By: Bara Winatha)*
The phenomenon of online gambling (commonly called judol) in Indonesia has become a serious issue with wide-ranging social, economic, and legal impacts. Victims of this practice not only suffer financial losses but also become trapped in cycles of illegal online loans, psychological pressure, and even the breakdown of families. Recognizing the grave threat it poses, the government, along with relevant institutions, academics, and civil society groups, is moving in unison with cross-sectoral strategies.
Secretary and Founder of Indonesia Audit Watch (IAW), Iskandar Sitorus, stated that, legally, Bank Indonesia holds the authority to regulate and oversee the national payment system. In the context of eradicating online gambling, strict oversight of retail payment channels such as digital wallets, Quick Response codes (QRIS), and virtual account numbers is crucial. These channels are often exploited by syndicates to disguise deposits. According to him, the regulations issued by Bank Indonesia in 2024 have strengthened compliance standards for non-bank payment service providers, but their effectiveness relies heavily on consistent implementation by all operators.
In practice, online gambling syndicates frequently switch methods when banks tighten oversight of customer accounts. They use “dummy” merchants to collect deposits through QRIS or virtual accounts, which are then funneled into aggregator accounts. Because retail transactions occur within seconds, without proactive anomaly analytics, criminals can easily split small deposits and later merge them into large sums. For this reason, Bank Indonesia requires all operators to implement proactive risk management features, including the automatic rejection of suspicious transactions.
Beyond strengthening the payment system, efforts to eradicate online gambling are also focused on financial literacy, particularly among young people who are highly vulnerable. Head of Consumer Education, Protection, and Literacy Supervision (PEPK) and Literacy Management Task Force (LMS) of OJK Riau Islands, Muhammad Lutfi, said that students are agents of change who must be equipped with financial literacy to avoid falling into the trap of instant-profit schemes. Over the past two years, hundreds of reports related to illegal online loans, investment fraud, and online gambling have been submitted to OJK’s PASTI Task Force via the Indonesia Anti-Scam Center. Most victims were students and pupils who initially participated out of curiosity but eventually became addicted, even going so far as to borrow from illegal lenders to keep gambling.
Lutfi stressed that the risks of this phenomenon go far beyond losing money, extending to psychological and social consequences. Many young people end up burdened with debt, losing self-confidence, and falling into depression. For this reason, OJK has launched educational programs on campuses to create “word ambassadors”—students who can educate their peers and communities about the importance of using legal and logical financial services. According to him, campuses are a strategic entry point because students have a strong influence on society at large.
Meanwhile, the Coordinating Ministry for Political and Security Affairs (Kemenko Polkam) also plays a key role in coordinating government action at the national level. Deputy Assistant for Data Protection and Electronic Transactions at Kemenko Polkam, Syaiful Garyadi, said that combating online gambling has become one of the ministry’s key priorities, with weekly evaluation reports submitted directly to Coordinating Minister General (Ret.) Budi Gunawan. One of the strategies being pursued is strengthening technology for blocking illegal content and drafting regulations on the use of Virtual Private Networks (VPNs), which are often used to access prohibited sites.
The Ministry of Communication and Digital Affairs (Komdigi) has so far blocked 5,000 to 9,000 illegal contents each week. However, challenges remain as new sites frequently reappear, making the blocking effort feel like firefighting. Therefore, Kemenko Polkam considers it necessary to develop a more effective blocking system and establish clear regulations on VPN use. Without regulation, VPNs will continue to provide loopholes for accessing gambling and pornographic content.
Cross-authority collaboration is also crucial, given the multidimensional nature of online gambling. Bank Indonesia regulates the payment system, the Financial Services Authority (OJK) oversees banking, while the Financial Transaction Reports and Analysis Center (PPATK) is tasked with detecting suspicious fund flows. At the same time, Kemenko Polkam and Komdigi focus on regulations and content-blocking technology. The flow of gambling funds must be completely cut off, requiring synchronized oversight across authorities, with PPATK data flowing in real time to both Bank Indonesia and OJK.
These measures show that the government is not standing idle. Through the existing legal framework, Bank Indonesia has all the instruments needed to ensure that retail payment channels no longer serve as expressways for gambling funds. Building strong financial literacy among young people is equally vital to ensure they do not become the next victims. In the technological sector, regulating VPNs is a strategic step to close loopholes exploited by syndicates.
With a combination of payment system oversight, public education, and digital content blocking, the government is optimistic it can reduce the spread of online gambling. Success will depend greatly on consistent implementation and cross-sector coordination. The ultimate goal of all these efforts is to protect society—especially the younger generation—from the trap of online gambling that could destroy their future.
*) The author is a social and community observer