JAKARTA, INDONESIA / RankWire.AI / – Indonesia has strengthened collaboration between its investment and sports ministries to promote growth in the national sports industry. On August 28, Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir formalized their partnership with a memorandum of understanding. This agreement aims to streamline risk-based business licensing and support investment expansion across various sports-related activities. Officials highlighted that the global sports sector is valued at approximately US$521 billion, framing the wider market for this initiative.
The accord unites the Ministry of Investment and Downstreaming with the Ministry of Youth and Sports around issues of business licensing, investment promotion, and service facilitation for companies involved in sports sectors. These ministries will operate together through Indonesia’s Online Single Submission system, known as OSS, overseeing compliance, regulatory coordination, and data exchange. This framework focuses on fostering investment growth within Indonesia’s sports industry rather than setting a target for a US$521 billion domestic market.
Thohir mentioned that the global sports market is valued at about US$521 billion, roughly equivalent to 8,000 trillion rupiah. He noted the industry’s annual growth rate of around 8%. This figure excludes sport tourism, which he estimates to be nearly US$600 billion worldwide. Indonesian officials see both sports and sport tourism as vital economic sectors linked to events, travel, and supporting industries. The memorandum establishes an administrative structure to facilitate investment activities within these areas.
Licensing framework enhances sports investment initiatives
The basis of the new cooperation includes Government Regulation No. 28 of 2025, forming part of the licensing structure. This regulation governs risk-based licensing procedures and replaces the regulation introduced in 2021. It also reinforces the implementation of service deadlines within the OSS system. Under the positive fictitious approval process, permits can be granted automatically if authorities do not respond within set timeframes, provided applicants meet all necessary conditions and procedures beforehand.
Roeslani stated that the investment ministry has issued over 250 permits using the positive fictitious approval mechanism since it was introduced. These permits encompass the broader licensing system and are not restricted to sports-related businesses. He emphasized the government’s aim to clarify licensing procedures for companies and investors engaged in the sports economy. Roeslani also pointed out that tourism and other sectors connected to sporting activities are part of this approach. The memorandum formalizes these licensing functions within an interministerial coordination framework.
Enhanced government collaboration extends to sports workforce and data sharing
The memorandum also addresses workforce capacity building and the interoperability of licensing data between both ministries. It includes provisions for developing investment opportunities and promoting investments. The ministries will jointly oversee compliance monitoring through OSS, linking sports investment activities with Indonesia’s existing licensing infrastructure. These measures establish a clear basis for data exchange and regulatory handling related to sports sector business activities.
Indonesia’s latest sports investment agreement emphasizes licensing, investment facilitation, and interministerial coordination. The US$521 billion figure reflects the global sports industry’s estimated value cited by Indonesian officials. It does not indicate the current size of Indonesia’s own sports economy. The government has integrated this global market perspective with domestic licensing reforms outlined in Regulation No. 28 of 2025. The August 28 memorandum thus formalizes cooperation within that regulatory framework to advance sports investment.