Kemkomdigi Blocks Polymarket, Online Gambling Posed as Prediction Market

Kemkomdigi has blocked access to Polymarket (www.polymarket.com), a platform popular in the cryptocurrency world, which it says facilitates online gambling under the guise of a prediction market. Alexander Sabar, Director-General of Digital Space Surveillance at Kemkomdigi, emphasised the government’s full commitment to eradicating all forms of digital gambling in Indonesia. ‘The government will not provide space for any form of online gambling in Indonesia,’ he said in Central Jakarta on Friday, 22 May.

Technically, prediction markets are platforms that allow users to trade contracts based on the outcomes of future events, ranging from elections and economic trends to sports results. These platforms generally utilise blockchain technology and cryptocurrencies for transactions. However, Kemkomdigi assesses that Polymarket’s practices involve monetary stakes and speculation on uncertain outcomes, which under Indonesian law meet the criteria for gambling. In addition to blocking the site, the government is investigating social media accounts affiliated with Polymarket to ensure a comprehensive shutdown.

This move by Indonesia is in line with policies in several other countries that have tightened oversight of similar platforms. While some technology enthusiasts regard prediction markets as tools for collecting accurate public sentiment (wisdom of the crowd), regulators are concerned about the associated risks. Kemkomdigi urges the public to stay vigilant and not engage in digital betting-based speculation. The government will continue coordinating with law enforcement to monitor similar services that may facilitate such practices, to maintain a healthy and productive national digital ecosystem.