Technological innovation, increasing market integration, and the potential for substantial economic returns have contributed to the growth of online gambling as a prominent global industry including in Indonesia. As of 2024, it was estimated that approximately 8.8 million Indonesians, primarily from the lower-middle-income segment, engaged in online gambling activities, with the total transactional value reaching approximately IDR 900 trillion (equivalent to USD 55 billion). In parallel, a 2021 study suggested that gambling-related disorders may affect around 1% of the population, or approximately 2.78 million individuals.
From a regulatory perspective, the current legal framework does not yet comprehensively address the dynamics of online gambling. Combined with relatively limited public awareness, this may give rise to a number of legal and socio-economic considerations, including potential risks relating to financial exposure, mental health, and social stability. The continued development of this sector may therefore present an opportunity for policymakers and stakeholders to explore measured and forward-looking regulatory responses. A balanced and adaptive approach may assist in safeguarding public interest, promoting responsible digital engagement, and supporting Indonesia’s broader objectives in the evolving digital economy.
Online Gambling in Indonesia
Online gambling’ refers to the act of placing wagers through remote communication technologies, including internet-based platforms, telephone services, and television broadcasts. In Indonesia, although gambling remains strictly prohibited under prevailing laws and is further restricted by cultural and religious norms, participation in online gambling continues to rise. This trend is attributable in part to existing regulatory gaps and a high internet penetration rate, which currently stands at 79.5%. With internet access projected to reach over 221 million Indonesians, the potential market for online gambling platforms remains significant.
One notable area of concern involves the accessibility of such platforms to minors. It has been reported that over 440,000 individuals engaging in online gambling fall within the age group of 11 to 20 year olds, with an estimated 80,000 users under the age of 10. The potential social and economic consequences of gambling-related disorders may extend beyond individual users, encompassing financial strain, family disruption, mental health issues, and in certain cases criminal conduct.
Despite these risks, treatment uptake remains low, with only 15.5% of affected individuals reportedly seeking professional assistance. Efforts to address these concerns are underway. For instance, mental health services such as those provided by the Marzoeki Mahdi Psychiatric Hospital have introduced counselling and support programs for those affected. Nevertheless, these initiatives may benefit from further expansion and integration into broader public awareness and regulatory strategies to support prevention, early intervention, and responsible digital engagement
Factors Driving Online Gambling Addiction
Financial illiteracy and socio-economic disparity remain key contributing factors to the rise of online gambling-related vulnerabilities in Indonesia. For certain individuals, particularly those facing financial hardship, online gambling may be perceived as a means of escape offering the prospect of immediate financial gain and the illusion of economic improvement. With approximately 25.22 million Indonesians living below the poverty line, the financial impact of gambling tends to be more acutely felt among disadvantaged communities.
Marketing strategies tailored to these populations have further compounded the issue. Vulnerable groups, particularly young adults, are frequently exposed to targeted promotional content through social media platforms such as Facebook, Instagram, and TikTok. Recent data indicates that approximately 84% of Indonesian internet users report regularly encountering advertisements that promote gambling opportunities or offer free gameplay incentives.
In response, the Ministry of Communications and Digital Indonesia (‘Komdigi”) has launched digital literacy initiatives aimed at enhancing public awareness of the associated risks. A more comprehensive approach, combining community level education, stakeholder engagement, and preventive strategies, may be required to effectively address the broader social and behavioural dimensions of online gambling.
Economic Perspective
The Minister of Human Development and Cultural Affairs, Muhaimin Iskandar, has recently highlighted the considerable economic impact of online gambling, noting that Indonesian individuals collectively incurred financial losses estimated at approximately USD 30.7 billion (equivalent to IDR 327 trillion) in 2023. In parallel, the potential for online gambling to serve as a source of government revenue through formal taxation has prompted discussions around possible legalisation and regulatory oversight of the industry.
Historical precedents, such as Governor’s Decree No. 805/A/k/BKD/1967, suggest that state-sanctioned gambling frameworks have previously contributed to public revenue through tax collection mechanisms. Nonetheless, some observers have expressed concern that such fiscal benefits may predominantly reflect the formalisation or redirection of pre-existing gambling activity, rather than the generation of new, sustainable economic value. As such, any future regulatory consideration would likely require a balanced policy evaluation, taking into account the broader socio-economic implications alongside potential revenue gains.
