The online gambling industry has skyrocketed in the Southeast Asian market, prompting citizens to move from one nation to another in search of suitable employment. According to a recent report from Indonesia’s Ministry of Finance, there has been a sudden increase in the number of Indonesians reporting to the Indonesian embassy in Cambodia.
In 2020, 2,332 Indonesians reported themselves to the Indonesian embassy in Phnom Penh. However, by 2023, this number had surged dramatically to 17,212, marking a staggering 638 percent increase from the previous year. This report also underscores the rising influence of online gambling and related fraud within the industry.
Root causes of migration
One of the primary reasons for this migration is the pursuit of better job opportunities and security in Cambodia. Illegal betting operators often advertise their job openings as legitimate, but they frequently involve fraudulent activities or online gambling scams.
Another significant reason is Indonesia’s high unemployment rates. The trend in the market has normalised online gambling jobs, making them appear attractive and ‘cool’, which draws Indonesians towards Cambodia. These online betting operators also offer quick money-making schemes that appeal to many Indonesians, prompting them to relocate.
The Director of Indonesian Citizen Protection, Judha Nugraha (pictured above), highlighted the migration report by stating, “Based on self-report data at the Indonesian Embassy in Phnom Penh, 2,332 Indonesians reported in 2020. This number jumped to 17,212 in 2023.”
Judha Nugraha also expressed concern about online gambling fraud. The Indonesian Embassy in Phnom Penh has dealt with 2,321 legal cases in 2023 alone. Remarkably, 77 percent of these cases involved online fraud, emphasising the extent of the issue.
Nugraha stated, “There is a significant discrepancy between Cambodia’s immigration data, which shows 89,000 Indonesians with residence permits, and the self-report data, which stands at only 17,212.”
While these numbers offer a glimpse, they don’t capture the full story. The comprehensive Cambodian immigration data reveals a much broader picture, with an impressive 123,000 Indonesians entering the country by September 2024 and a substantial 89,000 holding residence permits.
Indonesia’s domestic online gambling crisis
Currently, Indonesia is facing high rates of online gambling. The Government’s Online Gambling Task Force report revealed that there are 4 million online gamblers in Indonesia, including 80,000 children under 10 and 440,000 aged 11-20.
According to Indonesia’s Financial Transaction Reports and Analysis Centre (PPATK), there has been a significant surge in gambling-related transactions, from $124.8 million in 2017 to $20.35 billion in 2023. In the first three quarters of 2024 alone, $17.42 billion was recorded, and at this pace, online gambling transactions could reach $61.04 billion in 2024.
Although Indonesia’s PPATK has made significant progress in addressing this issue, challenges persist. Enforcement is particularly difficult when operations are based overseas. Furthermore, the absence of coordinated efforts between domestic and international stakeholders hinders further advancement.
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