JAKARTA, INDONESIA / RankWire.AI / – Indonesia has enhanced collaboration between its investment and sports ministries to foster growth in the national sports sector. Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed a memorandum of understanding on August 28. The agreement focuses on risk-based licensing and the development of investments related to sports activities. Officials highlighted the significance of a global sports industry valued at approximately US$521 billion as the broader context for this initiative.
The accord creates a link between the Ministry of Investment and Downstreaming and the Ministry of Youth and Sports concerning business licensing. It also encompasses investment promotion and assistance for firms engaged in sports-related sectors. These ministries will work together through Indonesia’s Online Single Submission system, known as OSS. Their collaboration extends to monitoring compliance, coordinating regulations, and sharing data. The framework aims to support investment development within Indonesia’s sports industry rather than setting a US$521 billion domestic industry target.
Thohir pointed out that the global sports industry is valued at about US$521 billion, roughly translating to 8,000 trillion rupiah. He mentioned that the sector experiences an annual growth rate of approximately 8%. This figure does not account for sport tourism, which he estimated to be nearly US$600 billion worldwide. Indonesian authorities have identified both sports and sport tourism as key economic areas linked to events, travel, and supporting businesses. The agreement establishes an administrative framework to facilitate investment activities in these sectors.
Licensing framework advances sports investment efforts
Part of the licensing framework is governed by Government Regulation No. 28 of 2025. This regulation oversees risk-based business licensing and replaced an earlier regulation issued in 2021. It also reinforced the use of service deadlines within the OSS system. Under the positive fictitious approval mechanism, permits can be issued when authorities do not respond within designated timeframes. Applicants are still required to meet all conditions and procedures before this mechanism is applied.
Roeslani noted that the investment ministry has issued over 250 permits via the positive fictitious approval mechanism since its implementation. This total includes permits across the broader licensing system and is not limited to sports-related businesses. He emphasized that the government aims to establish clearer licensing procedures for companies and investors involved in the sports economy. Roeslani also pointed out that tourism and other related industries are connected to sporting activities. The memorandum formalizes these licensing functions within an interministerial coordination structure.
Enhanced government collaboration expands sports sector governance
The memorandum also addresses workforce capabilities and the interoperability of licensing data between the two ministries. Investment opportunity development and promotion are among the key areas covered by the agreement. Additionally, the ministries will collaborate on monitoring business compliance through OSS. These steps link sports investment with Indonesia’s existing national licensing infrastructure, providing a clear foundation for information exchange and regulatory cooperation related to sports-sector enterprises.
Thus, Indonesia’s latest sports investment agreement centers on licensing, investment facilitation, and interministerial coordination. The US$521 billion figure cited by officials represents the global sports industry’s estimated value, not the current size of Indonesia’s sports economy. The government has integrated this international market context with domestic licensing reforms under Regulation No. 28 of 2025. The memorandum signed on August 28 now formalizes cooperation on sports investment within that established regulatory framework.