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Indonesian Entertainment Market in 2023: Prospects for Opening Start-Ups

Updated 08 june 2023
Online casino
Author: James Burton

Indonesia is the largest economy in Southeast Asia. According to analysts from Trading Economics, it will take sixth place in the world in terms of GDP by 2035. Many sectors are developed here. However, gambling is prohibited for religious reasons.

Indonesian gambling market: overview

Casino Market explains the current situation in the country's gambling segment and describes the prospects for the iGaming sphere legalisation and the preferences of residents.

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Indonesian Market in Numbers

Indonesia is the largest and most populous country in Southeast Asia. About 273 million people live here. 88% of them profess Islam (Sharia).

State policy is focused on attracting foreign investment in various sectors of the economy: tourism, construction of residential and commercial real estate, agriculture, and mining. The country's capital, Jakarta, is a large metropolis with a population of 10.5 million people.

Basic facts about Indonesia:

  • $1.3 trillion is the volume of GDP at the end of 2022. According to this indicator, the country ranks seventh in the world and first in Southeast Asia. At the end of 2022, GDP increased by 5.31%. This is a record value since 2013. The removal of COVID restrictions is a key indicator of growth in gross domestic income, according to the Trading Economics research centre.
  • 47% of GDP comes from industrial production. Indonesia is an agro-industrial state with a developing economy. In addition to manufacturing, the service sector (37%) and agriculture (12.4%) are developed here.
  • 90% of the population lives in the coverage area of cellular communications. The country ranks fourth in Asia in terms of the absolute number of Internet users. According to this figure, it concedes only to China, India, and Japan.
  • 60% of the population accesses the Web using mobile devices. The leading positions in sales are occupied by inexpensive gadgets manufactured by Samsung and Xiaomi. The devices run on the Android platform.

The Development of the Gambling Field in the Country

Indonesian gambling industry: development

The republic is distinguished by significant ethnocultural diversity. 88% of the population is Muslim, making Indonesia the largest Islamic country in the world.

Religious considerations are a key factor influencing the ban on gambling in the republic. Islam has a negative attitude towards any manifestations of excitement, whether these are bets in online casinos or traditional lotteries.

The country provides strict punishment for violations of laws regarding gaming. Since 2018, the police have identified over 500 thousand illegal sites. More than 200 residents of Indonesia have been criminally liable.

The severity of Islamic laws does not stop the local population from gambling. The priority is bets in online casinos and bookmaker portals. Gamers prefer to play on offshore sites due to easier access to platforms and various payment methods.

The government does not publish official statistics on the entertainment industry’s development due to a complete ban on gambling. According to unofficial channels, the daily turnover at rates is $33,000. The owners of Internet casinos and betting resources earn $500,000 or more per year, including taxes paid.

Gaming Preferences of the Local Population

The citizens of this country are real gambling enthusiasts. This is due to historical and demographic factors in the formation of the republic. The formation of gaming culture was influenced by the active colonisation of the region by Europeans. Until 1942, the state was an overseas possession of the Netherlands, which began its development in the 17th century.

In Indonesia, cockfighting was first mentioned. This very strange form of amusement still attracts spectators who are happy to place bets and watch the competition of animals.

Gamers from Indonesia prefer entertainment solutions implemented in an oriental style. The content contains unique cultural elements such as hieroglyphs and other distinctive symbols. Traditional music, dances, and paintings have colourful and vibrant features.

What entertainment products are in demand in Indonesia:

  1. Table games. In this category, it is worth highlighting Qiu Qiu — a mix of poker and dominoes, as well as baccarat, blackjack, and Sic Bo. These games are in great demand among the local population. Users place bets in casinos with live dealers and on sites that work with RNG.
  2. Fish shooting. Multiplayer titles attract customers with interesting social features, bright graphics, and the opportunity to apply different betting strategies. Gamblers monitor the actions of opponents, participate in joint tournaments and missions, and communicate through an internal chat.
  3. Slots. The population makes bets in traditional 5-reel machines and modern cluster solutions. Products with crypto bets are especially sought after.

Other popular solutions are as follows:

  • bingo;
  • lotteries;
  • poker;
  • arcades, and others.

The Development of Betting Start-Ups

Locals love sports and are happy to follow the outcomes of top tournaments and meetings:

  1. Among the sports requested by the audience are football, tennis, volleyball, cricket, cycling, and boxing. Martial arts are in demand in the country. They are part of the national culture. Bets on classical wrestling in different weight categories are available, as well as local exotic sports: Muay Thai, Pencak Silat and Sepak Takraw.
  2. Badminton is the most popular athletic discipline in Indonesia. The country ranks second in the overall medal standings of the Olympic Games in this category, second only to China. Since 1992, when badminton was included in the Olympics, local athletes have fallen out of the top three only once.
  3. The country has a special coefficient system. It is in many ways similar to the American calculation method. The main difference is that in the Indonesian variation, all quotes are presented as decimal fractions (that is, divided by 100).

