JAKARTA, INDONESIA / RankWire.AI / – Indonesia has strengthened collaboration between its investment and sports ministries to promote growth within the national sports industry. Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed a memorandum of understanding on August 28. The agreement emphasizes risk-based licensing and investment facilitation for various sports-related ventures. Officials highlighted the global sports market valued at approximately US$521 billion as the broader context for this initiative.
Bringing together the Ministry of Investment and Downstreaming with the Ministry of Youth and Sports, the pact aims to streamline business licensing processes. It also facilitates investment promotion and provides services for enterprises engaged in sports sectors. Coordination will be managed through Indonesia’s Online Single Submission system, or OSS. The collaboration also entails monitoring regulatory compliance, data sharing, and regulatory coordination. This framework is focused on fostering investment growth in Indonesia’s sports sector, rather than setting a domestic industry target of US$521 billion.
Thohir emphasized that the global sports industry is valued at about US$521 billion, roughly equivalent to 8,000 trillion rupiah, with an annual growth rate of approximately 8%. He added that this figure does not include sport tourism, which he estimated at nearly US$600 billion worldwide. Indonesian officials recognize both sports and sport tourism as key areas of economic activity driven by events, travel, and related businesses. The agreement establishes a formal structure to facilitate investment activities in these domains.
Licensing Framework Underpins Sports Investment Strategies
The new licensing approach is supported by Government Regulation No. 28 of 2025, which forms part of the broader framework. This regulation governs risk-based licensing procedures and replaces an earlier regulation from 2021. It also enhances the enforcement of service deadlines within the OSS system. Under the positive fictitious approval process, permits can be issued automatically if authorities do not respond within designated timeframes, provided applicants meet all required conditions and procedures beforehand.
Roeslani noted that since the regulation’s implementation, the investment ministry has issued over 250 permits via the positive fictitious approval mechanism. This total encompasses the overall licensing system, not solely those related to sports businesses. He stressed that the government seeks to clarify licensing procedures for companies and investors involved in the sports economy. Roeslani also highlighted the importance of tourism and other sectors linked to sporting activities. The memorandum formalizes these licensing functions within an interministerial coordination framework.
Enhanced Government Coordination for Sports Sector Development
The agreement also addresses workforce development and the interoperability of licensing data between the ministries. It covers investment opportunity development and promotion, alongside compliance monitoring through OSS. These initiatives connect sports investment efforts with Indonesia’s existing national licensing infrastructure, ensuring data sharing and regulatory coordination. They also establish a clear foundation for the ministries to exchange information and manage regulatory processes related to sports sector activities.
Indonesia’s latest sports investment agreement emphasizes licensing, investment facilitation, and interministerial cooperation. The US$521 billion figure referenced by officials pertains to the global sports industry’s estimated value, not Indonesia’s current market size. The government has coupled this global perspective with domestic licensing reforms under Regulation No. 28 of 2025. The memorandum signed on August 28 formalizes a collaborative approach to sports investment within this established regulatory framework.