Indonesia targets $25.79 billion online gambling industry, shutting down unregistered platforms

Indonesia's online gambling sector has surged, with transactions nearing Rp 400 trillion (around $25.79 billion) and approximately 3 million active participants, according to recent data from the Communication and Informatics Ministry. This growth has prompted the government to escalate its efforts to combat illegal gambling activities facilitated through unregistered online platforms.

Teguh Arifiyadi, who oversees Informatics Application Control at the ministry, announced that the government will adopt a zero-tolerance approach towards platforms not registered as electronic system providers (PSEs) but found to be engaging in or enabling online gambling. These platforms, ranging from international giants like PayPal and Google to social media services such as Facebook and X (formerly Twitter), risk immediate shutdown if they fail to comply with regulations.

"If there are indications of violations, we will issue an initial warning. However, if the platform is not registered as a PSE and is found to be used for online gambling, we will cut off access immediately without warning," Teguh stated during a press conference in Jakarta.

To tackle the proliferation of online gambling, the ministry employs advanced AI tools, regular web surveillance, and encourages public reporting of suspicious activities. These efforts have led to the blocking of 3.8 million online gambling sites over the past seven years, with half of these shut down in the last year alone.

Parallel to the ministry's crackdown, the Financial Services Authority (OJK) has targeted the financial underpinnings of the gambling networks by freezing 6,400 bank accounts suspected of being associated with illegal gambling. The OJK has also directed banks to closely scrutinize any suspicious accounts and to temporarily suspend transactions if necessary.

However, the widespread use of false identities and purchased account details continues to pose significant challenges to law enforcement.