ABSTRACT Prostitution has long been stigmatized in socio-political discourse. The mounting empirical evidence shows that stigmatization is discursively attached to sex workers’ occupations. Although much prior research has addressed this phenomenon, little evidence reports to which extent prostitution practice is institutionally stigmatized from a developing state-and-social-sanctioned perspective in which this prostitution stigmatization is viewed as a fundamental cause of social inequality. This study examines to which extent the narratives embedded in policy documents, news articles, and ethnographic interview reports frame ideologies, assumptions, and biases that shape governmental responses to prostitution. Data from policy documents, news articles, and ethnographic interviews were analyzed with a critical narrative approach. Three emergent finding themes presented in this article include knowledge of religious norms shaping government policy and public opinions, the discourse of governmental power, and female sex workers as the main target of government policy. The implication of the present study is how governments and state and social actors mitigate the adverse effects of stigma and promote social justice and equality for sex workers in Indonesia and other developing countries.