The Discourse On Online Gambling Tax Appears, Can It Be Legal In Indonesia?

Illustration of the Minister of Communication and Information Budi Arie Setiadi. (ANTARA/HO-Ministry of Communication and Information)

YOGYAKARTA There are many discussions about the discourse on online gambling taxes that will be implemented in Indonesia. The discourse then reaps pros and cons among the public considering that all types of gambling, including online, are prohibited in Indonesia. Then how did the discourse start?

The discourse of imposing taxes on online gambling came after Minister of Communication and Information Budi Arie Setiadi during a meeting with Commission I of the Indonesian House of Representatives last week said that Indonesia had a potential loss to be borne by gambling online. The Minister of Communication and Information also explained that only Indonesia, a country in ASEAN, does not legalize gambling.

"I don't want to be a promoter of legalization of gambling," Budi Arie said in a YouTube broadcast of Commission I of the DPR RI quoted on Tuesday, September 11, 2023.

"Only as a nation, as a country, we have to think seriously about online gambling," he added.

Budi Arie also said that at least US$9 billion had left Indonesia. He then mentioned gambling tax and the potential to make it clear.

"We are the only country in ASEAN that is gray, while online gambling is cross-border. If we continue like this, we will lose something in my opinion," said Arie. "Because I discussed with many parties, I said, yes, it has been taxed, for example. Made light, taxed."

Regarding the discourse, the Director of the Center of Economics and Law Studies (Celios) Bhima Yudhistira explained that tax collection on online gambling is not a solution, it even tends to trigger new problems.

"Don't because prevention and supervision are considered difficult, then switch to taxation," Bhima said in Kontan, Sunday, September 10.

Bhima also explained that there are no definite guarantees when online gambling is legal, other online gambling can be eliminated.

Despite the emergence of the tax discourse, in Indonesia there is already a prohibition that regulates gambling in general, such as in Article 303 and Article 303 of the Criminal Code (KUHP) and Law No. 7 of 1974 concerning Control of Gambling.

Meanwhile, online gambling has been regulated in Article 27 paragraph (2) of Law no. 11 of 2008 concerning Electronic Information and Transactions (UU ITE) as amended by Law no. 19 of 2016 concerning Amendments to Law Number 11 of 2008 concerning Electronic Information and Transactions.

Online gambling itself in Article 27 paragraph (2) of the ITE Law explains that everyone intentionally and without the right to distribute, transmit, and/or make accessible Information or Electronic Documents that have gambling content.

The threat of violation is stated in Article 45 paragraph (2) of Law 19/2016, with the following sound.

Anyone who intentionally and without rights distributes and/or transmits and/or makes accessible Electronic Information and/or Electronic Documents that have gambling content as referred to in Article 27 paragraph (2) shall be sentenced to a maximum imprisonment of 6 (six) years and/or a maximum fine of IDR 1 billion

This means that with this regulation, online gambling is currently impossible to legalize in Indonesia.

That's information related to online gambling tax discourse. Visit VOI.ID to get other interesting information.