Key points:
- Academics suggest model based on Malaysia and UAE, restricting access to foreign nationals
- Special economic zone laws could provide legal foundation for the exception
- Online gambling concerns and fiscal deficit drive renewed interest
Indonesia should consider allowing casino operations exclusively for foreign nationals in specific locations such as Batam or Bali, according to STIE Ekuitas academic Vidya Ramadhan, as reported by ANTARA News.
He argued that regulated casino activity could bring positive short-term economic impact if managed through strict oversight.
Ramadhan emphasised that domestic access should be prohibited to protect local communities, especially those in lower-income groups. He proposed that casinos be operated within special economic zones, where targeted legislation could override general legal prohibitions under the penal code.
The proposal drew attention following comments from Member of Parliament Galih Kartasasmita during a parliamentary budget session in April. Galih questioned why the United Arab Emirates, a country with Islamic legal principles, could explore casino operations while Indonesia continued to rely heavily on conventional revenue streams.
He framed the issue as one of economic pragmatism rather than ideology.
Good to know: Resorts World Genting in Malaysia reported RM10.91bn (US$2.33bn) in revenue in 2024, equivalent to IDR37.09trn (US$2.32bn), exceeding the West Java provincial budget for 2025, which stood at IDR30.99trn
International relations expert Hikmahanto Juwana supported the idea, stating that state-regulated land-based casinos in limited locations would allow the Government to manage gambling flows more effectively than the current spread of illegal online platforms.
Observers also cited the example of Ali Sadikin, Jakarta’s governor in the 1960s, who legalised lottery and casino activity to fund infrastructure during a period of financial constraint. His approach was framed not as promoting gambling culture but as a strategic move to meet development goals.