Recently, members of Commission XI of the Indonesian House of Representatives (Dewan Perwakilan Rakyat or “DPR”) proposed the introduction of new categories of non-tax state revenue (Penerimaan Negara Bukan Pajak or “PNBP”). Among the suggestions raised were the expansion of revenue-generating services in the tourism sector and the utilization of non-oil and gas natural resources most notably, the potential legalization of casinos as a new PNBP stream. This proposal has sparked public debate and received critical responses, including from Deputy Speaker of the People’s Consultative Assembly (Majelis Permusyawaratan Rakyat or “MPR”), who expressed constitutional and normative concerns regarding the proposition.
The opposition to casino legalization is grounded not only in moral or cultural considerations but also in constitutional philosophy. The 1945 Constitution of the Republic of Indonesia (or “UUD 1945”) is a legal framework rooted in the rule of law and founded upon the principle of belief in the Almighty God, as enshrined in its Preamble and in Pancasila, the foundational ideology of the state. This principle is further reinforced in Article 1(3), which affirms Indonesia as a state governed by law, and Article 29(1), which declares that the state is based on belief in the One and Only God. In this regard, public policy—including any expansion of PNBP instruments is expected to remain aligned with the nation’s constitutional and religious values.
Legal Perspective
The Government of Indonesia has implemented a series of regulatory and enforcement measures to address the rise of online gambling. These efforts include the systematic blocking of gambling websites, the freezing of illicit financial accounts, and the deployment of artificial intelligence technologies to detect and monitor online gambling activities. While these initiatives demonstrate the government’s active stance, operators have exhibited considerable technical adaptability, frequently modifying digital platforms to avoid detection. In parallel, end-users often rely on virtual private networks (“VPN”) to bypass geographic and content restrictions, further complicating enforcement efforts.
The prevailing legal framework, which includes provisions under the Indonesian Criminal Code (Kitab Undang-Undang Hukum Pidana or “KUHP”) and Law No. 11 of 2008 on Electronic Information and Transactions, as amended (“ITE Law”), imposes criminal sanctions on gambling-related conduct. However, in practice, consistent enforcement of these provisions remains a challenge due to the evolving nature of digital platforms and cross-border technological complexities.
To reinforce regulatory oversight, the Ministry of Communication and Informatics, now known as Komdigi, has issued Instruction of the Minister of Communication and Informatics Number 1 of 2023 regarding the Eradication of Online Gambling. This Instruction mandates the Directorate General of Informatics Applications to undertake specific actions, including: (i) conducting preventive and suppressive efforts to curb online gambling; (ii) identifying bank accounts and telephone numbers associated with such activities; and (iii) directing Electronic System Providers (Penyelenggara Sistem Elektronik or “PSE”), including internet service providers, to comply with applicable laws and government policies on content moderation. PSE are further required to ensure that their platforms do not facilitate the distribution of prohibited electronic information or documents, underscoring the critical importance of regulatory compliance for all PSE within Indonesia’s jurisdiction.
Complementing these efforts, Presidential Decree No. 21 of 2024 established a national task force (Satuan Tugas Pemberantasan Perjudian Online) dedicated to combating online gambling. This inter-agency task force consists of representatives from various ministries and government institutions, reflecting a coordinated and institutional approach to enforcement. As of February 2025, Komdigi has confirmed that a new Government Regulation is currently in preparation and is expected to be promulgated in the near future. The anticipated regulation is intended to provide further legal certainty and delineate the roles and responsibilities of relevant ministries and institutions in addressing the increasingly complex landscape of online gambling in Indonesia.
Conclusion
The proliferation of online gambling in Indonesia presents a complex set of challenges at the intersection of economic vulnerability, regulatory limitations, and deeply rooted cultural and religious values. While prohibition remains the prevailing legal approach, the persistence of illicit platforms and the associated societal risks underscore the limitations of enforcement in isolation. To ensure both legal effectiveness and public protection, a comprehensive and adaptive regulatory framework may be warranted one that not only addresses enforcement, but also incorporates preventive strategies, cross-sectoral coordination, and culturally contextualized policy responses. By adopting such an approach, Indonesia can more effectively mitigate the adverse impacts of online gambling while safeguarding long-term economic and social stability.
