Indonesia Suspends 28,000 Bank Accounts in Gambling Crackdown

Indonesia’s Financial Transaction Reports and Analysis Center (PPATK) has temporarily frozen more than 28,000 bank accounts in 2024, as part of a nationwide initiative to counter illegal online gambling and other financial crimes. The affected accounts, flagged as either dormant or unlawfully traded, are suspected of being used to channel money linked to gambling, fraud, drug trafficking, and other illicit operations.

Dormant accounts at the center of criminal schemes:

According to PPATK Chief Ivan Yustiavandana, a large number of these accounts had been acquired through illicit means or left unused over extended periods, making them prime targets for criminal exploitation. “In accordance with our authority under Law No. 8 of 2010, PPATK has carried out temporary suspensions of customer transactions involving accounts classified as dormant, based on banking data,” Yustiavandana stated.

The PPATK’s investigation revealed that these dormant accounts had been widely misused as tools for concealing financial trails and facilitating illegal gambling transactions. Dormant accounts—those showing no activity for a prolonged period—are often taken over and used by third parties, making them vulnerable to manipulation.

“This step is taken to protect account holders and to maintain the integrity of the national financial system,” Yustiavandana added.

In some rural areas, residents were reportedly tricked into opening new bank accounts and selling them to gambling syndicates, unknowingly becoming part of these operations. To curb this trend, PPATK urged individuals to shut down unused accounts and avoid sharing their banking credentials.

The sweeping account freeze triggered widespread reactions, especially on social media, where users complained of sudden account suspensions without notice. In several cases, banks referred customers to PPATK directives as the reason for the freeze. One notable individual affected was Andrew Darwis, founder of the Kaskus online forum.

Despite concerns, authorities clarified in its press release that the suspensions are temporary and do not result in a loss of funds. Account holders are still entitled to their money and can request reactivation by contacting their respective banks and completing verification steps. In cases involving corporate accounts, company representatives or heirs may also be notified.

PPATK emphasized that the temporary action is intended not only to disrupt criminal activity but also to inform users of dormant account status and prevent further misuse. “These steps are solely to protect public interests and realise a better integrity of the Indonesian financial system,” the agency explained.

Wider context: rising online gambling and regulatory pushback:

This crackdown follows earlier enforcement efforts in 2025, where over 5,000 bank accounts linked to online gambling were frozen. PPATK reported that financial flows tied to these accounts in early 2024 totaled approximately Rp600 trillion (about US$36.39 billion), with a significant portion transferred to neighboring ASEAN countries.

Though gambling remains illegal in Indonesia, participation has surged, especially via online platforms. In the first quarter of 2025 alone, over 1.07 million Indonesians engaged in online gambling, with most earning below IDR 5 million per month (roughly $315), highlighting the socioeconomic vulnerability of those involved.

As part of its broader fight against illegal digital activities, the Ministry of Communication and Digital Affairs removed more than 1.3 million pieces of content related to gambling and pornography between October 2024 and March 2025. This effort was supported by public reports submitted through the government’s digital content reporting platform.

Amid these efforts, a controversial parliamentary proposal to legalize gambling sparked a strong backlash. During a legislative session on May 8, 2025, one lawmaker cited the UAE’s model as a possible revenue strategy. However, the Indonesian Ulema Council (MUI) swiftly condemned the idea.

“This proposal not only goes against Islamic teachings, but also contradicts the values enshrined in our constitution and Pancasila,” said MUI Deputy Chairman Anwar Abbas, calling it “shocking” and “deeply misguided.” The council warned that legalization would erode Indonesia’s moral and ideological foundations, urging policymakers to prioritize lawful economic alternatives instead.