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Indonesia enforces integrity pact on digital firms to curb online gambling

Indonesia enforces integrity pact on digital firms to curb online gambling

Indonesia has mandated that 18,232 private electronic system providers (PSEs), including tech giants like Google, Meta, TikTok, and X, commit to an integrity pact aimed at tackling online gambling, Jakarta Globe reported. This initiative, led by the Ministry of Communication and Informatics, requires these companies to secure electronic data on their platforms.

Communication and Informatics Minister Budi Arie Setiadi emphasised the urgency for immediate compliance with the integrity pact, warning that failure to adhere will result in the removal of registration for non-compliant companies. The directive is backed by Government Regulation No. 71 of 2019 and Ministerial Regulation No. 5 of 2020, which outline obligations for digital firms to protect electronic information, with non-compliance potentially leading to administrative penalties, including access restrictions.

The mandate affects a diverse group of digital entities, comprising 17,362 local and 870 foreign firms. Prominent domestic companies such as Gojek, Tokopedia, Ovo, Traveloka, Bukalapak, PLN, and Indihome are included, alongside international players like Google, Facebook, WhatsApp, TikTok, Linktree, and Spotify.

In its fight against online gambling, the Indonesian government, through its Online Gambling Task Force, has recently intensified actions, freezing 32 gambling sites and auditing 21 payment service providers. The Financial Intelligence Unit PPATK estimates that online gambling caused a financial outflow of IDR327 trillion ($21.2bn) in 2023.

As of 2024, losses have already exceeded IDR100 trillion, with the majority of the 2.37mn online gamblers being young and working-age individuals. To combat this, the Ministry of Communications has removed approximately 2.95mn pieces of gambling-related content since July 2023.

Online gambling has been a prevalent issue in Indonesia as well as in other nations around the world. It has been categorised as an epidemic by the country.