Indonesia Increases Penalties for Illegal Gambling Activities

The Indonesian government is intensifying penalties against digital payment service providers that collaborate with online gambling operators as part of its initiative to fight the rise of illegal online gambling.

Minister of Communications and Information Technology, Budi Aryeh Setiadi, revealed that 21 digital payment service providers managing 42 applications have received warnings after the ministry confirmed that these applications were facilitating payments for gambling activities.

The ministry has mandated these service providers to perform a comprehensive internal audit of their payment systems and report the findings within seven business days. Setiadi emphasised the gravity of the situation, indicating that non-compliance could lead to significant sanctions for those involved, though specific penalties were not detailed.

Indonesia's commitment to combating illegal gambling remains steadfast. In April 2024, President Joko Widodo enacted a decree to form a task force aimed at dismantling the illegal online gambling network. Since then, thousands of bank accounts connected to online gambling have been frozen, resulting in the blocking of assets totalling $36.39 billion. According to government statistics, nearly 3 million Indonesians have engaged in illegal gambling, collectively spending around $20 billion, which amounts to approximately 1.5% of the nation's GDP.