Indonesia is an archipelago off of the coast of southern Asia. It consists of more than 17,000 islands and 37 provinces. Parts of it are close to the northern shores of Australia, and others are close to the southern shores of Malaysia, Vietnam and the Philippines.
Overview

Because Indonesia is broken up into so many different islands (over 17,000 total), and because there are 37 provinces there, enforcement of any type of Internet-based law is difficult at best.
Online gambling is illegal in Indonesia thanks to Islamic law, but that's with the caveat that there is no real enforcement of any kind. Lots of people play from Indonesia each year without any real problem.
There have been no publicized cases of anyone getting into trouble for gambling on the Internet, and there isn't much of a discussion about it in public circles or the media either. Along these lines, it seems to be something that the government is not interested in actively policing to any serious extent.
Nevertheless, the efforts made on behalf of the respective regulatory bodies are to be noted. The Ministry of Social Affairs, Religious Affairs, as well as the Ministry of Communications and Information Technology have all joint in to introduce a successful ban to all Indonesian players back in 2012. However, as the record shows, this hasn’t been very successful, as offshore platforms are still largely available.
More recently, there haven’t been any new attempts at regulating the industry, meaning that taxation and other matters are yet to be resolved and proven beneficial for the government.
Still, the Football Association of Indonesia (PSSI) has partnered...
... with Genius Sports specifically in regards to sportsbetting. This move is expected to bring about more successful measures to prevent and fight match fixing practices, particularly common for unregulated interactive gambling markets as Indonesia.
Licensing

Despite their lax attitude towards enforcing these laws on the players...
... there has been some minimal amount of effort to block foreign sites on an ISP level.
These attempts haven't really gone so well, and they've done virtually nothing to stop people from gambling. What these attempts do show, however, is that Indonesia's government is in no way, shape or form interested in starting a licensing process for online gambling at this point in time.
Along these lines, we don't recommend that players expect any type of licensing for any type of gambling there for a very long time.
Player Protections
Since anyone who gambles online is technically breaking the law in Indonesia, there are no protections of any kind for the players.
While we can't recommend breaking the law in this country...
... players who are determined to play in spite of the legal status here should make sure they do so with sites that have a good history of taking care of their players and of being reliable with cash outs through a range of banking methods.
This will minimize any issues of not being able to receive your withdrawals if you run up a sizable win.
Related Reading
Indonesia is an archipelago off of the coast of southern Asia. It consists of more than 17,000 islands and 37 provinces. Parts of it are close to the northern shores of Australia, and others are close to the southern shores of Malaysia, Vietnam and the Philippines. Overview Because Indonesia is broken up into so many different islands (over 17,000 total), and because there are 37 provinces there, enforcement of any type of Internet-based law is difficult at best. Online gambling is illegal in...