OTT Platform Market in Indonesia

Untapped Opportunities: Exploring Indonesia’s OTT Platform Market Potential

  • InCorp Editorial Team
  • 24 June 2025
  • 5 minutes reading time

The Indonesian OTT platform market is experiencing explosive growth. This upward trend is primarily driven by a surge in internet accessibility, coupled with a youthful demographic inclined toward technology, as well as a rising demand for on-demand video content.

This shift in media consumption habits presents many investment opportunities for those looking to capitalize on this dynamic and rapidly evolving market.

What is an OTT Platform?

“OTT” stands for “over-the-top,” and it refers to a technology that allows streamed content delivery through internet-connected devices. Unlike watching TV through cable or satellite providers, viewers can now watch videos on different devices anywhere and anytime they want.

Moreover, an OTT platform for content streaming involves video or audio played over the Internet. Content is typically classified into two main models: pay-to-access and free-to-access. While many OTT services operate on a subscription basis, some platforms utilize alternative monetization methods, such as advertising. 

For instance, these platforms may offer tiered packages, thereby allowing users to access content for free with advertisements, or alternatively, opt for an ad-free experience by paying.

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How Big is the OTT Market in Indonesia?

In 2020, the OTT platform market in Indonesia was valued at USD 870.35 million, with a projected surge to USD 16,386.82 million by 2031. This represents a compound annual growth rate (CAGR) of 31.3% from 2022 to 2031.

The solution segment emerged as the primary component in the Indonesia OTT market in 2020 and is expected to maintain its dominance until 2031. This sustained leadership is attributed to consumers’ escalating demand for innovative, over-the-top media-sharing solutions.

Concerning device types, smartphones commanded the Indonesia OTT market share in 2020 and are forecasted to retain their dominance until 2031. The substantial increase in smartphone usage for streaming OTT services is propelling the growth of this segment.

OTT Service Growth and Market Potential in Indonesia

OTT Platform Market in Indonesia

According to a report by Allied Market Research titled “Indonesia OTT Market,” the market share of OTT services in Indonesia was valued at USD 870.35 million in 2020. It is estimated to reach USD 16,386.82 million by 2031, with a compound annual growth rate (CAGR) of 31.3% from 2022 to 2031.

Currently, OTT service providers offer their services mainly through mobile apps, aiming to provide customers with easy and convenient shopping experiences, online gaming, online payment, and banking services. 

The increasing use of smartphones and electronic devices is a significant factor driving the growth of the over-the-top market.

Moreover, factors such as higher customer income, the availability of low-cost smartphones, affordable high-speed internet, the growing number of internet users, and increased investments in communication network infrastructure contribute significantly to the growth of the OTT market in Indonesia.

Top OTT Platform Players in Indonesia

Indonesia OTT platform players consist of several aspects, as highlighted in the table below:

AspectsDetails
By componentSolution, Services
By devices typeSmartphones, Smart TV, Laptops, Desktops & Tablets, Gaming consoles, Set-top box, Other
By content typeVideo, Audio/VoIP, Games, Communication, Other
Key market playersAmazon Prime Video, CatchPlay, Iflix, Mola TV, PT. Media Nusantara Citra Tbk. (MNC Media), Netflix Indonesia, PT Telekomunikasi Selular (Telkomsel), PT. Telekomunikasi Indonesia Tbk (Telkom Indonesia), Vidio.com, Viu, and others.

Investment Opportunities of the Indonesian OTT Market

Investors should consider the promising investment opportunities the Indonesia OTT market offers.

1. Existing Players

Investing in well-established OTT platforms with a solid reputation, large subscriber bases, and a wide range of content offers stability. Yet, these platforms typically have higher valuations and slower growth rates.

2. New Growing Platforms

You can identify promising OTT platforms experiencing growth, offer unique content and innovative technology, or focus on specific niches. 

Although investing in emerging platforms involves more risk, it also provides the potential for higher returns.

3. Content Production Agency

You can look into content production companies that supply content to OTT platforms. Seek out studios known for producing high-quality content that appeals to OTT viewers.

4. Tech Providers

Consider investing in companies that provide essential technologies and services to the OTT industry, such as streaming infrastructure, analytics platforms, and content delivery networks (CDNs).

