Indonesia did not prohibit gambling in one step. Earlier governments licensed casinos and lotteries; Law No. 7 of 1974 tightened criminal penalties, and a 1981 regulation ended municipal casino licences. The revised Criminal Code took effect in 2026 and sets separate penalties for organisers and participants.
From Colonial Concessions to Early Republic Lotteries
Under the Dutch colonial rule set out in Staatsblad 1911 No. 112, licensed casinos could operate for Europeans while authorities policed indigenous gambling. After independence in 1945, the republic faced budget shortages. Under Sukarno and Suharto, governments later approved lotteries to raise money for sport and infrastructure.
Lotto, Nalo and later Porkas (Pekan Olahraga dan Ketangkasan) ran with state approval. Islamic organisations and university student groups opposed the programmes, citing harm to households. The state eventually abolished SDSB in 1993 after student demonstrations.
The 1974 Turning Point: Law No. 7 on Gambling Control
Law No. 7 of 1974 on the Control of Gambling (Penertiban Perjudian) raised criminal penalties for unauthorised gambling. Government Regulation No. 9 of 1981 then revoked municipal casino licences nationwide.
The 2026 Criminal Code Reform (Law No. 1 of 2023)
Law No. 1 of 2023 took effect in January 2026. Articles 426 and 427 distinguish between running or offering gambling and taking part in it:
- Article 426 KUHP: Imposes up to nine years' imprisonment on any person who offers, provides, or operates gambling opportunities as a business or without lawful permission.
- Article 427 KUHP: Targets active participation, prescribing up to three years' imprisonment for individuals placing wagers in unauthorized gambling games.
Chronological Legal Milestones
| Year | Legal Instrument | Policy Effect |
|---|---|---|
| 1974 | Law No. 7 of 1974 | Classified gambling as a crime against social welfare; raised penal code fines and imprisonment. |
| 1981 | Gov. Reg. No. 9 of 1981 | Revoked all provincial and municipal casino concessions nationwide. |
| 1993 | Ministerial Decree | Abolished the SDSB lottery following nationwide student demonstrations. |
| 2026 | Revised KUHP (Law 1/2023) | Implemented Articles 426 & 427, establishing modern penal definitions for operators and players. |
Frequently Asked Questions
Yes. During the late 1960s and early 1970s, licensed casinos operated in Jakarta to generate municipal tax revenue. All concessions were revoked nationwide under Government Regulation No. 9 of 1981.
Articles 426 and 427 set separate provisions for people who offer or run gambling and people who take part. The applicable offence depends on the conduct and evidence.