The Government is Firmly Cutting Off the Roots of Online Gambling, a Strategic Step to Protect Society and the National Economy
By: Agus Soepomo
The government has once again demonstrated its commitment to combating online gambling, which has been undermining the nation’s social and economic foundations. Through the Financial Transaction Reports and Analysis Center (PPATK), enforcement measures are now focused on disrupting the flow of funds that underpin these illegal activities. They are targeting not only dormant bank accounts but also digital wallets (e-wallets) proven to be actively used to store or channel online gambling proceeds.
This measure has received full support from economic circles. Firman Hidayat, a member of the National Economic Council (DEN), believes that online gambling is not just a moral issue but also a serious threat to economic growth. His institution’s study indicates that by 2024, this practice will have eroded economic growth by 0.3 percent. Without online gambling, the recorded growth of 5 percent could have reached 5.3 percent. This figure, while seemingly small, is considered significant for the government’s efforts to achieve development targets.
The Indonesian National Enforcement Agency (DEN) highlighted the loss of the multiplier effect caused by public funds being siphoned off to these illegal activities. Money that should be circulating in the consumption and investment sectors instead flows abroad, thus providing no benefit to the national economy. The agency estimates that around 70 percent of online gambling funds leave Indonesia. Similar phenomena have been recorded in other countries, such as Hong Kong and South Africa, which experience tax losses amounting to trillions of rupiah annually.
Beyond economic losses, the social impacts of online gambling also warrant concern. Katadata Insight Center (KIC) Executive Director Fakhridho Susilo, through KIC research, showed that the majority of online gamblers come from lower-middle class families with monthly incomes of under IDR 5 million. This exacerbates the impacts, including divorce, decreased productivity, and mental health problems. Data from the Central Statistics Agency (BPS) in 2024 even recorded an 83.8 percent increase in divorce cases due to gambling, both online and offline, compared to the previous year.
The Head of the Financial Transaction Reports and Analysis Center (PPTAK), Ivan Yustiavandana, explained that the most frequently encountered methods are the misuse of dormant accounts and the practice of buying and selling accounts. His institution has identified 1.5 million accounts linked to criminal activity, including 150,000 nominee accounts not used by their original owners. More than 50,000 previously inactive dormant accounts have been suddenly reactivated to accommodate illegal funds.
The policy of temporarily suspending risky dormant accounts has been implemented and proven effective. Throughout the first semester of 2025, the value of online gambling transactions was recorded at IDR 99.68 trillion, a 72 percent decrease compared to the same period last year. The number of transactions also decreased by 17 percent to 174.9 million. The Financial Transaction Reports and Analysis Center (PPATK) ensures that each suspension is based on in-depth analysis and that customer funds remain secure. The mechanism for revoking the temporary suspension status is regulated based on three risk categories and is carried out in collaboration with banks in accordance with procedures.
Support for the PPATK’s actions came from the banking sector. The Chairman of the National Bank Association emphasized that financial institutions are obligated to implement the principles of Anti-Money Laundering (AML), Counter-Terrorism Financing (CFT), and Counter-Proliferation of Weapons of Mass Destruction (PPPSPM). Dormant accounts, he stated, must be closely monitored, including restrictions or closure if misuse is proven.
The government is not just targeting banks; it’s also targeting digital transaction channels. The Financial Transaction Reports and Analysis Center (PPATK) recorded that in the first semester of 2025, the value of online gambling deposits via e-wallets reached IDR 1.6 trillion, with a total of 12.6 million transactions. The PPATK Head emphasized that blocking will only apply to e-wallets actively used for illegal activities, so people who use e-wallets normally need not worry.
The KIC believes the rise of account buying and selling is one of the causes of the rise of online gambling. People, tempted by instant profits, often ignore legal risks and the security of their personal data. Criminal syndicates exploit this loophole to facilitate cross-platform transactions. Therefore, public education is a crucial part of the eradication strategy.
This government measure is essentially an effort to build a double barrier: protecting the public from personal harm and the state from economic loss. The DEN member emphasized that to achieve the vision of a Golden Indonesia 2045, the nation must be free from social and mental health problems caused by online gambling. He emphasized that mental disorders caused by gambling addiction can even lead to fatal acts such as suicide, making prevention an absolute priority.
From a public policy perspective, the strategy of cutting off the flow of online gambling funds makes clear sense. Online gambling thrives because of easy access to payments and receipts. By blocking the flow of funds, the government not only hinders the operations of perpetrators but also reduces the appeal to new players.
However, enforcement alone is not enough. The government also needs to ensure the availability of positive alternatives for the community, especially vulnerable groups who are easy targets for syndicates. Financial literacy programs, increasing employment opportunities, and strengthening family finances are part of the long-term solution.
Ultimately, the fight against online gambling is a fight against social corruption and economic leakage. The government has affirmed its commitment to the people by taking decisive steps to disrupt the circulation of illegal funds. Support from the financial sector, research institutions, and the public will be crucial to the success of this mission. If these efforts are consistently implemented, it is possible that Indonesia can escape the clutches of online gambling and move more firmly towards the goal of a Golden Indonesia by 2045.
Economic Policy Consultant – People’s Economic Forum