Challenges to Start OTT Company in Indonesia

OTT players in Indonesia still face challenges. One of them is persuading the public to access paid content. Transitioning from free to paid content consumption requires a fundamental shift in consumer mindset and appreciation for high-quality and curated content. 

However, the future of OTT platforms in Indonesia is promising, especially with more players striving to attract customers by offering diverse and appealing content.

One of the most important strategies in developing the OTT market is to enhance accessibility for Indonesian society and increase their interest in subscribing to online streaming platforms. 

This means that the OTT market in Indonesia has its challenges and opportunities. Convincing users to subscribe, adapting marketing efforts, and understanding local market dynamics are crucial for the success of an OTT streaming service.

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Unlock the Potential of Indonesia’s OTT Platform with InCorp

Indonesia’s OTT platform landscape is exploding, fueled by a massive internet user base and a growing demand for on-demand entertainment. Consequently, this presents a lucrative opportunity for investors seeking to capitalize on this dynamic sector.

InCorp Indonesia (an Ascentium Company) is your one-stop solution for hassle-free entry into Indonesia’s OTT market. We specialize in providing seamless solutions for company registration and investor KITAS services, ensuring a smooth and efficient setup process for your business in Indonesia. 

Take advantage of this golden opportunity. Contact InCorp today and let our experts guide you through the Indonesian OTT investment.

Verified by

Ales Cina

Consulting Manager at InCorp Indonesia

Aleš manages solution delivery at InCorp Indonesia, optimizing incorporation processes and client relationships. His experience in internal auditing, retail, and sales offers valuable global insights. Aleš, with a degree in Economics and Finance from the Czech Republic, helps clients navigate cross-border business challenges, focusing on cultural and legal insights.

Frequently Asked Questions

    Investors considering investments in Indonesia should assess existing International Investment Agreements between Indonesia and other countries. Having a business presence in countries with such agreements may offer incentives like stronger investment protection and higher foreign shareholding in Indonesia.

    Dividends can be distributed from company net profits after allocating reserves, depending on a positive profit balance. Approval from the general meeting of shareholders is necessary. Interim dividends may be distributed if specific requirements are met.

    The investment requirement for PMA companies in Indonesia varies based on their classification under the Indonesia Industrial Standard Classification (KBLI). Generally, a minimum investment of IDR 10,000,000,000 (ten billion Indonesian Rupiah), excluding investment in land and buildings, is needed to conduct one business activity in one location.

    A newly established PMA company in Indonesia is typically provided with import facilities, tax holidays, tax allowances, or investment allowances.

    • Import facilities
      Investors in Indonesia, particularly in manufacturing, may benefit from import tax exemptions for capital goods and raw materials through the Master List Facility. The imported goods must meet specific criteria, such as not being produced locally or not meeting industry demand despite local production.
    • Tax holiday
      The government offers CIT reductions of 50% or 100% for 5–20 years for listed pioneer industries, based on investment value. After this period, a CIT reduction of 25% or 50% applies for two fiscal years. Non-listed sectors can also apply by meeting criteria demonstrating pioneer industry status.

      • Pioneer industries are industries that have a wide range of connections, provide additional value and high externalities, introduce new technologies, and have strategic value for the national economy.

    • Tax allowance
      For companies in certain designated areas or regions, the government may provide the following tax concessions:
      Net income reduction up to 30% of the amount invested, prorated at 5% annually for six years, on condition that the assets invested are retained for the same duration.
      Accelerated depreciation and/or amortisation deductions
      An extension of tax losses carried forward for a maximum of ten years
      A 10% (or lower if treaty relief is available) withholding tax rate on dividends paid to non-residents
      The applicant eligible has to meet high-level-criteria for the above tax facilities:
      High investment value or for export purposes
      High manpower absorption
      High level of local content
    • Investment allowance
      The government offers a reduction in net income of up to 60% of the investment, distributed at 5% annually over six years of commercial production, contingent upon the retention of invested assets for the same duration. To qualify, applicants must meet business line eligibility criteria and employ a minimum of 300 Indonesian workers in the project.
    • Super deduction
      This facility could be granted to certain businesses, such as:
      60% reduction in net income of the amount of tangible fixed assets invested for labor-intensive industries, distributed throughout a certain time frame.
      Up to 200% reduction in the gross income of the amount spent for human resources development in certain competency activities.
      Up to 300% reduction in gross income of the amount spent for certain R&D activities in Indonesia.

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The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.

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