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Jakarta Post

Online gambling crisis: A call for comprehensive measures

By restricting and supervising payment gateways, authorities can make it significantly harder for individuals to deposit money into online gambling accounts.

Ahmad Novindri Aji Sukma (The Jakarta Post)
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Tue, June 25, 2024 Published on Jun. 23, 2024 Published on 2024-06-23T17:12:18+07:00

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Online gambling crisis: A call for comprehensive measures Online war: A person watches an online gambling advertisement on their tablet on June 19, 2024. The Communication and Information Ministry has blocked 2.1 million websites as part of the fight against online gambling. (Antara/Aprillio Akbar)

O

nline gambling has emerged as a significant crisis in Indonesia, especially affecting the mid to low-income segments of society. Despite strict prohibitions under Indonesian law, the complexity of the issue and the rapid advancement of technology have exacerbated the situation, making it a formidable challenge for regulators and law enforcement.

Indonesia’s legal framework unequivocally bans gambling, including its online variant. According to Article 27 Paragraph (2) of Law No. 1/2024 on the second amendment to the Information and Electronic Transaction Law (UU ITE), “Any person who intentionally and without rights distributes, transmits and/ or make accessible electronic information and/or electronic documents containing gambling content” is committing a criminal act. Moreover, Articles 303 and 303, along with Articles 426 and 427 of Law No. 1/2023 on the Criminal Code (KUHP), reinforce the prohibition against gambling, imposing severe penalties on offenders.

However, the enforcement of these laws faces numerous obstacles. Online gambling operations are often hosted on servers located in foreign countries (e.g. Cambodia, Laos, the Philippines and Thailand), beyond the immediate reach of Indonesian authorities. This has allowed the industry to thrive, with an estimated turnover of Rp 327 trillion (US$19.86 billion) in 2023 alone (The Jakarta Post, June 5).

In the first quarter of the year, transactions reached a staggering Rp 100 trillion according to Tempo.co. Recently, the Indonesian Financial Transaction Reports and Analysis Center (PPATK) reported the flow of Rp 5 trillion from online gambling activities in Indonesia to 20 different countries, highlighting the transnational nature of the problem.

Effective law enforcement requires robust cooperation with all internet service providers (ISPs) in Indonesia. Additionally, immigration authorities need to enhance their oversight and put in place tighter immigration controls, as many Indonesians work abroad as administrators for online gambling operations, particularly in countries like Cambodia. The National Cyber and Encryption Agency (BSSN) must also play a crucial role in regulating and controlling online content access.

One potential solution is to follow the money. Financial institutions and banks must implement stringent Know Your Customer (KYC) protocols and risk management practices to detect and prevent the flow of funds related to online gambling. The PPATK should actively track suspicious transactions and ensure that they are followed up.

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The Financial Services Authority (OJK) should oversee banks and financial institutions to enforce these measures diligently. Suspicious transactions should be tracked and reported to law enforcement for further action.

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