The Indonesian government has announced a crackdown on digital payment service providers that facilitate transactions with online gambling operators. This action is part of a broader initiative by Indonesian authorities to combat the growing issue of illegal online gambling in the country. By restricting payment options, the government aims to decrease traffic to black market gambling sites, although these operators have proven resilient in the past.
Government pushes for stricter oversight of payment systems
On Saturday, Indonesia’s Minister of Communication and Information Technology, Budi Arie Setiadi, revealed that his ministry had issued warnings to 21 digital payment providers operating 42 applications. These warnings were based on evidence indicating that these applications were being used to process payments related to gambling activities.
The ministry has directed these payment providers to conduct thorough internal audits of their payment systems and to submit the findings within seven working days. Budi Arie Setiadi highlighted the gravity of the situation, cautioning that failure to comply with this directive could lead to administrative penalties, though the specific nature of these sanctions was not disclosed.
“If their audit reports are not submitted within seven days, they will be subject to administrative sanctions,” stated Budi Arie Setiadi.
This move is seen as potentially more impactful than some of the government’s previous efforts to combat online gambling. While alternative funding methods, such as cryptocurrencies, may still be available to users, the crackdown on traditional payment providers could make it significantly harder for the average person to access illegal gambling platforms, potentially causing considerable disruption to these operations.
Ongoing commitment to anti-gambling measures
The crackdown on payment providers is part of a larger campaign led by the Ministry of Communication and Information Technology to enforce Indonesia’s strict anti-gambling laws. In April, President Joko Widodo reinforced the government’s stance by signing a decree to establish a specialized task force dedicated to tackling online gambling activities.
The Financial Transaction Reports and Analysis Center (PPATK) has played a key role in these efforts, recently announcing that thousands of bank accounts linked to online gambling have been frozen, with assets worth Rp600 trillion ($36.39 billion) blocked. These actions underscore the scale of the challenge faced by Indonesian authorities as they work to mitigate the economic and social impact of illegal gambling.
Recent government statistics reveal that nearly 3 million Indonesians have engaged in online gambling over the past year, spending an estimated $20 billion on these illegal activities—approximately 1.5% of the country’s GDP. With ongoing enforcement and increased cooperation from financial institutions, Indonesia aims to significantly reduce this figure and curb the associated capital outflow.
