The ministry is collaborating with the Indonesian Games Association (AGI) to hold the competition, called Gelora 2020.
The government's goal is to get local game makers to help spread the right information about Covid-19.
The ministry's digital economy and creative product deputy, Josua Simandjuntak, said games are a powerful tool to spread information since it also provides entertainment for the users.
Games submitted to Gelora 2020 must refer to the content of official documents on Covid-19 mitigation from the Health Ministry.
"The games should educate the public about ways to protect ourselves from the disease, such as physical distancing, wearing masks and following the new normal guidelines. They should also refer to our latest campaign, Proudly Made in Indonesia," Josua said on Wednesday.
According to information on the AGI website, the ministry will help the competition winners to develop their games into ready-to-play products.
Developers must submit a proposal, a video pitch and a statement letter before June 4.
The ministry's film, television and animation industry director, Syaifullah, said a contest like Gelora 2020 will help local game makers to realize more of their ideas.
"The gaming industry is huge. The government should help local developers to create more commodities for it," Syaifullah said.
Hamburg-based research firm Statista estimated Indonesia's gaming industry would generate $1 billion in revenue this year with its 141 million users – the largest market in Southeast Asia.
The gaming industry, particularly mobile gaming, is expected to continue its rapid growth in the next few years – not only in Indonesia but also in Southeast Asia.
The coronavirus pandemic could ironically provide a boon for the gaming industry as people spend more time at home and turn to games as their main source of entertainment.