Indonesia Reinstates Welfare for Thousands After Online Gambling Review

Key Moments:

  • 7,200 former online gamblers have had their social assistance reinstated after re-verification
  • Government’s comprehensive audit flagged 600,000 welfare recipients for gambling activity, leading to temporary account blocks
  • Financial oversight measures and digital checks resulted in a drop in gambling transactions and stricter beneficiary monitoring

Policy Adjustment Signals New Approach

Indonesia has restored social benefits to 7,200 individuals who previously lost access due to involvement in online gambling. This reinstatement, confirmed by the Ministry of Social Affairs after a thorough verification procedure, comes amid the government’s ongoing crackdown on illegal online betting and an intensified focus on the appropriate distribution of welfare.

Minister of Social Affairs Saifullah Yusuf, often referred to as Gus Ipul, explained that restoring benefits emphasizes fairness while ensuring vigilant oversight. He stated, “The issue is really crucial. If they don’t need it, we wouldn’t consider it,” during an address at the Ministry’s office.

Eligibility Review and Beneficiary Reactivation

The 7,200 reinstated individuals were among 600,000 social aid recipients flagged by the Financial Transaction Reports and Analysis Centre (PPATK) for connections to online gambling. As part of a comprehensive review of 12 million beneficiaries, these accounts were suspended.

PPATK’s audit led 200,000 people to reapply for reinstatement. Of these, only 7,500 were found eligible, with 7,200 fully reactivated and the remainder now awaiting final checks.

Gus Ipul emphasized the strictness of the process: “We are currently evaluating and will soon determine whether they will be eligible to receive the aid again,” adding that the government is dedicated to accurately identifying those in genuine need. He made it clear there will be no further opportunities for repeat offenders: “We will no longer provide aid for beneficiaries like that” if online gambling resumes.

Oversight and Monitoring Measures

To ensure proper use of reinstated benefits, reactivated recipients will be closely watched. The Ministry of Social Affairs is collaborating with village facilitators and local social offices to supervise fund distribution. PPATK will perform biannual re-audits of recipients’ accounts to detect any new signs of gambling transactions.

Gus Ipul characterized the restoration as a “final opportunity,” reinforcing the government’s zero-tolerance stance toward the misuse of social aid.

Crackdown Intensifies Against Online Gambling

The move to reinstate selected beneficiaries coincides with a robust nationwide campaign against illegal online gambling. According to the Ministry of Communication and Digital Affairs (Komdigi), authorities blocked more than 2.4 million gambling sites and related online content between October 2024 and November 2025.

Despite these efforts, illicit gambling remains widespread. An AFP investigation found misleading advertisements on Meta’s platforms that bypassed moderation by posing as wellness content or casual games. One campaign, under the guise of “Pomegranate: The Exotic Red Fruit Rich in Benefits,” placed 49 gambling ads. Meta removed certain ads after being notified.

Alexander Sabar, Director-General of Digital Space Supervision, warned that repeat violations by digital platforms could result in escalating sanctions, including potential access termination: “Continued inaction will result in a third warning letter sent to the platform, which carries additional penalties and may lead to access termination.”

Societal and Economic Considerations

Authorities have identified online gambling as a significant threat to social stability. President Prabowo Subianto told APEC leaders that the country suffers a US$8 billion annual loss due to this activity, noting it “undermines social and moral values”.

Investigations indicate that around 70 percent of online casino users operate illegally and are predominantly low-income earners, many of whom receive government welfare. Earlier this year, more than 300,000 beneficiaries lost social aid after being implicated in gambling.

Regional analysis highlighted persistent abuse of aid: West Java alone identified 49,431 recipients linked to gambling during the first half of 2025, with Central Java, East Java, and Jakarta also reporting significant numbers.

Officials warn that the consequences will be long-lasting, affecting youth, family finances, and community resilience. Komdigi has reported blocking over 2.8 million pieces of harmful content, with over 2.1 million tied specifically to online gaming.

Financial Controls and Digital Detection

The Indonesian government has turned to artificial intelligence to track gaming-related transactions. Financial institutions and e-wallet services have tightened their controls, causing thousands of account suspensions. Dana e-wallet, for instance, recorded an 80 percent decline in gambling-linked activity after improving its detection tools.

According to PPATK, online gambling transactions dropped from IDR 359 trillion in 2024 to IDR 155 trillion by the third quarter of 2025, suggesting that enforcement measures are having a measurable impact.

Nevertheless, authorities acknowledge that gambling networks continue to adapt their methods and maintain cross-border operations, especially in connection to activities in the Philippines and Cambodia.

Audit and Enforcement Impact Table

Audit/ Enforcement ActivityResult/Stat
Accounts flagged for gambling (PPATK)600,000
Applicants for reinstatement200,000
Reinstated beneficiaries7,200
Blocked gambling websites/content (Oct 2024 – Nov 2025)2.4 million+
Harmful content blocked by Komdigi2.8 million+
Drop in gambling-linked Dana e-wallet activity80 percent reduction
Online gambling transaction value (2024)IDR 359 trillion
Online gambling transaction value (up to Q3 2025)IDR 155 trillion
  • Author

Daniel Williams

Daniel Williams has started his writing career as a freelance author at a local paper media. After working there for a couple of years and writing on various topics, he found his interest for the gambling industry.
Daniel Williams
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