Over 1,000 bank accounts linked to online gambling blocked in Indonesia

Jade Denosta July 23, 2024

SiGMA news

Over 1,000 bank accounts linked to online gambling blocked in Indonesia

State-owned Bank Rakyat Indonesia (BRI), has blocked over 1,049 accounts linked to online gambling activities in the past year. The bank actively monitors online gambling websites to identify BRI accounts used for deposits and then proceeds to block them.

This crackdown comes with a growing concern over online gambling in Indonesia. The Online Gambling Task Force estimates there are 4 million online gamblers in the country, with 40 percent falling between 31 and 50 years old. A report by the Financial Transaction Reports and Analysis Center (PPATK) revealed 60 million online gambling transactions in the first quarter of 2024, amounting to Rp 101 trillion (approximately €5.7 trillion).

The issue has reached a boiling point after a recent scandal involving Indonesia’s anti-graft agency, the Corruption Eradication Commission (KPK). At least 17 current and former KPK employees were implicated in online gambling, highlighting the pervasiveness of the problem even within government institutions.

The Indonesian government has responded with a multi-pronged approach. Vice President Ma’ruf Amin called for stricter enforcement of online gambling laws against both organisers and participants. A dedicated task force established in June aims to stamp out online gambling activities, and authorities are investigating allegations against government officials.

The move by BRI to block gambling-linked accounts is another step towards curbing online gambling in Indonesia. It remains to be seen whether these efforts will be enough to address the widespread issue.

Indonesia cracks down on online gambling

Indonesia’s financial intelligence agency, the Financial Transaction Reports and Analysis Center (PPATK) has also taken a significant step against online gambling by blocking over 5,000 bank accounts linked to such activities.

While the exact value of transactions processed through these accounts remains unclear, PPATK officials estimate that suspicious transactions in the first quarter of 2024 alone reached Rp 600 trillion (approximately €33.9 trillion). A concerning trend is that most of these funds have been transferred from Indonesia to countries like Thailand, the Philippines, and Cambodia.

The crackdown on online gambling goes beyond freezing accounts. PPATK has found 3.2 million online gamblers in Indonesia, with 80 percent of them betting an average of over Rp 100,000 (€5.66). These gamblers come from diverse backgrounds, including students, university students, and even housewives. Reports of online gambling make up the highest percentage (32.1 percent) of suspicious financial transactions reported to PPATK, surpassing fraud (25.7 percent) and corruption (7 percent).

PPATK has raised concerns about the potential risks of online gambling, especially for low-income families. Natsir Kongah, the public relations group coordinator for PPATK, pointed out that if a family with a daily income of Rp 200,000 (€11.32) spends Rp 100,000 (€5.66) on online gambling, it could significantly impact the family’s ability to meet their basic needs.

The Indonesian government’s resolve to combat online gambling is further evidenced by the establishment of a dedicated task force in June 2024. Led by Coordinating Minister for Political, Legal, and Security Affairs Hadi Tjahjanto, the task force aims to eradicate online gambling due to its illegality and its potential to cause financial hardship, social disruption, and psychological problems, ultimately leading to crime.