Indonesian Kominfo closes access to credit sites related to iGaming

Garance Limouzy August 12, 2024

SiGMA news

Indonesian Kominfo closes access to credit sites related to iGaming

In Indonesia, the Ministry of Communication and Information, Kominfo, has announced the closing of 32 sites that provided conversion of mobile credit into cash, and that were related to online gambling activities.

Minister of Communication and Information Budi Arie Setiadi explained that this action was taken to prevent and limit online gambling activities. “The blocking takes effect today. We have zero tolerance for online gambling, and all parties must unite in combating this illicit activity,” he asserted at the Kominfo Office in Central Jakarta on Thursday, 8 August 2024.

32 Electronic System Providers

The access shutdown targeted 32 Electronic System Providers (PSEs), of which only one, Boss Pulsa, was officially registered. The other 31 PSEs were operating without the required registration, despite legal mandates that all PSEs offering or trading goods and services must be officially registered. Indonesian legislation allows for access termination if a service is suspected of facilitating the conversion of mobile credit into money used for online gambling transactions.

Recent partnerships with financial organisations

“Kominfo also urges financial institutions, including banks, to actively participate in the fight against online gambling,” Minister Budi Arie stated. On August 7, Kominfo announced its partnership with the Financial Services Authority (OJK), Bank Indonesia (BI), and the Financial Transaction Reporting and Analysis Center (PPATK) to prevent the misuse of payment and banking systems for online gambling transactions.

A broader strategy

Kominfo’s strategy to fight illegal gambling is built upon six key pillars:

The drafting of a Presidential Instruction on the Prohibition and Eradication of Online Gambling that will serve as the legal foundation for addressing online gambling platforms.
Blocking of free Virtual Private Networks (VPNs) proven to be used for accessing online gambling sites.
Strengthening policies on terminating Network Access Providers (NAP) from Cambodia and the Philippines.
Issuing warnings and orders to digital platforms to control the Domain Name System (DNS) used for online gambling.
Limiting pulse transfers to a maximum of IDR 1 million (approximately $62) per day, except for authorised agents.
Conducting audits on PSEs potentially involved in online gambling, with the threat of revoking their registration if they fail to comply.

Budi Arie’s war on gambling

According to Minister Budi Arie, online gambling affects both the social and economic well-being of lower-income segments of society.

“Online gambling disrupts the social and economic conditions of small households, leading to increased crime, divorce rates, and child malnutrition,” he explained.

“According to data from PPATK, 80% of online gambling participants come from low-income communities, who are often victims of the system. This is why our literacy and educational efforts are focused on raising awareness about the dangers of online gambling. It won’t bring wealth; instead, it will lead to further hardship and misery for those involved,” Minister Budi Arie added.