Minister says Indonesia’s online gambling crackdown remains ineffective

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2025/05/19: Indonesia blocks over 28,000 accounts in online gambling crackdown 2025/10/31: Indonesia forecasts online gambling turnover to reach RP150.36 trillion 2025/05/29: Bangladesh launches online gambling crackdown 2025/05/05: Indonesian authorities suspend over 5,000 bank accounts linked to online gambling

The Backstory

Why enforcement increased and what it missed

Indonesia’s yearlong push against illegal online gambling has relied on headline-grabbing takedowns but has struggled to choke off the money that keeps the market alive. In the early months of the current administration, authorities said they removed more than 900,000 online touchpoints tied to gambling and froze over 5,000 bank accounts holding about RP600 billion. Officials framed the sweeps as social protection, warning that gambling can drive people into fraud and trafficking to repay debts. Yet the removal of posts, IP addresses, and apps did not neutralize the financial networks that route deposits and withdrawals through layers of bank and fintech accounts. The gap between content takedowns and money laundering controls set the stage for a pivot now underway.

The scale of the problem has been visible in the data. Indonesia’s financial intelligence unit tracked a multiyear surge in transactions and users, with participation expanding beyond dedicated bettors into the mass market. That growth has increased pressure on the state to shift from blocking and arrests to tracing where the money flows, how it moves offshore, and who benefits. The stakes are social and fiscal. The government sees a rising toll of household debt and criminality, and it wants to capture lost tax revenue while deterring organized networks that operate across borders.

Authorities say the next phase will rely on anti-money laundering tools that follow funds rather than just shutting down platforms. That means more systematic use of transaction monitoring, faster freezes, and coordinated seizures, backed by law enforcement and international data sharing. The move reflects a recognition that online gambling is now tightly linked to transnational crime, a point officials have emphasized as they weigh new penalties and compliance demands for banks, e-wallets, and telecom firms.

Turning off the taps: dormant accounts and mass freezes

Financial regulators have tried to constrict liquidity in the gambling ecosystem by targeting account infrastructure. In one sweep, the Financial Transaction Reports and Analysis Center, known as PPATK, blocked over 28,000 bank accounts believed to process gambling transactions. Many were dormant accounts that had been sold or repurposed as pass-through wallets. The move rattled customers caught in the dragnet, but the agency said legitimate users could reactivate accounts after verification and warned banks and consumers to tighten controls over idle credentials. The tactic aims to raise the cost of operating rings by forcing frequent re-registration and increasing the risk of detection.

Mass freezes have limits. Networks can pivot to new accounts or shift to less regulated channels, including offshore processors. That is why PPATK has leaned on temporary suspensions under anti-money laundering laws while pushing financial firms to strengthen know-your-customer checks, track unusual patterns, and escalate reports on suspected gambling activity. The objective is to create a cumulative drag that disrupts settlement chains, erodes liquidity, and lengthens cash-out times for operators, which increases churn and makes the business less profitable.

Operation Honeybee: data-driven enforcement meets social risk

The government’s broader operational pivot is taking shape under Operation Honeybee, a coordinated initiative that uses financial intelligence to detect suspicious flows. PPATK estimated that online gambling turnover could reach RP150.36 trillion this year, part of a longer arc that saw RP976.8 trillion in revenue from 2017 to mid-2025 across 709 million transactions. The agency linked gambling to rising indebtedness, reporting that millions of players carried debt and some spent most of their income on bets. The operation blends analytics with enforcement, civil service discipline, and efforts to collect state revenue, and officials projected a 58% reduction in activity with stricter actions led by top communications and police officials.

The focus on analytics acknowledges that cutting off user acquisition alone will not be enough. Operations have become more professional and international, with ring structures that separate marketing, payments, and platform management. Data from bank transfers, e-wallet top-ups, and merchant transactions can expose these cells. The approach also tries to protect vulnerable users who cycle through loans, pawn sales, and scams to fund losses. By moving upstream to identify high-volume nodes and cash-out hubs, authorities aim to degrade networks without sweeping up every low-level participant.

Regulatory resets for platforms, banks, and telecoms

Policy hardening is accompanying the operational shift. Regulators have outlined tighter obligations for intermediaries that enable access and payments. The communications ministry said new rules would define the roles of police, internet service providers, and fintech firms, with tougher penalties for violations. Officials stressed that ISPs would be central to restricting access and preventing minors from playing, with stronger monitoring and parental controls. The plan signals a move from ad hoc blocks toward permanent standards for compliance and escalation. In a briefing, technocrats highlighted the need to seal loopholes that let products reappear under new domains or distribute via encrypted apps.

The emphasis on prevention also reaches into political oversight. Lawmakers have pushed for stiffer penalties for public figures or officials tied to gambling. That stance underscores the reputational risk for the state if crackdowns target users but leave facilitators untouched. The direction of travel is clear: more duties for platforms and processors, faster takedowns linked to payment interdictions, and public accountability for failures to act. The government previewed elements of the program when it announced stronger online gambling rules focused on prevention and stakeholder responsibility.

Cross-border pressures and lessons from neighbors

Criminal networks have exploited labor and jurisdictional arbitrage as enforcement rose. Authorities noted that more Indonesians have taken jobs in offshore gambling markets, often through recruiters promising high salaries and benefits, only to face exploitation. That trend complicates domestic enforcement, since payment processing and customer support can reside outside Indonesia while targeting local bettors. It also raises diplomatic and repatriation issues when workers are trapped in debt or coercion schemes.

Regional moves offer both warning signs and playbooks. Bangladesh, for example, launched a national crackdown under its Cyber Security Ordinance 2025, identifying more than 1,000 alleged agents and coordinating with the central bank while seeking a ban on advertising. The effort mirrors Indonesia’s in scope and rhetoric, prioritizing youth protection and rapid action against payment facilitators. Such campaigns suggest a convergence around payment interdiction, ad bans, and cross-agency task forces, alongside tougher penalties. They also show that domestic policing must be paired with cross-border cooperation to be effective.

What to watch next

The battle lines are shifting from visible takedowns to financial disruption. Expect more targeted freezes and seizures, expanded data sharing among banks and fintechs, and codified duties for ISPs and platforms. Authorities will test whether Operation Honeybee can convert analytics into durable declines in turnover and participation. Public tolerance for broad account freezes will hinge on due process and speedy remediation for innocent users caught in sweeps, a recurring issue when PPATK blocked thousands of dormant accounts linked to suspected gambling flows.

If the money trails are disrupted, operators will shift to new rails, including offshore processors, crypto pathways, or informal channels. That will demand closer cooperation with foreign regulators and platforms, plus stronger consumer education. The stakes are broader than enforcement metrics. They include household stability, the integrity of the financial system, and the credibility of a rules-based approach that punishes organizers while steering vulnerable users away from harm.