JAKARTA, INDONESIA / RankWire.AI / – Indonesia has formalized a new partnership between its investment and sports authorities aimed at broadening commercial activities within the national sports industry. Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed the agreement on August 28. The memorandum emphasizes investment growth and the implementation of risk-based business licensing procedures. It also integrates sports-related investment initiatives into Indonesia’s existing national licensing system. Officials positioned this initiative within the context of a global sports industry valued at approximately US$521 billion.
The Ministry of Investment and Downstreaming together with the Ministry of Youth and Sports will oversee licensing processes, promote investments, and provide business services. Their collaboration also encompasses regulatory oversight, compliance monitoring, and the exchange of licensing data. Indonesia employs the Online Single Submission system, known as OSS, to process business permits under its risk-based framework. This memorandum incorporates sports-sector investments within that system. It does not, however, set a target of US$521 billion for the size of Indonesia’s domestic sports industry.
Thohir explained that the global sports market is valued at around US$521 billion, roughly equivalent to 8,000 trillion rupiah. He also highlighted that the sector experiences an annual growth rate of about 8%. Additionally, he mentioned that the worldwide sport tourism industry is valued at nearly US$600 billion. Indonesian officials have linked sports activities with events, tourism, and other commercial services. The agreement signed in August provides a formal foundation for the two ministries to coordinate investment activities related to these sectors. It also defines areas where government agencies can share licensing responsibilities and exchange information.
Indonesia Connects Sports Sector Expansion with Licensing Reforms
The regulatory basis for this cooperation is partly established by Government Regulation No. 28 of 2025. This regulation addresses risk-based business licensing and replaces a previous regulation from 2021. It establishes deadlines for authorities managing applications through OSS. The regulation also introduces a positive fictitious approval mechanism for eligible permits. Under this system, approval can be granted if the responsible authority fails to meet the deadline. Applicants must still comply with all conditions and procedures required for obtaining the license.
Roeslani noted that the investment ministry has issued over 250 permits via the positive fictitious approval system. This figure includes permits across the broader licensing system and is not limited solely to sports companies. He emphasized that the government aims to create clearer procedures for investors and businesses within the sports economy. The agreement also covers the development of new investment opportunities and the promotion of projects linked to the sports sector. These responsibilities are now managed within a shared framework involving both ministries and Indonesia’s national licensing infrastructure.
Enhanced Interministerial Coordination Aims to Boost Sports Investment
The agreement also emphasizes workforce development and interoperability among government data systems. Officials stated that the ministries will coordinate compliance monitoring through OSS and exchange relevant licensing information. This arrangement assigns specific roles to each agency for managing sports-related investment issues. It combines investment promotion activities with regulatory oversight and business support services. The Ministry of Youth and Sports will contribute sector-specific insights, while the investment ministry will oversee the broader licensing and investment framework applicable to businesses across Indonesia.
Thus, Indonesia’s latest initiative for sports investment primarily targets domestic regulation, licensing, and interministerial cooperation. The US$521 billion figure serves as a benchmark for the global sports industry cited by government officials. It does not reflect the current value of Indonesia’s sports economy. The memorandum signed on August 28 links this international market scale to Indonesia’s efforts to organize sports-related commercial activities under Regulation No. 28 of 2025. The agreement now establishes a formal structure to support investment development, licensing, and government coordination within the sector.