ACADEMICS.web.id – Online gambling has come under the spotlight in Indonesia over the past week. In addition to affecting the general public, online gambling has also infiltrated law enforcement. Several cases involving members of the police and military in online gambling are being exposed by their respective institutions.
The Financial Transaction Reports and Analysis Center (PPATK) has also investigated the enormous flow of money in Indonesia’s online gambling sector. Last week, a member of PPATK’s Public Relations Group, Natsir Kongah, revealed in a discussion that the amount of suspicious financial transactions from online gambling had reached Rp 600 trillion (approximately $41 billion) in just the first three months of 2024!
The number of reports has also doubled from last year. Reports related to gambling transactions in 2023 totaled 11,222, while this year they have already reached 24,850.
Ironically, the “revenue” from online gambling in Indonesia has surpassed the legal gambling revenue in neighboring countries. There are at least three legal gambling locations around Indonesia: Genting Casino in Malaysia, Genting Casino in Singapore, and casinos in Macau.
These gambling locations regularly report their revenues. Citing the official press releases from Genting Group in Malaysia and Singapore, which were also referenced by World Casino News, Genting Casino in Malaysia reported revenues of $423 million (around Rp 6.9 trillion) up to the first quarter of 2024. This represents an increase of approximately 20% from the same period last year.
Similarly, Genting Singapore reported revenues of $425 million (around Rp 7 trillion) up to the first quarter of 2024. This figure is claimed to have reached pre-COVID-19 pandemic levels in Southeast Asia.
The highest revenues come from the casino industry in Macau. According to a Bloomberg report in early May, it has already reached $2.5 billion, equivalent to Rp 41.2 trillion.
The above-mentioned gambling locations are legal gambling sites approved by their respective governments. In this context, the comparison with Indonesia is indeed different, as there is no government-approved gambling in Indonesia. The figures presented by PPATK are suspicious transaction numbers derived from online gambling. PPATK once mentioned that online gambling in Indonesia is rampant using digital wallet facilities.
However, looking at the amount of money involved, the level of online gambling in Indonesia is already very large, even more than ten times greater than the largest gambling operations in Southeast Asia, for example. Even if the combined revenues of gambling in Singapore, Malaysia, and Macau are considered, the total still cannot match the level of online gambling in Indonesia.
The Indonesian government seems to be struggling to eradicate the practice of online gambling. The increasing volume of suspicious transactions every year proves this. Law enforcement appears powerless, only able to arrest small-time online gambling operators.
Likewise, the Ministry of Communication and Information, as the regulator, has been unable to cut off the internet used by online gambling operators. The Ministry seems to lack effective solutions, even though it often reports shutting down thousands of online gambling websites, yet similar websites continue to pop up freely.
Last weekend, President Joko Widodo formed a Task Force for Eradicating Online Gambling, led by the Coordinating Minister for Political, Legal, and Security Affairs. Previously, the government had considered providing social assistance to online gambling participants who fall into the poor category.@
