Indonesia warns public against using wage aid for gambling
Indonesian Vice President Gibran Rakabuming Raka has warned recipients of wage subsidy aid (BSU) not to use the government support for online gambling or other unlawful activities, stressing that the state has the tools to trace such misuse and impose sanctions.
Speaking at a BSU distribution inspection at the Pos Indonesia post office in Boyolali, Central Java, Gibran stated that the Ministry of Communication and Digital Affairs (Komdigi) and the Financial Transaction Reports and Analysis Center (PPATK) have the authority and technological capacity to identify those using the aid for illegal purposes.
“There will be laws in place if this aid (BSU) is used for unlawful activities such as judol (online gambling),” he said.
BSU funds intended for essential needs
The BSU programme provides Rp600,000 (about US$36) for two months to around 15 million workers as part of an economic stimulus effort to maintain consumer spending and ease the burden on low-income earners.
Deputy Minister of Manpower Immanuel Ebenezer Gerungan, who joined Gibran during the Boyolali visit, said that 86 percent of targeted beneficiaries had already received the assistance.
Gibran urged aid recipients to spend the funds wisely, particularly on educational expenses or staple goods. “I mentioned earlier, this is the start of the school year. It should be used for children’s activities or maybe for the mothers as well for daily necessity shopping for productive activities,” he said.
Gibran added that this visit to Boyolali Regency was the third of its kind, aimed at ensuring the aid reaches the right recipients in a timely manner. “It is clear that I emphasise how this program can be distributed properly and on target. There should be a real-time dashboard, and the disbursement should be a certain percentage. Ultimately, everything should be clear by the end of the month,” he said.
PPATK: hundreds of thousands of aid recipients tied to gambling
The Vice President’s warning comes amid growing concern about the misuse of social assistance. In early 2024, PPATK revealed that 571,410 social aid recipients were suspected of using government funds for online gambling, making 7.5 million transactions worth Rp957 billion (approx. US$58.7 million).
Gibran warned that those found guilty could face strict penalties. “I emphasise once again that if it is used for such activities (gambling), anything, we can certainly trace the account through PPATK and others, and I ask for their cooperation, including Komdigi,” he said.
He also stated that penalties could include the revocation of the aid itself. The enforcement mechanism will follow the relevant laws and regulations.
Massive gambling syndicate busted by police
The warnings from the Vice President came shortly after Indonesia’s National Police (Polri) uncovered a major international online gambling network operating with servers in Cambodia and China.
On 13 June 2025, the Directorate of General Crimes at the National Police’s Criminal Investigation Agency (Bareskrim) led coordinated raids across Bogor, Bekasi, Tangerang, and Denpasar, arresting 22 individuals.
“These suspects include operators, server managers, and financial administrators,” said Brigadier General Djuhandhani Rahardjo Puro at a press briefing on 18 July.
According to police, the suspects used Indonesian SIM cards to create WhatsApp accounts, which were then used to send gambling advertisements promoting sites called Tanjung899 and Akasia899. These operations were carried out in partnership with agents based abroad.
Each operator reportedly created up to 500 WhatsApp accounts daily to send thousands of gambling messages offering easy deposits and guaranteed wins. Coordination was done through WhatsApp and Telegram groups, with shared phone numbers and financial transaction records.
“In just one year, the group generated profits in the hundreds of billions of rupiah,” said Puro.
The funds were laundered through accounts under fake names and converted into cryptocurrency disguised as product payments. During the raids, authorities confiscated 354 mobile phones, 23 personal computers, 2,648 SIM cards, a modem, a car, and 18 ATM cards.
The suspects have been charged under several Indonesian laws, including those on criminal offenses, online activities, and money laundering. If proven guilty, they might be sentenced to up to 15 years in prison and fined up to Rp1 billion.
Push for stricter regulations and data monitoring
The crackdown has also raised questions about the country’s SIM card registration system. The simplicity with which SIM cards can be registered has been cited by lawmakers as a contributing factor to the proliferation of pornographic content, fraud, and online gambling. Komdigi Minister Meutya Viada Hafid acknowledged that although regulations allow only three SIMs per family ID per operator, the current system lacks effective enforcement and penalties.
Teguh Arifiyadi, a Komdigi official, said that upcoming government regulations would impose stricter penalties on all parties involved in illegal gambling, with a special focus on protecting children. Tens of thousands of minors have been found to be involved in gambling activities due to the lack of age verification mechanisms on platforms.
Banks ordered to act against gambling-linked accounts
Banks have been ordered by Indonesia’s Financial Services Authority (OJK) to freeze 17,026 accounts that may be related to online gambling. As per Komdigi data, this effort aims to prevent gambling-related financial crimes.
According to Dian Ediana Rae, OJK’s Chief Executive of Banking Supervision, banks are required to conduct fund flow analysis, cyber patrols, account activity monitoring, and client information checks. While 8,500 accounts were frozen in 2024, he continued, the significantly higher figure in 2025 demonstrates the extent to which illicit gambling networks have proliferated.
Aid reform under consideration
The revelation that hundreds of thousands of aid recipients may be involved in gambling has prompted the government to consider stricter control over social assistance eligibility. Minister of State Secretary Prasetyo Hadi confirmed that people linked to gambling, drugs, or terrorism could be removed from beneficiary lists. The government is using the National Socio-Economic Single Data (DTSEN) system to match identities and financial records with aid disbursement.
However, lawmakers have urged caution. Maman Imanul Haq from House Commission VIII warned that some recipients may be victims of identity misuse. “If it is found that identity data has been misused by third parties, law enforcement must investigate,” he said.
PPATK spokesperson Natsir Kongah supported this view, noting that the number of gambling-linked aid recipients might be even higher. The agency had compared 28.4 million aid recipients with 9.7 million national ID holders flagged in gambling databases.
Public funds under close review
In the first half of 2025, the government distributed Rp78 trillion (around US$4.8 billion) in social assistance. With evidence of misuse mounting, officials are reviewing the system and stressing the need for better data accuracy and enforcement.
Minister of Social Affairs Saifullah Yusuf said that recipients found gambling would be educated and reviewed before being removed from aid programmes. Minister of Manpower Yassierli added that misuse becomes hard to control once aid is disbursed.
House Speaker Puan Maharani echoed calls for verification. “It’s possible they have no knowledge that their account is used for online gambling,” she said.
As Indonesia steps up its fight against illegal gambling, officials say better monitoring and stronger laws are needed to protect the country’s finances and make sure aid goes to the right people.
