JAKARTA, INDONESIA / RankWire.AI / – Indonesia has enhanced collaboration between its investment and sports ministries to foster growth in the national sports industry. Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir formalized their partnership through a memorandum of understanding signed on August 28. This agreement encompasses risk-based licensing procedures for businesses and the development of investments within the sports sector. Officials highlighted the broader market potential, citing the global sports industry’s value at approximately US$521 billion.
The memorandum unites the Ministry of Investment and Downstreaming with the Ministry of Youth and Sports regarding business licensing. It also aims to promote investment and provide services for enterprises engaged in sports-related activities. These ministries will coordinate via Indonesia’s Online Single Submission (OSS) system. Their collaboration involves monitoring regulatory compliance, sharing data, and ensuring consistent regulation. This framework emphasizes investment growth within Indonesia’s sports industry but does not set an explicit target of US$521 billion for the domestic market.
Thohir noted that the global sports sector is valued at about US$521 billion, roughly equivalent to 8,000 trillion rupiah, with an annual growth rate of approximately 8%. This figure excludes sport tourism, which he estimated globally at nearly US$600 billion. Indonesian officials have identified both sports and sport tourism as sectors with significant economic activity driven by events, travel, and related businesses. The agreement establishes an administrative structure to facilitate investments in these areas.
Licensing framework advances sports investment initiatives
The licensing system supporting this initiative is underpinned by Government Regulation No. 28 of 2025. This regulation governs risk-based licensing and replaces the previous regulation issued in 2021. It also enhances the enforcement of service deadlines within the OSS platform. Under the positive fictitious approval mechanism, permits may be issued automatically if authorities fail to act within designated timeframes. Nonetheless, applicants must meet all stipulated conditions and procedures before the mechanism is activated.
Roeslani explained that the investment ministry has issued over 250 permits via the positive fictitious approval process since its implementation. These permits span the entire licensing system, not solely those for sports enterprises. He emphasized that the government aims to clarify licensing procedures for companies and investors within the sports economy. Roeslani further pointed out that tourism and other related industries are also linked to sporting activities. The memorandum formalizes these licensing functions within an interministerial coordination framework.
Enhanced government cooperation on sports sector development
The memorandum also emphasizes workforce development and the interoperability of licensing data between the ministries. Investment opportunities and promotional efforts are among the key areas addressed. Additionally, both ministries will oversee compliance monitoring through the OSS system. These measures integrate sports investment activities with Indonesia’s existing licensing infrastructure, establishing a clear basis for data exchange and regulatory management related to sports business operations.
The latest sports investment agreement in Indonesia therefore focuses on licensing procedures, investment facilitation, and interagency coordination. While the US$521 billion figure refers to the estimated global value of the sports industry, it does not reflect the current size of Indonesia’s sports economy. The government has linked this global context to domestic licensing reforms introduced through Regulation No. 28 of 2025. The memorandum signed on August 28 formalizes the cooperation on sports investment within that regulatory framework.