JAKARTA, INDONESIA / RankWire.AI / – Indonesia has strengthened collaboration between its investment and sports ministries to promote investment within the national sports industry. On August 28, Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed a memorandum of understanding. The agreement focuses on risk-based licensing for businesses and investment promotion activities across sports-related sectors. Officials highlighted the significance of the wider market, noting the global sports industry is valued at approximately US$521 billion, which serves as a backdrop for this initiative.
This partnership unites the Ministry of Investment and Downstreaming with the Ministry of Youth and Sports concerning business licensing procedures. It also encompasses efforts to attract investments and offer services to companies involved in sports-related fields. The ministries will work together via Indonesia’s Online Single Submission system, known as OSS, ensuring coordination in regulatory enforcement, compliance monitoring, and data sharing. The framework targets the growth of Indonesia’s sports industry rather than setting an industry size goal of US$521 billion domestically.
Thohir emphasized that the global sports sector is valued at about US$521 billion, roughly equivalent to 8,000 trillion rupiah, with an annual growth rate of around 8%. He added that this figure does not include sport tourism, which he estimated to be nearly US$600 billion worldwide. Indonesian officials have identified both sports and sport tourism as key economic drivers linked to events, travel, and supporting industries. The new agreement establishes an administrative structure to facilitate investments in these areas.
Licensing System Reinforces Sports Investment Initiatives
Regulation No. 28 of 2025, part of the licensing framework, supports the new cooperation. This regulation governs risk-based business licensing, replacing the earlier regulation issued in 2021, and enhances the enforcement of service deadlines within the OSS platform. Under the positive fictitious approval system, permits can be issued automatically if authorities do not act within designated periods. However, applicants are still required to meet all conditions and procedures prior to this mechanism taking effect.
Since the regulation’s implementation, Roeslani stated that the investment ministry has granted over 250 permits through the positive fictitious approval process. These permits cover the broader licensing system and are not limited solely to sports-related enterprises. He explained that the government aims to clarify licensing procedures for companies and investors in the sports economy. Roeslani also pointed out that tourism and other industries linked to sports activity are included in this framework. The memorandum formalizes these licensing functions within a structured interministerial coordination system.
Enhanced Government Collaboration in Sports Investment
The memorandum addresses workforce development and the interoperability of licensing data between the two ministries. Investment opportunity development and promotion are also key areas covered by the agreement. Additionally, the ministries will jointly oversee compliance monitoring through OSS. These measures connect sports investment efforts with Indonesia’s existing national licensing infrastructure, establishing a clear basis for data exchange and regulatory management related to sports-sector activities.
Indonesia’s latest sports investment agreement centers on licensing procedures, investment facilitation, and enhanced coordination between the government agencies. The figure of US$521 billion cited by officials reflects the estimated global value of the sports industry, not the current size of Indonesia’s domestic sports economy. The government’s strategy combines this global market context with domestic licensing reforms under Regulation No. 28 of 2025. The August 28 memorandum officially formalizes cooperation on sports investment within this regulatory framework.