Jakarta blocks free VPN and caps phone credit in gambling crackdown
In a decisive move to curb the rampant rise of online gambling, Jakarta’s government announced plans to block access to free virtual private network (VPN) services. This bold strategy is part of a broader national campaign aimed at dismantling top online casinos and minimum-bet sportsbooks in the country.
Communication and Informatics Minister Budi Arie Setiadi stated that while the government had successfully shut down thousands of gambling sites, apps, and promotional content in recent months, free VPN services still enable users to bypass these efforts and access foreign-based websites.
“Free VPNs are a gateway for ordinary people to engage in online gambling,” Setiadi declared during the Digital Transformation Indonesia seminar at the Jakarta Convention Center.
“We will cut off this access to protect our digital landscape.”
Budi emphasized that online gambling poses a significant threat to productivity and the integrity of the national digital transformation.
“Online gambling is the dark underbelly of digitalization,” he remarked.
To tackle this pervasive issue, the government is calling on the telecommunications industry for robust support.
“Our challenge is to advance digital transformation while mitigating its adverse effects. We must address these negative impacts collaboratively,” Setiadi concluded.
Indonesia’s crackdown has been massive in recent months
Indonesia’s war against online gambling was ramped up in the past few months when the government even sought the help of Google to crack down on the best online casinos, casinos with a minimum deposit, and minimum bet sportsbooks.
This approach follows the implementation of removing some 800,000 online gambling websites since 2023.
Setiadi also held talks with Google to discuss the usage of artificial intelligence (AI) in eradicating online gambling, even going as far as labelling it a “scam”.
For now, the AI method is still in the testing stage. He noted that the use of AI would be in line with Google’s focus, which, in the last year, developed many innovations in its services based on AI. Therefore, he believes that similar steps can be implemented by Google in Indonesia to fight online casinos.
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.
At the meeting with Google, the parties discussed reporting, and how to speed up processing of reports on online gambling content. With the help of AI, the process of identifying and handling online gambling content would be carried out faster and more accurately, compared to the human method.
The minister asked Google to immediately apply AI technology, and such an implementation would also take into account aspects of good governance and cybersecurity.
Background of the gambling crackdown in Indonesia
Since 2023, the Indonesian government has been trying to rid the country of gambling websites. So far, it has taken down over 800,000 online casino sites, including low-deposit casinos.
At the end of May 2024, the president reassigned the national task force with the mandate to dismantle the online gambling ecosystem in Indonesia. It ordered banks to block over 4,000 bank accounts implicated in online gambling and embarked on tracing gambling money.
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.
The government’s stance is aimed at curbing 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 have been approached by the government to assist in this fight against top online casinos.
The issue of gambling in Indonesia has been in the spotlight for decades. But despite efforts to get rid of it, more gambling sites have emerged online. The government continues to battle with blocking them. This is because many of these online casinos are located offshore, operating from regions like Cambodia and the Philippines.
In a text message, Minister 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 was quoted as saying in the message.
The government is so determined to win this war that 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 asked Interpol to help them shut down these gambling sites.
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 that it has even outlawed drinking in most public spaces. Penalties for breaking the law are extremely harsh. Travellers who overstay their welcome face penalties such as blacklisting and deportation.
So, given all of this, it’s not hard to see why the country is so adamant about gambling. It does not care if an online casino is regulated or not. It just will not allow it. It just wants to rid the nation of gambling in its entirety once and for all. And this is why, it has prioritized its war against gambling operators.
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