Indonesia: GEO Analysis, Features, and Potential

Indonesia is a rapidly developing nation and a relatively new GEO within the betting & gambling verticals. In this article, we will explore the country's economic potential, regional cultural nuances, and the specific strategies for promoting iGaming within the local market.

General Information

Key data for this GEO is summarized in the table below. Notable highlights include the large Muslim population, the national currency exchange rate, and a high internet penetration rate. We will analyze these factors in detail below.

Market Status and Potential

Indonesia is the largest nation in Southeast Asia. The majority of its population is Muslim, making it the most populous Muslim-majority country in the world.

In 2021, Indonesia's GDP reached $1.186 trillion, ranking 7th globally and 1st in Southeast Asia. The country's economy is growing rapidly due to strong ties with neighboring nations and Western countries. According to World Bank forecasts, Indonesia’s economy is expected to maintain a growth rate of 5–6% per year in the coming years.

Also, the country ranks fourth in Asia in terms of the total number of internet users, following China, India, and Japan, with 90% of the population living within mobile network coverage areas.

Currently, Indonesia is emerging as a country with huge digital potential. By 2022, 73.7% of the population were internet users, and 77.9% of those aged 15 and older were active users of information technology. Notably, 63.4% of users go online to spend their leisure time, while 41.2% use the web for gaming.

E-commerce in Indonesia is experiencing a massive boom. The market volume is projected to reach $105.6 billion by 2027, with the user base expected to grow to 237.1 million people.

Payment preferences are also shifting: by 2025, bank transfers are expected to become the preferred payment method for 34% of the population, while 27% will use e-wallets as their primary means of payment.

In addition, Indonesia is becoming a regional leader in crypto activity. Approximately 12 million people, or 4.5% of the population, hold cryptocurrency on exchanges or in "cold" wallets. About 78% of Indonesian crypto owners are between the ages of 18 and 44, and crypto ownership correlates with income levels: 41% of Indonesians who own cryptocurrency have an annual income exceeding $14,000.

The popularity ratio of the primary payment methods is shown in the chart below:

Gambling in Indonesia

For a long time, Indonesia was a Dutch colony, and Europeans introduced the local population to gambling culture. After decolonization in the mid-20th century, the gambling business was legalized and generated significant profits. However, since the majority of the population is Muslim, pressure from radical groups gradually led to a total ban on the industry.

As mentioned before, Indonesia is the world's largest Muslim-majority country. Because of this, officials and the general public usually view gambling unfavorably, though the situation varies by region.

At the same time, many underground casinos, game rooms, poker tables, and slot halls continue to operate across the country. Even though local authorities and police conduct regular raids, these illegal businesses simply move to new locations and keep running.

This is why online iGaming has become a perfect way for locals to follow long-standing traditions without clashing with the law. The government often chooses to ignore the rapid growth of online gaming. Furthermore, there is a common practice of issuing one-year licenses to various gambling websites.

There is no official regulator to collect market data in Indonesia, making it difficult to pinpoint the exact scale and future of the market. However, several signs suggest its potential is huge:

• According to various estimates, there are about 5,000 local gaming sites operating in Indonesia, with their audience growing by 50–80% per year.
• In 2022, revenue from official casino apps (only those on the App Store and Google Play, excluding third-party stores and direct downloads) reached approximately $13.13 million.
• The total number of official app downloads reached nearly 32 million by 2022.

Popularity chart for iGaming & Betting queries in Indonesia

• Sports Betting accounts for 37% of the market.
• Live Casino holds a 30% market share.
• Slots make up 26% of the market.
• "Other Games" — 7%:
• • Poker: 3%
  • Fishing Games: 2%
  • Lottery: 2%

Betting in Indonesia

Indonesians are passionate about sports betting. The country even uses a specialized odds system that differs significantly from European and American formats. As a result, many betting platforms not only provide Indonesian localization but also integrate the local odds system to improve the user experience.

Indonesian odds are similar to the European format in that they are written as decimals. However, Indo odds can be either positive or negative.

Example: A negative odd for a win (-1.15) means that you need to bet $1.15 to win $1. Positive odds work exactly like the standard format.

Most popular sports for betting: football, badminton, cricket, esports, basketball, cycling, and Sepak Takraw (also known as kick volleyball). There is also a high demand for combat sports, including boxing, Muay Thai, and Pencak Silat.

Popular Social Networks and Platforms

1. The most popular social networks are:

• Facebook – 76.9% of the population (200M users)
• Instagram – 59.3% of the population (150M users)
• TikTok – 19.2% of the population (50M users)
• YouTube – 15.2% of the population (40M users)
• Twitter – 7.6% of the population (20M users)

2. The most popular messengers are:

• WhatsApp – 38.5% of the population (100M users)
• Telegram – 14% of the population (40M users)
• LINE – 3.6% of the population (10M users)
• Facebook Messenger – 2.9% of the population (8M users)
• KakaoTalk – 0.7% of the population (2M users)

Based on this data, Facebook and Instagram are the most effective platforms for promotion. Using Telegram funnels will also be highly effective.

Payment Systems

Indonesian players prefer traditional methods for betting and making deposits, such as Visa or Mastercard, though some also prefer e-wallets and cryptocurrencies. For the Indonesia GEO, 1win offers:

• Deposit Methods: QRIS, Dana eWallet, OVO Wallet, Visa/MasterCard, AstroPay, Perfect Money, Bank Transfer, and Cryptocurrencies.
• Withdrawal Methods: Bank Transfer, Dana eWallet, OVO Wallet, Perfect Money, and Cryptocurrencies.