This latest initiative is part of the country’s ongoing efforts to curb the influence of black market operators.

The Indonesian government has announced its intention to take firm action against digital payment service providers that facilitate transactions for online gambling operators. This move is part of the authorities’ escalating campaign to combat the rising prevalence of illegal online gambling activities. Indonesia aims to reduce traffic to black market sites by restricting payment options, although such entities have proven to be quite resilient.

Restricting Payment Options to Impact Illegal Operators

On Saturday, Indonesia’s Minister of Communication and Information Technology, Budi Arie Setiadi, revealed that his ministry had issued warnings to 21 digital payment providers operating 42 applications. These warnings were prompted by the ministry’s discovery of evidence suggesting that these applications were frequently being used to process payments related to gambling activities.

The ministry has instructed the service providers to conduct thorough internal audits of their payment systems and to submit the results within seven working days. Budi Arie Setiadi stressed the gravity of the situation, cautioning that failure to comply could lead to administrative action against the offenders, though he did not specify the nature of these actions.

“If their audit reports are not submitted within seven days, they will be subject to administrative sanctions,” warned Budi Arie Setiadi, Indonesia’s Minister of Communication and Information Technology.

Unlike some of the Indonesian government’s previous measures against gambling, targeting payment providers could have a tangible impact on black market operators. While alternative funding options such as cryptocurrencies will remain unaffected, this initiative represents a significant advancement. Restricting payment options will make it considerably more difficult for the average user to engage with illegal platforms, potentially causing substantial disruptions.

Indonesia’s Continued Commitment to Its Anti-Gambling Stance

This latest crackdown is part of the Ministry of Communication and Information Technology’s broader campaign against online gambling, which is illegal under Indonesian law. In April, President Joko Widodo reaffirmed the government’s commitment by signing a decree to establish a specialised task force to take decisive action against those involved in the online gambling ecosystem.

The Financial Transaction Reports and Analysis Centre (PPATK) has played a crucial role in this crackdown, recently announcing that thousands of bank accounts connected to online gambling have been blocked, with Rp600 trillion ($36.39 billion) worth of assets frozen. These efforts highlight the scale of the challenge facing Indonesian authorities as they strive to mitigate the economic and social impact of illegal gambling.

According to the most recent statistics from the Indonesian government, nearly 3 million of its citizens have engaged in online gambling over the past year, spending an estimated $20 billion on these illegal activities—equivalent to about 1.5% of the country’s GDP. With continued enforcement and cooperation from financial institutions, Indonesia hopes to significantly reduce this figure and stem the capital outflow it represents.