What you need to know:
- Budi stated that many of the servers used by gambling sites are based in Cambodia, and he mentioned that thousands of Indonesians are employed there to manage these operations, although he did not present immediate evidence.
- Officials have also linked gambling addiction to increased crime rates in certain regions, a rise in divorce cases, and an uptick in Indonesians resorting to high-interest loans.
On Friday, Indonesia’s communications minister announced the closure of over 2 million websites providing illegal online gambling services, describing the activity as draining the nation’s resources. Despite being forbidden in the world’s largest Muslim-majority country, government data from last year indicated that over 3 million Indonesians participated in online gambling, with an estimated value close to $20 billion, equivalent to approximately 1.5% of the gross domestic product.
“We are actively fighting a global battle against online gambling,” Communications Minister Budi Arie Setiadi told Reuters in a recent interview. “Online gambling is extremely worrisome; it’s draining the lifeblood of the people,” Budi remarked, noting its detrimental impact on family finances, particularly affecting women. “This is just the beginning of a much larger issue,” he added.
The topic has gained increased public attention in recent months following a series of incidents.
According to media reports, last week, an Indonesian policewoman reportedly set her husband on fire, attributing the tragic act to his gambling addiction, which had caused significant financial hardship for their family. Two months earlier, the military disclosed that one of its officers had taken his own life due to overwhelming debts linked to online gambling.
In addition to closing down approximately 2.1 million websites associated with illegal gambling, Minister Budi mentioned that authorities had also frozen thousands of bank accounts. He further announced plans to establish a dedicated task force to address the issue more effectively.
Budi stated that many of the servers used by gambling sites are based in Cambodia, and he mentioned that thousands of Indonesians are employed there to manage these operations, although he did not present immediate evidence.
Economists warn that the growing prevalence of gambling in Indonesia, particularly among lower-income demographics, undermines long-term productivity and perpetuates poverty traps.
Officials have also linked gambling addiction to increased crime rates in certain regions, a rise in divorce cases, and an uptick in Indonesians resorting to high-interest loans.
“From a macroeconomic perspective, online gambling contributes to decreased productivity,” explained Mohammad Faisal, an economist at the Jakarta-based Center of Reform on Economics.
Earlier this week, Indonesia’s outgoing President Joko Widodo committed to establishing a task force aimed at addressing the issue. “Gambling doesn’t just involve betting money,” he emphasized. “It gambles with the future—whether it’s your own, your family’s, or your children’s.”
The problem extends beyond Indonesia’s borders. China, where gambling is prohibited, recently urged the Philippines to eliminate offshore gambling activities, condemning the industry as a “social menace” that fosters crimes like kidnapping, human trafficking, and murder. Philippine President Ferdinand Marcos has expressed concerns that illegal gaming operations, including those run by Chinese firms, could pose national security risks.
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