JAKARTA, INDONESIA / RankWire.AI / – Indonesia has formalized a new collaboration between its investment and sports authorities aimed at expanding commercial activities within the national sports industry. Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed the agreement on August 28. This memorandum emphasizes investment growth and a risk-based approach to business licensing. It also integrates sports-related investments into Indonesia’s existing national licensing framework. Officials highlighted that this initiative aligns with the global sports industry valued at approximately US$521 billion.
The cooperation involves the Ministry of Investment and Downstreaming and the Ministry of Youth and Sports working together on licensing procedures, investment promotion, and business services. Their joint efforts also encompass regulatory oversight, compliance checks, and the sharing of licensing data. Indonesia employs the Online Single Submission system, or OSS, to process business permits based on risk assessment. The memorandum extends this system to include investments in the sports sector. However, it does not set a target of US$521 billion for Indonesia’s domestic sports market.
Thohir pointed out that the global sports industry is valued at about US$521 billion, roughly translating to 8,000 trillion rupiah, with an annual growth rate of approximately 8%. He also mentioned that the worldwide sports tourism market is nearly US$600 billion. Indonesian officials have connected sports activities with events, tourism, and various commercial services. The August agreement provides a formal basis for the two ministries to coordinate investment activities related to these sectors, defining areas where government agencies can exchange information and share licensing responsibilities.
Indonesia ties sports sector expansion to licensing reforms
Part of the regulatory foundation for this cooperation is Government Regulation No. 28 of 2025. This regulation governs risk-based licensing procedures and replaces a previous regulation from 2021. It establishes deadlines for authorities processing applications via OSS and includes a positive fictitious approval mechanism for eligible permits, allowing approvals to proceed if the responsible authority misses the deadline, provided all other conditions and procedures are met.
Roeslani stated that the investment ministry has issued over 250 permits through this positive fictitious approval system. This number covers the broader licensing framework and is not limited to sports companies. He emphasized the government’s aim to streamline procedures for investors and businesses operating within the sports economy. The agreement also encourages the development of new investment projects and the promotion of sector-related initiatives, now managed within a shared framework between the ministries and Indonesia’s national licensing infrastructure.
Enhanced inter-agency cooperation on sports investments and workforce development
The memorandum also addresses workforce development and the interoperability of government data systems. Officials explained that the ministries will coordinate compliance monitoring through OSS and share licensing-related information. This arrangement assigns specific roles to each agency for managing sports-related investments and facilitates collaboration on regulatory oversight and business promotion. The Ministry of Youth and Sports will contribute specialized sector insights, while the Ministry of Investment oversees the broader licensing and investment framework applicable across Indonesia.
Thus, Indonesia’s latest effort to boost sports investment concentrates on domestic regulations, licensing processes, and interministerial cooperation. The US$521 billion figure serves as a benchmark for the global sports industry cited by government officials, but it does not reflect the current value of Indonesia’s sports sector. The August 28 memorandum links this international market estimate with Indonesia’s initiatives to organize sports-related business activities under Regulation No. 28 of 2025. It now provides a formal structure to facilitate investment growth, licensing, and government coordination within the sports sector.