Bets are accepted on offshore platforms. They are accessible to gamers through the Web and various VPN applications.

Bookmakers fully adapt the content for users from Indonesia. They translate texts into the local language and add a special odds system to make their sites as user-friendly as possible.

The Profile of a Typical Indonesian Player

Consider the key characteristics of gamblers:

The average player’s age is 28

It is considered sufficient to have a stable income and the ability to deposit in an online casino.

Operators proceed from the fact that the average user at the age of 28 has already received higher education and a good working position. Such a customer can play on a gambling site without prejudice to the financial situation

Women make up 40% of the audience

Indonesia is one of those Islamic countries where the female population feels as free as possible. Women can shake hands with men, study at universities, and hold leadership positions. Wearing a hijab is also optional.

For this reason, Indonesian ladies are just as active players as men. They make up 40% of the audience of iGaming sites

Unlimited access to social networks

Indonesia is the only Sharia country that has little to no control over social platform traffic. Residents can easily view pages on Facebook, Twitter, and YouTube.

Facebook is the leader in the number of registered accounts from Indonesia. The site is used by 95.7% of the population. YouTube takes second place (45%). Twitter occupies the third position (8%).

Local messengers are in demand in the country. These are MigMe (analogous to WhatsApp), Line (ICQ alternative), and KasKus (universal online bulletin board).

Promotion through social networks is a mandatory item in the marketing strategy of online casinos. Operators can attract the target audience from different messaging channels and get legal solvent traffic

Players’ exceptional discipline

Gamers are alien to manifestations of aggression and unreasonable actions in case of loss. On the contrary, they behave very calmly and reserved. They perceive gambling as a way to have fun and not to earn money.

Indonesians are less likely to develop gaming addiction than other nations

Popular Payment Methods

Popular payment systems

To replenish a gambling account, gamers use fiat and digital currencies.

Traditional Settlement Options

The following methods of depositing money into an online casino account are popular in the country:

  1. Internet acquiring. 45% of the population has bank cards. These are mainly Visa and Mastercard products. Such solutions are in demand due to fast and safe transfers with a minimum commission, interesting loyalty programs, and a convenient user interface.
  2. OVO Wallet. It is the leading digital payment service in Indonesia. The head office of the company is located in Jakarta. Transfers are performed in the local currency — the Indonesian rupiah. When using OVO Wallet, people can pay for many services in the country — from taxis and food delivery to utilities.
  3. GoPay. The product was presented by the GoJek corporation in 2010. The solution is characterised by simple registration and account verification, comfortable deposit and withdrawal limits, good cashback, and a flexible bonus program.
  4. LinkAja. The payment service was developed by the Indonesian mobile operator Telkomsel. The settlement system is integrated with the largest banks in the country — BNI, BRI, Mandiri, and Rakyat Indonesia. This provides instant depositing and withdrawing of funds to users’ cards with a minimum commission.

Cryptocurrency Settlements

Indonesia is one of the regional leaders in terms of the number of digital operations:

  • 4.5% of the population (12 million people) store cryptocurrency in cold and hot wallets. Basically, these are Bitcoin and Litecoin. They are trusted by the audience the most.
  • 78% of cryptocurrency holders are men aged 18-44, with a stable income above average. 41% of users have an annual revenue of $14,000.

The use of digital assets in the country is allowed. The authorities equate cryptocurrency with gold. It can be owned and traded on specialised online exchanges.

The Main Things about the Gambling Market in Indonesia

The gaming area in the republic is at the stage of formation.

  • At the moment, the operation of online casinos is prohibited. Users place bets on foreign iGaming platforms that are maximally adapted to their needs. These are the support for the local language and currency, the use of the Indonesian coefficient system, etc.
  • Gamblers prefer entertainment titles implemented in an oriental style. The audience likes slots with a built-in RNG, table and live games, bingo, and keno. Among the demanded content, it is worth highlighting Qiu Qiu — the national poker game with the use of domino tiles.
  • The average visitor to a gambling site is a gamer aged 28 with a stable above-average income and unhindered access to popular social platforms - Facebook, Twitter, and YouTube. 40% of the audience are women. Gamblers are alien to manifestations of aggression. They are calm about failures in casinos and are less exposed to the risks of ludomania than other nations.
  • Settlements in fiat and digital units are common among the population. 4.5% of residents use cryptocurrency as the main payment method. Bank transfers through Visa and Mastercard cards, OVO, GoPay, and LinkAja e-wallets are popular here.

Casino Market provides professional support at all stages of launching and promoting an iGaming startup. We help our clients with creating a business plan, obtaining a licence, choosing amusements, and installing payment aggregators.

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