Indonesia suspends social aid for 300,000 gambling-linked users
Amid a continuing crackdown on online gambling, the Indonesian government has stopped social assistance payments to more than 300,000 people after they were found to be involved in gambling. Social Affairs Minister Saifullah Yusuf, also known as Gus Ipul, said on Monday that welfare money must be used only for its intended purpose.
“More than 300,000 beneficiaries can no longer receive assistance. If it is proven they were engaged in online gambling, their benefits will be terminated immediately,” Saifullah told local media.
The suspensions follow a review of 12 million beneficiaries conducted by the Financial Transaction Reports and Analysis Center (PPATK). The audit flagged around 2 million recipients as ineligible, including 600,000 involved in online gambling.
Reverification process to ensure fairness
Saifullah emphasised that those affected would have the chance to reapply for aid through a re-registration and verification process. “It is possible some were exploited by others. That is why re-verification is necessary,” he said.
He also assured that redirected funds would go to households that genuinely qualify. “Going forward, we will channel assistance to those entitled, with the same amounts, so the program is accurately targeted,” the minister explained.
PPATK submitted further evidence pointing to anomalies in the aid system, including potential misallocation of benefits. Deputy Social Affairs Minister Agus Jabo Priyono had earlier confirmed that his office was seeking President Prabowo Subianto’s approval to impose strict sanctions on beneficiaries caught gambling with state funds.
A ministry statement added: “If it is proven that beneficiaries used assistance for gambling, it is very possible they will be removed from the list. Social assistance must be targeted and used as intended to optimally help the poor and vulnerable.”
Largest purge of beneficiaries to date
The removal of 300,000 names is the latest stage of a broader campaign. Last month, PPATK confirmed that more than 600,000 recipients had already been struck off the list after cross-checking millions of suspected gambling-linked accounts. Another 375,000 remain under review.
Saifullah said many anomalies had been uncovered during verification. “Many claimed to be doctors or BUMN employees when opening their bank accounts. We are verifying these claims, and if they are found to be inaccurate, we will remove them from the list,” he explained.
He also said the government is updating the social assistance records under Presidential Instruction (Inpres) No. 4 of 2025, with the Central Bureau of Statistics leading the process.
Aid misuse revealed across regions
PPATK’s findings highlight widespread misuse of aid funds across Indonesia. In the first half of 2025, West Java recorded the highest number of gambling-linked recipients at 49,431, with transactions totalling Rp199 billion. Central Java followed with 18,363 recipients (Rp83 billion), East Java with 9,771 (Rp53 billion), and Jakarta with 7,717 (Rp36 billion).
At the municipal level, Bogor Regency topped the list with 5,497 recipients and Rp22 billion in transactions.
Nationwide, 132,557 aid recipients were linked to gambling transactions worth Rp542.5 billion during the same period. The most frequently used payment channels were the Dana e-wallet and banks including BCA, BRI, BNI, and Mandiri.
Wider crackdown on online gambling
The suspension of social aid forms part of Indonesia’s wider crackdown on online gambling, which remains illegal but widespread due to mobile apps, websites, and social media channels.
In August, Indonesia’s National Police froze Rp154.3 billion ($9.5 million) across 811 gambling-linked bank accounts. Senior Commissioner Ferdy Saragih from the Cybercrime Directorate said: “There is strong suspicion that the funds originated from online gambling activities. This will not be the last. Police will continue pursuing the perpetrators and networks behind these practices.”
Earlier this year, the Financial Services Authority (OJK) also ordered banks to block nearly 26,000 accounts linked to gambling. PPATK estimates that between 2017 and June 2025, gambling platforms processed Rp976.8 trillion through 709 million transactions.
Focus on VPNs and e-wallets
Authorities are targeting new methods used by gamblers to bypass restrictions. The Coordinating Ministry for Political, Legal, and Security Affairs (Kemenko Polkam) is preparing tighter rules on virtual private networks (VPNs), which are commonly used to access blocked websites.
About 39 percent of Indonesian internet users were estimated to use VPNs in 2022, with 30 percent accessing restricted content. Academics have warned that children and low-income groups are particularly vulnerable to gambling platforms through such tools.
At the same time, PPATK has identified Rp1.6 trillion in gambling deposits processed via e-wallets in the first half of 2025. Some providers, such as DANA, have strengthened fraud detection. CEO Vince Iswara said: “We are no longer reactive; we are predictive,” noting an 80 percent drop in gambling-related activity.
Sanctions and reforms in aid distribution
The Ministry of Social Affairs has outlined three categories of recipients to be removed: those involved in gambling, those with stagnant funds, and those with suspiciously high balances. Saifullah said the measures align with the government’s commitment to targeted assistance.
The ministry is also applying a tiered sanctions system, including formal warnings, temporary suspension, and permanent removal from the list.
Vice President Gibran Rakabuming Raka has repeatedly urged beneficiaries to use aid responsibly. “Don’t use it for gambling. I’ve said this many times at every BSU distribution location,” he said during a wage subsidy assistance (BSU) event in July.
Public oversight and restoring trust
The Ministry of Social Affairs has urged citizens to report irregularities through the Cek Bansos app. “We welcome reports submitted via the app, as long as they include complete supporting data so we can follow up. Let’s ensure that this assistance reaches the 20 million people who truly deserve it,” Saifullah said.
With Rp78 trillion distributed in welfare in the first half of 2025 alone, misuse of even a fraction of funds poses a significant risk to public trust. The government is therefore moving to improve transparency, strengthen identity checks, and ensure assistance is directed only to those who need it most.
