Indonesian Minister of Communications and Information Budi Arie Setiadi announced that his department has blocked 1.9 million online gambling websites from July 17, 2023, to May 21, 2024.
The Ministry of Communications and Information also asked the Financial Services Authority (OJK) and Bank Indonesia (BI) to block bank accounts and digital wallets related to online gambling. Therefore, OJK proposed to block 5,364 bank accounts, and BI proposed to block 555 digital wallets.
To further eradicate online gambling, President Joko “Jokowi” Widodo directed the formation of a comprehensive task force. "The establishment of the Online Gambling Working Group is the government's commitment to eradicate online gambling systematically and plannedly from upstream to downstream," Setiadi said.
The task force is expected to be established within one to two weeks and will be led by Coordinating Minister for Political, Legal and Security Affairs Hadi Tjahjanto. Setiadi will head the prevention department, while National Police Chief Listyo Sigit Prabowo will lead the law enforcement department.
Blocking digital wallets associated with online gambling
Setiadi also revealed that stern warnings and ultimatums have been issued to multiple social media platforms, including Meta. In October 2023, Meta removed 1.65 million pieces of online gambling content and 450,000 related ads, and in January 2024, X (formerly Twitter) was also warned.
The Electronic Transactions and Information Law, which came into effect in January, explicitly prohibits online gambling, imposing penalties of up to 10 years in prison and fines of up to 1 billion rupiah (about $645,000) on gambling site operators found guilty.
Indonesia's online gaming market is the 16th largest in the world and the largest in Southeast Asia, with sales reaching $1.92 billion by the end of 2021. At the same time, Southeast Asia's e-sports industry also relies heavily on Indonesia's development, as 43% of the region's players are located in Indonesia.
Historically, many Indonesian developers developed mobile games because they were more accessible, while making PC games or buying consoles in Indonesia was still relatively expensive. However, the mobile market is showing a top-heavy situation, and it is difficult for new mobile games to catch up. Therefore, Indonesian developers have to turn to PC and console games.
Despite the challenges, the future of Indonesia’s game development ecosystem looks promising, with the potential to gain recognition and further growth in the international game market. The Indonesian government has identified the video game industry as one of the most promising sectors to attract foreign investment.
In conclusion, despite Indonesia’s strict measures to combat online gambling, its iGaming industry is still thriving and shows good potential for future growth. Government support and the country's young, tech-savvy population are key drivers of this growth. However, this process is not without challenges, and the changes in the industry in the face of these challenges are worthy of attention.
