According to Indonesia’s Communication and Digital Affairs Ministry, Polymarket was operating as online gambling under the format of a prediction market. In this regard, the ministry’s digital space supervision chief, Alexander Sabar, said that the platform involved betting and speculation on events with uncertain outcomes. As Sabar said, that violated Indonesian law.
Why the Block Was Issued
The decision is significant, as Indonesia is not treating the platform mainly as a crypto product or a financial trading tool. The officials concentrated on the core function of the platform – betting money on the occurrence of certain events in the future.
Such an approach provides local regulators with a broad test. If the platform allows people to stake their money on political, sporting, economic, or social events, the technology layer may not save it from gambling regulations.
Political Market Drew Public Attention
The block happened after Polymarket attracted public attention in Indonesia over a market linked to President Prabowo Subianto’s political future. Reuters said that there had been bets placed at Polymarket about when Prabowo would be out as president.
The situation was politically sensitive. The wager opened on May 21, one day after Prabowo announced a plan to centralise control over key commodity exports, including coal and palm oil. Additionally, Reuters said that Prabowo’s government had been under the scrutiny of investors for economic policies this year.
Enforcement May Go Beyond One Website
The Indonesian Ministry has said that it is tracking social media accounts associated with Polymarket as well. The purpose behind doing so, according to the officials, is to provide help in implementing more control over the digital platforms.
In addition, the ministry noted that such websites might be blocked in case they were used for prediction market activities. This implies that the ban could set a precedent for other event-contract platforms that have Indonesian visitors.
It has been reported before that Indonesia has tightened its rules against online gambling activities. Previously, Indonesia’s financial regulator said banks had been instructed to block or conduct enhanced due diligence on 33,252 accounts suspected of links to online gambling.
Global Pressure on Prediction Markets
The Indonesian decision is also part of a broader regulatory trend. According to Antara, Indonesian regulators have made references to bans in several other regions, such as Singapore, Brazil, and India.
Brazil took similar action in April 2026. Reuters reported that the country blocked 27 prediction market platforms and tightened derivatives rules for products linked to sports, online games, political, electoral, cultural, and social outcomes.
Signals for the iGaming Sector
While prediction markets can use trading terminology, crypto rails, or blockchain mechanics, regulators care about the underlying economic substance. When participants can risk funds on uncertain events, authorities may classify the product through gambling law rather than financial innovation rules.
In Indonesia, Polymarket may now serve as a test case for how far national gambling rules can reach when event markets are built for crypto-native users worldwide. For operators, affiliates, and payment providers, the risks have expanded beyond licensed betting brands. Prediction markets are now inside the same enforcement conversation.
