Indonesian Minister of Communications and Information Budi Arie Setiadi expressed concerns about money laundering activities related to online gambling. The Financial Transaction Reports and Analysis Center (PPATK) discovered these suspicious activities in the first quarter of this year.
The communications minister discussed the issue at a meeting with the House of Representatives' First Committee, which is responsible for communications, defense, intelligence and foreign affairs, according to local media. He said money obtained through gambling was being laundered, but did not provide details on specific cases.
Significant Financial Impact of Online Gambling
Coordinating Political, Legal and Security Affairs Minister Hadi Tjahjanto previously disclosed that the transaction volume of online gambling activities from January to March reached 100 trillion Indonesian rupiah (5.7 billion euros). This figure represents a significant portion of the total online gambling transaction volume of 327 trillion Indonesian rupiah (18.5 billion euros) for the whole of 2023.
First Committee member Nurul Arifin from the Gorkha Party highlighted the huge economic losses caused by online gambling and questioned the effectiveness of the ministry's measures to combat online gambling. She pointed to the ministry's claim last year to have blocked 800,000 online gambling sites and expressed doubts about the success of those efforts because transaction volumes remained high.
Commitment to fight gambling
In response, Setiadi reiterated the ministry’s determination to eradicate online gambling, highlighting its harmful impact on household finances and the nation’s well-being. He pointed out that the financial losses suffered by Indonesians benefited other countries, stressing the importance of addressing this issue.
Indonesian President Joko “Jokowi” Widodo has established a special inter-agency working group to deal with the proliferation of online gambling. The task force is led by Senior Minister Hadi Tjahjanto, with Setiadi in charge of prevention and National Police Chief Gen. Listyo Sigit Prabowo in charge of law enforcement.
Legal Consequences of Gambling in Indonesia
All forms of gambling are illegal in Indonesia, and participants and organizers face severe penalties. Under Article 303 of the Penal Code, those involved in gambling activities can face up to 10 years in prison and a fine of up to 25 million rupiah (1,418 euros). In addition, under the Electronic Information and Transactions Law (ITE Law), those who distribute online gambling software can be sentenced to up to six years in prison and fined up to IDR 1 billion (€56,730).
