Indonesia frets over online gambling after policewoman allegedly burnt gambler-husband to death

He noted that while Kominfo itself has prevented and taken down many online gambling apps, other parties must also take action since it involves financial institutions and cross-border online transactions.

“The internet is borderless, cross-country, the server is in another country’s security apparatus … therefore, the eradication of online gambling is not the task of one ministry such as Kominfo,” Mr Budi said.

The minister shared that more than 2 million online gambling sites have already been blocked, but new ones keep popping up.

About 3.2 million Indonesians are involved in online gambling, according to data from the Financial Transaction Reports and Analysis Center (PPATK) that was released in April by Coordinating Minister for Political, Legal and Security Affairs Hadi Tjahjanto.

“80 per cent of them play under the value of 100,000 rupiah,” Mr Hadi said.

At the same time, data points to a significant increase in transactions related to online gambling. Online gambling transactions of Indonesian citizens have skyrocketed more than 8,000 per cent in value over the last five years.

It was 3.97 trillion rupiah in 2018. More recently, the figure hit 104.41 trillion rupiah in 2022, while last year’s tally was 327 trillion rupiah, according to PPATK data released in May.

For the first quarter of 2024 alone, transactions amounting to 100 trillion rupiah were recorded, said Mr Hadi as quoted by CNN Indonesia.

Government officials have suggested there are also links between online gambling and money laundering. 

“It is not just online gambling, because there are several cases (of money laundering) where they got the (illicit) money from winning in gambling,” said communications minister Budi.

TRAPPED IN HIGH-INTEREST LOANS

Many people in Indonesia have resorted to taking out loans online as they get sucked into online gambling, according to PPATK head Ivan Yustiavandana. He said there is an increased flow of funds related to online loans which were used for online gambling.

While not specifying the amount of money involved, Mr Ivan said the value was not small, as reported by local news outlet Tirto on Wednesday.

Online loans usually come with high interest rates, particularly those offered by illegal lending platforms. Many who take out such loans to bankroll their punting habit have found themselves mired in debt and distress, especially when compounded with the losses from gambling.

There have been 14 suicides and attempted suicides as a result of online gambling since 2023 in Indonesia, with the victims’ ages ranging between 19 and 30, according to the Center for Financial and Digital Literacy as reported by Media Indonesia.

In April, a member of the Indonesian Navy committed suicide by shooting himself in the head at his duty station in Yahukimo, Papua. The Indonesian National Army said in an official statement that the officer was in depression due to debts of up to 819 million rupiah incurred from online gambling.

Earlier this month, another member of the military in Bogor, West Java committed suicide, also allegedly due to online gambling.

One online gambler who did not want to be named told CNA how he became depressed and had to sell his only motorcycle to satisfy his gambling habit.

The 40-year-old office worker became hooked in 2022 and ended up borrowing up to 50 million rupiah to feed his addiction.

He told CNA that while he has not been able to cut out online gambling entirely, he has been trying to curb the habit.

“Gamblers are addicted if they win and eager to win if they lose, so they keep playing.” 

Nowadays, he only gambles whenever he has money and has stopped borrowing from online lenders. He hopes to be able to quit gambling completely one day.

“A gambler’s true victory is when he can stop gambling entirely,” he added.