The state-owned Bank Rakyat Indonesia (BRI) has blocked 1,049 accounts linked to online gambling activities in the past year. The bank actively monitors online gambling sites to identify BRI accounts used for deposits and then blocks them.
The crackdown comes amid growing concerns about online gambling in Indonesia. The Internet Gambling Working Group estimates that there are 4 million online gamblers in Indonesia, 40% of whom are between the ages of 31 and 50. A report from the Financial Transaction Reports and Analysis Center (PPATK) showed that 60 million online gambling transactions occurred in the first quarter of 2024, with a total amount of IDR 101 trillion (approximately 5.7 trillion euros).
The issue has reached a boiling point following a recent scandal involving Indonesia's anti-graft agency, the Anti-Corruption Commission (KPK). At least 17 current and former KPK employees have been involved in online gambling, underscoring the pervasiveness of the problem among government agencies.
The Indonesian government has adopted a multi-pronged response. Vice President Ma’ruf Amin has called for stricter law enforcement against organizers and participants of online gambling. A task force was set up in June to root out online gambling, and the government is also investigating allegations against officials.
The BRI’s move to block gambling-related accounts is another step in curbing online gambling in Indonesia. It remains to be seen whether these efforts will be enough to address this widespread problem.
Indonesia cracks down on online gambling
Indonesia’s financial intelligence agency, the Financial Transaction Reporting and Analysis Center (PPATK), also took important steps to block more than 5,000 bank accounts related to online gambling.
Although the exact amount of transactions processed by these accounts is unclear, PPATK officials estimate that suspicious transactions reached 600 trillion rupiah (approximately 33.9 trillion euros) in the first quarter of 2024 alone. In a worrying trend, much of this money is being moved from Indonesia to countries such as Thailand, the Philippines and Cambodia.
The crackdown on online gambling goes beyond freezing accounts. PPATK found that there are 3.2 million online gamblers in Indonesia, 80% of whom place an average bet of more than IDR 100,000 (approximately €5.66). These gamblers come from different backgrounds including students, college students and even housewives. Reports of online gambling accounted for the highest proportion of suspicious financial transaction reports received by PPATK (32.1%), surpassing fraud (25.7%) and corruption (7%).
PPATK expressed concern about the potential risks of online gambling, especially for low-income families. PPATK Public Relations Group Coordinator Natsir Kongah pointed out that if a family’s daily income is 200,000 Indonesian rupiah (approximately 11.32 euros), but spends 100,000 Indonesian rupiah (approximately 5.66 euros) on online gambling, this will seriously affect family satisfaction. basic needs capabilities.
