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Indonesia Blocks Polymarket, Joining India and Brazil in Classifying Prediction Markets as Gambling

Indonesia's Ministry of Communication and Digital Affairs blocked access to crypto prediction platform Polymarket on May 24-25, 2026, after users created contracts wagering on whether President Prabowo Subianto would leave office early. The move puts the seventh-ranked country globally by crypto adoption off-limits for a platform now processing more than $20 billion in monthly trading volume.

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The blocking order, issued by the ministry known as Komdigi, extends beyond simple website access. It also covers Polymarket-affiliated social media accounts, signalling that authorities intend to suppress awareness of the platform, not just direct access to it. Komdigi Director General of Digital Space Supervision Alexander Sabar was direct in his reasoning: "The government will not provide space for any form of online gambling in Indonesia."

The immediate trigger was a set of three Polymarket contracts created on May 21, 2026, allowing traders to speculate on whether Prabowo would exit the presidency before May 31, June 30, or December 31 of this year. The markets collectively traded more than $46,000 in volume across the three contracts. At the time of the block, traders were pricing the probability of Prabowo's departure at 1%, 2%, and 18% across those three deadlines respectively. Komdigi's official statement described Polymarket's activities as containing "elements of monetary betting and speculation over uncertain events," placing them in violation of Indonesian law.

The ministry's legal position rests on a clear principle: the technical infrastructure underneath a product does not change its legal character. "Using blockchain or crypto assets as infrastructure does not change that classification," Sabar said. Indonesia's criminal code and its Electronic Information and Transactions law both prohibit gambling, and Komdigi has argued consistently that any platform where users stake money on uncertain outcomes falls within that definition, regardless of whether settlement happens on a blockchain. This framing has real consequences for Web3 builders. Regulators are not simply unfamiliar with blockchain technology; they are deliberately rejecting the argument that it creates a regulatory carve-out. Grasping why Komdigi specifically is the blocking actor requires one additional piece of context: on January 10, 2025, formal oversight of crypto assets in Indonesia transferred from the commodities regulator BAPPEBTI to the Financial Services Authority (OJK). The two institutions now operate in parallel, with OJK holding crypto licensing powers and Komdigi retaining authority to block platforms it classifies as gambling. That division of institutional roles shapes how different aspects of crypto activity are regulated and why a communication ministry can move against a prediction market independently of the body that licenses crypto exchanges.

Indonesia is not acting in isolation. India's Ministry of Electronics and Information Technology issued its own blocking order against Polymarket on May 21, 2026, classifying the platform as prohibited "online money gaming" under Indian gaming legislation, and that action preceded Indonesia's block by several days. Brazil moved earlier still, blocking 27 prediction market platforms on April 24, 2026, citing investor protection concerns and restricting derivatives to recognised financial benchmarks. Komdigi cited Singapore, Brazil, India, Taiwan, Thailand, China, Japan, and Ukraine as precedents when formalising its own order. Polymarket is now blocked or restricted in more than 33 jurisdictions globally. The platform has not issued a detailed public rebuttal to the Indonesian or Indian regulatory classifications, though reports indicate it has expressed a commitment to engaging with Indonesian authorities.

The scale of what is being closed off is significant. Indonesia had more than 18 million registered crypto users as of September 2025, with separate data showing more than 20 million on-exchange crypto accounts recorded in late 2024. The country ranks first in Southeast Asia for crypto adoption and seventh globally. Approximately 81% of Indonesian crypto users are aged 18 to 34. That demographic, digitally native and already comfortable with on-chain activity, is precisely the user base Polymarket has been growing into. The platform reached 840,000 unique active wallets monthly in early 2026, nearly triple the figure from six months prior, and recorded a single-day volume high of $425 million on February 28, 2026. The enforcement urgency has concrete domestic context: Indonesia recorded approximately 286 trillion rupiah (roughly $16 billion USD) in online gambling transactions in 2025 alone. When India, Indonesia, and Brazil are counted together, three of the world's most populous nations (combining for roughly 2.5 billion people) now formally bar access to the platform.

Indonesian users who want to reach Polymarket will likely turn to VPNs (tools that mask a user's location and route traffic through servers in other countries). Regulators acknowledge this workaround exists, but the legal exposure shifts entirely to the individual user once a formal block is in place.

There is a broader structural lesson for the prediction market sector. The political sensitivity of the Prabowo contracts was not incidental; markets pricing the fate of sitting heads of state carry specific risks in Southeast Asia's regulatory environment that purely financial or sports markets do not. Similar dynamics led to blocks in Singapore. For any team building outcome-based markets in this region, political contracts represent the highest-risk product vertical, but any wager-style mechanism faces the same underlying legal exposure. Indonesia's Financial Services Authority, which assumed crypto licensing oversight from BAPPEBTI on January 10, 2025, currently licenses 29 crypto platforms under its regulatory framework. That figure reflects genuine openness to digital assets more broadly. Crypto in Indonesia occupies a legally dual status: permitted as a tradeable commodity, yet banned as a payment instrument under the country's Currency Law. That tension is precisely what allows a communication ministry like Komdigi to act against a prediction market even while OJK governs exchange licensing. The line being enforced is a narrower one, but it is being enforced firmly.

Whether Polymarket's reported commitment to engaging with Jakarta produces any regulatory accommodation remains to be seen. Given that Komdigi has blocked approximately 3.4 million gambling-related websites since October 2024 and frozen more than 33,000 bank accounts tied to online gambling, the current administration has shown little appetite for negotiated exceptions.