In recent efforts to intensify its fight against online gambling, the Indonesian government, through the Ministry of Communication and Informatics (Kominfo), has reportedly blocked an unprecedented number of online gambling sites and content. The Directorate General of Information Applications of Kominfo disclosed that access to 805,923 forms of gambling content had been restricted. This marked a significant move from the Ministry, led by Budi Arie Setiadi, which oversees the country’s communications, information affairs, and internet censorship.
Blocking these gambling sites involved targeting IP addresses, blocking website access, and restricting payment methods. Setiadi highlighted that this achievement equaled the cumulative efforts of the previous five years in combatting online gambling. The comprehensive ban covered various platforms, including 596,348 sites and IPs, social media platforms, file-sharing accounts, and even app stores.
Additionally, more than 5,000 payment methods were tracked and restricted. This initiative aligns with Indonesia’s longstanding ban on gambling since 6 November 1974, targeting casinos, poker rooms, sports betting, and bingo.
Financial Sector’s Role in Curbing Online Gambling
Parallel to Kominfo’s efforts, the Financial Services Authority of Indonesia (OJK) has taken decisive steps against online gambling. In a virtual press conference, Dian Ediana Rae, Chief Executive of Banking Supervision at OJK, announced blocking at least 1,700 bank accounts linked to gambling activities. OJK has also urged banks to report these accounts to the Financial Transaction Reports and Analysis Center (PPATK) for further investigation.
PPATK reported a substantial increase in money flow through online gambling transactions, amounting to Rp81 trillion ($5.4bn) in 2022, a steep rise from Rp57 trillion in 2021. Natsir Kongah, a spokesman for PPATK, raised concerns over the involvement of school children in online gambling, with a significant surge in suspicious financial transaction reports related to these activities. In 2022 alone, 11,222 such reports were filed, highlighting the pervasive nature of online gambling in Indonesia.
Global Context and Indonesia’s Response
These actions by Indonesian authorities come at a time when the global online gambling industry is experiencing exponential growth. The industry has doubled over the past four years, reaching 176 million users and generating over $95bn in revenue in 2023. With an annual revenue growth of approximately 20%, online sports betting and casinos have become significant contributors to this industry.
Indonesia’s proactive measures, combining both the digital and financial sectors’ efforts, reflect the government’s commitment to curbing the growth of online gambling within its borders, despite the global surge in this sector. The dual approach of blocking online content and freezing financial transactions linked to gambling activities demonstrates a comprehensive strategy to tackle the issue at its source and economic roots.
