November 11, 2024

Indonesian govt at war with online casinos – 800,000 gambling websites taken down

The Indonesian government is on a warpath to rid the country of online casinos. This is irrespective of whether they are licensed or not. In the past year, Indonesia has taken down around 800,000 online casino sites in its no-nonsense approach. This has sparked debate about the reasons behind the move.           

While outsiders view the country as the tropical travel destination of Bali and the elusive Komodo dragon, inside there is a lot happening to remove top online casinos and gambling as a pastime. 

To put some perspective on this, did you know that Indonesia is home to around 2.7 million online gamblers? Recent government data suggests that the 2023 “fund circulation” in the country stood at around 327 trillion rupiah, which is roughly $27.5 billion. Fund circulation refers to the amount of money people won, spent, and lost through gambling. The government has also taken note that there was a high number of bank loans taken out, and it strongly believes gambling debt is the reason for it. 

This has put the government on the edge of its seat to the point of even naming and shaming online casinos as a “scam”. As part of this war against online gambling operators, the Ministry of Communications and Informatics moved swiftly between 2023 and 2024, taking down some 800,000 online gambling sites. But despite this effort, more gambling sites have emerged online, and the government is battling to block them. This is because many of these online casinos are located offshore, operating from regions like Cambodia and the Philippines. 

According to Indonesian law, gambling is a criminal offence. It is illegal for locals and foreigners, 

punishable by a fine of up to 1 billion rupiah, or 6 years jail time.  There are also no proper casinos in the country. Indonesia follows Sharia Law, which means any form of gambling is considered a sin. 

In a text message, Communications and Informatics Minister Budi Arie Setiadi told The Strait Times that they were working towards creating public campaigns to convey their message to gamblers. 

“Nobody could win by betting their money against a machine that is designed to always be in profit,” Setiadi is quoted as saying in the message. 

Govt seeks help from Interpol and other ministries

So determined and motivated is the Indonesian government that it has even called on other unrelated government departments to assist in the task of combatting online casinos. This multi-agency approach is to enhance its crackdown even further. 

It has even gone to the extent of pleading for help from Interpol, especially since many of these best online casinos are in different regions, where the Indonesian government has no jurisdiction. It has asked Interpol to help them shut down these gambling sites. 

Another reason for the Indonesian government’s push is because it believes this will help curb the high number of loans being taken out by gamblers, who are in severe debt. But whether the debts are actually linked to gambling cannot be verified or confirmed. 

But what we do know is that even private banks in Indonesia have been approached by the government to assist in their fight against top online casinos. 

Banks Tracing Money Trails

Decision-makers have also gotten banks on board with this fight. It has ordered banks in the country to block at least 4,000 bank accounts, which they believe could be implicated in online gambling. 

Media reports have indicated that Indonesia’s Financial Transaction Reports and Analysis Centre will continue tracing these money trails and will prioritize blocking accounts of people found gambling at online casinos. 

Bank Central Asia spokeswoman Hera Haryn told the media: “We never facilitate online gambling in any form and will block any account used for online gambling.” 

While so much is being done to curb gambling, the one question that remains is whether or not the taken-down sites were licensed or not. 

Indonesia’s strict laws are across many activities

Indonesia is a country made up of an 87% Muslim population, and it follows strict Sharia laws. 

To give some context about how strict they are, we decided to look at other activities considered taboo in Indonesia. 

Smoking, for instance, is prohibited in public spaces, public transport, and other vicinities. Foreign travellers to the country are restricted in the number of cigarettes they can bring along. According to their law, travellers can bring a maximum of 200 cigarettes and 50 cigars- that’s it. Nothing more is allowed. 

The government is so strict, it has even outlawed drinking in most public spaces. Penalties for breaking the law are extremely harsh. Travellers who overstay their welcome also face penalties such as blacklisting and deportation. 

So, it then makes sense why the government has taken such a tough stance against top online casinos. It clearly does not matter whether an online casino is regulated or not, or whether it is licensed or not. To them, it does not matter is a casino site has responsible gambling tools or not. To the lawmakers of Indonesia, none of this matters. 

It just wants to rid the nation of gambling in its entirety once and for all. And this is why, it has prioritized the taking down of gambling sites. 

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