.Currently, Indonesia’s most popular e-commerce platforms include Shopee and Lazada from Singapore, as well as local Bukalapa, Tokopedia, Akulaku, Blibli and other platforms.Although Indonesia’s e-commerce has developed rapidly, it still faces many problems, such as poor infrastructure, slow Internet connection, and lack of online payment conditions. It is believed that with the continuous improvement of these problems, the Indonesian e-commerce market will emerge in the future.More opportunities.Among the non-gaming apps from Indonesia on the Indonesian market, the free list and best-selling list topped the transmission tool eggplant fast pass and game social application Hago respectively.Hago mentioned earlier that it is the most profitable non-game application in the Indonesian market in China, and it is also the most profitable non-game application in the entire Indonesian market.The fast transmission of eggplant cross-platform and cross-content without network re-characterizes the pain points of imperfect network infrastructure and slow Internet connection in emerging markets such as Indonesia, making it the best choice for local users to transmit content between mobile devices.Today’s eggplant fast transfer has transformed from a tool portal into a comprehensive content distribution platform based on accurate analysis of big data such as user preferences. The upgrade of eggplant fast transfer product functions and positioning makes the product still broad in the major emerging markets in the future.Living space.Among non-game apps, Huanju Times has become the company with the most product downloads and the most revenue in the Indonesian market with its product matrix of social media platforms including live social, short video social and voice social, led by gaming social Hago.Zhonglian Jixiang ranks second in the free list with a unique eggplant fast pass, Alibaba follows closely behind, and its products, UC Browser and UC Browser Mini, dominate the Indonesian mobile browser market.Tencent ranked second on the Indonesian market for its outstanding performance in the Indonesian market with its music streaming applications JOOX, KTV for all people, and the overseas streaming version of Tencent Video WeTV in the Indonesian market; Momo Technology ranked third, and its products explored Tinder from the USLead the Indonesian dating application market together.Among non-game free apps, China has a large number of products such as tools, video editing, and photography in the Indonesian market.Among them, tools such as Zhonglian Jixiang and Cheetah Mobile performed particularly well; InShot and QuVideo companies in the video editing category performed well; photography products mainly came from companies such as Cheetah Mobile and Meitu.Among the non-game best-selling apps, Chinese products are mainly video social. As mentioned earlier, BIGO LIVE under the Huanju Times and Yome Live under Huya are China’s most popular applications in the Indonesian video social market.Summary & recommendations for the Indonesian market overseas Indonesia is a game market that is extremely dependent on overseas. Whether it is free or best-selling list, Indonesian games account for very little market share. The main reason is the lack of relevant investment and game development talents in the country.Important reasons for the huge opportunities in overseas markets, including Chinese developers, in Indonesia.Free games in the Indonesian market are mainly focused on leisure, action and education.Among them, in education games, China has about 81% market share, and in mainstream leisure and action types, Chinese game participation is still low, and there is still a lot of room for improvement in the future; best-selling game apps are mainly focused on role-playing and strategyAnd gaming.Chinese games dominate all three major genres.Like India, the gaming industry in Southeast Asia is relatively developed. At present, the gaming mobile games in the Indonesian market are mainly domino cards, Texas Hold’em and slot machines.The main themes of Indonesia’s best-selling game apps include magic, war, solitaire, and slot machines.In addition, the themes with Chinese characteristics, such as the court, the Three Kingdoms, and Xianxia, have a certain market share in Indonesia and the entire Southeast Asian market.In terms of overseas game themes for domestic developers, in addition to the aforementioned mainstream themes, these themes with Chinese characteristics can be considered especially.Among Indonesia’s free game apps, Chinese games are predominantly in educational, gaming, and elimination games.Among them, the baby bus company almost monopolizes China’s educational game market in Indonesia; among the best-selling game apps, Chinese games are mostly in the types of games such as role playing, strategy and gambling.In addition to the monopoly of MOBA games, China still plays a mainstream role-playing and strategy game in the Indonesian market.Chinese products dominate the Indonesian non-game app free list and bestseller list.Indonesian local products have shown great results in the free list. Based on local natural advantages, Indonesian users’ products such as e-commerce, travel and finance are basically from home.The fintech sector in Indonesia has experienced rapid development in the past few years.At present, Indonesian fintech companies are mainly in the field of loans and payments. Their lending and payment-related businesses together account for nearly 70% of the entire fintech market. The APP market also dominates lending and payments.Indonesia’s local e-commerce strength is strong. Currently, Indonesia’s most popular e-commerce platforms include Shopee and Lazada from Singapore, as well as local Bukalapa, Tokopedia, Akulaku, Blibli and other platforms.Although Indonesia’s e-commerce is developing fast, it still faces problems such as poor infrastructure, slow Internet connection, and lack of online payment conditions. As these problems can be continuously improved, more opportunities will emerge in the Indonesian e-commerce market in the future.Indonesia ’s non-game best-selling apps are mostly video social, tools, and dating products. Among these three types of apps, Chinese products are ranked first. Especially in the video social field, China occupies nearly 60% of the market.Chinese video social products led by LIVE and Yome Live are popular among Indonesian young people. Momo’s products in dating products are exploring with the American Tinder to lead the Indonesian dating application market.Edit | Cloud 晞 @ 36 氪 出海 头 图 | Unsplash.
2019 Indonesia App Market Insights