Indonesia flags social aid misuse in online gambling
The Indonesian government is weighing the removal of individuals linked to online gambling, narcotics, and terrorism from its social assistance recipient list, Minister of State Secretary Prasetyo Hadi said on Friday. The consideration follows official findings that some aid beneficiaries have been involved in activities that violate state regulations and misuse public funds.
Speaking at the Presidential Palace Complex in Central Jakarta, Prasetyo said, “If detected, we consider removing them from the social assistance recipients.” He confirmed that the government already holds data on bank accounts linked to online gambling, narcotics, and terrorism-related activities.
Govt tracks misuse with unified data system
Prasetyo explained that the government now relies on the National Socio-Economic Single Data (DTSEN) to integrate and verify data across agencies. The system allows authorities to identify individuals by name and address and monitor financial activities through linked bank accounts.
“It is possible. Our data centre is now based by name and address. We can detect the person and their bank account,” Prasetyo said.
He added that the government will continue monitoring how social assistance is used. “If the fund is found to be used for online gambling, we will consider removing the person from the social assistance recipient list,” he stated.
The aim, he said, is to ensure that aid reaches those truly in need. During the ongoing data integration process, the government has already identified individuals who are financially stable but still receive assistance. According to Prasetyo, “The misuse of social assistance for online gambling is a small aspect of the data management effort.”
President committed to clean-up
Presidential spokespersons confirmed that President Prabowo Subianto remains committed to tackling online gambling, corruption, and narcotics since taking office in October 2024.
While there has been no special directive from the president specific to this issue, the Gerindra Party politician stressed the importance of improving data integrity. “Because there are moments where privileged people still receive social assistance,” the spokesperson explained.
Prasetyo echoed this, saying, “This is not only an improvement but also an effort in law enforcement against criminal acts of corruption.”
Financial watchdog flags major misuse
Last week, Indonesia’s Financial Transaction Reports and Analysis Center (PPATK) revealed that 571,410 social assistance recipients were also engaged in online gambling. These individuals made 7.5 million transactions totalling Rp957 billion (US$57.2 million) in 2024, and that was from just one bank, according to PPATK spokesperson M. Natsir.
“This means 571,410 of them are suspected of being online gamblers,” Natsir said. He warned that the total amount could be much higher if investigations expand to other banks.
Overall, PPATK has identified 9.7 million national ID holders who are currently or previously involved in online gambling. Out of 28.4 million ID holders listed as aid recipients, the overlap indicates serious misuse of funds intended for poverty alleviation.
“And that’s from just one bank. If the investigation continues, the number could be much higher,” Natsir added.
He also pointed out that the issue was not merely an administrative oversight but involved the “potential criminal misuse of state funds.”
Top officials weigh in on findings
Minister of Social Affairs Saifullah Yusuf announced that online gamblers who are receiving government aid would first go through education and evaluation. Based on these results, they could eventually be removed from the programme.
Meanwhile, Minister of Manpower Yassierli said the misuse of social funds for gambling is “beyond the government’s control.”
On Friday, House Speaker Puan Maharani urged the government to verify the data thoroughly. She warned that some aid recipients may not even be aware their accounts are being used for gambling.
“It’s possible they have no knowledge that their account is used for online gambling,” she said.
Aid scheme faces closer scrutiny
In the first half of 2025, the government disbursed Rp78 trillion (US$4.8 billion) in social assistance, representing 57 percent of this year’s allocation. With misuse cases coming to light, officials say stricter data validation is necessary to ensure the aid serves its intended purpose.
As Indonesia continues to deal with widespread online gambling, the government is expected to take firmer steps in the coming months to secure its social welfare system from abuse.
