Jakarta, Indonesia – Despite a surge in online gambling in Indonesia, the country's Deputy Minister of Communications and Informatics, Nezar Patria, has asserted that it will not have a direct impact on foreign investment.
The new government under President Prabowo Subianto has set an ambitious target of 8% GDP growth within the next three years. To achieve this, the government is keen on attracting foreign investors, especially in the technology sector, to set up companies in the country.
However, Indonesia, with over 221 million internet users, has seen a concerning rise in online gambling addiction. Some employees have even resorted to stealing company funds to fuel their online betting habits. Several Indonesian government officials have also been implicated in running online gambling sites.
Despite these issues, Nezar remains optimistic about the country's investment climate. "I don't think online gambling has a direct impact on foreign investment. These are two separate issues. Online gambling is a sociopathological problem, but the important thing is that we are addressing online gambling," Nezar told reporters at a US investment forum on Tuesday.
"We are working with technology companies to tackle this problem," he added.
The Communications Ministry has set up a special desk to block people's access to online gambling sites. They have partnered with major digital platforms like Meta and Google. According to media reports, the government has blocked at least 1,361 keywords related to online gambling on Google and 7,252 similar keywords on Meta since November 4. In a two-week period from November 4 to 19, the government blocked 104,819 online gambling sites.
Nezar reiterated that Indonesia's technology sector remains attractive to international investors. US semiconductor manufacturer Nvidia is partnering with Indonesian telecom company Indosat to invest $200 million in building an artificial intelligence (AI) center in Solo. Nezar also mentioned interest from companies in the United Arab Emirates and Europe, though he did not disclose the company names.
Nezar's statement came a day after police named 28 people, including nine working in his ministry, as suspects in an online gambling case. These government officials allegedly ensured that online gambling sites were not blocked. They were reportedly paid around Rp8.5 million ($533) per site for the service.
According to official government figures, Indonesia attracted Rp1,261 trillion (approximately $80 billion) in foreign and domestic investment until September this year. Of this, about 51.9% came from foreign investors.
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