Indonesia’s Digital Gambling Crackdown and Its Implications

Indonesia has taken an aggressive stance against online gambling, a category that increasingly intersects with online gaming platforms and prediction markets. In May 2026, the Ministry of Communication and Digital Affairs blocked access to Polymarket, a blockchain-based prediction market, after it facilitated betting on whether President Prabowo Subianto would leave office before the end of his term. Alexander Sabar, the ministry’s director general of digital space supervision, stated unequivocally: “The government will not provide space for any form of online gambling in Indonesia.” Polymarket’s activities were classified as containing “betting and speculation over events that are inconclusive,” thereby violating Indonesian law .

The legal consequences extend far beyond platform blocking. Under Indonesia’s National Criminal Code (KUHP), which took effect in 2026, Article 426 governs those who facilitate gambling—including operators and promoters—with penalties of up to nine years in prison or fines up to Rp2 billion (approximately USD 125,000). Article 427 addresses players themselves, threatening up to four years imprisonment or fines up to Rp50 million. Additionally, Article 45(3) of the ITE Law (Law No. 1 of 2024) targets those who distribute, transmit, or make accessible electronic information containing gambling content, with penalties reaching 10 years imprisonment or fines up to Rp10 billion .

For the online gaming industry, Indonesia’s crackdown creates a critical compliance consideration: the line between gaming and gambling is being actively policed. Game mechanics that involve monetary betting on uncertain outcomes, even within a “game” framework, risk classification as illegal gambling. The government has also emphasized child protection obligations, with Commission I of the House of Representatives reminding online game developers of their duties under ITE Law Article 16A to protect children from negative content, and under Ministry of Communication and Informatics Regulation No. 2 of 2024 on Game Classification, which mandates age-based classification at ages 3, 7, 13, 15, and 18, with particular attention to violent content . The message is clear: game developers operating in Indonesia must ensure that monetization mechanics do not cross into gambling territory, and must implement robust age-gating and content moderation systems.