Indonesian lawmakers establish new task force to eliminate online gambling
By Ramona Depares
Indonesia has some of the strictest anti-gambling laws in the world, and games of chance are prohibited both at physical and online casinos. However, as has been evidenced in other countries where online gambling remains unregulated, this hasn’t stopped the proliferation of illegal sites, with a vast number of Indonesians forging ahead and trying their luck at various casino games despite the blanket ban.
The situation has led Communications and Informatics Minister Budi Arie Setiadi to create a special task force to wage war on the phenomenon that is creating considerable challenges for problem players, particularly those within the lower-income group.
Indonesian press reported that the Minister announced the setting up of this task force during an official meeting with President Joko Widodo at the Presidential Palace. Following the meeting, he confirmed with Antara Indonesian News Agency that the ministry will continue to focus on eliminating online casinos from the country and that the newly instituted task force will work in tandem with law enforcement officials so as to ensure any measures are implemented.
In Indonesia, the revenue garnered from illegal gambling is considerable, with the Center for Financial Transaction Reports and Analysis (PPATK) reporting that there were around 327 trillion Rupees, the equivalent of $20.19 billion in circulation from this industry. Of particular concern is the fact that many who engage in illegal gambling come from a low-income group.
Speaking to the press, Minister Budi Arie Setiadi noted that in 2024, four people have already died by suicide after falling victim to online gambling problems, adding that “this country must be serious (in tackling the issue)”. Promising “dramatic steps” will be taken to correct the problem, he even referred to the possibility of putting those involved in the illegal industry under arrest.
Blocking of bank accounts linked to online gambling
Measures to start counteracting the problem already started in past months, with Minister Setiadi telling the press that since July 2023 the government has already taken down close to 1 million online gambling content pieces, but that the digital space was “still tainted” with the remains of online gambling. Comparing online casinos to mosquitos, he said that the removal of some sites didn’t mean that new ones wouldn’t crop up.
He urged the public to continue filing reports of illegal gambling, promising to respond even though his department couldn’t take any direct enforcement action and to continue “blocking, shutting down, and taking down all games that involve the practices of online gambling in the digital space”.
In January of this year, he gave the Indonesian press an update, stating that his ministry had managed to block access to over 800,000 items of online gambling.
The mass shutdown, he revealed, was the result of a long 5-year operation. The operation did not only target the online casinos themselves but also any content that promoted it. The Directorate General of Informatics in fact revealed that the ministry had shut down access to 596,348 items of content on sites and IP addresses, 173,134 on Meta platforms, 29,257 on file-sharing platforms, 5,993 on Google and YouTube platforms, 367 on X, 170 on Telegram, 15 on TikTok,8 in the App Store, and 1 in SnackVideo.
Bank accounts and e-wallets suspected of handling online gambling funds were also targeted, with the ministry collaborating with the Financial Services Authority (OJK) to block more than 5,000 such accounts. Mahendra Siregar, chair of the board of commissioners of the OJK, acknowledged that the blocking of bank accounts would not be enough to 100% eradicate digital gambling, describing the phenomenon of online casinos as a “transnational issue”.
Conceding that a substantial portion of illegal activity did not involve bank accounts, he referred to online casinos that accept cryptocurrencies and admitted that it would be very difficult to track down such transactions and stop them. Indonesia has banned the use of cryptocurrencies as a whole, making it even more difficult to collect such data.
“To this end, layer by layer, the eradication must be completed so that there is no empty space that continues to exist because we can see that the root problem has not been resolved completely,” he told Antara news agency.
Together with Minister Setiadi, he also called on internet service providers and mobile operators to strengthen efforts to eradicate online gambling by improving the system synchronization accuracy of the database of sites that contain online gambling content.
Meanwhile, the latest update given by the Communication and Informatics (Kominfo) Ministry in April 2024 confirmed that the drive to monitor and cut off access to online casinos continues thanks to the dedicated task force. During a press conference, Deputy Minister Nezar Patria stated that a team of 150 people were housed on the eighth floor of the Kominfo Ministry Building and were dedicating their time 24 on 7 to take down online casinos.
Working in three shifts, the task force is using AI and web crawler software to analyze websites. Any content deemed to relate to online gambling is blocked so as to stop Indonesians from accessing it. So far, the team has succeeded in blocking some 1.5 million sites that contain online gambling content.
The exercise has seen even giants like Meta and X come under fire from the Indonesian government, for failing to stop gambling content from reaching IP addresses in the country. In February of this year, the Kominfo Ministry had ‘summoned’ X (formerly Twitter) representative to discuss how the popular platform was handling online gambling adverts.
The deputy minister further highlighted that his side had been in coordination with operators of digital platforms, such as Meta and X, to take down circulating negative digital content. The main bone of contention was an advertisement featuring a public figure that the ministry had already requested be taken down. The advert had caused offence among Indonesians, some of whom claimed that it was appearing in their newsfeed despite them not following the account.
Semuel Abrijani Pangerapan, director general of informatics application at the ministry, said the ministry intended to ask X to develop a technology or special algorithms to detect online gambling advertisements. X has not released any comments to the press about the matter.
Background of gambling in Indonesia
Despite gambling having been banned in Indonesia as early as November 1974, the online sector is still thriving. In a study conducted by VOI, it was found that – out of the 8.5 trillion Rupiah that were in circulation in the country in 2022 – 1% emanated from gambling. In 2023, the PPATK conceded that that figure was likely higher, with almost 2.5% of money in circulation coming from gambling.
The blanket ban is closely tied to religious reasons, with Indonesia’s strict Islamic law quoted as one of the reasons why the government is unlikely to budge.
The future of gambling in Indonesia
Enforcement of the gambling ban appears to have reached an impasse, with government ministries and agencies already working at full capacity to take down related content. However, despite these continued collaborations, the shift towards the use of cryptocurrencies is making gambling transactions even more difficult to trace.
One solution would be the creation of a regulated infrastructure that would guarantee only the top online casinos with a solid responsible gambling programme would get to operate within the country.
However, this does not appear to be on the radar as yet. Instead, the government now appears to be looking at a digital literacy campaign focused on educating Indonesians about the risks of online gambling and how they can protect themselves. Meanwhile, the drive to stop transnational transactions continues.