The Financial Services Authority (OJK) says the rise of digital wallets and other digital payment instruments is making it increasingly difficult for law enforcement to track online gambling activities and identify perpetrators in Indonesia.
The regulator noted that these tools can make it harder for authorities to trace fund flows and identify perpetrators.
Encrypted applications and offshore servers further complicate authorities’ efforts to identify perpetrators and trace fund flows, as reported by Finansial Bisnis.
Speaking at the OJK Banking Forum 2026 in Central Jakarta on Tuesday, OJK Chief Executive of Banking Supervision Dian Ediana Rae outlined the technical hurdles facing authorities.
He highlighted that virtual accounts, crypto assets, and digital wallet platforms complicate the identification, tracking, and recovery of illicit funds.
Dian pointed out that perpetrators can change their website domains quickly and operate under new identities using servers outside Indonesian jurisdiction.
System integration hurdles
OJK identified three main areas requiring improvement to combat online gambling and related financial crimes.
The primary issue is a lack of fully automated, real-time data integration between government and financial bodies.
Information sharing between government agencies, regulators, and the financial sector still requires manual administrative steps.
The process involves the Ministry of Communication and Digital, OJK, the Financial Transaction Reports and Analysis Centre (PPATK), and Bank Indonesia.
This delay allows operators to transfer funds and alter their methods before regulators can intervene.
Strengthening coordination and technology
The regulator is calling for a more comprehensive approach to handling online gambling that extends beyond blocking websites and bank accounts.
Dian said the process must cover early detection, risk mitigation, asset freezing, and law enforcement.
Authorities also need to improve their use of AI and analytic technology.
A shared monitoring dashboard and network analysis tools would help regulators identify suspicious transaction patterns and pinpoint accounts used to collect gambling proceeds faster.
“This can actually become an important foundation in building a more modern supervisory system,”
Dian said.
OJK is currently building its own supervisory tools using AI to identify collection accounts and their owners.
The regulator said technological upgrades must be supported by stronger collaboration.
Regulators, financial institutions, and other stakeholders need to work together to keep Indonesia’s digital financial network secure.
Featured image credit: Edited by Fintech News Indonesia, based on image by Borin via Magnific
