A significant number of over half a million individuals in Indonesia have been apprehended for participating in online gambling activities
Indonesia's Minister of Social Affairs, Gusti Iputu, has expressed deep disappointment over the misuse of social aid funds for online gambling, a situation that seriously undermines the effectiveness of state support for the poorest citizens.
According to the Minister, state funds allocated for social support programs should be used for meeting citizens' basic needs, such as providing Food, Housing, Medical care, and Education. However, the Financial Transaction Reports and Analysis Center (PPATK) has identified about 571,410 social aid recipients as suspected of misusing welfare aid for online gambling. These recipients made approximately 7.5 million gambling transactions in 2024, totaling nearly Rp957 billion (about US$58.7 million) in deposits linked to gambling activities.
The authorities have taken several measures to address this issue. The PPATK and the Indonesian Ministry of Communication and Digital Affairs are actively identifying and investigating recipients suspected of gambling with aid funds. The government has frozen over 5,000 bank accounts linked to illegal gambling transactions, containing assets worth roughly $36.2 million.
Prosecutors are seeking heavy jail terms (12 to 15 years) for individuals protecting illegal online gambling operations, with suspects also being charged under several laws including the Criminal Code, Electronic Information and Transactions Law, and the Law on Prevention and Eradication of Money Laundering Crimes. Police operations have resulted in the dismantling of online gambling networks tied to syndicates in China and Cambodia, with multiple arrests of key figures involved.
The Indonesian government has warned social aid recipients, urging them to use funds for essential needs and threatened legal enforcement against misuse for gambling. There is a broader push, including discussions about restricting financial channels, like e-wallets, to prevent their use for gambling, similar to measures considered in nearby countries.
The investigation focuses on officials responsible for distributing social aid and maintaining beneficiary databases. The revelation of this misuse of funds has sparked serious concern among government authorities and the public. Authorities are concerned about the mass involvement of low-income individuals in gambling, which creates both a financial and social crisis.
The underground betting market has grown despite strict regulation, with illegal operators often evading Indonesian jurisdiction by operating from overseas servers. Online gambling is strictly prohibited in Indonesia. The Minister stated that the discovered violations undermine trust in the social aid system.
In response to this situation, the government has excluded individuals involved in gambling transactions from state social aid programs. The investigation aims to uncover cases of corruption, negligence, or malfeasance among government officials. Together, these steps illustrate a multifaceted government crackdown targeting both end-users who misuse social aid for gambling and the operators behind illegal gambling networks.
- What about the general news, has there been any update on the trends in gambling-trends, considering the recent crackdown on casino-and-gambling activities using social aid funds in Indonesia?
- As the authorities continue to investigate the misuse of social aid funds on casino-games, are there any indications of the involvement of casino-games operators in crime-and-justice networks, particularly those based overseas?
- With Indonesia's Minister of Social Affairs expressing disapproval for the misuse of social aid funds for online gambling, is there a possibility that this could lead to stricter regulations on financial channels, like e-wallets, to prevent them from being used for gambling-related transactions in the future?
