[Indonesia Hallyu⑤] 74 Million Children Under 14... Animation Is the Future

Animation Growth Shines Bright... Expanding Scope Through In-House IP Development
Overseas Experts Recruited to Solve Completeness Challenges... Commercialization in Full Swing
Director Oh Seung-hyun, Running Local Company, Says "Technology Level Is Top-Tier"

The fastest-growing sector in Indonesia's content industry is animation. In 2015, total revenue was only 238 billion rupiah (approximately 20.0396 billion KRW). By 2019, it had grown to 602.7 billion rupiah (50.74734 billion KRW), a 2.5-fold increase in just four years. This growth resulted from expanding from focusing on overseas intellectual property (IP) outsourcing exports to developing original IP. There are 120 members registered with the local Animation Industry Association, of which seventy-seven own their own IP. They are promoting IP expansion across various fields including broadcasting, advertising, digital distribution channels, and character merchandising.

The shift in strategy was supported by the Indonesian government, which designated animation as a national strategic industry and fostered its growth. This was due to the focus on consumption by younger age groups and the labor-intensive nature of the industry. The number of children and adolescents under 14 years old is 74 million. The industrial structure remains low-cost and high-efficiency. The Ministry of Tourism, Creative Economy, and Culture supports the production of an average of twenty-three animation titles annually and operates promotion programs such as mentor training, forums, and IP development workshops. The Ministry of Education has established animation major courses in seventy-two vocational high schools, and the Ministry of Industry conducts related qualification tests and issues certificates.

Approximately 5,000 animation majors graduate each year. Among the beneficiary companies, MNC Animation (MNCA) stands out. Almost all of their productions are broadcast on RCTI, a channel under their parent company MNC Media Group. Titles include 'Endong', 'Kiko', 'Jaxstorm', 'Titus', 'Bima', and 'Dinda and Novi'. Through terrestrial broadcasting exposure, they quickly gain recognition and are commercialized into various merchandise and character products. A representative example is the smartphone game 'Kiko', which was released in the first half of the year and became popular. The MNC Group is also building a theme park in Java based on various IPs.

For derivative products and businesses to succeed, the quality of the animation must first be high. MNCA solved this challenge by bringing in director Oh Seung-hyun as executive director at the end of 2014. He is an expert who contributed to the production of the Korean film 'Wonderful Days' (2002) and developed shows such as 'Avatar: The Last Airbender', 'Firebreather', 'Generator Rex', and 'Tron: Uprising' at the American animation channel Nickelodeon. Settling at MNCA, he produced titles like 'Kiko', which remains a popular show with ratings above 8.5%. Director Oh humbly attributed this to the scheduling following 'Doraemon'. 'Doraemon' is the most beloved animation in Indonesia, having been broadcast on RCTI at the same time for 31 years.

In 2018, Director Oh founded the animation production company SHOH Enterprise in Jakarta. He saw the potential for success amid abundant demand. He said, "The population under 14 years old is equivalent to the combined population of North and South Korea. They even hold the remote control at home, so we accelerated our plans." All 160 employees are local Indonesians, and Director Oh personally taught the skills. He recalled, "There are not many universities in Indonesia offering animation majors, and the curriculum is so poor that graduates cannot be immediately deployed to the field. We had to hire eighty interns at once and teach them individually." Currently, satisfaction is at its highest. Director Oh said, "They have excellent dexterity and creativity. They are proficient in English and handle overseas business well. Above all, they have a passion to learn driven by professional success. Even if asked to redo work ten times, they never complain."

Improvements in technology and productivity have led to business diversification. SHOH Enterprise develops original IP and also co-develops IP through partnerships. A representative achievement is 'Sangsang Kkureogi Kkuda', an animated series for children inspired by Jeju Island, which aired on Korean terrestrial TV in April. It was the first joint investment among Korea, China, and Indonesia. Recently, SHOH Enterprise signed an animation OEM (Original Equipment Manufacturer) contract with Walt Disney Company and DreamWorks, the first in Indonesia. Director Oh proudly stated, "This proves that our company's technology has reached a world-class level."

SHOH Enterprise also introduces many Korean animations to Indonesia. They have secured local broadcast rights for titles such as 'Mini Force', 'GoGo Dino', and 'Monkart', which are aired on terrestrial TV. While not as popular as K-pop or K-dramas, Japanese animations including 'Doraemon' still dominate. However, Director Oh is optimistic, saying, "With the diversification of services providing animation such as the internet and Over-The-Top (OTT) platforms, and improvements in internet infrastructure, exposure frequency is increasing." He added, "If there are Korean companies seeking opportunities in Indonesia, I am always willing to help."