A controversial suggestion related to legalizing casinos in Indonesia has sparked heated debate following a recent parliamentary meeting.
The idea surfaced during a working session between Commission XI of the House of Representatives (DPR) and the Directorate General of Budget of the Ministry of Finance. Golkar Party legislator Galih Kartasasmita was reported to have proposed building casinos as a new source of state revenue.
The discussion focused on improving non-tax state revenue (PNBP), considering low budget absorption rates and the growing illegal online gambling market. Galih cited the United Arab Emirates (UAE) as an example, a Muslim-majority country exploring regulated gambling to diversify its economy.
“Even the UAE dares to develop casinos, albeit restricted only to foreigners. That means they think out of the box. We must also be able to think that way, of course by adjusting to conditions and norms prevailing in Indonesia,” Said Galih on May 15, 2025, as quoted by metrotvnews.com.
However, his remarks quickly stirred backlash, as many interpreted them as advocating for the official legalization of gambling in Indonesia, a nation where gambling remains largely illegal and socially taboo.
Public and Official Opposition
Following public criticism, Galih clarified his statements, denying that he had formally proposed legalizing casinos.
“I never made such a proposal; there was no mention from me wanting Indonesia to open casinos, none at all!” Galih emphasized, as reported by okezone.com.
He explained that his comments aimed to encourage the government to explore new revenue streams beyond traditional commodity sources.
Galih highlighted alternative revenue sectors such as state service agencies (BLUs), digital economy, blue economy (marine economy), and renewable energy projects.
“Take Islamic countries like the UAE, when oil prices dropped, they immediately shifted their revenue model from natural resources to services. My point was that they even went as far as building casinos,” he added.
Despite the clarification, major institutions strongly opposed the idea. The Indonesian Ulema Council (MUI) explicitly rejected any legalization of gambling.
“Don’t even think about legalizing gambling to increase state revenue. Let’s maximize natural resource exploration. Besides, gambling violates laws and societal norms,” said KH Cholil Nafis, Chairman of MUI’s Da’wah and Ukhuwah division, in a statement on May 13, 2025, reported by suarasiam.id.
Local officials joined the chorus of rejection. Jakarta Regional House of Representatives member Lukmanul Hakim declared:
“I firmly reject opening casinos to increase state revenue, whether as non-tax revenue or entertainment tax that belongs to the region. Don’t use ways that damage social and moral order in society,” he said, according to antaranews.com.
A Recurring Debate
This debate is not new to Indonesia. In August 2024, the Bali branch of the Indonesian Young Entrepreneurs Association (HIPMI) proposed building a casino in Bali, but the then Minister of Tourism and Creative Economy, Sandiaga Uno, promptly rejected it, citing conflicts with existing laws.
The idea of taxing online gambling also surfaced previously. In November 2024, Deputy Finance Minister Anggito Abimanyu suggested imposing taxes on online gambling activities due to their significant underground economy potential. Former Communications Minister Budi Arie made similar remarks in 2023.
Historically, Indonesia briefly legalized some forms of gambling, such as the Porkas lottery and other social lottery schemes during the New Order era. Jakarta even legalized certain gambling activities under Governor Ali Sadikin in the 1960s and 1970s, using gambling revenues to fund social programs and infrastructure like the MH Thamrin Road.
Regionally, Malaysia stands out as the only Muslim-majority country that operates legalized casinos, mainly targeting foreign tourists at Genting Highlands Resort. In 2023, Genting Group generated about 1.65 billion USD in revenue, mostly from tourism and gambling.
Despite the revenue potential, experts argue Indonesia’s current laws and social values make casino legalization nearly impossible.
“If casinos are legalized, this could open the door to legalization of other illegal practices like online gambling,” said Nailul Huda, a researcher at the Center for Economics and Law Studies (CELIOS), as quoted by suara.com.
Source: metrotvnews.com, okezone.com, suarasiam.id, antaranews.com, suara.com
Photo Credit: Aperture Pro (pexels.com)
