Jakarta, June 24, 2024- Indonesia has mandated network access point (NAP) service providers to sever internet connections originating from the Philippines and Cambodia, which are allegedly being used for illegal online gambling within the country. This move is part of a broader regional trend focusing on internet service providers to combat illegal online gaming, rather than targeting the platforms directly.

Government's Directive

Indonesia’s Communications and Informatics Minister, Budi Arie Setiadi, announced the directive as part of an aggressive campaign to eliminate online gambling. The directive, formalized in a Minister's Letter issued on June 21st, requires NAP service providers to comply within three days of receiving the notice.

The directive specifically targets internet lines suspected of facilitating online gambling in Davao, the Philippines, and Cambodia. This initiative is part of a comprehensive crackdown that has resulted in the removal of nearly 3 million pieces of online gambling content from mid-July 2023 to mid-June 2024.

Financial and Operational Clampdown

In addition to targeting internet access, Indonesia is also addressing the financial channels supporting online gambling. The Ministry has requested the blocking of 555 e-wallets under Bank Indonesia and the freezing of nearly 5,800 bank accounts via the Financial Services Authority. This multifaceted approach aims to disrupt both the digital and financial operations of illegal gambling networks.

Legal Consequences

Indonesia’s strict anti-gambling laws impose severe penalties on participants and organizers of gambling activities, both online and offline. Violators face up to 10 years in prison and fines up to $1,500. Despite these stringent penalties, the scale of online gambling in Indonesia remains significant.

Scale of Online Gambling in Indonesia

According to the nation’s Financial Transaction Reports and Analysis Center, online gambling activities in the first quarter of 2024 amounted to a transactional value of approximately $36.4 billion. Additionally, around 3.2 million individuals were involved in online gambling during this period. Reports from Xinhua indicate that between January and May 2024, there were 14,000 online gambling transactions.

Implications and Future Steps

Indonesia's focus on NAP service providers and financial channels illustrates a strategic shift in combating online gambling. By cutting off the internet lines and financial resources that sustain illegal gambling, the government aims to significantly reduce the prevalence of these activities. This approach not only disrupts current operations but also serves as a deterrent to future illicit activities.

The success of this strategy will depend on the swift compliance of NAP service providers and the continued vigilance of financial institutions. As Indonesia leads by example, other nations facing similar challenges may adopt comparable measures, further tightening the noose around illegal online gambling networks.

Conclusion

Indonesia's crackdown on online gambling through network access point service providers and financial restrictions marks a robust approach to tackling illegal activities. By addressing both the technological and financial aspects, the government aims to dismantle the infrastructure that supports online gambling. This comprehensive strategy highlights the importance of multi-faceted efforts in enforcing anti-gambling laws and protecting the nation's legal and financial integrity.