Indonesia’s Financial Services Authority (OJK) has ramped up its efforts to fight illegal online gambling by instructing financial institutions to freeze a staggering 17,026 bank accounts suspected of involvement in online gambling activities. This bold move is part of a wider initiative to target the increasing threat of gambling-related financial crimes and demonstrates the government’s commitment to enhancing digital security in the financial sector.

Targeting financial channels of online gambling networks:

The decision to block these accounts follows a comprehensive effort by OJK, in coordination with banks and other government bodies, to clamp down on online gambling, commonly referred to as judol. As reported by Indonesia Business Post, the data used to identify the flagged accounts was provided by the Ministry of Communication and Digital Applications (Komdigi), previously known as Kominfo. Despite not specifying the exact duration during which the accounts were monitored, OJK confirmed that this measure aligns with Law No. 4/2023, which mandates efforts to curb illegal financial activities in cooperation with various government agencies.

OJK’s Chief Executive of Banking Supervision, Dian Ediana Rae, underlined the importance of this initiative, describing it as a critical step in addressing the rising issue of illegal online gambling in Indonesia. “This action is necessary for tackling digital gambling, and the OJK will continue to work with other agencies to enhance the security and integrity of the financial system,” Rae stated.

Banks are now required to enhance their customer verification processes, ensuring that accounts are properly linked to National Identity Numbers (NIK) and subjected to more stringent due diligence procedures. Additionally, financial institutions are tasked with monitoring all accounts, even those that appear dormant, to detect and prevent misuse in financial crimes or the illegal trade of bank accounts.

Rae emphasized that banks must remain vigilant and report suspicious activity promptly. “Banks should not only focus on high-risk accounts but also actively monitor regular transactions to prevent illicit activities, such as money laundering and the illegal sale and purchase of accounts,” he added.

Cybersecurity measures to prevent future misuse:

In response to the growing threat of online gambling and digital crimes, OJK has mandated that banks implement advanced cybersecurity measures, including fund flow analysis and cyber patrols, to track and mitigate potential misuse. To further bolster these efforts, the authority is establishing a specialized task force to handle cyber incidents and improve the coordination of responses to digital security threats.

Dian Rae explained, “Our goal is to ensure a quicker and more coordinated response to cyber threats, enabling us to stay ahead of the evolving landscape of digital crime.” These initiatives are part of OJK’s broader plan to safeguard Indonesia’s financial sector from illegal activities linked to gambling and other financial crimes.

The crackdown on online gambling also intersects with concerns regarding the potential misuse of social aid data. According to the Financial Transaction Reports and Analysis Center (PPATK), over half a million individuals who received social assistance in 2024 were found to have engaged in online gambling activities. This raises serious questions about the vulnerability of personal data and the need for improved data protection measures.

Maman Imanul Haq, a member of the House of Representatives, urged caution before suspending social aid for suspected individuals, stressing the importance of justice and the need for proper investigation into potential data misuse. “The state should not rush to cut assistance for individuals unless there is clear evidence of wrongdoing,” Haq remarked. He called for collaboration between various government bodies to review the data and ensure that the integrity of social aid programs is maintained.

The scale of the issue has become increasingly apparent, with the PPATK reporting a sharp rise in transactions linked to illegal gambling. In 2024, suspicious deposits linked to gambling activities totaled Rp957 billion (approximately $58.7 million), encompassing over 7.5 million individual transactions. These findings highlight the urgent need for robust regulatory measures and further collaboration among government agencies to address the escalating issue of online gambling in Indonesia.

“The scale of illegal online gambling and the financial risks it poses to our economy cannot be underestimated. We must continue to monitor these activities closely and ensure the protection of our financial systems,” Rae concluded.