Besides triggering moral anxiety, online gambling is posing a concrete threat to the social and economic life of Indonesian society.
This is because psychologically, the practice creates an addiction, which becomes increasingly difficult to break free from.
So, the statement of Coordinating Minister for Community Empowerment, Muhaimin Iskandar, that online gambling has become a social disaster is not an exaggeration, rhetoric, or hyperbole. Rather, it is a reflection of current reality.
Indonesia needs immediate and coordinated action to address the problem of online gambling before its impact becomes more widespread and damages the economic and social foundations of the nation.
Intelligence data revealed by Coordinating Minister for Political, Legal, and Security Affairs, Budi Gunawan, shows that at least 8.8 million Indonesians were involved in online gambling in 2024—with 80 percent or the majority comprising the lower economic class and youth.
Online gambling turnover is not arbitrary. It reached as much as Rp327 trillion (US$1 = Rp15,913) in 2023, revealing a new dimension of the larger problem, namely, how online gambling can affect a country's economic stability.
According to the Financial Transaction Reports and Analysis Center (PPATK), in the first quarter of 2024 alone, transactions related to online gambling reached Rp100 trillion.
Ironically, the figure did not make a positive contribution to the economy. On the contrary, funds that should have been used for consumption or productive investment flowed abroad through shell companies.
Such a phenomenon makes it very easy to weaken domestic liquidity, reduce people's purchasing power, and potentially depress the rupiah exchange rate.
Speaking to the media, economist David Sumual explained that household consumption, which is the backbone of the economy and contributes 54.9 percent to the gross domestic product (GDP), is also threatened by online gambling practices.
People who are addicted to gambling tend to allocate their funds to this activity, thus reducing spending on the productive sector.
When purchasing power decreases, economic growth slows. Another impact is the increased risk of household debt due to gambling losses, which can trigger bad debt in the banking sector.
And the negative economic impact of online gambling seemingly does not stop there: The large turnover of money in the illegal activity strengthens the underground economy, which is completely beyond the control of the government.
There are no taxes received, no supervision of the flow of funds, and no contribution to the formal sector. The practice also increases the risk of money laundering and funding other criminal activities.
PPATK noted that thousands of bank accounts suspected of being involved in online gambling transactions have been blocked. However, legal loopholes and ever-evolving technology make efforts to eradicate the activity akin to chasing shadows.
Gambling addiction
The social side of online gambling also cannot be ignored. Gambling addiction erodes workforce productivity, reduces performance, and triggers family conflicts.
In fact, crimes such as fraud and theft often occur because individuals are trapped in gambling debt.
In other words, online gambling creates a vicious cycle that not only destroys individuals but also the wider community.
The government has been carrying out efforts to deal with this problem, including by blocking gambling sites and arresting perpetrators.
However, the exponential growth in turnover and the number of players shows that these efforts still need to be optimized.
This is because online gambling operates by exploiting technological and regulatory gaps. New sites are popping up all the time, and mobile applications are making access easier.
Therefore, a more comprehensive strategy is needed to deal with this problem.
One important step is public education. Campaigns to raise awareness about the dangers of online gambling need to be intensified, especially among the younger generation who are the main targets of this business.
In addition, stricter regulations on financial services and technology must be implemented to prevent the illegal flow of funds. International cooperation is also crucial, considering that most online gambling platforms operate across countries.
Ultimately, online gambling not only violates the law, but also poses a threat to the economic and social stability of the nation.
This phenomenon reflects that there is a large systemic homework that needs to be done to manage the impact of technology on society.
Because, if it is not immediately tackled through firm and coordinated steps, online gambling can damage the foundations of the economy and create much bigger social problems in the future.
The phenomenon is not just a trend, but a ticking time bomb for society.
Moreover, online gambling operates under the radar of government regulations, strengthening the underground economy that is not recorded and not taxed.
This reduces transparency and accountability in the economy, creating risks to national economic stability.
A number of economic analyses have warned and emphasized that the circulation of money in online gambling does not touch the real sector, and instead creates a dangerous economic bubble.
So, in the future, the nation will need a more comprehensive approach, including public education, stricter law enforcement, and international cooperation, to handle cross-border fund flows. This is to ensure that online gambling is completely eradicated in time.
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Translator: Hanni Sofia, Yashinta Difa
Editor: Azis Kurmala
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