Move to legalize gambling no surprise

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.