The Ministry of Communication and Information Technology (Kominfo) of Indonesia has issued a stern warning to 21 Payment Service Providers (PJP), cautioning them against facilitating financial transactions for online gambling or other illegal activities. This move is part of a broader effort by the Indonesian government to curb online gambling activities, which are illegal under Indonesian law.
Legal Basis for Sanctions
The Ministry’s actions are grounded in Article 35, paragraph (1) of Government Regulation No. 71 of 2019 on Electronic System and Transaction Management. This regulation empowers the government to impose sanctions, including the takedown of electronic systems or the revocation of registration for PJPs that are found to be involved in illegal activities. Specifically, the regulation mandates that PJPs must ensure their systems are not used for unlawful purposes, such as facilitating online gambling transactions.
As of the latest report, there are 21 PJPs operating with a total of 42 registered Electronic Systems under the Ministry of Communication and Information Technology. These providers have been instructed to conduct a thorough internal review or audit of their systems to ensure compliance with Indonesian laws. The Ministry has set a strict deadline, requiring the results of this internal audit to be submitted within seven working days from the receipt of the warning letter. Failure to comply with these requirements could result in severe penalties, including the revocation of the PJP’s registration or the forced shutdown of their electronic systems.
This warning is not an isolated incident but part of a larger campaign by the Indonesian government to crack down on online gambling. The Minister of Communication and Information Technology has previously called on all Indonesian Network Access Providers (NAPs) to sever access to foreign internet lines that are suspected of supporting online gambling platforms. This directive underscores the government’s plans to eradicate online gambling within its borders.
Gambling and Legal Framework in Indonesia
Gambling in any form is strictly prohibited in Indonesia. The country’s legal framework, including the Criminal Code and various other regulations, imposes severe penalties on those involved in gambling activities. The Indonesian government has consistently enforced these laws, and recent actions indicate a continued focus on combating online gambling.
President Joko Widodo has also taken a firm stance against online gambling, emphasizing that individuals involved in such activities will not receive social aid from the government. This position reflects the administration’s broader efforts to discourage gambling and its associated social harms.
The Indonesian government’s recent warning to Payment Service Providers represents a significant step in its ongoing battle against online gambling. By leveraging existing legal frameworks and targeting financial intermediaries, the government aims to disrupt the flow of money that sustains illegal gambling activities. The outcome of this crackdown will likely depend on the compliance of PJPs and the effectiveness of the government’s broader enforcement efforts.
“The Ministry of Communication and Information Technology sent warning letters to PJPs to ensure their services do not facilitate online gambling transactions,” said the Minister of Communication and Information Technology, Budi Arie Setiadi, at the Kominfo office in Central Jakarta.
Minister Budi Arie added:“If the Ministry of Communication and Information Technology does not receive the review results within the 7-day deadline, the electronic payment service provider will face administrative sanctions according to the law,”
Source:
’’Indonesia Threatens to Shut Down Payment Services Tied to Online Gambling’’, jakartadaily.id, August 110, 2024.