Online Gambling: Indonesia’s Investment Landscape Unaffected Amidst Rising Concerns

Online Gambling and Indonesia’s Investment Climate

Jakarta. The deputy minister of Indonesia stated that the rise of online gambling does not significantly affect the country’s investment climate.

The new administration under Prabowo Subianto aims for an 8% growth in gross domestic product (GDP) over the next three years. To reach this goal, the government seeks to attract foreign investors, particularly from the technology sector.

Despite this ambitious target, many Indonesians are becoming addicted to online gambling. Some individuals have stolen money from their companies to gamble online. Officials have also been caught supporting these gambling sites. Deputy Communications Minister Nezar Patria believes these issues will not deter foreign investment.

Nezar explained, “Online gambling is a matter of social pathology, but it does not directly impact foreign investments.” The focus must be on addressing the online gambling problem, he added.

The Indonesian tech sector remains appealing to international investors. For instance, Nvidia is collaborating with Indosat to invest $200 million in an artificial intelligence (AI) center in Solo. Nezar noted continued interest from companies in Europe and the UAE, but he did not provide specific names.

Nezar’s statements followed the police’s announcement of charges against 28 individuals connected to online gambling, including nine from his ministry. These officials reportedly helped ensure the gambling sites remained accessible, allegedly receiving about Rp 8.5 million (around $533) for their actions.

Official data shows that in 2023, Indonesia attracted Rp 1,261 trillion (around $80 billion) in total investments, with foreign investors accounting for 51.9% of this figure as of September.