Roblox Corporation (RBLX) stock surged 5.40% in pre-market trading on Monday, as investors reacted to reports of the game's growing popularity in Indonesia, despite potential regulatory challenges.

A recent survey by Populix revealed that one in three respondents in Indonesia plays Roblox, with the majority (63%) citing entertainment and stress relief as their primary reasons for engaging with the platform. The game's appeal spans across generations, with male Gen Z players forming the largest user group. This surge in popularity comes at a time when Roblox faces scrutiny from Indonesian authorities, creating a complex landscape for the company's growth prospects in the region.

However, the stock's rise also comes amid concerns about potential blocking of the game in Indonesia. The country's Minister of Basic and Secondary Education, Abdul Mu'ti, has called for a ban on Roblox for elementary school students, citing concerns about violence and inappropriate content. The Indonesian government is considering blocking games with violent content if they are proven to negatively impact the younger generation. This regulatory uncertainty adds a layer of risk to Roblox's expansion in the Indonesian market, which investors appear to be weighing against the platform's growing user base in the country.