At the recent Gamescom Asia 2023 event in Singapore, Agate Chief Strategy Officer Cipto Adiguno spoke to the press about the significant changes that the Indonesian gaming industry has gone through.

According to him, there are two critical points that affected the company’s business significantly: the rise of mobile gaming that followed the popularity of internet cafes in the early 2000s and the appearance of digital payment options in the market.

“Low credit card penetration in Indonesia means that players have limited options, but the appearance of e-wallet allows users to purchase games more easily. This led to a sharp increase in our company’s sales,” Adiguno said before a panel discussion at the event.

“Game-playing also becomes an increasingly social activity. This does not apply only to multiplayer games. Back in the era of internet cafes or even game arcades, we often play by ourselves—but we also go to these places to meet friends. People today play games to allow them to socialise, being part of the cool kids even just from being able to talk about playing these games.”

These changes also affect the strategy that Agate uses for its business.

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“We had games that were specifically targeted for the Indonesian market, such as Memories: My Story, My Choice and Code Atma. [However,] in Indonesia, we learn that we cannot treat all users as a single persona,” he explained.

“Indonesia has a big population with diverse cultural and economic backgrounds; their behaviours vary greatly. This is why we give up on publishing this year because we realise that with this kind of situation, it will require a huge budget to get to a critical point where everyone is called to play a particular title. This is why this year we focus on development.”

Seizing opportunities in the global market

Agate is a Bandung-based game development company with a history that goes all the way back to 2009 when the company bootstrapped its operations as a student-founded business.

In the gaming industry, companies usually operate by either providing game development services for other businesses or developing their own unique content, but Agate operates by combining both aspects in its revenue model.

Adiguno highlights that the original titles that Agate produces allow them to showcase their skill range to potential clients and secure them as businesses.

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“Most game developers in Indonesia have their strengths in their ability to tell stories but remain challenged in the technical aspect of game development such as programming. This led them to focus on developing narration-driven games as it does not require deep technical skills. Instead, it focuses on the ability to create background stories, including those based on Indonesian folklore that they incorporate into the game,” he said.

“We are becoming a more globally oriented company with clients expecting us to be able to translate their stories into a unique game. They need us to be able to translate these stories into a fun game which requires high technical skills.”

Next year, Agate predicts that 2024 will be a turning point for the Indonesian gaming industry.

“People begin to see Indonesia’s potential, that there are indeed good products. Especially with upcoming government regulations to protect the gaming industry. We have more and more international companies reaching out to work together with us.”

To help support its acceleration goal, Agate is currently fundraising for its latest funding round.

“We no longer see ourselves as the biggest Indonesian gaming company. We see ourselves as competing with the global players. We use our advantages as an Indonesian company to win over opportunities.”

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Image Credit: Agate

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