By: Ainur Rohmah
Indonesia is grappling with the blight of online gambling, which has reportedly caused the country a staggering financial loss to consumers of Rp900 trillion (US$56.6 billion) in 2024 alone, along with revelations that government officials of the Communications and Digital Ministry (Komdigi), which is tasked with combating online gambling, have instead been protecting the operations of these illicit businesses.
One of the biggest sites is operated by a mainland Chinese syndicate, part of the illegal gaming diaspora that has infected other Southeast Asian nations described in a series of Asia Sentinel stories over the past year. In addition to working with Interpol, the national police are cooperating with police forces of neighboring countries, as many Indonesian nationals are involved in online gambling operations across Southeast Asia. Alice Leal Guō Huápíng, ([郭華萍), the center of an investigation into illegal gaming in the Philippines, fled to Indonesia before being arrested in a Jakarta suburb in September and extradited back to the Philippines. Authorities in October rescued 35 Indonesians working in an illegal gaming site in Cebu.
According to an October 11, 2023 report by the Asian Racing Federation and The Mekong Club, greater China likely accounts for almost half of the world’s illegal betting turnover, with turnover generated by the Philippines, Cambodia, Myanmar, and Laos at around US$425 billion and with the gaming operations involving human and sexual slavery and a wide variety of online confidence games. The National Police have revoked passports, restricted, banned, and prevented the departure of those suspected of being involved. Funds have been detected to have flowed out of Indonesia to other countries including Thailand, the Philippines, and Cambodia, the latter two of which have become major centers of illegal mainland gaming activity.
At least 10 of the 24 suspects arrested by the police are employees of Komdigi, all of whom have been dismissed. They were found to have shielded thousands of home-grown gambling-related websites, which ensnared hundreds of thousands of users, leading many to financial ruin, addiction, and debt. As of now, authorities have arrested several operatives but have yet to address the high-ranking officials believed to be facilitating these criminal activities. Their arrests have sparked widespread public outrage, as Komdigi is responsible for overseeing digital communication and the blocking of gaming websites. Instead of acting, these officials allegedly protected roughly 1,000 sites in exchange for bribes.
According to the police investigation, Komdigi’s IT specialist, Adhi Kismanto, is believed to have been the prominent figure behind the scheme. Kismanto allegedly worked with an official described only as “MN,” who acted as an intermediary between the gambling syndicates and the civil servants, ensuring certain websites remained operational by circumventing government-blocking measures. Among those arrested was another individual named “HE,” described as a prominent gambling operator who not only used Komdigi employees for this service but also recommended the practice to other gambling website owners. HE admitted to police that website owners were required to pay Rp23 million to Rp24 million (US$1,446-1,509) per month to keep their sites active and evade government action, enabling the gaming syndicates to operate thousands of websites with impunity.
Political analysts and public policy analysts are now calling for a thorough investigation into former Komdigi Minister Budi Arie Setiadi, suspected of involvement in shielding online gambling operations. Budi Arie, a close ally of former President Joko Widodo and leader of the Pro-Jokowi (Projo) volunteer organization, has faced accusations of protecting the suspects involved in the scheme. Photographs circulating on social media have shown Budi Arie in close proximity to several of the arrested individuals. Budi Arie, who currently serves as Minister of Cooperatives, has denied any wrongdoing, claiming instead that the gambling syndicates are attempting to frame him due to his consistent stance against online gambling.
The timing of the arrests, just days after Prabowo Subianto was inaugurated as president, has raised questions about the seriousness of the previous administration’s commitment to combating online gambling. Trimedya Panjaitan, a prominent politician, criticized the government for failing to act decisively against gambling syndicates, despite having knowledge of key figures involved in the crime.
According to data from Indonesia’s Financial Transaction Reports and Analysis Center (PPATK), approximately 4 million Indonesians engaged in online gambling in 2023, with 80 percent of them low-income family members. Among them, the majority — some 1.64 million individuals — were in the productive age group of 30 to 50 years, typically breadwinners. Alarmingly, the analysis center also reported that 2 percent of the gamblers, or around 80,000 of them, were under the age of 10. The data revealed that those involved in online gambling come from diverse backgrounds, including informal workers, journalists, public officials, members of the Indonesian Parliament, and even police and military personnel.
