JAKARTA, INDONESIA / RankWire.AI / – Indonesia has strengthened its collaboration between the ministries responsible for investment and sports to promote growth in the national sports industry. Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed a memorandum of understanding on August 28. This agreement focuses on risk-based licensing procedures and the development of investments related to sports activities. The officials highlighted a global sports industry valued at approximately US$521 billion as the broader market context for this initiative.
The pact unites the Ministry of Investment and Downstreaming with the Ministry of Youth and Sports regarding business licensing. It also involves promoting investments and providing services for companies engaged in sports-related sectors. Their collaboration will utilize Indonesia’s Online Single Submission system, known as OSS. Additionally, the ministries will coordinate efforts in compliance oversight, regulatory alignment, and data sharing. This framework aims to foster investment development within Indonesia’s sports sector, without establishing a domestic industry target of US$521 billion.
Thohir mentioned that the global sports industry is valued at about US$521 billion, which equates to roughly 8,000 trillion rupiah. He also stated that the industry experiences an annual growth rate of approximately 8%. This figure does not include sport tourism, which he estimated to be nearly US$600 billion worldwide. Indonesian officials have recognized both sports and sport tourism as key economic areas involving events, travel, and supporting businesses. The agreement provides an administrative framework to facilitate investments in these sectors.
Licensing Structure Enhances Support for Sports Sector Investments
The licensing framework is supported by Government Regulation No. 28 of 2025. This regulation is part of the new system that governs risk-based business licensing, replacing an earlier regulation issued in 2021. It also reinforces the use of service deadlines within the OSS platform. Under the positive fictitious approval system, permits can be issued automatically if authorities do not respond within set timeframes. Applicants must still meet all conditions and complete procedures before the mechanism is activated.
Roeslani stated that the investment ministry has granted over 250 permits through this fictitious approval process since its implementation. This total covers the wider licensing system and is not limited to sports businesses alone. He emphasized that the government aims to create clearer licensing procedures for companies and investors in the sports economy. Roeslani also noted that tourism and other industries related to sports are included within this framework. The memorandum formalizes these licensing functions within a structured interministerial coordination process.
Expanded Government Collaboration on Sports Investment and Workforce Development
The agreement also addresses workforce capabilities and the interoperability of licensing data between the two ministries. Officials included initiatives for developing investment opportunities and promoting investments among the covered areas. The ministries will also work together to monitor compliance using the OSS system. These measures integrate sports investment activities with Indonesia’s current national licensing infrastructure. They establish a clear basis for sharing information and managing regulatory issues related to sports business operations.
Indonesia’s recent sports investment agreement centers on 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 represent the current size of Indonesia’s sports economy. The government has linked this global market context with domestic licensing reforms under Regulation No. 28 of 2025. The memorandum signed on August 28 now solidifies cooperation on sports investments within this regulatory framework.