In a move to bolster the local economy, Indonesia’s government is looking at introducing a new legal requirement for game publishers mandating them to set up limited liability companies in Indonesia in order to continue operations in the region.
Promoting the legal change, Communication and Information Technology Ministry director-general for informatics apps Semuel Abrijani Pangerapan stated: “If the publishers do not have a legal entity here, the games on that platform will be blocked. We want to build the digital economy; we don’t want to be just spectators. Let’s build it together.”
This move would apply to both local and foreign entities operating in Indonesia, with the threat of blocking games from non-compliant publishers.
Building an economy
Indonesia’s legal change would come in the form of a revised law with new rules and classifications, while the current Permenkominfo, in place since 2016, would be revoked. As per Jakarta Globe, the regulation aims to enhance the “digital economy” of Indonesia, with gaming naturally representing a massive potential revenue stream.
The government manoeuvre is expected to be completed promptly and will also introduce a new rating agency. Meanwhile, in the UK, hints were made regarding an update to PEGI ratings at PGC London last month, including redefining bad language.
The proposed publisher requirements in Indonesia, meanwhile, bear some similarity to China’s system of operations. There, the Chinese regulators require game developers to work with local publishers in their region if said developers want approval for a game launch. And with game licence approvals being as stringent as they are in China, the process of working with a local publisher becomes a necessity.
However, whether worldwide game makers will go as far as to set up limited companies in Indonesia in order to reach its audience remains to be seen.
Among the biggest publishers in China is, of course, Tencent: the tech behemoth that has recently started playing the AI card.
