Indonesia is now cracking down against illegal online gambling, a rampant issue in the Southeast Asian country.
The government has shut down over 2 million websites offering such services, revealing the vast scope and deadly consequences of this underground industry, estimated to be worth nearly $20 billion.
(Photo : CHAIDEER MAHYUDDIN/AFP via Getty Images) A man (C) is caned by a member of the Sharia police for using online gambling, in front of Al Munawwarah mosque in Jantho, Aceh province on June 7, 2024.
Indonesian Government Cracks Down on Online Gambling
Reuters reports that the move was announced by Indonesia’s Communications Minister, Budi Arie Setiadi, who emphasized the severe impact of online gambling on society. “Online gambling is so concerning, it’s sucking the people’s blood dry,” Setiadi stated.
He highlighted that the activity undermines family finances and predominantly affects women, describing the situation as “just the tip of the iceberg.”
President Joko Widodo echoed these concerns, urging Indonesians to refrain from all forms of gambling and suggesting alternative uses for their money.
Widodo also recently announced the establishment of a multi-agency task force, in collaboration with Interpol, to address the issue of online gambling.
Online gambling, although illegal in Indonesia, has seen over 3 million participants last year. This alarming number has prompted economists to warn about the long-term productivity losses and poverty traps associated with the practice.
The social consequences of gambling addiction are severe. There have been several high-profile incidents linked to online gambling debts. For instance, a policewoman in East Java’s Mojokerto regency burned her husband alive after he spent their bonus salary on gambling.
Another case involved a military officer committing suicide due to mounting gambling-related debts. Such incidents have drawn significant media and government attention.
Indonesia’s Strong Anti-Online Gambling Measures
In response to the crisis, Indonesia has implemented stringent penalties for those involved in gambling. South China Morning Post reports that participants and organizers face up to 10 years in prison and fines of up to 25 million rupiah (US$1,500), while distributors of online gambling software can receive up to 6 years imprisonment and a 1 billion rupiah fine.
The government has also blocked over 1.9 million pieces of online content promoting gambling and frozen 5,000 bank accounts and e-wallets suspected of being used for gambling activities.
Despite these efforts, the authorities face significant challenges due to the cross-border nature of online gambling. Many of the servers for these websites are based in Cambodia, and thousands of Indonesians are reportedly working there to operate them.
The Indonesian Financial Transaction Reports and Analysis Centre estimated that online gamblers spent approximately 327 trillion rupiah (US$20 billion) in 2023, a figure that has tripled since 2022. This vast sum of money often leaves the country, going to other nations like Myanmar and Cambodia.
Moreover, online gambling has been one of the top five reasons for divorce in Indonesia since 2020. The directorate general of religious justice at Indonesia’s Supreme Court reported that gambling accounted for 0.26% of the 408,000 divorces last year.
