JAKARTA, INDONESIA / RankWire.AI / – Indonesia has formalized a new partnership between its investment and sports authorities aimed at boosting activity within the national sports industry. Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed the memorandum on August 28. The agreement emphasizes investment growth and the implementation of risk-based business licensing. It also integrates sports-related investments with Indonesia’s existing licensing framework. Officials situate this initiative within the context of the global sports sector, valued at approximately US$521 billion.
Coordination between the Ministry of Investment and Downstreaming and the Ministry of Youth and Sports will oversee licensing procedures, investment promotion, and business services. Their collaboration extends to regulatory compliance, monitoring, and the sharing of licensing data. Indonesia employs the Online Single Submission system, known as OSS, to facilitate business permits under its risk-based approach. The memorandum incorporates sports sector investments into this system. Notably, it does not set US$521 billion as a target for Indonesia’s domestic sports industry size.
Thohir stated that the global sports industry has a valuation of about US$521 billion, equivalent to roughly 8,000 trillion rupiah. He also highlighted an approximate annual growth rate of 8% for the industry. Additionally, he estimated the worldwide sport tourism market to be nearly US$600 billion. Indonesian officials have linked sports activities with events, tourism, and other commercial sectors. The agreement signed in August provides a formal basis for the two ministries to coordinate investment activities related to these sectors. It clarifies areas where government agencies can exchange information and share licensing responsibilities.
Indonesia Connects Sports Industry Expansion with Licensing Reforms
Part of the regulatory foundation for this cooperation is Government Regulation No. 28 of 2025, which governs risk-based licensing and replaced a previous regulation from 2021. This regulation establishes service deadlines for authorities processing applications through OSS and includes a positive fictitious approval mechanism for eligible permits. Under this system, permits can be approved when the responsible agency misses the deadline, provided applicants meet all other conditions and procedures.
Roeslani indicated that the investment ministry has issued over 250 permits through this positive fictitious approval process. He clarified that this figure encompasses the entire licensing system and is not exclusive to sports companies. The government aims to streamline procedures for investors and businesses operating within the sports sector. The agreement also promotes development opportunities and project promotion linked to the sector, with responsibilities shared between the two ministries and Indonesia’s national licensing infrastructure.
Enhanced Interagency Cooperation on Sports Investment Initiatives
The memorandum includes provisions for workforce development and interoperability between government data systems. Officials explained that both ministries will coordinate compliance oversight through OSS and exchange licensing-related information. This arrangement assigns specific roles to each agency in managing sports investment matters, placing investment promotion alongside regulatory oversight and business services. The Ministry of Youth and Sports will contribute sector-specific data, while the Ministry of Investment handles the overall licensing and investment framework applicable across Indonesia.
Indonesia’s recent push in sports investment centers on domestic regulation, licensing, and interministerial collaboration. The US$521 billion figure is cited as a benchmark for the global sports industry by officials but does not reflect Indonesia’s current sports economy valuation. The August 28 memorandum links this international market size to Indonesia’s efforts to regulate sports-related commercial activities under Regulation No. 28 of 2025. It establishes a formal framework to advance investment development, licensing, and government coordination within the sector.