Indonesia Weighs Legalizing Foreign-Only Casinos in Bali and Other Tourist Hubs

^{Pictured: Hikmahanto Juwana, International law expert}

Indonesian experts are calling for the legalization of casinos exclusively for foreign visitors in select resort destinations, including Bali and Batam. According to ANTARA News, proponents of the idea cite the regulatory models of other Muslim-majority countries such as Malaysia and the UAE, which have introduced forms of legalized gambling.

Vidya Ramadhan, a scientist at STIE Ekuitas University, argued that allowing foreigners to gamble in designated zones could generate substantial economic benefits. He emphasized that such operations should fall under strict government oversight to ensure that casino activity does not negatively impact local communities.

Ramadhan pointed specifically to Bali and Batam — both classified as Special Economic Zones (SEZs) — as ideal candidates for such a policy. 

Because of their unique legal status, introducing regulated casino gambling in these areas could be achieved without amending the country’s broader gambling laws. Instead, changes could be made solely to legislation governing SEZs.

International law expert Hikmahanto Juwana echoed Ramadhan’s stance, stating that state-regulated, land-based casinos in selected regions would allow the government to better monitor and control the financial flows tied to gambling.

Juwana also pointed to the country’s thriving underground betting market, suggesting that legalization could serve as a partial solution by redirecting at least some of the illicit activity into a regulated system.

Supporters of the plan often reference Jakarta’s former governor Ali Sadikin, who in the 1960s temporarily legalized lotteries and casino games to fund infrastructure projects during a severe budget shortfall.