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Indonesia possesses significant potential for digital economic growth, fueled by a steadily increasing number of internet users. However, this potential also brings challenges, particularly the rise of illegal activities like online gambling, which can compromise the financial system’s integrity and jeopardise economic stability. To mitigate risks, the Ministry of Communication and Information has established an Integrity Pact within the private PSE registration system, requiring immediate completion and implementation by private PSEs.
This directive is aligned with Government Regulation No. 71 of 2019 on the Implementation of Electronic Systems and Transactions (PP 71/2019) and Ministerial Regulation concerning Private Electronic System Providers (PM 5/2020). Under this directive, private PSEs are held accountable for ensuring their electronic systems and the management of electronic information are reliable, secure, and responsibly handled. These regulations mandate that PSEs ensure robust information security and adhere to legal requirements. Non-compliance could lead to administrative sanctions, including access blocking.
The Ministry’s commitment to digital safety is also reflected in its proactive stance against platforms involved in online gambling and other illicit activities. With the rise in online gambling transactions, nearing IDR 400 trillion, and a sharp increase in participants, the Ministry is poised to take strict actions against non-compliant service providers.
The Chairman of the Financial Services Authority (OJK) revealed that from late 2023 to 2024, the OJK successfully blocked approximately 5,000 accounts suspected of being used for online gambling transactions. This decisive action is part of OJK’s ongoing efforts to combat illegal activities in the digital financial sector and ensure the stability and security of Indonesia’s economic ecosystem.
Indonesia has undertaken various strategic measures to address the challenges posed by online gambling. In addition to website blocking, the government has developed more substantial technological infrastructure to combat cybercrime. The Ministry of Communication and Informatics, through the Directorate General of Postal and Informatics Operations, has been a pioneer in the development of technology like 5G, which is expected to enhance network capacity and security significantly.
With its lower latency, 5G enables near-instantaneous data processing and analysis. This capability is crucial for real-time monitoring of online activities and immediate responses to detect and prevent illegal gambling operations. Moreover, 5G infrastructure supports deploying advanced technologies like AI and machine learning, which can enhance cybersecurity measures, identify suspicious activities, and improve overall digital security efforts.
The Indonesian government’s Enforcement of Restriction of Community Activities (PPKM), implemented during the pandemic, also helped reduce illegal online activities, including online gambling, by limiting mobility and increasing online monitoring.
These initiatives reflect the government’s commitment to strengthening Indonesia’s digital infrastructure. By ensuring that technology is utilised safely and responsibly, the government aims to create a digital environment conducive to innovation and economic growth while safeguarding the security and well-being of the public in the digital era. Through these various measures, Indonesia strives to build a digital ecosystem that supports economic growth and protects society from increasingly complex cyber threats.
Minister Budi Arie Setiadi reiterated the importance of a secure and productive digital space as Indonesia moves towards its “Indonesia Emas 2045” vision. The government’s approach underscores the necessity of a well-regulated digital environment to support this goal.