Poker Writer
Indonesia has suspended welfare payments to almost 1.5 million households suspected of making online gambling transactions. The move is part of the country’s wider crackdown on illegal gambling.
The Social Affairs Ministry said that the welfare payments are intended to help struggling low-income families. They aren’t meant to finance illegal gambling activity.
The ministry also emphasized to Indonesian citizens to be vigilant with their welfare accounts and not to let others exploit them, lest the funds get used the wrong way:
Do not be careless. For instance, by letting others use or exploit your account. We continuously provide outreach, education, and guidance to Beneficiary Families through social facilitators.
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More Indonesian Households than Ever Are Gambling
Indonesia has made recent strides to combat illegal gambling. It claims to have cut the illegal gambling numbers in half. But those numbers sit in contrast to reports that the number of welfare households suspected of illegal gambling in 2026 is more than double the 600,000 from 2025.
Authorities must conduct investigations to determine if the flagged transactions are deliberate attempts by the households to use welfare funds for gambling or if there is another explanation.
The Islamic archipelago nation is on heightened alert for illicit activity. Many illegal gambling and scam operations have shifted from other parts of Southeast Asia to Indonesian shores.
Currently, Indonesia lacks the police or judicial capacity to tackle large, widespread operations. The illegal operators have also become more challenging to stop as they have shifted towards processing numerous low-value payments instead of a few large transfers that could be more easily spotted. Such massive money moves typically raise more red flags.
Many Indonesians Remain Impoverished
Of the country’s 288 million people, about 35 million receive social assistance, or about 12% of the population. Poverty rates in the country have made a slow but steady drop in recent years. Still, large numbers of people live in poor conditions.
According to data, 70% of Indonesia’s gamblers are low-income. Therefore, those making welfare payments remain a prime source of revenue for illegal gambling operators.
Youth gambling has also become a greater issue in recent years in the region. Illegal online gambling operators there recruit local influencers and celebrities to hook young people on their products, according to reports. The United Nations Office on Drugs and Crime called illegal online gambling “one of the most significant and fastest-growing dimensions of transnational organized crime.”
Impoverished gamblers often find themselves in a spiral, pawning off possessions in hopes of a lucky break.
“Once people catch the gambling addiction, their social lives break down; the national economy collapses,” economist Thet Zaw told The Straits Times.
