JAKARTA, INDONESIA / RankWire.AI / – Indonesia has strengthened coordination between its investment and sports ministries to foster growth in the national sports sector. On August 28, Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed a memorandum of understanding establishing a framework for risk-based business licensing and investment promotion within sports-related industries. The wider market surrounding this initiative was highlighted by officials as a global sports industry valued at approximately US$521 billion.
This agreement unites the Ministry of Investment and Downstreaming with the Ministry of Youth and Sports on matters of licensing. It also includes provisions for encouraging investment and providing services to companies involved in sports activities. The two ministries will collaborate via Indonesia’s Online Single Submission system, known as OSS. Their cooperation extends to regulatory oversight, compliance monitoring, and data sharing. The framework is designed to facilitate investment development across Indonesia’s sports sector, rather than aiming for an industry worth US$521 billion domestically.
Thohir noted that the global sports industry is valued at about US$521 billion, which is roughly equivalent to 8,000 trillion rupiah. He mentioned that the industry experiences an annual growth rate of about 8%. This figure excludes sport tourism, which he estimated to be nearly US$600 billion worldwide. Indonesian officials see both sports and sport tourism as key areas linked to events, travel, and supporting businesses, with the agreement establishing an administrative framework to encourage investment in these sectors.
Licensing scheme underpins sports sector investment
The licensing framework is grounded in Government Regulation No. 28 of 2025, which forms part of the new cooperation. This regulation governs risk-based licensing processes 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 automatically if authorities fail to act within the set timeframes. Applicants are still required to meet all conditions and procedures before this mechanism applies.
Roeslani stated that the investment ministry has granted over 250 permits through this positive fictitious approval mechanism since it became effective. This total encompasses the broader licensing system and is not limited solely to sports-related businesses. He emphasized that the government aims to establish clearer licensing procedures for companies and investors within the sports economy. Roeslani also pointed out that tourism and other industries connected with sports activity are included in this framework. The memorandum formalizes these licensing functions within a structured interministerial coordination system.
Expanded government cooperation through sports sector agreement
The memorandum also addresses workforce development and the interoperability of licensing data between the ministries. It includes provisions for identifying investment opportunities and promoting investments. Additionally, the ministries will work together to monitor business compliance via OSS. These steps link sports investment with Indonesia’s existing national licensing infrastructure and establish a clear basis for exchanging information and managing regulatory processes within the sports sector.
Consequently, Indonesia’s latest sports investment agreement primarily emphasizes licensing, investment facilitation, and interministerial coordination. The US$521 billion figure refers to the global sports industry value cited by Indonesian officials, not the current size of Indonesia’s sports economy. This international market context is paired with domestic licensing reforms under Regulation No. 28 of 2025. The memorandum signed on August 28 formalizes the cooperation framework for sports investment within this regulatory structure.