Online gambling scandal hits Indonesia’s anti-corruption agency, highlights country’s gambling problem

JAKARTA: Indonesia’s anti-graft agency has been hit by an online gambling scandal involving at least 17 current and former employees, a sign of the challenges authorities face as they maintain a tough crackdown.

The Corruption Eradication Commission (KPK) said on Tuesday (July 9) that past and present employees who allegedly placed bets online ranged from drivers to internal affairs staff.

KPK Vice President Alexander Marwata shared on Tuesday that they have placed 111 million rupees (US$6,850) in online bets since 2023.

While one person bet 74 million rupees across 300 transactions, most others settled for lower stakes, ranging from 100,000 rupees to 300,000 rupees per transaction, he said.

Nine of them no longer work at the Anti-Corruption Agency. KPK officials said they were fired for various reasons, including extortion and illegal toll collection at the KPK detention center.

The Anti-Corruption Agency is investigating. Committed to take strict action against the persons involved.

Mr. Alexander noted that it was premature to comment on possible sanctions against the offending staff, stressing the need to wait for the results of the investigation.

“Maybe it’s just for fun,” he said on Tuesday, adding that they had been involved last year but had stopped playing it this year, as quoted by local media Compass.

Non-profit group Indonesia Corruption Watch (ICW) has called for a full investigation and dismissal of any KPK employee proven to be involved in online gambling.

ICW member Seira Tamara Herlambang emphasized that employees of government agencies like KPK should not fall prey to online gambling and set good examples for the public.

In late June, the Indonesian government warned that online gambling was a problem spreading across the country’s civil service sectors.

Commenting on the KPK findings, Vice President Ma’ruf Amin said online gambling laws should be strictly enforced against organizers and participants.

He believes a dedicated task force set up in mid-June to stop online gambling has uncovered more public servants who are illegal poachers.

If they are found guilty, they should be punished without discrimination, he added. “Anyone including KPK employees or officers, military or police officers will certainly face legal processes as per law.”

Mr. Ahmad Baidowi, a member of a parliamentary commission overseeing corruption, has told the media that the commission is asking KPK to provide a full explanation regarding its employees’ alleged involvement in online gambling.

The commission will also hold a working meeting with the KPK to review the findings of the anti-corruption agency.

In early July, a report by the Financial Transactions Reporting and Analysis Center (PPATK) alleged that MPs were involved in online gambling.

More than 1,000 people at the national and regional levels allegedly did so, and around 25 billion rupees were bet across 65,000 transactions, the report said.

According to The Jakarta Globe, PPATK head Ivan Yustiavandana said his agency has secured information about the transactions, including their full names.

However, the Honorable House of Representatives has yet to reveal the names, drawing public attention to the legislature’s commitment to addressing the issue.

According to the Online Gambling Task Force, reported by the Jakarta Globe, there are about four million online gamblers nationwide. Forty percent of them are between 31 and 50 years of age.

In late June, PPATK reported that total transactions for online gambling in the first quarter of 2024 reached 600 trillion rupees, with approximately three million players involved. About 2.19 million of them come from low income group.

Local media have reported several cases of government employees, including an army officer, allegedly misusing money for online gambling. According to CNN Indonesia, the officer is currently being investigated by the military.

Another army officer is said to have committed suicide due to increasing debts due to online gambling.

In early June, an Indonesian policewoman was accused of handcuffing and burning her husband, a fellow police officer, to death after she discovered he was gambling his salary bonus.