Indonesia is set to reset rules for game publishers, including industry giants like Nintendo, Moonton Technology, and Valve Corp. The government’s new directive mandates both local and foreign game publishers to establish themselves as legal entities in the form of limited liability companies within Indonesia. Semuel Abrijani Pangerapan, the director-general for informatics apps at the Communication and Information Technology Ministry, emphasized that games on platforms without registered legal entities would face blocking. The move is part of Indonesia’s initiative to actively participate in and shape the digital economy rather than being mere spectators.
The Communication and Information Technology Ministry is currently working on a new regulation to replace the existing one governing the classification of electronic interactive games. Semuel highlighted that the revision would introduce new rules and classifications, with the aim of completing the process before the end of the month. Additionally, the upcoming regulation will bring forth a new rating agency dedicated to video games. The initiative aligns with Indonesia’s broader strategy to bolster its digital economy, recognizing the immense potential within the gaming industry. In 2022, Indonesian gamers spent Rp 25 trillion ($1.58 billion) on gaming, with a significant portion (99.5 percent) directed to foreign gaming app providers. In contrast, only a minimal fraction (0.5 percent) supported domestic game industry players, as reported by the Tourism and Creative Economy Ministry.
It looks like they want a piece of that pie, but could this hurt the production and accessibility of physical versions of games for the Asian market that are not available in other regions?
Looks like a form of corruption and abuse of power
I get it man. The corruption hers is bad.. I mean it as Indonesian myself. Though, it probably would make easier for gamer in Indonesia (including me) to get customer support. Especially like for Nintendo. We have to import Nintendo because they don’t even have distributor here.
It sounds like they are implementing what we have in the USA and most other countries for foreign entities doing business in country. Nintendo has offices in a lot of countries including the USA. Now they have to be established with a business presence in Indonesia. The real question will be if this move has the companies take the extra step to establish themselves or if they opt to just stop doing business there.
Sounds like they just needed to increase the digital sales tax?
Not sure if a LLC was needed for that?