AR (Augmented Reality) refers to technology that interprets the physical world in three dimensions and augments it as a virtual experience. In Indonesia, a growing number of companies are adopting AR to provide practical services and unique entertainment experiences.

This article explores the current state of AR in Indonesia, including AR technology available via smartphones and startups that are leveraging AR in their businesses. It is intended as a reference for those interested in utilizing AR technology in business across Indonesia.

The AR Market in Indonesia

According to a study by Statista, a statistical research platform analyzing data from 170 industries across 150 countries, the revenue of Indonesia’s AR & VR market is projected to reach USD 312.2 million (approximately JPY 46.138 billion) in 2023.

With an annual growth rate of 14.9% from 2023 to 2027, the market is expected to reach USD 544.7 million (approximately JPY 80.498 billion) by 2027.

Initially, AR was primarily used in entertainment, such as AR goggles for immersive gaming or AR metaverses. However, AR applications are now expanding into education, marketing, retail, and other fields, delivering convenient services that enhance everyday life.

The global AR/VR market is growing rapidly, and its uses are diversifying. In Indonesia, it is expected that AR will become more deeply integrated into daily life in the near future.

Overview of the AR Industry in Indonesia

AR & Co was the first AR-related company established in Indonesia, launching in 2009. Since then, the Indonesian AR market has been gradually gaining momentum.

Many Indonesian companies now utilize AR technology, which is showcased at large-scale exhibitions and expos. For instance, at the Indonesia Digital Technology Expo—a trade show for next-gen technologies including IoT, AI, and gaming—AR companies are also active participants.

While Indonesia has not yet hosted many large events dedicated solely to AR, digital expos provide ample opportunity to showcase AR technology, indicating growing potential for exposure.

Case Studies of AR Technology Applications in Indonesia

AR Integration in Museums

Several museums in Indonesia have adopted AR-based systems. The History of Java Museum in Yogyakarta, for example, allows visitors to explore 3D objects using a dedicated app, enhancing the educational experience about Javanese history.

AR-Powered Photo Exhibition

The Goethe-Institut Bandung hosted an AR exhibition in 2019 for its 50th anniversary, where visitors experienced a retrospective journey from 1969 to the present through AR-enhanced photography.

AR Rupiah by Bank Indonesia

Bank Indonesia launched “AR Rupiah”, a digital tool using AR technology to educate users about the national currency. Through an app, scanning banknotes reveals cultural and historical stories tied to each note, aiding children’s education.

These examples show that AR technology is no longer limited to tech startups—it is also being adopted by public institutions such as museums and central banks, expanding its reach across demographics.

AR Technology in Indonesia Available Through Mobile Apps

AR Shopping at Pasarina Supermarket

Pasarina, a premium supermarket in Jakarta opened in June 2022, offers AR shopping via a dedicated app. Users can scan products for promotional info, receive navigation to items, and enjoy interactive visual features.

Pasarina’s selection caters to affluent shoppers with high-end imports. The AR feature simplifies exploring unfamiliar items without staff assistance or manual searches.

Virtual Cosmetic Testing at Glamify

Beauty retailer Glamify offers a virtual testing service called Beauty Test on its website. Customers can try products like eyebrow pencils, eyeliners, and lipsticks virtually by projecting them onto their face using a camera.

This service helps users avoid purchasing ill-suited items—an issue common in online cosmetics shopping.

Tokopedia’s Virtual Try On

In 2023, Tokopedia introduced a similar AR service called Virtual Try On, allowing users to compare up to four shades per product. Currently available through the official stores of L’Oréal and Maybelline, the feature may expand in the future.

Choki-Choki’s AR Boboiboy Game

Choki-Choki, a popular Indonesian chocolate brand, partnered with Malaysian animation Boboiboy to launch an AR-based card game. Cards included in the packaging can be scanned with an app to display animated characters.

Following the success of AR-linked games like Pokémon GO, AR Boboiboy has become a hit among children and adults alike.

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AR Startup Companies in Indonesia

AR&CO

AR&CO develops projects that integrate AR and cutting-edge technologies for events, theme parks, and museums. The company operates across Southeast Asia, including Indonesia, Malaysia, Singapore, and Thailand.

In collaboration with Fun Characters International, AR&CO organized a Toy Story 3 exhibition in Indonesia featuring AR technology that allowed visitors to transform into characters via a mirror display. The company also launched a digital wildlife encounter at Bali Safari Park.

SHINTA VR

SHINTA VR focuses on three AR-related business segments:

1. SpaceCollab – A virtual environment for meetings and presentations used by 22 companies and over 5,500 users as of August 2023.
2. MilleaLab – An Ed-Tech platform providing AR/VR learning content and virtual classrooms.
3. Virtual Character – A service featuring 3D characters who act as digital marketing ambassadors for businesses.

MindStores

MindStores offers services including data analytics, AR/VR-powered immersive experiences, and AI-based fraud detection.

One standout service is Alfamind, an AR-integrated e-commerce platform that lets users simulate walking through a store using motion-based navigation. Sellers can use Alfamart’s distribution network to manage listings.

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AR Technology in Indonesia and Business Opportunities

The global AR/VR market is rapidly expanding, offering business opportunities across many sectors. Several Indonesian AR startups have already partnered with international firms to host large-scale events and deliver global services.

Given its compatibility with fast-growing sectors in Indonesia such as mobile gaming and eSports, AR is likely to play an increasingly important role in these domains.

For companies considering business development in Indonesia using emerging technologies, AR presents a compelling opportunity worthy of attention.