Alert! Breaking the Chain of Online Gambling Ecosystem on Financial Sector

by Eko B. Supriyanto, Chairman of Infobank Media Group

ONLINE gambling in Indonesia has reached a crucial point. The internet gambling sector is expanding at a rapid pace. The effects are not only addictive to the younger generation, but they also lead to an economic decline. Consider that the total revenue from online or internet gambling in Indonesia in 2023 is Rp327 trillion.

Not only does it foster addiction, particularly among the youth, but it also contributes to economic downturns. The staggering revenue of Rp327 trillion generated from online gambling in 2023 underscores its magnitude. Despite acknowledging its detrimental effects on society, the government faces hurdles in eradicating it due to the decentralized nature of the involved parties.

To tackle this issue, authorities are contemplating the establishment of an Integrated Task Force dedicated to combating online gambling, recognizing its escalating threat to the economy. While efforts such as the freezing of over 5,000 accounts by the Financial Services Authority have been made, the persistence of online gambling persists, manifesting in the emergence of new accounts and strategies. Some argue that online gambling games are designed to induce psychological addiction, exacerbating the issue further.

Additionally, the accessibility of high-interest fintech loans targeted at gamblers exacerbates financial burdens, particularly among the vulnerable demographics. Although primarily impacting the less fortunate, online gambling also ensnares individuals from the middle class, raising concerns of exploitation for political purposes. The urgency to curb online gambling is evident, necessitating stringent measures such as the seizure of funds linked to these activities to prevent further financial destabilization.

Collaboration with financial institutions is imperative, accompanied by the enactment of regulations prohibiting their facilitation of online gambling transactions. Furthermore, international cooperation is essential to track and regulate cross-border fund transfers associated with online gambling.

The socioeconomic ramifications of unchecked online gambling are dire, with its proliferation exacerbating poverty and inviting political manipulation. It is imperative for all stakeholders to unite against this menace to safeguard the future of the younger generation and prevent the erosion of societal well-being. For further and credible details, check our new Infobank magazine, out in May 2023. (*)