Online Gambling Cuts Indonesia’s GDP by 0.3%, Say National Economic Council and PPATK
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JAKARTA, Investortrust.id — Online gambling has shaved an estimated 0.3% off Indonesia’s economic growth in 2024, according to the National Economic Council, as illicit financial flows divert household funds away from domestic consumption and investment.
Mochammad Firman Hidayat, a member of the National Economic Council (DEN), said data from the Financial Transaction Reports and Analysis Center (PPATK) showed that at least Rp51.3 trillion ($3.18 billion) flowed into online gambling-related accounts in 2024—money that could have otherwise stimulated productive activity in the local economy.
“When that money flows overseas, the economy loses not just the capital, but the multiplier effect it could have generated. We estimate that economic growth last year could have reached 5.3% without the impact of online gambling,” Firman said during the Katadata Policy Dialogue in Jakarta on Tuesday, Aug 5.
Indonesia's economy expanded by 5.03% in 2024, slightly below expectations. Firman noted that nearly 70% of all gambling transactions were funneled into offshore accounts, deepening capital flight and reducing economic resilience—especially as President Prabowo Subianto targets 8% GDP growth by 2029.
Mochammad Firman Hidayat, member of the National Economic Council, at the Katadata Policy Dialogue in Jakarta on Tuesday, Aug. 5, 2025. Photo: Indonesia2045.go.id
Firman outlined multiple economic repercussions: household consumption declines as gambling eats into disposable income, domestic investment weakens as capital flows abroad, and state revenue drops as untaxed transactions proliferate. At the same time, the government must increase spending to address the resulting social harms.
He cited Brazil as a warning case, where household gambling expenditures doubled over five years to nearly 20% of income. Similar patterns were seen in Hong Kong and South Africa, where cross-border gambling led to multibillion-dollar tax losses.
The social costs are mounting. Firman pointed to rising cases of domestic violence, suicide, and household breakdowns fueled by gambling addiction. “The full extent of the social damage is still vastly underreported,” he said.
Meanwhile, PPATK Chief Ivan Yustiavandana revealed that total online gambling transactions in Indonesia hit Rp359.81 trillion ($22.26 billion) in 2024—making it the second-largest financial crime after corruption. In just the first quarter of 2025, transactions reached Rp47.97 trillion ($2.97 billion), putting the country on track to surpass Rp1,100 trillion ($68 billion) by year-end if left unchecked.
Ivan said authorities have frozen 120 million passive accounts as a safeguard against illicit activity and to protect public trust in the financial system. With stricter regulation of fintech firms and account surveillance, the 2025 transaction volume could be slashed to Rp205.3 trillion ($12.7 billion), he said.
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