Indonesia steps up crackdown on online gambling

Rajashree Seal November 21, 2024
Indonesia steps up crackdown on online gambling

Indonesia is intensifying its efforts to combat illegal gambling, particularly online platforms, under the leadership of President Prabowo Subianto. The president, who was sworn in last month, has declared war on online gambling, prioritising its eradication within his first 100 days in office.

Calling online gambling, which is illegal in Indonesia, a national threat on par with corruption and smuggling, Prabowo has urged law enforcement agencies to take a unified stand against the practice, emphasising that no institution should offer protection to those involved.

Communications and Digital Minister Meutya Hafid echoed this sentiment, revealing that investigations are underway into government officials suspected of aiding gambling activities. As of November 3, the ministry had blocked over 220,000 gambling sites and continues to shut down new ones with the help of cyber patrols and advanced technologies, including Artificial Intelligence. Hafid said, “This is just one indicator of success. The real progress lies in ongoing improvements and collective action moving forward.

The crackdown also involves collaborations with the Financial Transaction Reports and Analysis Center (PPATK), which monitors suspicious financial activities. The PPATK reported that transactions linked to online gambling soared to Rp 327 trillion in 2023 and have already reached Rp 280 trillion in the first nine months of 2024.

Societal and economic impact

Coordinating Minister for People’s Empowerment Muhaimin Iskandar has recently expressed his belief that the impact of online gambling extends beyond financial harm, affecting individuals’ mental and physical well-being.

During a visit to Jakarta’s Cipto Mangunkusumo Hospital, where over 100 patients were treated for gambling-related mental health issues in 2024, he said, “The emergency conditions caused by online gambling are widening.”

“It’s not just an economic issue but also a health crisis. Gambling damages the mind, psychological state, and physical health of our citizens. This is a national social disaster that must be addressed urgently.”

To mitigate these effects, the government plans to cover rehabilitation costs through the National Health Insurance (JKN) program. Muhaimin also called for a national helpline and skill training programs to help victims reintegrate into the workforce, addressing root causes like poverty and unemployment.

Rising addiction among youth

A particularly alarming trend is the rise in gambling addiction among Indonesia’s youth. Higher Education Minister Satryo Brodjonegoro revealed that approximately 960,000 students, mostly from universities, are involved in online gambling. This includes children as young as 10, as noted by the Online Gambling Task Force, which reported 80,000 gamblers under the age of 10.

To tackle this issue, the Ministry of Higher Education is setting up reporting channels in universities and directing academic leaders to prevent gambling participation among students and staff. Additionally, the Religious Affairs Ministry is collaborating with Islamic educational institutions to develop strategies for curbing gambling in academic environments.

Blocking gambling funds flow

Bank Indonesia (BI) has frozen 7,500 accounts linked to illegal online gambling transactions and is working with payment service providers to enhance fraud detection systems.

Deputy Governor Juda Agung stressed the central bank’s role in preventing the payment system from facilitating illegal activities. “We require all providers, both bank and non-bank, to strengthen fraud detection to identify accounts involved in gambling transactions,” he explained.

Meanwhile, Digital Minister Hafid also urged financial service providers to actively report suspicious transactions. “Nearly Rp 1,000 trillion is at stake, with funds flowing out of the country. This must be stopped,” she said.

Sustained efforts and public engagement

The government’s multi-faceted approach includes blocking content, monitoring financial transactions, and providing rehabilitation services for victims. Hafid also spoke about the importance of public awareness, inviting journalists to play an active role in guiding the public and shaping policy.

By using technology, strengthening partnerships, and tackling the social effects of gambling, Indonesia aims to break down the online gambling network and protect its most vulnerable citizens. As Prabowo reaffirmed, “This is not just an individual issue but a threat to our society, economy, and national security.”

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