Move to legalize gambling no surprise

Damar Harsanto, The Jakarta Post, Jakarta

Governor Sutiyoso's plan to establish legal gambling centers in Thousand Islands is no surprise to gambling operators.

Usman Jaya, not his real name, a former gambling operator revealed that the plan has been prepared and sought by gambling operators.

"I've just heard that many young men are being recruited to work in the would-be casinos in Thousand islands which will be run by gambling operators," Usman said.

Usman, however, doubted that the move to legalize gambling would proceed smoothly owing to strong mounting pressure from religious leaders to eradicate gambling practices in Jakarta.

Sutiyoso said earlier that his administration was set to build the infrastructure for the casinos in Thousand Islands, north of Jakarta.

"But, legal or not, the (gambling) business will going on clandestinely," Usman asserted.

The practice of gambling, like prostitution, has a long history in the capital, Usman said. "Gambling has its own market. Our customers will always look for it wherever we open it ... even under bridges."

Under Dutch rule, gambling was allowed according to government regulations Staatsblad 1912 No. 230 and Staatsblad 1935 No. 526.

Later, the Indonesian government issued Emergency Law No. 11, 1957 on regional taxes, which stipulated that provincial administrations had the authority to regulate the business for their own revenue.

However, none of Jakarta's governors were able to brave the strong opposition from religious leaders as well as religious- oriented political parties.

Central Jakarta mayor Sudiro, who held office between 1953 and 1960 made public a plan to legalize casinos on Edam island in Jakarta Bay, but failed, as did Jakarta governor Sumarno Sosroatmodjo who held office from 1960 to 1965.

But despite the absence of a government permit, illegal gambling operations were reportedly rampant then in Jakarta.

Eventually, Governor Ali Sadikin legalized gambling and provided several locations for gambling centers after seeing the rampant illegal practice which in most cases was backed by unscrupulous officials.

"I handled the gambling business in Jakarta very deliberately since 1967 ... In its effort to regulate the business, the city administration imposed fees so that the business could become a source of revenue for the city administration," Ali says, in an interview with Ramadhan K.H. in the book titled Bang Ali, Demi Jakarta 1966-1977, Sinar Harapan (1992). Ali Sadikin was Jakarta governor for 11 years from 1966 to 1977.

The gambling permit was given via a tender. The business was tightly monitored by a team from the city administration and the police to ensure the continued contribution to the state coffers and to protect the local residents from the negative impact of the opening of the business.

According to gubernatorial decree of Sept. 21, 1967 No. 805/A/K/BKD/1967, the administration allowed the operation of casinos in Petak Sembilan, popularly known among gamblers as "PIX", Jakarta Teater and Copacabana (in Kota), all located in Central Jakarta.

The decree also allowed game stands in Jakarta Fair, Proyek Senen Lotto Fair and Krekot, horse racing in Pulo Mas, East Jakarta, Hai Lai Toto in Ancol, North Jakarta, and greyhound racing in Senayan, Central Jakarta.

Ali claimed that the fees collected from the business could be used to finance rehabilitation programs, including the construction, maintenance, and expansion of streets, traditional markets, schools, public health centers and financial subsidies for hospitals in Jakarta, thanks to the significant jump in city revenue.

In 1979, the casinos in PIX and Hai Lai alone contributed Rp 10 billion in revenue to the city administration, or 10 percent of its domestic revenue despite a ministerial instruction in 1973 to stop the gambling practice. At that time, the city budget stood at Rp 132 billion.

Owing to mounting criticism from ulema and other religious leaders, the practice of gambling was later banned. Through ministerial instruction No. 7, 1973, all gambling practices, like slot machines, roulette, lotto, and hwa-hwe, etc. had been prohibited. A stronger law was then imposed to deter the gamblers under Law No. 7, 1974 issued by the government on the revoking of gambling permits.

According to the law, all forms of gambling are a crime. Those who break the law will be sentenced to a maximum 10 years in jail or fined up to Rp 10 million.

However, the practice was still rampant until the government issued government regulation No. 9, 1981 which dealt a final blow to the business. From 1981 until today, gambling is illegal but gambling establishments have continued to run covertly.