The Financial Services Authority of Indonesia (OJK) continues to intensify its campaign against illegal online gambling. The regulator has officially ordered the banking sector to block 31,382 accounts identified as conduits for illicit betting activities.
This number represents a significant increase from previous lists provided by the Ministry of Communication and Digital Affairs.
Enhanced Due Diligence Required
Dian Ediana Rae, the Head of Banking Supervision at the OJK, outlined the new directives during a press conference on January 9. He stated that banks must move beyond simple blocking. Financial institutions are now required to conduct rigorous investigations into the owners of these frozen accounts. Banks must identify and restrict any other accounts connected to the same National Identification Numbers.
This enhanced due diligence is designed to prevent bad actors from circumventing the ban by opening new accounts within the same banking ecosystem.
Cutting Off Financial Liquidity
The primary goal of this initiative is to sever the financial liquidity that sustains illegal gambling operations. By choking off access to the banking system, authorities aim to make it impossible for offshore operators to process transactions for Indonesian citizens. The strategy requires close coordination between the OJK, the communications ministry, and individual banks to ensure the network remains impenetrable.
Banking Sector Maintains Growth
Despite the operational burden of these enforcement measures, the Indonesian banking sector remains robust. November data indicates that credit growth has accelerated to over 7.77 percent year on year. Investment loans showed particular strength with a surge of nearly 18 percent.
These metrics demonstrate that the financial system can effectively police illegal activity without hindering legitimate economic expansion. The OJK views this resilience as proof that risk management protocols are functioning correctly.
