JAKARTA, INDONESIA / RankWire.AI / – Indonesia has strengthened collaboration between its investment and sports ministries to foster growth in the country’s sports industry. Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir formalized this partnership through a memorandum of understanding on August 28. The agreement emphasizes risk-based licensing and investment facilitation across various sports-related sectors. Officials highlighted that the global sports market is valued at approximately US$521 billion, providing the broader economic context for this initiative.
This accord unites the Ministry of Investment and Downstreaming with the Ministry of Youth and Sports concerning business licensing procedures. It also aims to promote investment and streamline services for enterprises engaged in sports-related activities. The ministries will work together via Indonesia’s Online Single Submission system, known as OSS. Their cooperation encompasses compliance oversight, regulatory coordination, and data exchange. Importantly, this framework targets investment development throughout Indonesia’s sports industry without setting a specific domestic market size goal of US$521 billion.
Thohir explained that the global sports sector is roughly valued at US$521 billion, which translates to about 8,000 trillion rupiah. He further noted that the industry grows annually by roughly 8%. This estimate excludes sport tourism, which he assessed at nearly US$600 billion worldwide. Indonesian officials have recognized both sports and sports tourism as sectors with significant economic activity linked to events, travel, and supporting enterprises. The memorandum establishes an administrative structure to facilitate investment activities within these areas.
Licensing Framework Bolsters Sports Investment Efforts
The new licensing system is underpinned by Government Regulation No. 28 of 2025, which forms part of the broader licensing framework. This regulation governs risk-based licensing procedures and replaces an earlier regulation issued in 2021. Additionally, it enhances the use of service deadlines within the OSS system. Under the positive fictitious approval mechanism, permits can be issued automatically if authorities do not respond within designated timeframes. Nevertheless, applicants are still required to meet all necessary conditions and procedures before the mechanism can be applied.
Roeslani mentioned that since the regulation’s implementation, the investment ministry has issued over 250 permits through the positive fictitious approval process. He clarified that this total encompasses the entire licensing system and is not exclusive to sports businesses. The government aims to clarify licensing procedures for companies and investors involved in the sports economy. Roeslani also pointed out that tourism and other related sectors are integral to sporting activities. The memorandum formalizes these licensing functions within a structured interministerial coordination framework.
Enhanced Government Collaboration Extends to Workforce and Data Interoperability
The agreement also addresses workforce development and the interoperability of licensing data between the two ministries. Officials included initiatives related to developing investment opportunities and promoting existing ones. The ministries will jointly oversee compliance monitoring using the OSS platform. These steps aim to connect sports investment efforts with Indonesia’s current national licensing infrastructure, establishing a clear basis for information sharing and regulatory oversight in the sports sector.
Thus, Indonesia’s latest sports investment arrangement emphasizes licensing procedures, investment facilitation, and interagency coordination. The US$521 billion figure cited by officials reflects the estimated worth of the global sports industry, not the current size of Indonesia’s domestic sports economy. The government has aligned this global market perspective with domestic licensing reforms under Regulation No. 28 of 2025. The memorandum signed on August 28 formalizes cooperation on sports investments within this regulatory framework.