Experts Back Foreigner-Only Casinos in Indonesia to Boost Revenue, Avoid Social Harm

The proposal, highlighted by academic Vidya Ramadhan from STIE Ekuitas and reported by ANTARA News, suggests adopting a model similar to those in Malaysia and the UAE, where access is restricted to foreign nationals under tightly controlled regulations.

Ramadhan proposed that such casinos be established within special economic zones (SEZs), which benefit from distinct legal frameworks. These zones could offer a legislative workaround to Indonesia’s penal code, which currently prohibits gambling, by allowing specific exceptions for foreigner-only operations. The key, he stressed, is to completely bar domestic access in order to protect local communities—particularly lower-income groups—from the risks of gambling-related harm.

The renewed discussion around this issue comes amid growing concerns over illegal online gambling and the country’s fiscal deficit. In April, Member of Parliament Galih Kartasasmita questioned why the United Arab Emirates—an Islamic country with conservative values—could explore regulated casino projects, while Indonesia remained reliant on traditional revenue streams. He framed the issue not as one of ideology, but of economic necessity.

The economic potential is clear. Resorts World Genting in Malaysia, which follows a restricted access model, reported RM10.91 billion (US$2.33 billion) in revenue for 2024—more than the entire West Java provincial budget for 2025, which stands at IDR30.99 trillion (US$2.32 billion).

International relations expert Hikmahanto Juwana also endorsed the idea, noting that land-based, state-regulated casinos would allow the government to better control gambling flows and reduce the reliance on unregulated, often exploitative online platforms. Historical precedent exists too: former Jakarta governor Ali Sadikin legalised lotteries and casinos in the 1960s to fund development projects, viewing them as pragmatic tools for progress rather than a cultural endorsement of gambling.

This pragmatic, foreigner-only model is being pitched as a strategic solution to both economic and regulatory challenges Indonesia currently faces.