Indonesian Minister Denies Ties to Online Gambling Kickbacks: “A Malicious Lie”

Indonesia’s Minister of Cooperatives, Budi Arie Setiadi, has firmly denied allegations that he received kickbacks in exchange for allowing online gambling websites to remain unblocked during his previous tenure as Communications Minister.

Indonesia’s Minister of Cooperatives, Budi Arie Setiadi. Source: Kemenkop

JAKARTA — Speaking to reporters on Monday, Budi Arie dismissed the claims as “a malicious narrative” aimed at damaging his reputation.

“It’s completely false. This is a deliberate smear campaign targeting my personal integrity,” he said.

The allegations, which surfaced in a prosecutor’s indictment read before the South Jakarta District Court on May 14, suggest that Budi Arie received 50% of bribes funneled through a network of officials within the Ministry of Communication and Informatics—now renamed the Ministry of Communication and Digital.

The former minister stressed that he had no knowledge of such arrangements and denied any involvement in the scheme.

“That 50% claim was a fabrication by the suspects themselves. I was never informed, never received any funds, and never authorized such actions. In fact, no such transaction ever occurred,” he stated.

“On the contrary, I was actively working to shut down illegal gambling sites. There’s a digital trail to prove that,” he added.

Prepared to Defend Himself in Court

Budi Arie outlined three main arguments to support his defense:

1. No Offer Was Made

“They never dared to approach me with such a proposal. If they had, I would’ve taken immediate legal action. They simply used my name to make their scheme appear legitimate,” he said.

2. No Prior Knowledge

He claimed to have only learned of the alleged corruption after police launched an official investigation.

3. No Financial Links

“Most importantly, there is no evidence whatsoever that I received any money. That fact alone should be enough to clear my name,” he emphasized.

The indictment implicates four individuals: Zulkarnaen Apriliantony, a close acquaintance of Budi Arie; Adhi Kismanto, an employee at the ministry; Alwin Jabarti Kiemas, CEO of PT Djelas Tandatangan Bersama; and a man known as Muhrijan (alias Agus). They allegedly arranged bribes of Rp 8 million (approximately $500) per gambling site, with prosecutors claiming the majority—50%—was designated for Budi Arie.

“The breakdown was 50% for Budi Arie, 30% for Zulkarnaen, and 20% for Adhi,” the prosecution stated during the court session.

Budi Arie had previously denied the allegations when questioned by journalist  in November 2024, saying: “Absolutely not. I’m ready to cooperate fully. The truth will come out.”

He has now called for a fair and transparent legal process and urged the public not to be swayed by what he described as “baseless character assassination.”

The case remains under investigation.