The Indonesian Ministry of Communication and Information Technology (Kominfo) has taken decisive action to combat online gambling by issuing warnings to 21 Payment Service Providers (PJPs). If these PJPs fail to ensure their platforms are not used for illegal activities, they risk facing takedown sanctions or having their registrations revoked. This move underscores Indonesia’s strict stance on online gambling and reinforces the government’s commitment to enforcing regulations under Government Regulation No. 71 of 2019 on Electronic System and Transaction Management.
Context and Government Regulation
In a recent announcement, the Minister of Communication and Information Technology, Budi Arie Setiadi, highlighted the Ministry’s efforts to curb illegal online gambling. The government has identified 21 PJPs operating a total of 42 registered Electronic Systems. This number reflects a significant portion of the electronic payment landscape in Indonesia, making it critical for the Ministry to address potential vulnerabilities.
According to Article 35, Paragraph (1) of Government Regulation No. 71 of 2019, electronic service providers must ensure their platforms are not misused for illegal activities. The Ministry’s warning letters to the PJPs are a direct enforcement of this regulation. The PJPs are required to conduct comprehensive internal reviews or audits of their Electronic Systems to confirm they are not facilitating online gambling transactions or other illicit activities.
Action Required from Payment Service Providers
Each of the 21 PJPs receiving the warning letters must undertake a detailed internal review of their systems. This review should scrutinize any potential misuse of their platforms for online gambling or other illegal transactions. The PJPs are given a strict deadline of seven working days to submit their audit results to the Ministry.
Failure to meet this deadline will result in administrative sanctions, including potential revocation of their registration or takedown of their services. The urgency of this process highlights the Ministry’s commitment to enforcing compliance and ensuring that electronic payment systems are secure and law-abiding.
Broader Implications and Ministerial Statements
Minister Budi Arie Setiadi emphasized the importance of this initiative in the fight against online gambling. He reiterated that the Ministry of Communication and Information Technology will not tolerate any breaches of the law and will take necessary actions against non-compliant service providers.
Earlier statements from the Minister have also called on Indonesian Network Access Providers (NAPs) to block access to foreign internet lines suspected of facilitating online gambling. This broader strategy aims to eliminate the availability of online gambling platforms and reduce their influence in Indonesia.
Legal and Social Context
Gambling, in any form, is illegal in Indonesia. The country’s legal framework reflects a zero-tolerance policy towards gambling activities. President Joko Widodo recently reinforced this stance by announcing that there will be no social aid or support for individuals engaged in online gambling. This policy aligns with the government’s broader efforts to maintain social order and uphold legal standards.
The Ministry of Communication and Information Technology’s recent actions underscore Indonesia’s rigorous approach to regulating electronic payment systems and combating online gambling. By targeting 21 PJPs and enforcing strict compliance measures, the Ministry aims to ensure that digital financial transactions are secure and legally compliant. The upcoming internal reviews and audits will play a crucial role in determining the continued operation of these payment service providers and maintaining the integrity of Indonesia’s digital financial ecosystem.