Indonesia Suspends Welfare Aid Over Gambling Links

Indonesia’s Ministry of Social Affairs has temporarily suspended welfare payments for 1,494,652 beneficiary households after data analysis identified suspected links between their accounts and online gambling transactions.

The action follows information provided by the Financial Transaction Reports and Analysis Center (PPATK), Indonesia’s financial intelligence agency, as authorities investigate whether government assistance was deliberately used for online gambling.

Welfare Payments Suspended During Investigation

Social Affairs Minister Saifullah Yusuf said the government is examining the flagged transactions to determine whether beneficiaries knowingly used their assistance for online gambling.

Around 1.49 million households receiving support through the Program Sembako basic food assistance scheme, also known as BPNT, have had their third-quarter payments temporarily suspended while verification takes place.

The number is significantly higher than findings from earlier investigations, when almost 600,000 welfare recipient households were identified as being linked to illegal online gambling.

Yusuf said the government needs to ensure social assistance remains focused on supporting families in need rather than being directed toward illegal gambling activity.

Authorities Begin Beneficiary Verification

The Ministry of Social Affairs is conducting additional checks with PPATK, the Ministry of Communication and Digital Affairs and regional governments.

The verification will examine whether the transactions were made by the beneficiaries themselves, carried out without their knowledge or involved accounts that were being used by other individuals.

Yusuf said some of the affected households may no longer meet the requirements for receiving assistance. He also noted that the government is updating beneficiary information while the investigation continues.

The review is connected to the government’s update of the National Socio-Economic Single Data (DTSEN), which is used to manage welfare distribution and improve the targeting of assistance.

Households found to have deliberately or repeatedly used welfare funds for gambling could lose their eligibility, with the assistance potentially redirected to other recipients.

PKH Recipients Also Identified

PPATK data showed that 794,475 of the flagged households were recipients of the Family Hope Program (PKH), another government cash assistance scheme.

However, it has not been established whether these households are entirely the same group as those identified through the Program Sembako review or represent a separate group.

Government Urges Beneficiaries to Protect Accounts

Authorities are also continuing education and outreach efforts among welfare recipients through social workers and PKH facilitators.

Beneficiaries are being encouraged to protect their accounts and avoid allowing other people to access or use them for unlawful activities.

Yusuf urged recipients to be careful with their account details and warned against allowing others to exploit their accounts. Officials said guidance and education will continue through social assistance facilitators.

Indonesia Continues Online Gambling Crackdown

The welfare investigation comes as Indonesian authorities continue efforts to combat online gambling, which remains prohibited in the country.

PPATK reported that online gambling generated IDR86.82 trillion, or around $5.3 billion, in transactions during the first half of 2026. The figure covered 467.32 million transactions.

Although the overall transaction value declined compared with the same period previously, the number of transactions increased as activity shifted toward smaller and more frequent deposits, according to PPATK.

The agency has also identified increased use of QRIS, Indonesia’s national QR payment system, for gambling-related deposits, adding another challenge for enforcement authorities.