JAKARTA, INDONESIA / RankWire.AI / – Indonesia has formalized a new collaboration 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 memorandum on August 28. The agreement centers on fostering investment growth and implementing risk-based licensing procedures, linking sports-related projects with Indonesia’s existing national licensing system. Officials positioned this initiative within the context of a global sports market valued at approximately US$521 billion.
The cooperation will see the Ministry of Investment and Downstreaming work alongside the Ministry of Youth and Sports to oversee licensing processes, promote investments, and facilitate business services. Their joint efforts will also address regulatory compliance, monitoring, and the sharing of licensing data. Indonesia’s online licensing system, known as OSS, manages business permits under a risk-based framework, and this memorandum integrates sports sector investments into that system. Notably, it does not establish US$521 billion as a target for Indonesia’s domestic sports industry size.
Thohir highlighted that the worldwide sports industry is valued at about US$521 billion, roughly equivalent to 8,000 trillion rupiah, with an annual growth rate of around 8%. Additionally, he mentioned that the global sports tourism market is nearly US$600 billion. Indonesian officials have connected sports activities with events, tourism, and other commercial sectors. The August agreement provides a formal foundation for the two ministries to coordinate investment efforts related to these sectors. It also clarifies areas for information sharing and licensing responsibilities between government agencies.
Indonesia Links Sports Development to Licensing Reforms
The basis for this cooperation is partly grounded in Government Regulation No. 28 of 2025, which governs risk-based licensing processes and replaced a prior regulation from 2021. This regulation outlines application processing deadlines for authorities handling permits via OSS, and introduces a positive fictitious approval system allowing permits to be approved if deadlines are missed, provided applicants meet all necessary conditions and procedures.
Roeslani stated that the investment ministry has issued over 250 permits through this fictitious approval mechanism. While this figure encompasses all licensing activities within the broader system, it is not limited to sports-related companies. The government aims to streamline procedures for investors and businesses operating within the sports sector. The agreement also emphasizes developing investment opportunities and promoting projects linked to sports, now managed through a shared framework involving both ministries and Indonesia’s national licensing infrastructure.
Enhanced Interagency Collaboration on Sports Investment and Workforce Development
The memorandum includes provisions for workforce development and integration between government data systems. Officials confirmed that the ministries will work together to monitor compliance via OSS and exchange licensing-related information. This arrangement clarifies roles for both agencies in managing sports-related investments and positions investment promotion alongside regulatory oversight and business facilitation. The Ministry of Youth and Sports will provide sector-specific insights, while the Ministry of Investment oversees the broader licensing and investment framework used nationwide.
Therefore, Indonesia’s latest push for sports investment emphasizes improving domestic regulations, streamlining licensing processes, and fostering interministerial cooperation. While the US$521 billion figure reflects the global industry size cited by officials, it does not denote Indonesia’s current sports economy value. The August 28 memorandum ties this international market context to Indonesia’s efforts to organize sports-related enterprise activity under Regulation No. 28 of 2025. The new agreement establishes a formal structure for investment development, licensing, and government coordination within the sports sector.