Indonesia’s Ministry of Communications and Informatics, under the stewardship of Minister Budi Arie Setiadi, has launched a robust initiative targeting 21 payment service providers. This action comes as part of a wider effort to clamp down on online gambling activities that are facilitated through digital payment platforms. On Saturday, the Ministry issued a statement revealing that these providers were formally warned on Friday, threatening severe repercussions including the potential revocation of their operating licenses if found complicit in enabling online gambling transactions.
Immediate actions required from payment services:
Minister Budi Arie Setiadi articulated the government’s concerns and the immediate steps that must be taken by the payment services. “The Ministry of Communications and Informatics has sent warning letters to these payment service providers to ensure that their services are not used to facilitate online gambling transactions,” he stated. The move comes after investigations revealed tangible connections between several payment services and illegal gambling operations.
As Asia Gaming Brief reports, to mitigate further misuse, Kominfo has demanded these entities to carry out extensive internal audits. The purpose of these audits is to ensure their systems are foolproof against exploitation for gambling or other illegal activities. The implicated service providers are mandated to report the outcomes of these audits back to the ministry within a strict deadline of seven days.
The implications of failing to meet the Ministry’s requirements are severe. “If the Ministry of Communications and Informatics does not receive the results of the internal audit within seven days, the payment service providers will face administrative sanctions in accordance with applicable laws and regulations,” Minister Budi Arie Setiadi emphasized, as Jakarta Daily reports. This underscores the government’s resolute stance on compliance and its readiness to enforce regulatory measures against defaulters.
National campaign against online gambling:
The actions against payment providers are part of a national campaign led by President Joko Widodo. In June 2024, President Widodo signed a decree to establish a special task force to eradicate online gambling, signifying a high-level commitment to tackle this pervasive issue. The task force’s creation reflects a strategic approach to uprooting the financial channels that support illegal gambling activities.
In addition, the Financial Transaction Reports and Analysis Center (PPATK) plays a crucial role in this initiative. In a recent report, the PPATK disclosed that it had blocked thousands of bank accounts associated with online gambling, with blocked transactions amounting to a staggering IDR600 trillion ($36.39 billion). This financial crackdown complements the regulatory actions, forming a comprehensive strategy to combat online gambling.
Through these measures, Indonesia demonstrates a determined effort to maintain the integrity of its digital payment landscape and protect its citizens from the risks associated with online gambling. By enforcing strict compliance and leveraging both regulatory and financial interventions, the government aims to create a safer and more regulated environment, significantly reducing the prevalence of illegal online gambling activities.
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