Indonesia Prepares VPN Rules to Crack Down on Illegal Online Gambling

Indonesia is preparing to introduce new rules targeting the use of Virtual Private Networks (VPNs), to crack down on the broader access to illegal online gambling. The move signifies a stronger push by authorities to tighten internet oversight amid growing concerns over unregulated digital activity.

Indonesia Strengthens VPN Laws to Tackle Illegal Online Gambling

While officials have not really explicitly mentioned gambling platforms, the intention seems to be clear. The aim of this move is to restrict tools that allow Indonesians to bypass government firewalls and access banned content. As the country battles a surge in illegal online gambling, VPNs have become a major target in the regulatory issue.

Indonesia currently ranks as the third-highest user of VPN services worldwide, behind only the United Arab Emirates and India. A 2024 report by Windscribe, a global VPN provider, found that roughly 41% of Indonesian internet users use VPNs. This tool is largely used to bypass state-enacted censorship and access geo-blocked websites.

Online gambling, is strictly banned under Indonesian law, but is still thriving via VPN-enabled access to international platforms. These tools allow users to hide their digital footprints, and makes it challenging for authorities to enforce law.

“VPNs are being misused to reach sites and apps that are clearly illegal,” said Semuel Abrijani Pangerapan, Director General of Informatics Applications at the Ministry of Communication and Informatics, in a recent statement. “We are developing a framework to ensure their usage aligns with the law.”

The upcoming regulations, which are currently under ministerial review, aim to restrict VPN use by requiring providers to register with the government. Unregistered VPN services could be blocked outright. Officials are also considering legal consequences for users found accessing restricted services via unlicensed VPNs.

As for now, no timeline has been officially announced. But local media has reported that draft rules may be finalized by the end of the year.

The current online gambling environment in Indonesia is vast, and mostly hidden. Users often access offshore platforms hosted in regions with lenient enforcement. These platforms promise anonymity, instant payouts, and enticing rewards, thus driving a cycle of addiction and financial ruin for many.

According to cybersecurity experts, the government’s concerns are not misplaced.

“Online gambling through VPNs poses real threats—not just economically, but socially,” said Widodo Prihanto, a digital policy analyst based in Yogyakarta. “There are cases of fraud, money laundering, and even minors getting involved.”

Law enforcement has been struggling in identifying and prosecuting offenders. Since VPNs mask IP addresses and encrypt traffic, it becomes difficult to trace users or shut down illegal services.

Indonesia is not alone in grappling with this issue. India, the world’s second-highest user of VPNs, is also debating stricter controls. While India has yet to implement concrete measures, growing concerns over online gambling may soon push policymakers in a similar direction. India, along with Chile was recently in news for coming up with stringent online gambling regulations. Philippines, amongst all, has already banned its government officials from engaging in any kind of online gambling.

Observers say Indonesia’s proactive stance could serve as a model or a warning for other countries in Southeast Asia. Indonesia, which boasts of a tech-savvy population and increasing internet penetration, has reached a digital crossroads.

Critics, however, caution that overregulation could lead to broader internet freedom concerns.

“If not carefully designed, these VPN restrictions could impact journalists, activists, and regular users who rely on VPNs for legitimate privacy reasons,” said Amnesty International Indonesia in a recent report.

Still, the government appears resolute. Officials argue that the regulations will strike a balance between digital freedom and lawful governance.