Further data shows a sharp increase in online gambling transactions over the past three years, skyrocketing from Rp 57 trillion in 2021 to Rp 327 trillion in 2023. President Prabowo Subianto, who assumed office in October 2024, has warned that the economic loss due to online gaming could reach Rp 100 trillion in 2024. He has vowed to intensify efforts to eradicate the vice, acknowledging its devastating impact on various sectors of Indonesian society.
In June, media outlets reported that a female police officer set her husband, also a policeman, on fire, killing him over financial difficulties caused by his addiction to online gaming. Other reports have highlighted a surge in motorbike thefts, which police investigations revealed were committed by individuals trying to fund their gambling habits. Many gamblers have also fallen prey to high-interest online loans in a desperate attempt to fuel their addictions. Data from the Indonesian Internet Service Providers Association shows that online loans increased nearly fourfold in 2023 compared to the previous year, with a strong correlation to online gaming.
As of mid-September, Komdigi claimed to have blocked more than 3 million online gaming sites. Meanwhile, the police have uncovered at least 300 online gambling cases and arrested 370 suspects between June and November 2024. The Financial Services Authority has also blocked at least 10,000 accounts linked to gambling-related transactions.
Chinese Syndicate Arrests
In addition to the investigation into the Komdigi employees involved in protecting online gaming operations, police recently arrested members of a Chinese syndicate suspected of managing one of the largest online gambling sites in the region, known as “Slot8278.” Brigadier General Himawan Bayu Aji, Director of the Cyber Crime Unit at the National Police’s Criminal Investigation Department (Bareskrim), confirmed that the site was created and operated by Chinese nationals, with servers and bank accounts based in China. Police estimate that the site has ensnared approximately 85,000 Indonesian victims.
“The Chinese nationals came to Indonesia to develop an app that made it easier for people to gamble online. Once the app was operational, they returned to China,” said Himawan. Slot8278 has been operational since September 2022, with total transactions amounting to a staggering Rp685.5 billion across various countries. According to police reports, in addition to Indonesia, the gambling site targeted other Southeast Asian nations such as Thailand, Cambodia, Malaysia, and Vietnam. The site attracted users with promises of instant earnings, a minimum deposit requirement of just Rp10,000, and no need for account registration, making it incredibly easy for the public to access and gamble.
Authorities have identified seven individuals from the Chinese syndicate as suspects, with two still at large, including Dong Xiancai (DX), a senior member of the syndicate. “A search warrant has been issued for DX,” said Deputy Chief of Bareskrim, Inspector General Asep Edi Suheri.
Twisted Path of Enforcement
The Financial Transaction Reports and Analysis Center has acknowledged the difficulty in tracking the flow of online gaming funds, as many sites are based overseas and their financial operations are controlled from abroad. “We have identified 20 countries that are the largest recipients of funds from Indonesian online gamblers,” said Ivan Yustiavandana, Head of the analysis center. Countries like Thailand, Cambodia, and the Philippines are among the top destinations for these illicit funds.
As the syndicates have become increasingly sophisticated, they have also found new ways to launder the money they earn, using foreign exchange companies, cryptocurrency, and cash withdrawals to obscure their transactions. These methods have further complicated law enforcement’s efforts to track and prosecute the perpetrators. At the same time, the rapid expansion of the internet infrastructure across Indonesia, without adequate education on safe online practices, has left many vulnerable to online gambling schemes, according to Indriyatno Banyumurti, Executive Director of ICT Watch, a civil society organization focused on digital literacy.
Social media has also become a powerful tool for these syndicates, who use it to promote online gaming by paying influencers to advertise sites. In response, Minister of Komdigi Meutya Hafid has urged social media platforms to play an active role in fighting online gaming. “We are asking platforms like Meta, TikTok, X, including Instagram to take responsibility and help Indonesia combat this issue, (which among other thing) with suspending accounts that promote gambling sites,” Meutya said.