Indonesia: Sanctions and licence revocation for online payments servicing online gambling
Payment Service Providers (PJP) will need to submit an internal review/audit to Kominfo within seven working.
The Ministry of Communication and Information Technology (Kominfo) of Indonesia has warned of imposing takedown sanctions or revoking the registration of 21 Payment Service Providers (PJP), if they are found to be facilitating financial transactions for online gambling or other illegal activities.
“The Ministry of Communication and Information Technology sent warning letters to PJPs to ensure their services do not facilitate online gambling transactions,” said the Minister of Communication and Information Technology, Budi Arie Setiadi, at the Kominfo office in Central Jakarta.
The actions were in accordance with article 35, paragraph (1) of Government Regulation No. 71 of 2019 on Electronic System and Transaction Management.
There are currently 21 PJPs with 42 registered Electronic Systems at the Ministry of Communication and Information Technology.
Service providers receiving warning letters were requested to conduct a “comprehensive and thorough internal review/audit of their Electronic System services to ensure they are not used for online gambling or any other illegal activities.”
The results of the internal review/audit must be submitted to the Ministry of Communication and Information Technology within seven (7) working days after receiving the warning letter.
“If the Ministry of Communication and Information Technology does not receive the review results within the 7-day deadline, the electronic payment service provider will face administrative sanctions according to the law,” said Minister Budi Arie.
Earlier, the Minister urged all Indonesian NAPs to cut access to foreign internet lines suspected of providing online gambling.
Gambling in any form is illegal in Indonesia, and President Joko Widodo recently affirmed that there will be no social aid for online gamblers.
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