With a large population and low internet costs, Indonesia is one of the fastest-growing mobile app markets in the world, surpassing other booming app markets in Brazil, South Korea, and Malaysia. According to research firm GFK, more than 97 million devices were purchased across Southeast Asian countries such as Indonesia, Malaysia, and the Philippines in 2019. Moreover, the overall increase in mobile usage throughout Indonesia has played a vital role in creating one of the biggest mobile app markets in the world. Learning why certain apps are trending is a key step towards penetrating the market. In this article, we explore how several verticals have boomed in the Indonesian app market and how you can use OEMs to achieve your marketing goals.
Which verticals are in demand in Indonesia?
Mobile games, fintech, and health apps have emerged as promising verticals in the Indonesian app market. Apptopia revealed that gaming apps are the most installed app in Indonesia with almost 2.8 billion downloads. Finance apps came in second place with almost 1.8 billion downloads in 2019. The impact of the COVID-19 pandemic should also be considered, having had a contrasting effect on different verticals. For example, with a population of almost 270 million people and the effects of a worldwide pandemic, online shopping is now a part of everyday life for customers throughout the country. In contrast, an AppsFlyer report reveals that the demand for travel apps has significantly diminished due to the COVID-19 pandemic.
Health apps are the rising star of Indonesia’s app market
Healthcare apps such as Halodoc, Alodokter, and YesDok have increased in popularity since the beginning of the COVID-19 pandemic. These apps can help people contact a doctor if they are showing COVID-19 symptoms or have other health concerns. Even before the pandemic, health apps were finding innovative ways to help users: A 2017 survey showed that among 1012 people in Indonesia, 35% of respondents had used health apps within the past 12 months. This app vertical is attractive to users because it can help save time and money while making it easier to receive health advice and purchase medication.
Mobile games remain the most downloaded app type in Indonesia
Mobile games are helping users entertain themselves throughout the pandemic. COVID-19 has caused different demographics to familiarize themselves with gaming apps, with the average number of downloads per mobile game at more than 456,000. Social mobile games have become particularly popular this year. Head Of Content at Comunix Oren Todoros explained this global interest in an article for VentureBeat: “One of the main reasons that mobile games have made such an impact during the pandemic, beyond being an inexpensive escape from reality, is their ease of helping people stay social while social distancing.” He added that “Party games such as ‘Escape Team,’ ‘Heads Up,’ and ‘Words With Friends’ provide a great way for friends, new and old, to come together, share a laugh, and just have a good time. With the new reality of many of us stuck at home right now, these games can be a distraction and a much-needed source of laughter during an otherwise serious time.”
Fintech is rapidly changing the way Indonesian users manage their finances
There has also been a surge in demand for FinTech apps, with a 90% increase in install market share worldwide. SEA, and specifically Indonesia, has been at the forefront of disruption for banking for years and fintech is showing huge promise in the Indonesian market. The app vertical saves people the time they would otherwise spend in brick and mortar banks handling their financial services. Companies like Kredivo, Akulaku, and Julo have empowered a large portion of the population with access to credit, loans, and the basic money transfers to buy and pay online. In addition to this success, e-commerce would not have been able to thrive without fintech apps and the access to digital payment they provide. With 256 million people gaining access to the internet by 2025 in Indonesia, Fintech is not just a trend – it’s a commodity that is here to stay.
How OEMs can help you target the Indonesian app market
If you have a gaming, fintech, or a health app and want to target the Indonesian app market, working with OEMs (Original Equipment Manufacturers) offers a smart solution. This puts your app into app stores that are independently owned by OEMs, giving you access to their large untapped audience at a competitive price. OEMs offer higher user-acquisition whilst paying lower CPI (cost-per-install), and can be a particularly effective marketing method in countries where Apple and Google do not have an app store monopoly – such as Indonesia and other Southeast Asian countries. Another critical benefit to working with OEMs is that you enter a fraud-free environment. This is because there are no additional layers between the budget holder and the OEM.
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